Andrew Butron
English 1A
Dr. Levinson
December 9, 2011
The Conflicts of American Indian Gaming
American Indian gaming seems to be on every adults mind in this day and age. Going to an Indian casino is a great way to spend a weekend trying your luck and eating some great food, while staying in a luxurious hotel. The industry has been plagued with its share of conflicts, however.
Although Indian gaming is often thought to be a new concept to raise money, gaming has been part of American Indian culture, long before Columbus set foot on this continent. For instances, the Chumash people of Santa Ynez, California, were said to have bet on outcomes of certain games between local villages. According to Stewart Culin’s publication of “Games of North American Indians”, - which has classified hundreds of games of chance and skill, for the purpose of wagering valuable possessions. Cullen writes, “We are well acquainted with an Indian who a few years since killed another because after winning all he had he refused to put up his wife to be played for” (Cullen).
The growth of tribal gaming has progressed into casinos which started in the early 1970s, when tribes began to operate bingo halls located on their reservations to raise money for tribal purposes. However, the states tried to regulate the size of the jackpots and how often the games could be played. That is until; The Oneida Tribe of Wisconsin, Seminole Tribe of Florida and the Cabazon Band of Mission
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Indians took their respective states to court, claiming that the tribes were sovereign nations and not subject to state limitations, thus could not prohibit these activities that were already allowed in other parts of the state, a real victory for all tribes throughout North America (Libraryindex).
At that time, only five states prohibited all forms of gaming, giving the Indian tribes a great deal of latitude to expand their gaming. By 1988 over 100 tribes were engaged in bingo and one researcher put the collective revenues at over $100 million. Not surprisingly, they wanted to move beyond bingo to card games and slot machines (Gambling in America).
At that time, only five states prohibited all forms of gaming, giving the Indian tribes a great deal of latitude to expand their gaming. By 1988 over 100 tribes were engaged in bingo and one researcher put the collective revenues at over $100 million. Not surprisingly, they wanted to move beyond bingo to card games and slot machines (Gambling in America).
In 1989 the Bay Mills Indian Community opened the King's Club in Brimley, Michigan; it was the first Native American gambling hall to offer slots and blackjack games instead of just bingo, thus the modern Indian Casino was born (Libraryindex).
Indian gaming has grown exponentially over the last three decades. Some observers believe that despite its widespread popularity, Indian gaming could become illegal again. The history of Indian gaming is replete with conflicts with the states. Native Americans are concerned that those conflicts could threaten what some observers are calling the "new buffalo." Indian gaming has earned that term because it is a single source capable of feeding and clothing the Indians. It has become the one economic development program that has been able to overcome the poor quality and remote location of most of their lands (Library.ca.gov).
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The conflict between the states and Indian tribes arises because both are sovereign entities. As such, states are severely limited from taxing and exercising jurisdiction over activities on tribal land. When the interests of the Indian tribes and the states differ, this sets up a conflict. The history of tribal-state relations, have not always been free of conflict and tension. The states, in order to prevent the off-reservation effects of certain activities that occur on the reservation have sought to extend authority over reservations. The result has been substantial litigation between the states and tribes in an attempt to define the relationship between the two. The high stakes of gaming and the fact it is an area traditionally regulated by the state have intensified the conflicts (Library.ca.gov).
Although Indian tribes are sovereign entities, they are clearly dependent and subject to federal policy and regulation. Federal policy has fluctuated dramatically over the years, alternating between forcing Native Americans to assimilate, not allowing them to maintain their separate identity. During the most recent swing in policy, Congress passed the Indian Civil Rights Act of 1968 which embraces continued tribal existence. The support and promotion of gambling by the federal government is an outgrowth of the policy of supporting a separate identity for indigenous peoples (library.ca.gov).
The problems associated with Indian gaming continued to grow. Non-Indian managers who helped tribes establish gaming operations were taking the majority of the profits. Suspected organized crime involvement began to surface. There was
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also evidence of cheating and skimming. Some dishonest tribal members were involved in criminal activities. These events began to create pressure for Congress to act, but there was not a consensus on what should be done. A major case regarding gaming in California was pending before the Supreme Court, adding to the inertia in Congress (Library.ca.gov).
The pending Supreme Court case had developed when California had threatened to take criminal action against the Cabazon and Morongo Bands of Mission Indians because of their card game and bingo casino. These games were not operated in a manner that was consistent with state law. In 1987, the Supreme Court found for the Indians in the landmark case, California v. Cabazon Band of Mission Indians. The U.S. Supreme Court upheld-by a six to three vote- the right under federal law for Indians to run gambling operations without state regulation in states where such gaming was legal for any purpose. As the court noted:
"California itself operates a state lottery and daily encourages its citizens to participate in this state-run gambling. California also permits pari-mutuel horse-race betting" (Libraryindex).
The decision in the Cabazon case ultimately prompted Congress to act. After Cabazon, the states and Nevada gaming interests became the principle proponents for new gambling legislation, because they wanted more limitations and control. Shortly after, the Indian Gaming Regulatory Act (IGRA) was passed (Library.ca.gov).
The industry is a very lucrative business. According to the Statistics provided by the National Indian Gaming Commission (NIGC), indicate that there are
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approximately 400 Indian gaming establishments in the United States. These casinos are operated by approximately 220 federally-recognized tribes. The revenue generated by these establishments is close to $18.5 billion annually (NIGC).
American Indian Gaming has had a very colorful history, and a very successful one at that. However, there has been an ongoing debate as to whether the industry is in the moral realm of the local communities.
American Indian Casinos are popping up everywhere. Some people believe that particular areas of the country are being over saturated. Because of the popularity, the industry has prompted debates.
Gaming revenues have injected new life into the economy of what were once depressed reservations. Ian Kullgren of “The State News” writes of a college professor of Marketing and Hospitality at Central Michigan University – Gary Gagnon who also specializes in the casino industry - states he has noticed a profound change in Mount Pleasant, Michigan, since a casino complex opened up in 1994. Gagnon says that the town used to be dead at Thanksgiving and New Years, now because of the casino, students at nearby Central Michigan University would typically leave town in search of entertainment, instead, hang around the university and frequent the casino for their fun. Gagnon also says that local restaurants and businesses used to suffer during summer vacation, now are alive again with visitor that go to Soaring Eagle Casino and Resort to help tide them over. According to a study by James Hill, a CMU professor who conducts research on the effects of the casino in Michigan, found that two years after Soaring Eagle opened in Mount
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Pleasant, the study showed a job increase by 58 percent in the county’s private sector, largely as a result of the new casino. The study also showed a population increase of several thousand during that time. (Ian Kullgren)
Most locals in Massachusetts are in favor of having a casino open up in their state. Indian Casinos have demonstrated that they bring a positive economic growth for the residence in the vicinity. Nora Beane of “Associated Content” writes that a casino would create jobs, “construction companies and local contractors will probably be in high demand, folks in the building industry will be working for years to come as casinos grow and add to their offerings on a regular basis". Casinos have also proven to provide entry level positions inside the casino itself. There are a lot of local people looking for part-time jobs with flexible hours to help supplement their current income to make ends meet. College students are always on the lookout to pick-up some extra cash to invest in their entertainment fund. Not all jobs are entry level or minimum wage. Casinos also provide management positions as well as training programs. (Nora Beane)
Local companies can also thrive with the casino, such as auto repair shops to handle the increase in tourism, along with supermarkets, theaters and restaurants outside the casinos. Casinos cannot be completely self contained. They would need outside maintenance firms like carpet installers, carpet cleaners, heating and air conditioning installers, local security.
Although Indian Casinos are heavily favored in most states because of the revenue they provide to take care of their people. They still have their share of
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opposition. Some of those that are opposed to the casinos are from the religious sector. They feel that the moral conduct is questionable. People would squander their paychecks in the attempt to find fortune. Fear of retirement funds and college tuitions being lost in games of chance, are a common complaint, homes borrowed against to pay off gambling debts is another fear often spoken of. Such immoral activities are said to be “unworthy of the human spirit”. In addition to the gambling itself, those who are opposed to casinos from a moral perspective point to the effects of gambling can be the same as any other addictive behavior and may easily lead to bigger problems. That if in-fact they were to lose their kids college money, or are forced to sell the family home in order to satisfy a gambling debt, other means would be put in place to raise the money in need. Lying and cheating would be the new motivator to make money. Others feel that the sale of drugs would also enter into the picture, not to mention the questionable people that often run casinos (Nora Beane).
Opponents from Springfield, Mass. feel that crime would be on the rise because of the casinos. They also fear that unscrupulous individuals will start to invade their neighborhoods, disrupting all that they hold sacred. Automobile traffic is also a huge concern to the community, more cars on the road would cause more congestion, hence more accidents. Automobile insurance would rise along with home owners insurance because of the increase in crime. Zachary Neal, an assistant professor in the Michigan State University College of Social Science who specializes in urban economic development isn’t certain the effects would be as booming in
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Lancing, Michigan. Zachary States “Sometimes putting a casino downtown could distract from the streetscape, Neal also goes on to say “adding the contained environment of a casino could pull businesses away from stores and restaurants in the downtown area. Schools could also face new challenges from accommodating new student of families who relocate to work at casinos (newsday.com).
Other casinos in the area do not share the feeling of success that the Indian casinos are enjoying. In Atlantic City, employees have been asked to take pay cuts, with some wages down to less than $10 per hour. 22news in Springfield, Mass. took a long look at the Atlantic City casinos and found that in the last four years, they had lost an estimated $1.5 billion and thousands of jobs because of too much competition with new casinos in New York and Pennsylvania (wwlp.com).
Some feel that competition is healthy for the economy. That the prospect of some wages being low does not take away from the fact that having a job is better than no job at all, the jobs being lost at one casino will open up at another.
Having a casino - or any adult entertainment- popping up near residential areas will always cause its share of debates. Both sides raise valid points.
American Indian Casinos have been popping up like wild fire all over the country, and for very good reason. Most tribes have become self sufficient in taking care of their own people, such as the Yavapai-Apache Nation, who live on a divided reservation in and around Camp Verde, Arizona. Parts of the reservation are in Camp Verde, Clarkdale, Rim Rock, and Middle Verde, Arizona. Since the opening of the Cliff Castle Casino, the Yavapai-Apache Nation people have been enjoying the
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benefits that the casino has produced. In the first four years after the casino opened, testimony before a Senate oversight committee by David LaSarte indicated that the casino employed over 750 people. Expenses from insurance, pensions, payroll and taxes exceeded $20 million in 1999. The success of the enterprise has allowed the Nation to provide jobs, numerous services, and local benefits that would otherwise be unaffordable (Arizona rocks tours).
Prior to its opening, many of the tribal members were dependant on non-tribal government assistance or held low paying, dead end jobs. Any tribal members that are willing to work will have a job. All members employed by the tribe receive medical, dental, eye care, disability and life insurance. Members are provided with transportation for health related appointments, including those at the Indian Health Service in Phoenix. There is now a move to the practice of preventative medicine that insures a better system of health care for tribal members (Arizona rocks tours).
Other known facts are, in 2004 the National Indian Gaming Association (NIGA) published Indian Gaming: Final Impact Analysis, a study of the economic and social effects of tribal gaming. The report notes several advantages that tribal gaming and associated businesses have brought to Native Americans. As of the year 2003, the American Indian gaming industry has generated revenues of nearly $18 billion which created almost 500,000 jobs for the Native Americans, and paid out approximately $5 billion to employees of tribal governments and economic development enterprises. The success of the industry also allowed for the
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contribution of over $100 million from tribal governments to charities and non-profit organizations, as well as providing millions of dollars to Indian-owned small businesses, and nongaming tribes through special trust funds. These proceeds have also funded essential tribal programs, such as schools, hospitals, water and sewer systems, roads, police and firefighting programs, infrastructure needs, and cultural and social projects.
The report concludes that "gaming has given Tribal leaders the opportunity to acquire the knowledge, skills and self-confidence needed to build strong Tribal governments and, for the first time in generations, provide for the health, education, and welfare of their people (Tribal casinos)."
A study published in April 2000 (Jonathan B. Taylor, Matthew B. Krepps, and Patrick Wang, The National Evidence on the Socioeconomic Impacts of American Indian Gaming on Non-Indian Communities, Chicago: Lexecon) found that Native American casinos had substantial economic and social benefits to surrounding communities and that these impacts were greater than those from non–Native American casinos. This was because Native American casinos were more likely to be in areas suffering from severe economic depression (Tribal casinos).
The researchers examined a hundred communities across the country including twenty-four in which commercial casinos had been introduced and sixteen in which tribal casinos had been introduced. Analysis of thirty indicators of
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socioeconomic health revealed no harmful impacts associated with the introduction of tribal casinos. The casinos were praised for benefits including infrastructure improvements, economic growth, higher employment, better social programs, greater indigenous language retention, and all-around community vitality (Tribal casinos).
The opposing forces have claimed that the casinos are nothing but a cesspool for greed, crime and corruption, when in fact all casinos in general create the same kind of problems. Casino gambling in its earliest years was largely run by mobsters, gangsters, and Mafia families. After gambling was legalized in Nevada in 1931, the first casinos were small, rather plain establishments operated by families and small companies. Nevada law kept corporations out of the casino business by requiring that every shareholder obtain a gaming license (crime).
Ironically, this law, which was designed to safeguard the integrity of the casinos, gave organized crime a huge advantage. The nation was in the midst of the Great Depression, and building a flashy casino/hotel was a very expensive undertaking that required a large amount of money. Few legitimate businessmen had the cash needed for such an enterprise, and banks were reluctant to loan money for what they saw as a poor investment. Organized crime groups had made fortunes selling bootleg liquor during Prohibition and were able to make the large capital investments needed to build and operate lavish casino/hotels that attracted visitors (Crime).
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The marriage between casinos and organized crime in Nevada lasted for decades but was eventually ended by gaming officials and law enforcement. Today, there is no strong evidence of organized crime activity in the casino industry, but regulatory agencies keep a watchful eye on casinos to make sure mobsters and their associates do not gain a new foot-hold in the industry (Crime).
According to an article written on May 2002 article in Indian Country Today said, 225 criminal cases related to tribal gambling were referred to the Department of Justice between 1992 and 2000. Most of the cases involved theft from tribal casinos by patrons or employees. According to the FBI, theft and embezzlement are the most common crimes associated with casinos (Crime).
So as it goes, American Indian casinos do not do much in creating new problems, but in fact do more for helping its people and the surrounding communities than regular casinos.
