The Social and Economic Impact of Native American Casinos

indian casino money distribution

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Indian casinos, I might be relatively rich. No such luck. Non-Native people generally assume Indians are getting rich from tribal casinos, and often engage in intensive question-and-answer sessions when challenged. People have difficulty reconciling public myth with factual information, especially about a subject so politicized. Class III operations are what most people think of as Indian casinos, including games of chance not included in Class I or II gaming operations; e.g., slot machines, craps, blackjack. IGRA stipulates a tribe opening a Class III gaming enterprise must have (1) a tribal-state compact or agreement, (2) approval by tribal ordinance, and (3) approval by the NIGC. Lastly, Indian gaming activities may only occur in states where gaming is legal. In 2011, NIGC reported out of 566 federally recognized tribes, only 246 tribes operate 460 gaming facilities in 28 states. Many tribes operate gaming facilities primarily to generate employment. The total number of jobs by Indian gambling created nationwide is impressive: 628,000. But up to 75 percent of those jobs go to non-Indian employees. There are resort-type casinos, but many “tribal facilities” are just trailers with bingo. NIGC Chairwoman, Tracie Stevens testified before the Senate Committee on Indian affairs that in 2009 tribal facilities generated gross gaming revenue of $26.5 billion—merely 21% of gaming nationwide. I’m genuinely surprised that people seldom question how ANY tribe pulled millions out of its back pocket one day to start a casino. IGRA stipulates that no entity other than a tribe may possess an ownership interest, but there are layers of lenders. Indian Casinos. Pennsylvania requires 55 percent of the hold. Former NIGC Chairman, Harold Monteau states that only about 10% of tribes receive the majority of the revenue. I have often heard of tribal presidents stealing millions of dollars but the ones stealing millions of dollars are the state governments. Its sad to see an elder living off social security when they worked for the tribal government their whole life when you compare them to state employees that gets retirement benefits. Another issue not mentioned in this article is the trust funds that are created by per capita payments. I have a two children under 5 years old and they both have more than 50 thousand in their trust. This decision led to the Indian Gaming Regulatory Act, which requires reservations confer with the state before offering any games that would be played against the casino such as slots or blackjack tables. In 2009, this totaled $26.5 billion in revenue from 425 facilities, run by 233 tribes in 28 states. Harrah's manages Cherokee Casino in North Carolina, the Prairie Band Casino in Kansas and the Ak-Chin Casino in Arizona. Mohegan Sun is managed by a South African company in conjunction with the tribe. There are approximately 150 additional tribes seeking recognition. Many complain that these tribes have no real membership and are only seeking to cash in on the casino business. Supporters of Native American rights point to centuries old treaties put in place to protect these unrecognized tribes. The Coeur D'Alene Tribe in Idaho began the National Indian Lottery on-line. This was a revolutionary idea at the time. However, it was met with much opposition and many lawsuits. The controversy stemmed from defining where the gambling took place—in the state where the gambler was playing or on the reservation where the site was based. The site was shut down in 1998, but as of November 2009 the Coeur D'Alene tribe was once again drumming up business for their upcoming on-line lottery. Indians on or near reservations now belong to tribes that have opened Las Vegas-style casinos." Many of these are in rural areas and draw from clienteles who drive an hour or so to get to the casino. The casinos have changed the economic climate in and around the reservations. In counties with or near a casino, the employment- to- population ratio has increased and mortality has declined. Fernandez, a representative of the California state auditor's office, said her office is recommending that the Legislature consider forming an agency to provide oversight and technical help in distributing the casino-related funds. July 27 editorial regarding the misguided Juaneno Indians' proposal to build a Las Vegas-style casino was right on target. But Bill Henrietta's letter in the same edition was off base when he wrote that casinos could bring a "real survival plan for cities." This could not be further from the truth. California have failed to properly document how $1.7 million in Indian gaming money was distributed, according to an audit released Thursday by the California state auditor's office. November ballot measure filed a lawsuit Thursday aimed at derailing Gov. Arnold Schwarzenegger's deals granting five Indian tribes the right to unlimited numbers of slots. On the other hand, there is a valid question as to whether the prosperity of a tribe should depend on mere fortuity. There are far more impoverished Native Americans in California than there are those who are thriving. That could include allowing a small number of off-reservation casinos that are not close to urbanized areas. That's exactly what Congress intended when it permitted -- in rare circumstances, after rigorous review and as a matter of social justice -- tribes with no or unusable land to petition to take land into trust for tribal gaming. U.S. Supreme Court decision involving two California tribes set in motion a series of federal and state actions that dramatically expanded tribal casinos here and in other states. Band of Cahuilla Mission Indians. This court ruling, known as the Cabazon decision, set in motion a series of federal and state actions-including two ballot propositions-that dramatically expanded tribal casino operations in California and other states. In 2006, industry estimates suggest that tribal casinos in California took in around $7 billion of annual revenues-about as much as all other legalized gambling sectors in the state combined.

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