The Navajo Nation is moving forward with plans to establish a new gaming facility northeast of Flagstaff, Arizona, following the transfer of land into trust status. The development, managed by the Navajo Nation Gaming Enterprise (NNGE), will be located at the former site of the Horsemen Lodge steakhouse along U.S. Highway 89. This marks the second casino for the Navajo Nation in the Flagstaff region.

The new gaming establishment, referred to as the Lower 89 Project, will be situated on a 13.79-acre parcel of land just outside Flagstaff’s city limits. The site was previously home to the Horsemen Lodge steakhouse, a landmark that closed in 2020 due to the COVID-19 pandemic, and the Flying Heart Stables. The land was officially placed in trust in November, securing the Navajo Nation’s right to develop a casino at the location.

Although details regarding the casino’s specific offerings remain undecided, the Tribal-State Gaming Pact of 2021 allows up to 300 gaming machines on the premises. Navajo Nation President Buu Nygren noted that while discussions about the casino’s scope are ongoing, the project’s economic impact will be substantial. “Of greatest significance are the jobs it will create,” he stated according to Flagstaff Business News, emphasizing that unemployment within the Navajo Nation remains close to 50%.

In November 2024, the Navajo Nation signed a warranty deed that transfers the respective land to trust status, which means it is now part of the Navajo Reservation. That move gives the tribe the right to build a casino on the respective property.

The construction phase is expected to generate more than 300 temporary jobs, with over 100 permanent positions becoming available once the casino is operational. Additionally, a portion of the gaming revenue will go toward the Diné Relocatee Fund, which supports Navajo citizens affected by the Navajo-Hopi Settlement Act of 1974. The new casino will be allowed to have at most 300 gaming devices, as stipulated in the Tribal-State Gaming Pact of 2021.

Community Considerations and Economic Growth

The casino’s proximity to Flagstaff will bring new economic opportunities for both the Navajo Nation and the surrounding communities. The location along U.S. Highway 89 places it on a key travel route leading to major tourist destinations such as the Grand Canyon, Monument Valley, and Lake Powell. This strategic placement is expected to drive significant traffic to the casino, benefiting both the tribal enterprise and local businesses.

The Navajo Nation intends to engage with local stakeholders as the project progresses. Coconino County District 4 Supervisor Judy Begay acknowledged the potential community impact, stating that while the property is no longer under county regulation, she hopes to collaborate with the Navajo Nation Gaming Enterprise to keep residents informed. “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 noted.

The Arizona Department of Gaming will oversee the casino’s development and ensure compliance with the Gaming Pact regulations. While neither the city of Flagstaff nor Coconino County has zoning authority over Navajo trust land, the tribe has committed to maintaining positive relationships with local government officials.

Reopening of Horsemen Lodge and Future Outlook

In addition to the casino, the NNGE plans to revive the historic Horsemen Lodge steakhouse. President Nygren expressed confidence that the reopening of the restaurant will be well received by both locals and travelers on Highway 89. “Despite concerns some have expressed, I fully expect the reopening of the restaurant will be welcomed by the local community,” he said.

The Navajo Nation’s gaming operations have significantly contributed to Arizona’s economy, with revenue-sharing agreements benefiting the state and local municipalities. The Twin Arrows Casino, located 20 miles east of Flagstaff, has been a major economic driver since its opening in 2013, and the new casino is expected to follow suit.

The project aligns with the tribe’s broader efforts to diversify its economic portfolio, particularly following the closure of the Navajo Generating Station. By expanding gaming operations and tourism initiatives, the Navajo Nation aims to strengthen its financial sustainability while creating employment opportunities for tribal members and the greater community.