Tribal casino gaming was approved by Arizona voters in 2002. By the next year, 21 Arizona tribes signed a gaming compact with the state. The last tribe to be added was the Hopi, who signed in 2017.
This is how the gaming compact works: All tribes are required to contribute a portion of their revenue to the state but the tribes with the largest gaming presence are required to contribute more. One percent for the first $25 million, three percent for the next $50 million, and six percent for the next $25 million. Thereafter tribes contribute eight percent on every additional $100 million they earn through gaming. The contributions are calculated after operating costs and expenses are removed.
Gaming is big money in Arizona. According to the most recent annual report from the Department of Gaming, tribes collectively brought in $2.7 billion in 2022. The total contribution for the year amounted to $123 million, or about 4.5% of total revenue. Individual revenues of the tribes are held confidential by the compact.
Since gaming began in the state, tribal gaming has contributed nearly $2 billion to municipal and state coffers. Tribes contribute 12%, or $219 million to cities, towns, or counties of their choosing. The rest of the contributions are made to the Arizona Benefits Fund.
Most of what has been contributed has gone to education through the Instructional Improvement Fund, which has received over $900 million. The next largest benefactor is Trauma and Emergency Services. The balance goes to running the Arizona Department of Gaming, Wildlife Conservation, State Tourism, and Problem Gambling.
There are 24 casinos in Arizona operated under the tribal gaming pact that collectively operate almost 19,000 gaming devices. The largest is Desert Diamond in the West Valley with almost 1,500 machines. Casino Arizona is next with 1,400. This is followed by Vee Quiva, Talking Stick and Desert Diamond in Tucson. These five casinos are run by three different tribes.
