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Tribal
Contributions Fact Sheet
 How The Tribe's Contribution
Is Determined
Under the Arizona
Tribal-State Gaming Compact, tribes in Arizona that operate casinos
contribute one to eight percent of their Class III Net Win to education,
healthcare, and other programs that benefit Arizona residents.
A tribe’s contribution is determined on a sliding
scale based on the amount of the tribe’s Class III Net Win. A tribe pays 1% in
contributions for its first $25 million in Class III Net Win; 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. Class III Net Win means gross gaming revenue,
which is the difference between gaming wins
and losses, before deducting casino operating costs and expenses.
Tribal Contribution
Breakdown
Cumulative Contributions FY
2003-to-Date
12% of a tribe’s
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.
Any
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 A.R.S. § 41-1505.12 for grants to
cities, towns and counties. See Compact Section 12(d) and A.R.S. § 5-601.02(H)(4).
The tribes can
make this contribution whenever they choose as long as it is done by the
end of their fiscal year. Tribes are required to report their
contribution to the Arizona Department of Gaming (ADG) and ADG verifies
the reports.
The remaining 88%
of a tribe's total annual contribution goes to
the Arizona Benefits Fund on a quarterly basis pursuant to A.R.S. § 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
remaining tribal
contributions in the Arizona Benefits Fund by this formula:
56% to
the Instructional Improvement Funds administered by the Department of
Education. Every school district receives these funds. Disbursement is
based on a district’s 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.
Distribution
Chart
Public Reports
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 September 30, 90 days after the close of the state’s fiscal
year.
This report will contain the following information pertaining to the
fiscal year:
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Aggregate
gross gaming revenue for all Indian Tribes. |
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Breakdown of
monies distributed through the Arizona Benefits Fund. |
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Aggregate
amount contributed by all Indian tribes to cities towns and counties
pursuant to § 5-601.02(H)(4) |
Tribal Contributions
Payment Timeline
Tribes must send
their quarterly payment to the state by the 25th day after the close of the
tribe's fiscal quarter. The state received the first quarterly
payments on July 25, 2003 (FY2004).
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