For the first time in 2 ½ years, Arizona tribal casinos saw an increase in revenue over the last quarter of 2010. Mirroring an increase in spending for holiday shopping during the same time period, Arizona residents spent more money at the casinos at the end of 2010 as well.

There are 22 tribal casinos in Arizona that are regulated by the Arizona Department of Gaming. Those casinos reported a 1.6% increase in October, November and December from the same time period in 2009. While the increase is minimal, it is encouraging, considering how poorly things were going before that. When the economy tanked in 2008, the casino industry in Arizona suffered 10 consecutive quarters in which revenue declined from the previous year. Many of those revenue losses were in the double digits. The tribal casinos do not release detailed financial information, so the exact amount of revenue is unknown.

Though Arizona, like most of the United States, has yet to see an economic recovery (despite Obama spending months touting the “Recovery Summer”), an increase in discretionary spending by the public is a good thing. It means that they are gaining confidence in the economy and in their financial situation.

During the lean times, when the casinos were seeing declines in revenue, they had to cut back. Jobs were cut and the money used for different tribal services also declined. The casinos’ payments to the state of Arizona also dropped. Those payments are used by the state to fund expenses at the Department of Gaming, tourism, wildlife conservation and emergency room services. With the increased spending at the casinos, though, the fourth quarter of 2010 say payments from the casinos to the state increase from $11.1 million to $11.3 million.

Again, it’s a small increase, but it shows that more money is being spent on leisure activities, with is a good sign for the economy of Arizona. Sheila Morago, executive director of the Arizona Indian Gaming Association, said that the recent numbers do not make her want to “do a full happy dance, but we are encouraged.” I wonder what her tribal happy dance looks like.

A recent study on US gambling habits claims to show that while visits to brick and mortar casinos are declining, there is an increase in online casino business. This is despite the belief that online gambling is illegal in America (wrong: it is only banned in 4 states) and the worry that the passage of the UIGEA in 2006 means the government can prosecute online gamblers and confiscate their winnings (it gives the authority for neither).

A survey by a media study group called Mintel International Group showed that 30% of Americans visited a land-based casino in 2009, which is down from 35% in 2001. Mintel also reports that 12% of Americans visited an online casino in 2009, which they say is an increase from an undisclosed amount. In truth, there is no way to accurately determine how many Americans gamble online, since so many think it is illegal or at least vague (to say that some states’ gambling laws are unclear on the subject is an understatement).

So what does this all mean? Perhaps nothing. You may recall that in 2009 the economy started getting pretty bad, with the bank bailouts and the housing bubble bursting and everything. Job losses, fear of job losses, depleted savings accounts and 401(k)’s led to a decrease in tourism everywhere, and that includes hotspots like Las Vegas.

Many in the online gambling community, including some of our competitors, have looked at this information and concluded that it means online casinos are taking business away from brick and mortar casinos. It means people have decided to gambling online instead of taking a trip to a casino. That’s possible, but it’s impossible to tell conclusively. Maybe if we were certain that the online gambling figure of 12% was a significant increase, that would mean something. However, with no previous number given, maybe the 12% figure is a decrease as well. Also, one year isn’t a big enough sample to conclude that former land-based gamblers are now playing online. In one year, any shift could be because of the economy. Even if more people are gambling online, it could be because it’s cheaper and if/when the economy improves they will go back to taking trips to Vegas and Atlantic City.

But for the sake of argument, let’s say that it’s true that people who once gambled in land-based casinos are now exclusively playing online. Why would that be? It’s probably because of price and convenience. Blockbuster is fighting tooth and nail to keep every possible customer right now amid their massive store closings, while people flock to Netflix and Pay-Per-View. Those services are cheaper and don’t require the customer to leave their house. Remember, Americans are lazy. Similarly, iTunes and internet piracy has led to closings of countless music stores. I even went into Best Buy recently with a list of about 20 CD’s I was looking for and couldn’t find one. They had nothing but bare shelves with one copy of a few current hit albums. It’s a sad day when a music store doesn’t fully stock CD’s anymore. They did, however, have lots of iTunes gift cards.

Whether the trend toward online gambling, if it’s a trend, continues or not, this study does tell us something: At least 12% of the country is gambling online at casinos that are operating in the jurisdiction of other countries. That is a lot of tax revenue that the government is losing. If there’s one thing our power-hungry government hates, it’s missing out on the ability to take someone’s money. Therefore, you can probably expect a federal regulation of online gambling in the near future.