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- By Chez Oxendine
- Economic Development
Michigan’s 12 federally recognized tribes have quadrupled their non-gaming economic impact in the state since 2019 as more tribes create more tribal enterprises to diversify their economies.
Seventy-eight tribal enterprises spread across the 12 tribes generated a combined $1.24 billion in total economic impact from non-gaming enterprises in 2024, according to a statewide study released last week. The previous economic impact report, which chronicled 2019 and included nine of the state’s tribes, estimated $288.76 million — roughly 330% increase in five years.
The 2024 study examined 78 tribal enterprises compared to 38 in the 2019 report, according to Jessi Goldner, vice president of strategic engagement for Waséyabek, the non-gaming development arm of the Nottawasepi Huron Band of Pottawatomi Indians. Waséyabek compiled the report with grant funding from the Michigan Economic Development Corp.
The growth represents tribes' greater focus on economic diversification beyond gaming, Goldner said. “This shows that next step in economic development for tribes,” Goldner said. “It proves that when we’re looking at economic diversification, the sky is the limit.”
The 2024 Michigan Non-Gaming Tribal Economic Impact Study, conducted by Native-owned research firm aLocal.ai, is the second edition of the report, following the previous publication in 2019. The report should correct the prevailing notion that many tribes rely solely on gaming revenue to fuel tribal programs and government operations, according to Waséyabek Strategic Engagement Project Manager Heather TePastte.
“It shows we're more diversified than just gaming; it's going to continue and create longevity for our tribal nations. We don't know how gaming is going to be in the future,” TePastte said. “Our tribe is growing, and the tribe is growing faster than the casino is, so it's very important that everyone knows this is how we achieve sustainability over the next seven generations.”
Economic turmoil has pushed tribes to put renewed focus on expanding their revenue streams, both for safety and growth, the report found.
“The economic power of tribal businesses is growing exponentially each year and delivering great benefits to tribal communities and the entire state,” said Deidra Mitchell, president and CEO of Waséyabek. “Economic diversity provides a path to future sustainability, sovereignty, and self-governance for Tribes that engage in non-gaming business development. Proof of that is clear to see in this report.”
The study found that Michigan tribal enterprises generated $805 million in gross revenues last year, supported by nearly $1.5 billion in total assets. Collectively, the businesses employed 2,819 people directly, with an average wage of $59,971.
“The economic impact highlighted in this study is both significant and encouraging,” Tom Durkee, director of tribal business development at the Michigan Economic Development Corp., said in a statement. “Tribal nations are well-positioned to diversify their economies, generate sustainable revenue beyond gaming, and create quality jobs that strengthen communities across Michigan.”
The 2024 total reflects continued growth from previous editions of the study, though specific year-over-year figures were not detailed in the report. The tribal businesses have matured, with an average business age of 15.3 years and average per-entity revenue of $10.32 million.
Along with growth in revenue and employment, tribes also entered a wider selection of industries while refining their strategies for acquisitions and development, the report found. According to TePastte, tribes participated in 11 industries in 2019, while in 2024 that number grew to 16.
Waséyabek, for example, has slowed its early focus on property investments while increasing investments in medical businesses and federal contracting. There’s also been an increased emphasis on vertical integration, acquiring and developing enterprises that can support one another on larger projects, Goldner said.
“It's ever-changing, but as we're getting bigger, we're seeing more vertical integration, and that’s the direction we’re headed,” Goldner said. “In the work we've done and in the conversations we've had with neighboring nations - there's growth happening, acquisitions happening. This is definitely something we’re seeing happening everywhere.”
Eric Trevan, president and CEO of aLocal.ai, attributed the growth to a shift in tribal operations and priorities. Amid economic instability at the turn of the century, tribes began to separate their business entities and governments, leaving the former to focus on long-term business strategies and investments, Trevan said.
The separation has provided more resilient and broader revenue streams for tribes that need support for programs and government, he said.
“This was all set for those that sat down, looked at business opportunities, talked to their investors, which were the tribes themselves, and mapped out a strategy,” Trevan told Tribal Business News. “This was a priority before, but it's been embraced recently, because whenever the next global recession or pandemic happens, it's way too important.”
The report shows nearly $136 million in taxes paid to federal and state governments in 2024, underscoring a growing contribution to public revenues from outside the gaming sector. That was another impact Trevan noted — that as tribal companies grow and expand, so does their impact on their surrounding communities. This occurs with both gaming and non-gaming enterprises, described by the Center for Indian Country Development at the Federal Reserve Bank of Minneapolis as the “spillover effect.”
“Activity in one business leads to spending in other businesses,” TePastte said. “Employees that are new to an organization go out and spend money in local businesses. That net economic impact is just a great measure - how everything in the economy is stimulated because of these businesses.”
