NM casinos report $21.5 million in net winnings

SANTA FE

While the Navajo Nation Gaming Enterprise continues to struggle to pay down the $220 million it borrowed from the Navajo Nation to build the Twin Arrows Casino and Resort, the Navajo casinos in New Mexico continue to be holding their own, according to recent documents released by the New Mexico Gaming Control Board.

According to the documents, the two Class III casinos in New Mexico operated by the gaming enterprise – Fire Rock in Church Rock and Northern Edge in Fruitland – made net winnings from Jan. 1 through March 31 of $21,528,766.

That is little more than $200,000 less than the $21,747,278 the gaming enterprise reported for the first three months of 2016.

The board oversees the compact between the Navajo Nation and the state of New Mexico dealing with the revenue sharing plan approved in 2015 by the New Mexico Legislature.

Under the agreement, the Navajo Nation is required to pay the state quarterly based on the adjusted net win of slot machines at Fire Rock and the Northern Edge.

This is not, however, to be confused with net profits of the casino because it doesn’t take into account salaries and other expenses. Nor does it take into account the casino’s revenue from the other casino games, such as roulette and black jack, and the profits from the restaurant.

These numbers only take into account the amount the tribe makes in its slot play minus the amount it pays out in winnings.

Under the current formula, the Navajo Gaming Enterprise pays the state 9 percent of its adjusted net win.

That comes to about $1.9 million that the gaming enterprise has to pay the state.

All of the gaming tribes in New Mexico reported either a slight decrease or a slight increase from last year. In 2016, the tribes reported net winnings for the first quarter of the year of just over $173 million. This year the amount was some $600 less.

The Navajo Tribe, as well as all the other tribes that have gaming, don’t release any figures on profit or loss, in part because they don’t want other gaming tribes to know anything about their revenue figures.

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