Indian Gaming

Economic Self-Determination

© Jeffrey R Gudzune

Apr 20, 2007
A simple bingo game created a firestorm that would eventually lead to economic self-determination of hundreds of Native American nations.

While progressive social programs and determined leadership have achieved landmark civil rights for Native Americans, the greatest economic strides have been made as a result of one word—BINGO! Since 1988, more than 150 Indian tribes have established casinos which have benefited the drive for economic self-sufficiency. How has the establishment of Indian casinos provided financial stability for the tribes that have adopted them? Furthermore, how have casinos affected the development of Native Americans in general?

The concept of Indian gaming began with fund raising bingo games on reservation land. This was not a unique concept and was employed by dozens of tribes throughout the 1970s. Many tribes, however, encountered legal battles with the states in which they were located as these games garnered more attention. Such was the case on the Oneida, who generated a political firestorm over a bingo fund raiser in 1975. The Oneida tribe of New York set up the game as a means of raising money for their fire department. The state claimed the game was illegal as the prizes offered by the tribe were over the limit as outlined under New York law. The Oneida argued that their recognized status as a sovereign nation (upheld by acts of Congress and Supreme Court precedent) precluded them from such a limitation. The case was in the midst of a Supreme Court review when another similar situation arose, this time in Florida.

The Seminole Nation of Florida had established their own high-stakes bingo game in light of the Oneida’s claim of sovereignty and were subsequently shut down by the state. The Seminole sued under the same premise as the Oneida, arguing that as a sovereign nation they were not regulated by state law. In 1976, the Supreme Court found that the states had no regulatory powers over the reservations, thereby reaffirming the right of sovereignty. This decision opened the door for dozens of other tribes to establish their own high stakes gaming industries; although some states responded by tightening their own gambling regulations and made their own counter-challenges. More legal battles ensued.

The National Indian Gaming Association was created in 1985 to act as both an advisory board and advocacy group in order to encourage other tribes to establish their own enterprises. A major victory came in 1987, when the Supreme Court once again reaffirmed that the individual states had no authority to regulate the revenue generated within reservation lands in the case of California v. Cabazon Band of Mission Indians. This ruling not only outwardly guaranteed the right of economic self-determination, but, when applied to an earlier opinion (McClanahan v. State of Arizona Tax Commission, 1973), provided un-fettered income for the tribes. Through the efforts of the NIGA, Congress passed the Indian Gaming Regulatory Act of 1988, which legally defined the right of any sovereign tribe to establish a gaming enterprise. Furthermore, tribes were allowed to acquire new lands and develop full-scale casinos—which they did. This act also provided for the establishment of the National Indian Gaming Commission, a government body that ensures all revenue generated is the sole property of the tribe.

This decision has allowed over 150 tribes to gain economic self-sufficiency and has generated nearly $19 billion—money which has been placed into social reforms, historic preservation efforts, and scholarship programs. Not only have Indian casinos provided economic stimulus for those nations involved, they have also provided jobs to non-Indians and thus revitalized the economies of the surrounding communities. While some degree of controversy still remains over the establishment Indian casinos, and there existence is by no means a cure-all for the ills of economic stagnation, there is no doubt that the concept has lead to a cultural revival and a reaffirmation of Native American self-determination.

Bibliography


The copyright of the article Indian Gaming in Native American/First Nations History is owned by Jeffrey R Gudzune. Permission to republish Indian Gaming in print or online must be granted by the author in writing.




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Comments
May 23, 2007 2:38 PM
Nannette Croce :
Interesting article on Indian Gaming and nice to see something Pro for a change. However, I think it is only fair to point out to readers that the picture is not all as rosy as it may appear. Under the section of IGRA that deals with the accepted uses of casino income is "to donate to charitable organizations; or (v) to help fund operations of local government agencies;" It's that (v) that the same state governments that ignored the needs of Indian nations when they were generally poor, have now been using to extort larger and larger portions of the take as some Indian casinos have gained great success.
Most gaming nations end up entering into some form of "compact" with the state which is supposed to cover additional expenses that might be incurred due to increased traffic, policing, etc. However, it sticks in the craw of most state and local governments that they cannot simply tax gaming proceeds. Unfortunately, state government can use various types of pressure to get more out of the compact. They can threaten to legalize gambling throughout the state, thus creating more competition. They can play with the definitions of various classes of gaming or the number of slots a casino can have. Lately there have been agreements with out of state tribes, who enter into agreements with the state in order to break into a lucrative market thus putting pressure on the existing gaming tribes to do the same.
There is also a huge controversy going on now as to whether the Oneida nation owes back taxes on the land it purchased to build the Turning Stone Casino. As it wended its way through the courts, time and again the decision came down that the Oneida had a right to that property based on original land claims. However, the Supreme Court decided that, while the Oneida might have an original claim to the property, it had to be put into trust by Congress before it could be considered part of the Oneida reservation and removed from the tax base.
The Indian Wars in the US continue in one form or another.
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