CHART: The Extraordinary Rise Of Native American Casinos

When you think about gambling in America, the first thing that probably comes to mind is Las Vegas.

But Las Vegas currently represents just 10 percent of U.S. gaming industry revenue. This is according to a new report from Bank of America Merrill Lynch.

Regional commercial gaming accounts for another 47 percent of the industry.

The remaining 43 percent: Native American gaming.

The Native American gaming story is particularly extraordinary in that it has grown into a $27 billion business from almost nothing in just 20 years.

Here's a chart from a BAML:

Here's BAML on the industry:

Any which way you slice it, the U.S. casino industry has seen dramatic growth over the last 20 years. Over that time, commercial gaming revenues have grown at a +10% CAGR, from only $10 billion in 1992 to a peak of $37 billion in 2007 (see Chart 18). This dramatic growth has been driven by the combination of 1) the expansion of U.S. Native American gaming which makes up over 40% of the total industry but was virtually non-existent prior to 1990, 2) the expansion of U.S. commercial gaming to new states and jurisdictions, primarily in the Midwest and Mid-Atlantic, and 3) additional growth in Nevada and New Jersey driven by new casino-resort supply.

As you can see in the chart, gaming industry revenues dipped slightly in the wake of the financial crisis. However, those revenues have quickly come back.