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Arizona tribal casinos are starting to feel the impact of a sagging economy.

Contributions to the state from tribal gaming operations — an indicator of revenue — dropped 7.5 percent in the past three months compared with a year ago, according to the Arizona Department of Gaming.

The most recent quarterly result marks the sharpest year-over-year drop in gaming contributions to the state since 2003, when the Arizona Tribal-State Gaming Compact went into effect.

Figures for the first three months of the year showed a small decrease, less than 1 percent — the first such drop since the state began keeping track that year.

"Gaming is like any other entertainment industry," said Sheila Morago, executive director of the Arizona Indian Gaming Association. "It relies solely on discretionary income, and people just have less and less of it."

Gaming contributions totaled $26 million in the quarter ending June 30, the release said. In the same quarter last year, contributions totaled about $28.1 million.

Under the compact, tribal casinos give 1 percent to 8 percent of their revenue from certain gambling activities to the state, with the contribution calculated on a sliding scale. The funds are used for education, trauma care, wildlife conservation, tourism promotion and other services.

Arizona isn't the only state showing signs of a gaming slowdown. Nevada's total casino revenue dropped more than 15 percent to about $970 million in May, the most recent month available from the Nevada Gaming Commission.

In the Tucson area, the Tohono O'odham Gaming Enterprise operates Desert Diamond Casino and Hotel at 7350 S. Nogales Highway. The new hotel and casino at the site opened just last year. The Tohono O'odham also have casinos in Sahuarita and along Arizona Highway 86 near Why.

The Pascua Yaqui Tribe operates Casino Del Sol, at 5655 W. Valencia Road, and Casino of the Sun at 7406 S. Camino de Oeste.

Revenue at the Tohono O'odham casinos is "slightly up" over last year, said Scott Sirois, CEO of the nation's gaming business. Pascua Yaqui gaming executives didn't return calls for comment.

Morago said the slowdown is unprecedented for the gaming industry in Arizona.

"This is the first little hitch in our giddyup, if you will," she said.

Alan Meister, an economist with Analysis Group who specializes in gaming issues, said his research on the national level suggests that the financial woes are not being shared equally by all the tribes.

It's unclear just where the losses are among the 22 tribal casinos. The gaming compacts approved by voters in 2002 make that information available only to the state Department of Gaming.

"Certain Indian gaming properties are not doing as well," he said, while information he has been able to obtain from various sources shows others "are continuing to have pretty strong performance."

Among the factors, he said, are the location of the casinos.

Some Arizona tribes operate gaming halls on the edge of — and an easy drive from — heavily populated areas. He also said competition can be an issue.

The decline in gaming is significant because it also comes as there are more opportunities for Arizonans to gamble.

As of the end of this last quarter there were 13,992 gaming devices, things like video slots and poker. That compares with just 13,232 at the same time a year earlier.

But the number of blackjack and poker tables has actually declined slightly in the same period.

And there may be more pressure Indian gaming to come.

A provision in the state budget is designed to increase the amount of money Arizonans are spending with the state lottery. That includes not just more money to promote the games but also increasing the amount paid out and having self-service machines sell not just "scratcher" tickets but also online games where the gamblers pick their own numbers.

But the Indian Gaming Association's Moraga said she's not convinced that more money spent on the state-run lottery means less for reservation gaming.

"I don't normally see that the people who buy lottery tickets are the same people who go out and go to the casinos," she said.

"People go to the casinos for a lot more than just the gambling part now," including for dinner and shows.