Dean Knuth / Arizona Daily Star

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The growth of revenues at Arizona's tribal casinos slowed to a trickle in the first half of this year as the slumping economy kept gamblers away from the slots and gaming tables.

Figures released Monday by the Arizona Department of Gaming pegged gross gambling revenues for Indian tribes' casinos at $1.98 billion for the state fiscal year, which ended on June 30 — the most recent annual calculations. That is up just 1.9 percent from the prior fiscal year, after rising 8.6 percent in fiscal 2007.

But the figures actually are more dismal than that.

Because of the way the state keeps its books, the numbers do not include tribal gambling revenues for April through June. And figures already provided by the state Gaming Department show gambling receipts during those three months were 7.5 percent below the same three months in 2007.

Revenue was strong in the first two quarters of fiscal year 2008, then it dwindled in the second half of the year, said Wendell Long, the chief executive of Sol Casinos, which is operated by the Pascua Yaqui Tribe.

The Pascua Yaquis operate Casino del Sol, at 5655 W. Valencia Road, and Casino of the Sun, at 7406 S. Camino de Oeste.

"The industry as a whole is seeing a decrease in revenue, and that's across the entire country," Long said.

The downturn in the economy has affected money going into casinos, he said.

"We do recognize that it's tough times, and we have to work even harder," Long said.

Also in the Tucson area, the Tohono O'odham Gaming Enterprise operates the Desert Diamond Casino and Hotel, at 7350 S. Nogales Highway, as well as casinos in Sahuarita and along Arizona 86 near Why.

Attempts to reach representatives of the Tohono O'odham Gaming Enterprise were unsuccessful Monday.

The slowdown is not unique to tribal gambling.

Art Macias, executive director of the Arizona Lottery, said Monday that total revenues from the state-run games were up just 2.3 percent in the 12 months that ended on June 30.

Macias said the sale of "scratchers" tickets, which he said are most linked to disposable income — actually shrank by 3 percent. Only stronger sales of the "Pick" games, which make up less than half of all revenues, kept total lottery proceeds from declining.

And state Racing Director Luis Marquez said the amount wagered at Arizona's horse and dog tracks in the last fiscal year was $252.8 million, down $13.9 million from the prior year.

Sheila Morago, executive director of the Arizona Indian Gaming Association, said the numbers from the 15 tribes that operate 22 casinos are not surprising, given the condition of the state's economy.

"Gambling is a form of recreation," Morago said. She compared it with people making decisions on whether to go to a movie, to dinner or even "go shopping for a nice pair of shoes."

What's happening, she said, is that people are making decisions against spending money.

"They're holding on very tight to their disposable income," she said. "I know I am."

Morago said some tribes are trying to find ways to deal with the slumping economy to keep customers coming in the door.

For example, she said, one Indian casino is expanding its free bus service. Morago said that makes sense, given that the price of gas may be keeping some people away, especially from the casinos not immediately adjacent to urban areas.

She said other casinos are hoping to engender loyalty among their customers with new "players' club" benefits.

The tribal revenue figures represent what tribes get to keep after paying out winnings but before they cover other costs such as labor and utilities.

Out of those revenues, the tribes also have to share profits with the state. That is part of the deal they cut in a 2002 initiative that gives Indians the exclusive right to operate casinos in Arizona in exchange for that profit-sharing.

That measure requires tribes to share 1 percent of the first $25 million in "net win" each year. Arizona gets 3 percent of the next $50 million, 6 percent of the next $25 million, and 8 percent of anything more than $100 million a year.

For the 12 months covered by the report, that figure computed out to slightly more than $96 million, or close to 5 percent of gross gambling revenues.

About half of that is earmarked for aid to education, with a quarter for trauma and emergency services, and the balance covering regulatory costs, wildlife conservation and tourism. About $1.9 million goes to help problem gamblers.