MILWAUKEE, WI – Tribal casinos generated strong revenue growth in 2025, with average casino revenue increasing by $14 million, or 16%, year over year. However, rising operating costs and ongoing inflationary pressures limited profitability gains, according to Wipfli’s 28th Annual Indian Gaming Cost of Doing Business Report.
Based on survey responses from 113 tribal casinos across 18 states, the report found that average operating expense margins increased from 73.59% to 74.50% of revenue, contributing to a decline in average net profit margins from 26.12% to 24.50%.
Despite margin compression, tribal gaming operations continued to outperform many sectors of the hospitality and entertainment industry. The report found that approximately 25 cents of every revenue dollar remains available to support tribal government programs, community services, infrastructure investments, and economic development initiatives.
“Tribal gaming remains one of the strongest-performing sectors in hospitality and entertainment, but operators are facing a different challenge than they were a few years ago,” said Grant Eve, partner and leader of Wipfli’s tribal gaming practice. “Customer demand remains strong, yet rising costs continue to pressure margins. The operators that will thrive in the years ahead are those that actively manage expenses, invest strategically, and protect the competitive advantages that have made tribal gaming so successful.”
The report identified several key trends shaping tribal gaming performance. Gaming revenue continued to grow, driven by strong customer demand and slot machine performance, while rising operating costs put pressure on profitability despite higher revenues. Performance gaps widened between urban and rural properties and among top-performing casinos. Marketing investments became more efficient, aided by data analytics and emerging AI capabilities, while healthy balance sheets allowed many tribal casinos to continue reinvesting in their operations and communities.
The report also highlights several issues expected to influence the future of tribal gaming, including unregulated prediction markets, pressure on discretionary spending, strategic capital reinvestment decisions, and the ongoing importance of balancing technology investments with high-touch guest experiences.
“Technology can help improve efficiency, but tribal gaming is fundamentally a people business,” said Eve. “The most successful properties are finding ways to automate routine tasks while preserving the personal interactions that create memorable guest experiences and long-term customer loyalty.”
The report concludes that the tribal gaming industry remains fundamentally strong, supported by loyal customer bases, healthy balance sheets, and ongoing consumer demand. Properties that successfully manage expense growth, optimize gaming operations, defend compact exclusivity, and make targeted investments in guest experiences are expected to continue generating strong returns for their tribal nations.
