Indian Gaming

Wow, ManIndians have it good! (Eric, upon arriving at the Three Feathers casino, on South Park)

South Park Malcolm in the Middle The Simpsons The Sopranos Family Guy

Do all Native Americans have the right to open a casino?

Federally recognized tribal government Casino-style gaming only after a protracted negotiation process with state government. Only on tribal land Indian Regulatory Gaming Act (IGRA) 1988

Tribal gaming vs. commercial gambling?

Fiction & Fact

Fiction: Tribes are getting rich from gaming. Fact:
Only 40% of the nations tribes are pursuing gaming. Many gaming operations are too small or remote to make much money. By law, revenues must be used to: 1) Fund Tribal Government operations 2) Provide general welfare for tribe 3) Promote tribal economic development 4) Donate to charitable organizations 5) Help fund operations of local government agencies If a tribe is able to adequately provide these services and wishes to distribute net revenue in the form of a per capita payment to members of the tribe, the tribe must have a Revenue Allocation Plan (RAP), which is approved by the Secretary of the Interior. of gaming tribes do not giver per capita payments

Fiction & Facts (continued)

Fiction: Indians dont pay taxes. Fact: All Indians pay federal taxes, and all Indians pay state and local taxes except the few who live and work on reservations. Fiction: Tribal casinos dont pay taxes but should, like card clubs and other businesses. Fact: Tribal casinos are government-run enterprises, not commercial businesses. Fiction: Tribes dont pay taxes but should. Fact: The U.S. has historically recognized tribes as selfgoverning sovereign nations. Nations dont pay taxes, their citizens do.

Fiction & Fact (continued)

Fiction: Tribal casinos are largely unregulated. Fact: Tribal casinos are regulated on more levels (tribal, state, and federal), spend more on regulation, and employ more regulators than commercial casinos. Fiction: Gaming is an unconstitutional privilege granted to tribes based on race. Fact: The Supreme Court has repeatedly ruled that tribes, like other sovereign nations, are political entities, not racial entities. Fiction: Tribal casinos hurt the surrounding communities. Fact: Tribal casinos help the surrounding communities by creating jobs, hiring businesses, and giving to charitable organizations.

Fiction: Natives are red men, seeking to use Indian gaming as a form of vengeance against the white man.

Classes of Gaming
Class I: Class I gaming includes games solely for prizes of minimal values or traditional forms on Indian gaming. Games in this class were played by individuals as part of, or in connection with, tribal ceremonies or celebrations. All gaming in this class is under the exclusive jurisdiction of the tribe.

 Class II. This class includes games of general chance. Games played against other players rather than the house. Examples of games in this class include bingo, lotto, pull tabs, punch boards and tip jars. This class does not include any card games, or any electronic or electromechanical facsimiles, or any slot machines of any kind.

 Class III gaming includes all other forms of gaming not included in the other two classes. Included in this class are casino gaming, slots, banking card games, jai-alai, parimutuel wagering, and horse and dog racing.

Class III gaming is lawful on Indian land only if the gaming has been authorized by a tribal ordinance and approved by the chairperson of the NIGC. In order for Indians to participate in Class III gaming, the specific type of gaming must be practiced by other organizations within the state.
The Indian tribe must then enter a tribal-state compact between itself and the state to make Class III gaming legal. A tribal-state compact is an agreement between a tribe and a state. It outlines the procedures for licensing, terms of the contracts, taxation by the tribes, gaming regulations, and the cost for the administration of the gaming.

Current Gaming Statistics

Tribal Casinos 448 casinos $26.7 billion in gross revenues 706,000 jobs $29.2 billion in wages $12.4 billion in federal, state, and local tax $1.5 billion in direct payments to federal, state, and local governments Commercial (non-Indian) 492 casinos $35.6 billion in gross revenues 339,000 jobs $12.9 billion in wages $8 billion in taxes to state and local governments

Minnesota (2007)
41,700 jobs in tribal gaming and government $2.75 billion in total economic impact $150 million in federal and state taxes (income, FICA, unemployment) $147 million on medical and dental care

Where does the money go?

28% - Healthcare 22% - Government Operations 20 % - Education 13% - Housing/ Economic Development 10% - Human Services 7% - Infrastructure

(*for MN tribal governments, 2007)

California
Arnold Schwarzenegger Fair share 25% tax 53 tribes 52,000 jobs San Diego - $44 million in payroll $301 million to state in 2006

 The law and politics surrounding Indian gaming represent a series of compromisessome through mutual agreement, most through federal and state impositionamong competing legal rights and political interests of tribal, state, and federal governments as well as the nontribal gaming industry.

Questions of Sovereignty
Sovereignty is a nations independent and supreme authority to govern its citizens and interact with other nations. The authority of the tribes to determine membership, establish and enforce laws, provide for the health and welfare of members, protect and nurture tribal traditions and culture, and interact with federal and state governments all stem from tribal sovereignty.

 Although the U.S. recognizes tribal sovereignty, the defining aspect of federal legal doctrine is that tribal sovereignty may be limited or even extinguished by Congress. As a result, in truly Postmodern fashion, tribal gaming is both fundamentally informed by federal Indian law and policy and also effectively undercut by that same law and policy.

 The Mashantucket Pequots Foxwoods Resort Casino is the most financially successful casino in the worldand as a result the Pequots themselves are probably the most scrutinized tribe in the U. S.