The Cost of Doing Business

The Indian Gaming industry has grown rapidly over the past 19 years. Much of this growth has centered on casino expansion, acquiring additional or new equipment, buying out existing management contracts, and Tribal/National politics. There has been little time to focus on internal financial performance. Most casinos have been content making a profit and providing employment for tribal members and surrounding communities. Numerous questions have gone unanswered such as: How profitable should we be? How profitable can we be? What type of return on investment have we generated for tribal members? How leveraged are we? How much debt can we service? Often these questions get asked when there is a change of administration or the tribe is seeking additional funding from outside financing sources.

The Indian Gaming Cost of Doing Business Report is a valuable business management aid designed to help answer some of these questions. This report is designed to provide the guidelines and instructions needed to effectively use the report as a financial analysis and planning tool. Generating profits is not necessarily the only reason the casino exists, often tribal employment can be the motivating factor for opening a casino. However, when profit is the motive, the ultimate measure of your casino’s success will be measured in financial terms such as gross profit or departmental contribution margin, net profit, liquidity, solvency, return on investment and others. Your continued success in business depends on your ability to understand these key financial measures and how to apply them to your casino.

There are other sources of industry data available such as the Nevada Gaming Abstract, Dunn & Bradstreet, and information generated by state gaming agencies. However, this information often does not apply directly to Indian Gaming facilities or focuses more on the top line rather than the bottom line. This study applies directly to the financial performance of Indian gaming facilities.

JOSEPH EVE offers a wide variety of services to the gaming industry including casino audits, MICS compliance reviews, internal audits, contract controller services, custom seminars, business planning, forecasts and projections, and consulting services.

If you have additional questions about the content of this report, please contact us.

Table of Contents

 

• THE COST OF DOING BUSINESS
• REPORT PREPARATION METHODS
• ACCOUNT CLASSIFICATIONS
• REPORT LAYOUT
• INCOME STATEMENT INDICATORS
• BALANCE SHEET MANAGEMENT
• GLOSSARY OF FINANCIAL TERMS
• USING THE STATISTICAL TABLES
• BY YEAR - ALL VERSUS HIGH PROFIT
• BY REVENUE - YEAR 2006 ALL CASINOS
• BY REVENUE - YEAR 2006 HIGH PROFIT
• BY REGION - YEAR 2006 ALL CASINOS
• BY LOCATION - YEAR 2006 ALL CASINOS
• BY BUSINESS ORIENTATION - ALL CASINOS
• INCOME STATEMENT - ALL AND BY REVENUE
• INCOME STATEMENT - HIGH PROFIT BY REVENUE
• BALANCE SHEET - ALL CASINOS
• BALANCE SHEET - HIGH PROFIT

Click here to view sample data from 2002 (PDF).
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