In Wipfli’s tribal gaming outlook, casinos show resilience with improved profitability

What do tribal casinos project for the future? The ones we talked to showed strength and strategic thinking.

Wipfli’s annual research report into tribal gaming revealed notable resilience. Net profit margins for the casinos we surveyed improved from 25.94% to 26.12%, the first increase in three years. This improvement came despite average revenue declining approximately 1%.

Leaders from tribal casino operators all over the U.S. shared their financial performance, operational strategies and future priorities, which we aggregated and compared to data we’ve collected over the years to form our 27th annual Indian Gaming Cost of Doing Business Report. Sports betting expansion, technology investments and customer experience innovation were key themes.

Among the findings:

• Slot win per machine per day increased from $155 to $170, showing better floor management.
• Marketing expenses decreased to 7.19% of revenue, down from 7.38% in 2023.
• Urban casinos maintained strong performance with a 45% EBITDA margin compared to 31% for rural properties.
• Wage costs increased to 21.57% as casinos invested in employee benefits and competitive compensation.
• Sports betting continued steady expansion where legally permitted.
• Technology investments accelerated across cloud-based systems and customer management platforms.

“Tribal gaming showed remarkable operational discipline in 2024,” said Grant Eve , partner and tribal gaming practice leader for Wipfli. “While revenue faced headwinds from increased competition, casinos effectively managed costs and improved efficiency. The result was the first profit margin improvement we’ve seen in three years.”

Operating patterns varied significantly by location and size. Urban casinos continued to perform strongly while midsized and smaller operations faced greater pressure from competition and cost management challenges.

Tribal casinos also increased their technology investments. Cloud-based financial systems, customer relationship management platforms and gaming floor upgrades were common focus areas. While artificial intelligence applications are emerging, most implementations are in early stages rather than material revenue contributors.

“The industry’s financial fundamentals are solid,” Eve said. “Twenty-six cents of every revenue dollar is available to tribal governments. This performance highlights careful operational management in an environment where discretionary spending faces multiple competing alternatives.

Sports betting continued steady expansion where legally permitted, though it remains a relatively small portion of overall revenue. The growth in this segment shows the industry’s efforts to diversify revenue sources and attract new customer demographics.

“Tribal gaming enters 2025 from a position of financial strength,” Eve said. “Balance sheets remain exceptionally strong, and operators have proven they can adapt to competitive pressures while maintaining profitability. The focus now shifts to technology integration, customer experience innovation and strategic positioning for long-term success.”

Order the report now for more industry benchmarks and strategic guidance for 2025.

Media contact: Alicia O’Connell, alicia.oconnell@wipfli.com