As of the census of 2000, there were 1,132 people, 537 households, and 254 families residing in the town. The population density was 1,588.4 people per square mile (615.6/km²). There were 592 housing units at an average density of 830.7 per square mile (321.9/km²). The racial makeup of the town was 67.84% European American, 29.42% African American, 0.27% Native American, 1.06% Asian, 0.88% from other races, and 0.53% from two or more races. Hispanic or Latino of any race were 2.30% of the population.
There were 537 households, of which 18.4% had children under the age of 18 living with them, 34.3% were married couples living together, 11.2% had a female householder with no husband present, and 52.7% were non-families. 48.0% of all households were made up of individuals and 26.4% had someone living alone who was 65 years of age or older. The average household size was 2.01 and the average family size was 2.94.
In the town the population was spread out with 18.9% under the age of 18, 6.1% from 18 to 24, 23.4% from 25 to 44, 28.3% from 45 to 64, and 23.3% who were 65 years of age or older. The median age was 46 years. For every 100 females there were 87.7 males. For every 100 females age 18 and over, there were 80.0 males.
The median income for a household in the town was $26,607, and the median income for a family was $54,583. Males had a median income of $30,208 versus $22,250 for females. The per capita income for the town was $20,114. About 17.1% of families and 25.5% of the population were below the poverty line, including 33.3% of those under age 18 and 21.3% of those age 65 or over.
The Tunica area is now the third-largest gaming region in the United States, after Las Vegas and Atlantic City. Its effect on the local economy has spurred population growth in unincorporated parts of the county outside Tunica proper. Since 1990, the town's name has been popularly associated with multiple casinos in proximity to the Mississippi River. However, the current group of casinos actually starts in the community of Tunica Resorts some ten miles north of the town of Tunica, and extends to the DeSoto County line. Tunica Resorts was originally named "Robinsonville", but the name was changed in 2005 to eliminate confusion over the location of the casinos, which have always used the name "Tunica" in reference to their location. Success of these gaming houses in northern Tunica County came at the expense of the area's first group of casinos in the early 1990s, located just northwest of Tunica proper, in an area known as Mhoon Landing — much of what comprises the current census designated place of North Tunica. These casinos were closed or moved as larger resorts opened closer to Memphis.
Unlike the area including casinos along Mississippi's Gulf Coast region, Tunica was not in the path of Hurricane Katrina. As a result, some of the regular Gulf Coast customer traffic from casinos drifted northward to Tunica County.
Though the casinos lie outside the town limits, the effects of tax revenue generated are felt inside the town. Major improvements to the public school system and downtown district are currently among the most visible aspects; long-term effects include major highway improvements on U.S. Route 61 and a much-discussed potential expansion of Tunica Municipal Airport.
As of 2007, some Tunica Resorts residents are trying to incorporate their community into a separate town government, rather than exist under the jurisdiction of Tunica County or move toward annexation into the town of Tunica. If Tunica Resorts incorporates, the new town government would be a direct beneficiary of casino tax revenue, enabling construction of municipal government offices. Depending on population and revenue growth, fire and police stations, libraries and other public infrastructure could be other likely additions. Potential effects on the existing town of Tunica are unclear.
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