Native American gaming venues were severely impacted by the nationwide closure brought on by the 2020 worldwide pandemic. Nevertheless, many industry insiders are optimistic about a rebound in the near future.

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The Rebound of Tribal Operators After COVID
On April 19, ICE 365 Digital Pub hosted a gathering focused on tribal gaming. A panel of industry specialists involved in tribal gaming deliberated on the difficulties faced by tribes and the route to recovery.

The following statements are extracted from the April 19 Digital Pub, a part of the ICE 365 Tribal Gaming Content Series, sponsored by Kambi.

Community Impact
One of the most significant effects of tribal gaming is its influence on the community, which is readily apparent.

The sector is more than just a commercial enterprise; it acts as a source of funding for Native American communities.

“It holds greater significance,” one participant remarked. “It has a more profound effect in the long run, so it has a purpose, rather than simply being gaming entertainment.

“When that coin is inserted into the machine, it goes somewhere, it does some good, it aids the tribal government and social services.”

Pub attendees also discussed the personal impact of tribal gaming, with one describing the industry as “life-changing.”

They stated, ‘I can discuss how it has aided me and my household — my mother, siblings, aunts, uncles, and kin. It truly elevated them from destitution.’

This feeling of togetherness makes the pandemic’s effect even more challenging. However, individuals clarified that tribal members are essential to the tribe’s return to normalcy, as their gaming operations and economic and personal interests in the region are linked.

A Positive Recovery and Faithfulness
As face coverings and physical distancing appear to be here for the long haul, there are worries that this could impact the customer experience at gambling establishments.

One individual argued forcefully that in this time of physical distancing, methods need to be discovered to connect with and engage patrons, providing an experience as similar as possible to what they could anticipate before the pandemic.

“I believe within the tribe, when you’re wearing masks, when you have partitions between you, you must cultivate that connection somehow to maintain that faithfulness. You desire those referrals and those recommendations.”

“You want individuals to depart and say, ‘I truly still felt that strong sense of community,’ so I think it almost becomes more significant.”

Safety procedures have an added advantage in terms of customer contentment. One individual observed that throughout the hospitality industry, customers spend money if they feel secure in the environment.”

Compulsory stay-at-home directives, coupled with the unconscious anticipation of reward that individuals have for organizations rigorously enforcing pandemic safety protocols, indicated that pandemic safety measures could result in increased earnings.

Nevertheless, participants believed that the potential difficulties associated with in-person gambling experiences had become inconsequential. Another participant stated that their tribe had utilized loyalty to motivate individuals to gamble at their casino prior to the pandemic: “When you travel to Las Vegas, you traverse California, and there are billboards all along the route that proclaim, ‘Why journey to Vegas? Turn around, you just passed another casino!’”

Concentrating on high-yield players and groups is a crucial method to obtain the much-needed income. One participant characterized it as the “top priority” for casinos resuming operations.

Tribal gaming operators have observed positive indications of recovery. With the majority of state casinos reopening (albeit with capacity restrictions), revenue is increasing. One tribal member alluded to the public’s yearning to socialize after being confined to their residences for a year.

“Our casino figures – they are flourishing,” they remarked. “You are aware of all those things we’ve been hearing about individuals being frustrated? People simply desire to venture out and spend money?

“It’s very genuine, particularly in Southern California. So hopefully, we can catch up with the rest of the globe.”

However, for others residing on Indian reservations, the transition is occurring at a slower pace.

Were witnessing a dramatic decrease in customer feedback gathering because indigenous communities simply can’t manage the cost,” remarked an individual engaged in data compilation. “And, to be frank, everyone has been inactive for an extended period.”

“Several of our indigenous communities haven’t even restarted operations. Some communities are still in a state of transition.”

The discussion then shifted to the new obstacles confronting tribal casinos. A critical factor is the ongoing surge in sports wagering.

“It’s difficult to disregard the wave of sports betting sweeping the nation,” observed a representative.

Whether sports betting occurs is a part of the dialogue, but where it takes place could influence whether tribal casinos thrive or falter in the post-pandemic period.

“My worry is that many sports betting enterprises aren’t genuinely interested in sports — it’s more about online gambling,” added the same participant. “Consider New Jersey; examine the data, it’s evident where the real revenue lies.”

Although online casinos may be a more profitable vertical, the Speakeasy expressed substantial concern about the potential proliferation of online casinos and their effect on tribal properties.

Profitability and future strategies

Certain indigenous groups running gambling operations have started actively exploring methods to guarantee that the growth of the gambling sector advantages their communities. They are not only forming alliances with other businesses or securing market access arrangements, but also actively investing in the development of their own offerings and services.

Nevertheless, participants were in complete agreement that investment is not simply about dispensing funds haphazardly. Indigenous groups must invest prudently to ensure a return on their investments.

However, with many casinos still operating below full capacity, it may take some time before a complete recovery is witnessed.

“I believe we are all in the same situation. We all desire the world to return to normalcy by the end of summer,” pondered one participant. “But tribes, like the rest of Las Vegas, are gradually bringing more facilities back online.”

Other forms of casino amenities, such as concerts and conventions, are still being tested to ensure they comply with COVID-19 safety protocols. This indicates that there is still a significant amount of uncertainty regarding the future. However, there is a general feeling of optimism about the industry’s prospects.

“The underlying principles of the casino industry remain very solid,” one participant emphasized. Moreover, H2 Gambling Capital forecasts that by 2025, over half of US casino revenue will originate from tribal properties.

Speakeasy concluded that the question is not whether tribal casinos will rebound, but when.

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