Tribal Contributions Fact Sheet
How Tribal Contributions Are Calculated
Under the Arizona Tribal-State Gaming Compact, Tribes that operate
casinos contribute one to eight percent of their Class III Net Win to
education, healthcare, and other programs that benefit Arizona
Class III Net Win is the difference between gaming wins and losses
before deducting casino operating costs. Contributions are
determined on a sliding scale based on the amount of the Tribe's
year-to-date Class III Net Win. Each Tribe contributes 1% for its
first $25 million; 3% of the next $50 million; 6% of the next $25
million; and 8% of the Class III Net Win in excess of $100 million.
How Tribal Contributions Are Reported and Audited
Each Tribe reports its Class III Net Win to the Arizona Department
of Gaming ("ADG") on a monthly and quarterly basis. ADG's Audit
Unit reviews and verifies the amounts to its accounting records.
The Unit also conducts an annual audit which includes, but is not
limited to, examining source documents, interviewing employees, and
observing processes related to the accounting of revenues.
In addition, an independent certified public accountant conducts an
annual audit of all financial statements and associated gaming revenues.
12% of a tribeís
total annual contribution is distributed by the tribe to the cities, towns
and counties of the tribe's choosing.
The money is for government services that
benefit the general public, including public safety, mitigation of
impacts of gaming, and promotion of commerce and economic development.
monies comprising the 12 % not so distributed by an Indian tribe are
deposited in the commerce and economic development commission local
communities fund established by Arizona Revised Statutes Section 41-1505.12 for grants to
cities, towns and counties. See Compact Section 12(d) and Arizona
Revised Statutes Section 5-601.02(H)(4).
The remaining 88%
of a tribe's total annual contribution goes to
the Arizona Benefits Fund on a quarterly basis pursuant to Arizona
Revised Statutes Section 5-601.02(H):
$8 million or 9%
of tribal contributions to the Arizona Benefits Fund, which ever is
greater, go towards the payment of ADG's regulatory and administrative costs.
2% to be used to
fund programs for the prevention and treatment of, and education
concerning, problem gaming
ADG disburses the
contributions in the Arizona Benefits Fund by this formula:
the Instructional Improvement Funds administered by the Department of
Education. Every school district receives these funds. Disbursement is
based on a districtís percentage of the total per capita number of
public school students in the state.
28% to the Trauma
Emergency Services Fund administered by the Arizona Health Care Cost
Containment System (AHCCCS).
8% to the Tourism Fund
administered by the State Office of Tourism.
8% to the AZ Wildlife
Conservation Fund administered by the State Game and Fish Commission.
To view a distribution
flow chart Click Here
ADG will post on
its web site the amount
distributed to the above recipient funds each quarter.
ADG makes an
annual report to the public, tribes, legislature, and governor no later
than 90 days after the close of the stateís fiscal
This report will contain the following information pertaining to the
gross gaming revenue for all Indian Tribes.
monies distributed through the Arizona Benefits Fund.
amount contributed by all Indian tribes to cities towns and counties
Arizona Revised Statutes Section 5-601.02(H)(4)