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Are Tribal Casinos Good or Evil for Native Americans?

indians in America

When American Indians were able to open casinos on their territories, many tribes benefited from the profitable business. The proceeds improved their economic situation and social sphere. They sent their children to good schools and opened new hospitals.

At the same time, this activity could not cause discontent among the indigenous inhabitants of the continent and the authorities of the several states that are competitors in the gambling business. Moreover, there was criticism of the Indians' gambling from public and cultural figures who saw this as a threat to many Native Americans.

Let's find out whether the Indian communities' casinos are good or evil. We will weigh their "pros" and "cons."

Pros of Native American Casinos

Let's first talk about the pros.

  • Profit. Of course, the main pro of tribal gambling is a solid profit. In total, it is already tens of billions of dollars per year. The money must be spent on education and social and charitable sectors. So, it is used to finance schools, hospitals, police, and other community agencies.
  • Jobs. The casinos employed many Indians as dealers, pit bosses, security guards, waiters, etc. Gambling stimulates the development of other industries where employees are also required.
  • National pride and cultural development. Opinion polls show that the development of casinos in Indian reservations makes people more proud of belonging to their tribes. When there is no need to fight poverty daily, they organize more cultural events and programs.
  • Infrastructure. As we mentioned above, the proceeds of gambling allow people to improve infrastructure in settlements that are home to the community. As a result, the purchasing power of locals increased, resulting in more shops, entertainment venues, restaurants, etc.

As you can see, the number of advantages is more than enough, and they are all significant.

Benefits of Native Americans' casino

Cons of Native American Casinos

Now, let's turn to the shortcomings of such casino opponents.

  • Corruption. The development of casinos has increased corruption among community leaders. Periodically, there are scandals involving alleged misuse of revenues, bribes, unfair provision of posts, and others.
  • Dependence. Previously, fighters for the rights of the indigenous American population complained that the tribes driven into reservations could not do anything without government approval. Now they say about the same complete financial dependence on the casinos, which are entirely contrary to traditional values the Indians have had for centuries.
  • Flaws. Casino opponents argue that working in such establishments (not to mention playing in them) develops excessive materialism and pushes Indians to alcoholism and drug addiction. There are also frequent causes of gambling among indigenous people. We can also not forget that in the poorest communities not involved in gambling, alcoholism is much higher.
  • Crimes. Many people also try to relate casinos to the growing number of crimes.

In general, they have pretty convincing arguments.

Conclusion

Most Indian casinos do not like the state governments with reservations from gambling establishments. Almost all states are engaged in this business, so their leaders try to use all methods to fight against redskins competitors.

They are trying to reduce their financial capacity, forced to pay taxes, or even subdued. Some lawsuits concerning this sphere last for years, and politicians try to use this subject before every election.

It is safe to say that the Indians opening their casinos will not be alone in the coming years.

Frequently asked Questions

🎰 What exactly is a tribal casino?

Tribal casinos are gaming facilities operated by federally recognized Native American tribes on their sovereign lands. These lands are not subject to the same state regulations as privately owned casinos, although they operate within a framework established by federal law and agreements with individual states. The operation of these casinos is a significant aspect of tribal economic development and self-governance.

❔ How did tribal casinos become legal in the United States?

The legality of tribal casinos stems from the inherent sovereignty of Native American tribes, which predates the formation of the United States. This sovereignty allows tribes to govern themselves and their lands. The Indian Gaming Regulatory Act (IGRA) of 1988 formalized the framework for tribal gaming. This federal law recognized the right of tribes to conduct gaming on their lands, provided it is permitted in some form within the state. IGRA also established the National Indian Gaming Commission (NIGC) to regulate certain aspects of tribal gaming and outlined different classes of gaming with varying levels of tribal, state, and federal oversight.

🌄 Where are tribal casinos typically located?

Tribal casinos are located on federally recognized Indian reservations and other lands held in trust by the federal government for the benefit of Native American tribes or individual tribal members. The specific location of these lands varies greatly across the United States, and thus tribal casinos can be found in numerous states, often in areas that might not otherwise have commercial casinos. The definition of "Indian lands" under IGRA is tied to the land's status as reservation, trust, or restricted fee land and the tribe's jurisdiction over it, not necessarily the tribe's historical territory.

👨‍⚖️ Who regulates tribal casinos?

The regulation of tribal casinos is a multi-layered process involving tribal, state, and federal authorities. The Indian Gaming Regulatory Act established three classes of gaming, each with a different regulatory scheme. Class I gaming, which includes traditional and social games with minimal prizes, is solely regulated by tribal governments. Class II gaming, primarily bingo and non-banked card games, is regulated by the tribes with oversight from the National Indian Gaming Commission. Class III gaming, encompassing "Las Vegas style" casino games, requires tribes to enter into Tribal-State compacts with the states in which they are located, outlining aspects like the types of games allowed, operational standards, and revenue sharing. Additionally, the NIGC has significant regulatory requirements for tribal gaming operations, including the approval of management contracts and gaming ordinances. Federal agencies like the Department of Justice, the FBI, and the IRS also have oversight roles, particularly concerning criminal activities and financial regulations.

🏫 How do tribal casinos benefit Native American tribes?

Tribal casinos have proven to be a vital source of economic development for many Native American tribes. Revenues generated from gaming operations are often used to fund essential governmental programs and services on reservations, such as education, healthcare, infrastructure development (roads, utilities), housing, public safety, and cultural preservation initiatives. For some tribes, gaming revenue has lifted their communities out of poverty, leading to increased economic self-sufficiency and improved quality of life for tribal members. Furthermore, tribal casinos provide employment opportunities for tribal members and surrounding communities, contributing to local economies.

✅ Do tribal casinos pay taxes?

The issue of taxation for tribal casinos is somewhat complex. As sovereign entities, Native American tribes and their lands are generally not subject to state and local taxes. However, through Tribal-State compacts for Class III gaming, many tribes agree to revenue-sharing arrangements with the states. These payments are often intended to offset the costs incurred by the state due to the presence of casinos, such as infrastructure improvements and regulatory expenses. Additionally, while the tribes themselves may not pay certain taxes, salaries and other payments made to tribal members are subject to federal and state income taxes. Players, including tribal members, are also required to pay taxes on their winnings according to federal and state laws.

👩‍⚖️ Are tribal casinos subject to the same laws as commercial casinos?

While tribal casinos operate under federal law (IGRA) and Tribal-State compacts, they are not subject to the exact same state laws and regulations as commercial casinos located off tribal lands. IGRA provides a distinct legal framework that recognizes tribal sovereignty. However, Tribal-State compacts often incorporate certain state standards and regulations regarding the operation of games, security, and other aspects. Furthermore, federal laws concerning criminal activity, money laundering, and other areas apply to tribal casinos. Tribal governments also enact their own laws and regulations to govern gaming within their jurisdictions, often establishing tribal gaming commissions to oversee operations.

💲 What happens to the revenue generated by tribal casinos?

The Indian Gaming Regulatory Act mandates that all net revenues from tribal gaming operations must be used for specific purposes. These purposes primarily include funding tribal government operations and programs, providing for the general welfare of the tribe and its members, promoting tribal economic development, supporting charitable organizations, and funding regulatory activities related to gaming. The distribution of gaming revenues is determined by each individual tribal government, often through a detailed allocation plan. These funds have been instrumental in supporting crucial services and investments within tribal communities.

Denis Anipchenko
Denis Anipchenko
Editor-in-chief and online gambling expert

Denis is a true professional with many years of experience in the gambling industry. His career started back in the late nineties when he worked as a croupier, pit boss, manager and casino manager. This unique experience allowed him to deeply understand the world of gambling from the inside. Since the late noughties Denis has dedicated himself to writing articles and analyses about gambling, and since the early tens he has become a key figure in the Casinoz team. Here he not only writes and edits content, but also creates reviews, shares his expertise and helps readers understand the intricacies of gambling. Denis combines practical experience and in-depth knowledge, making him one of the most respected experts in the industry. His writings are always up-to-date, proven and useful information for anyone interested in the casino world.

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