Tribe looks forward to job creation, economic impact on region, state.
A second Navajo casino is coming to the Flagstaff area after the tribe secured legal authority to build a gaming hall on a 13.79-acre site northeast of the city.
The casino is planned on property that was home to Horsemen Lodge steakhouse since 1975 and the adjacent Flying Heart Stables. The site is outside the city limits on U.S 89, about four miles north of Flagstaff Mall.
In November, the Navajo Nation signed a warranty deed that transfers the land to trust status, meaning it is part of the Navajo Reservation. That gives the tribe the right to build a casino on the property.
Navajo Nation President Buu Nygren announced the Nation’s plans to partner with the Navajo Nation Gaming Enterprise to develop a gaming facility on the newly acquired land.
“Right now, with the various moving parts, I wouldn’t want to speculate how long that entire process will take,” Nygren said in written responses to questions from Flagstaff Business News.
“We know that there will be limited gaming at the property, but no decisions have been made to date on what that will look like.”
The new casino, referred to as the Lower 89 Project, will be permitted to have up to 300 gaming devices, according to the Tribal-State Gaming Pact of 2021.
“Of greatest significance are the jobs it will create,” Nygren said. “Unemployment on the Navajo Nation remains at nearly 50%.”
“We anticipate construction will create more than 300 jobs and more than 100 permanent jobs upon completion.”
Gaming Enterprise employees are 85% Navajo and 5% other tribal members.
Nygren said the Gaming Enterprise plans to reopen Horsemen Lodge steakhouse.
“Despite concerns some have expressed, I fully expect the reopening of the restaurant will be welcomed by the local community and Highway 89 travelers. Horseman’s Lodge was an iconic establishment, and it’s been greatly missed since it closed its doors in June 2020 because of COVID.”
The Gaming Enterprise will pay rent on the casino, with the revenue going directly to a Diné Relocatee Fund to support Navajos under the Navajo-Hopi Settlement Act of 1974.
The new casino will be much closer to Flagstaff residents. It will generate revenue not only for the tribe but also shared revenue to the state of Arizona.
The casino will be on a key tourist route to Grand Canyon, Lake Powell and Monument Valley, Nygren said in explaining why the Navajo Nation acquired the site on U.S. 89.
“The Navajo Nation continues to diversify our economic development and build up more tourism opportunities since the closure of the Navajo Generating Station and the impact on tribal revenue.”
The Gaming Enterprise has operated a casino and 200-room hotel since 2013 at Twin Arrows, 20 miles east of Flagstaff. It also has three casinos in New Mexico.
The Navajo Blue Travel Plaza just west of Twin Arrows has 26 gaming devices and two sports-betting kiosks.
Twin Arrows casino features 1,007 gaming devices, four blackjack tables, four poker tables, one craps table, one roulette table and eight sports-betting kiosks.
The Arizona Department of Gaming will oversee development and operation of the Lower 89 casino under Gaming Pact regulations.
The city of Flagstaff and Coconino County are largely out of the loop since neither entity has zoning jurisdiction over development of Navajo Nation trust land.
Coconino County District 4 Supervisor Judy Begay represents the Doney Park-Timberline-Fernwood area where the casino is planned. She is also the current board chair.
“Although the property is no longer regulated by Coconino County, I hope to work with the Navajo Nation Gaming Enterprise to ensure that residents are informed about the project,” Begay said in a statement.
“A project such as this will attract visitors and will impact our roads, public safety, and the experience of living in such a special place,” she said. “These are the issues that will involve ongoing discussion and, we hope, collaboration.”
The Gaming Pact advises tribes to give notice to surrounding communities about substantial changes to their gaming facilities. It also urges tribes “to develop procedures for consultation with surrounding communities.”
Nygren noted that the Coconino County Board of Supervisors has two knowledgeable Navajo supervisors – Begay and Lena Fowler – who represent Navajos and non-Navajos in their districts.
“So, naturally, NNGE and the Navajo Nation will continue to be good neighbors to our respected colleagues in Flagstaff and Coconino County,” he said.
Gaming revenue has improved tribal economic conditions across Arizona. Plus, 16 tribes with 26 casinos contribute millions of dollars to the Arizona Benefits Fund.
“NNGE pays money to the state of Arizona – in lieu of taxes – of which 12% of the money goes back to the local communities where the Twin Arrows Casino is located,” Nygren said. “Coconino, Navajo and Apache counties have been recipients of these annual fund distributions since 2013.”
In December, the Arizona Department of Gaming announced $42.5 million in tribal gaming contributions to the Arizona Benefits Fund for the second quarter of fiscal year 2025.
“Strong collaboration and partnership between the state and Arizona’s tribal communities continue to drive the growth of the tribal gaming industry,” Jackie Johnson, Arizona Department of Gaming director, said in a news release.
Arizona Benefits Fund provides funding for instructional improvement in schools, trauma and emergency care, tourism, wildlife conservation and problem-gambling intervention. FBN
By Peter Corbett, FBN
Photo by Peter Corbett: Navajo Nation Gaming Enterprise plans to reopen Horsemen Lodge and build a casino on the site northeast of Flagstaff.