For Immediate Release

October 2, 2003

Rose Institute Study Finds Riverside County Indian
Gaming Operations Contribute Nearly $2.4 Billion to Regional Economy

Tribal government gaming directly/indirectly responsible for $1.3 billion in wages and benefits, $1.1 billion in purchases in 2002

Claremont, CA - The Rose Institute of State and Local Government, Claremont McKenna College, released a comprehensive study on the current economic impact of Indian gaming in Riverside County, finding tribal government gaming operations were responsible for nearly $2.4 billion in combined direct and indirect economic activity in 2002.

The study found tribal governments located in Riverside County directly employed 10,170, and made wage, benefits and other payments of nearly $463.8 million. The tribes employed 9,201 Riverside County residents alone, paying $350.3 million in wages and benefits. Indirectly, tribal gaming operations created 44,506 additional jobs, which paid wages and benefits of $821 million.

Total goods and services purchased by tribal gaming operations directly and indirectly reached $332.6 million and $774 million, respectively, totaling over $1.1 billion.

The study also estimated that tribal government activities in Riverside County directly generated $124 million in federal and state income and payroll taxes, with an additional $220 million in payroll and income taxes from indirect economic activity. It is estimated that direct and indirect economic activity by the county's tribal gaming entities generated some $13 million and $23 million in state personal income taxes, respectively.

The indirect impact of the tribal governments' activities also produced $5 million in corporate taxes and $8 million in sales tax revenue in California. The tribes contribute another $42.3 million to the Special Distribution Fund and $8.3 million to the Revenue Sharing Trust Fund under the terms of the agreement.

"The study revealed that tribes are making significant contributions to local, state and federal tax rolls," said XX.

The study found that tribes purchased $332.6 million in goods and services from suppliers nationwide, while goods purchased from Riverside County-based suppliers exceeded $95 million alone.

The study also revealed that county tribes purchased nearly $125 million in goods from suppliers in Orange, Los Angeles, San Bernardino and San Diego counties, adding that cities throughout the county had directly benefited from the tribes' economy activity.

Tribes participating in the study included the Agua Caliente Band of Cahuilla Indians, the Cabazon Band of Mission Indians, Pechanga Band of Luiseño Indians, the Soboba Band of Luiseño Indians and the Twenty-Nine Palms Band of Mission Indians. These five tribes operate almost 80% of the gaming terminals in Riverside County. Data from these tribes was used to estimate the economic impact of the remaining tribes in the county.

The Rose Institute study analyzed the tribes' ongoing economic operations only. The study's estimates did not include one-time economic impacts of the tribes' construction activities. The majority of the economic impact of tribal governments comes from tribal gaming; however, tribal governments also operate a variety of other economic enterprises and continue to diversify their economic activities.

"It is clear that tribal governments in Riverside County have a significant economic impact on the state as well as local communities," XX added. "Tribal governments are not only among the largest employers in the county but they were one of the few businesses that actually created new jobs in 2002."

All figures presented in the study are based on the 2002 fiscal year. Several tribes completed casino expansions or resort construction during the year and others will begin similar expansions in the near future. It is also possible that other tribal governments will initiate or expand existing facilities. As a result, the economic impacts from gaming will continue to grow in the near future.

About the Rose Institute

The Rose Institute of State and Local Government is located at Claremont McKenna College in Claremont, California. The institute has specialized in fiscal analysis and statistical research for many years, having conducted studies in cities and regions throughout California. The institute is also known for its work in survey research, as well as demographic and regulatory studies.

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