Tribal casinos posted strong revenue growth in 2025, but rising operating costs continued to pressure profitability, according to Wipfli’s 28th Annual Indian Gaming Cost of Doing Business Report.
The annual study, based on responses from 113 tribal casinos across 18 states, found average casino revenue increased by $14 million, or 16%, from the previous year. At the same time, operating expenses consumed a larger share of revenue, rising from 73.59% to 74.50%. Average net profit margins declined from 26.12% to 24.50%.
Despite the margin compression, Wipfli said tribal gaming continues to outperform many sectors of the hospitality and entertainment industry. About 25 cents of every revenue dollar remains available to support tribal government programs, community services, infrastructure and economic development.
“Customer demand remains strong, yet rising costs continue to pressure margins,” said Grant Eve, partner and leader of Wipfli’s tribal gaming practice.
CDC Gaming will take a deeper look at the report and its implications for tribal casino operators in an Aug. 25 interview with Wipfli as part of its Focus on Wipfli series.
Wipfli said gaming revenue growth was supported by continued customer demand and slot machine performance. However, performance gaps widened between urban and rural casinos and among the industry’s strongest-performing properties. Balance sheets generally remained healthy, giving many operators room to continue investing in their properties and communities.
The report also found casino marketing investments becoming more efficient, aided by data analytics and emerging artificial intelligence capabilities.
Looking ahead, Wipfli flagged unregulated prediction markets alongside pressure on discretionary consumer spending and capital reinvestment decisions. Defending compact exclusivity, the firm said, remains as important to long-term returns as controlling costs.
Operators also face the challenge of adopting technology without diminishing the guest experience.
“Technology can help improve efficiency, but tribal gaming is fundamentally a people business,” Eve said, adding that successful properties are using automation for routine tasks while maintaining personal interactions with guests.
