- Details
- By Chez Oxendine
- Gaming
Tribal casinos posted strong revenue gains in 2025, but rising operating costs cut into profit margins, according to Wipfli’s annual benchmarking report on the Indian gaming industry.
Among casinos that participated in both the 2024 and 2025 surveys, average revenue increased 14.8%. Slot and table-game performance also improved during the year. Wipfli cautioned that year-over-year comparisons may not reflect industrywide trends because the number of participating casinos changes.
The results tracked broader growth across the industry. Tribal gaming generated a record $46.2 billion in gross gaming revenue in fiscal 2025, up 5.3% from the previous year, according to the National Indian Gaming Commission. Seven of the agency’s eight regions reported revenue growth.
But Wipfli’s data showed that higher revenue did not translate into higher margins. The median net profit margin among casinos in its survey fell to 24.5% from 26.1% in the prior year, due to higher operating expenses. Wipfli pointed to broad inflation and higher depreciation cost as contributors to the margin pressure.
“While the industry is seeing revenue growth, it continues to face margin management challenges with discretionary income,” said Grant Eve, who leads Wipfli’s tribal gaming practice. “Tribal casino operators can't pass labor or operating cost increases directly to clients because it's discretionary spend.”
Wage costs were essentially flat as a percentage of revenue. Marketing and promotional spending fell to 6.8% of revenue from 7.2%, which Wipfli said may reflect better player tracking and early use of artificial intelligence to target spending.
“AI is becoming a major competitive advantage,” Eve told Tribal Business News. “Automation and technology investment will continue to drive better customer experiences.”
Balance sheets remained generally healthy despite the margin pressure. Liquidity declined and leverage increased, but the typical casinos still had $1.79 in current assets for every $1 in current liabilities.
The report also found substantial differences based on casino size and location. Urban casinos were more profitable than rural properties, while larger casinos generally reported stronger margins than small operations.
Wipfli, a Milwaukee-based accounting and consulting firm that works with tribal governments and enterprises, analyzed financial statements from 113 Native American casinos in 18 states for its 28th annual Indian Gaming Cost of Doing Business Report.
