Examining the effects of casinos after at least four years of operation, the authors find that positive changes include: young adults moving back to reservations, fueling an 11.5 percent population increase; adult employment increasing by 26 percent; and a 14 percent decline in the number of working poor. In counties with or near a casino, the employment- to- population ratio has increased and mortality has declined.

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Apr 29, 2020 Initially, payroll deficits suffered by tribal casinos were expected to be repaid by the federal government's Paycheck Protection Program, a loan for small businesses to help cover payroll and utilities that could be forgiven after eight weeks. But, unexpectedly, Indian gaming operations were left out of the first round of PPP. One place the casino probably isn’t watching you too closely: the poker rooms. (iStock) “Believe it or not, we don’t spend a whole lot of time on poker at all,” says Derk. To protect people's health in tribes with limited medical resources, some 500 Native American casinos have closed voluntarily. Government authorized $8 billion for tribes in a coronavirus.

Indian tribes are sovereign nations under federal law, and states may not enforce their civil codes on reservations within a state's borders. After the federal government gave tribes more control over their economic development, some began operating gaming places that conflicted with state and local laws. A number of states challenged these operations, but a series of Supreme Court cases were decided in the tribes favor. To clarify the law, the Indian Gaming Regulatory Act was passed in 1988. Tribes could operate full-scale casino gambling on reservations in any state that allowed such gambling anywhere within its borders, provided the details of the operation were set forth under a tribal-state compact. In The Social and Economic Impact of Native American Casinos (NBER Working Paper No. 9198), authors William Evans and Julie Topoleski summarize the history of Indian casinos over the last 20 years and examine their effect on employment, poverty, and crime.

As the authors point out, the 'speed with which Indian-owned gaming operations have developed is staggering,' suggesting that there was 'an incredible pent-up demand for casino-style gaming' in the United States. In Connecticut for example, a federal court ruled that because the state allowed nonprofit organizations to have casino nights as fundraisers, it had to allow the Mashantucket Pequots to add table games to its bingo operations. In 1991, the tribe expanded its bingo hall into a casino. It now runs Foxwoods, the largest casino in the worls. In 1992 the Pequots offered the state either $100 million a year or 25 percent of its slot machine take, whichever was greater, provided the state would allow it, but not any other group, to install slot machines. The agreement was modified to allow the Mohegan tribe to operate slot machines after it received federal recognition. According to the authors, payments from the tribes were estimated to be in excess of $350 million in 2002, and 'effectively prevented the state from granting a license for a proposed non-Indian casino in the Bridgeport area.'

Nationwide, 'half of the 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. Examining the effects of casinos after at least four years of operation, the authors find that positive changes include: young adults moving back to reservations, fueling an 11.5 percent population increase; adult employment increasing by 26 percent; and a 14 percent decline in the number of working poor. In counties with or near a casino, the employment- to- population ratio has increased and mortality has declined.

The negative changes include about a 10 percent increase in auto thefts, larceny, violent crime, and bankruptcy in counties four years after a casino has opened, and an increase in bankruptcies within 50 miles of a new casino. The authors caution against applying their results too generally. Job generation 'does not necessarily mean that granting reservations a monopoly in a particular industry is also a desirable policy,' and because casino profits are not taxable, 'their presence in many states possibly diverts funds from a taxable activity.' Finally, little is known about the distribution of benefits. 'In many cases,' the authors point out, 'most of the people employed by casinos are not Native Americans.'

-- Linda Gorman

The Native American Gaming Industry has been a story of phenomenal growth over the last 20 years. A Business Insider article displays a helpful chart outlining revenues of $10 billion in 1992, peaking at $37 billion in 2007. If you consider the current decline to around $27 billion/year, it’s more than a respectable growth curve in a little over two decades.

The increase of Native American gambling has nearly outpaced every other commercial industry. What’s even more impressive is that lately, the growth of Indian gaming has even been outpacing the growth of the private ‘commercial’ casinos.

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America is in love with gambling and that’s likely what’s helping fuel the economic fire of the tribal casinos. That, and the whole legality of running a casino. It’s hard to say where the Native American gaming industry would be today without the passing of 1988’s act. Legalizing gambling for the Native American tribes at the federal level gave them a head start on building out and colonizing the gaming industry as it sits today.

There’s a common misconception that the growth of Native American gambling is a now threat to private or state run casinos, but the revenue totals are still only 21% of the overall gaming revenue. To date, Native American casinos represent only 17% of the United States entertainment spending, while non-Native casinos represent 43%. That means that more revenue is spent on gambling than all other forms of entertainment (sports, concerts, movies, plays, etc.) combined.

Quick History of Indian Gaming

1832 Rights/Reservations for American Natives

The United States Supreme Court upholds the right of Native American tribes to rule themselves, creating mini-governments, or islands of the legal loophole. This ruling was the foundation to defend the first Native American gambling operation. Without this law, Native Americans wouldn’t have been able to open casinos over 100 years afterward.

1979 First Indian Casino/ Bingo Hall

The very first high-stakes bingo room near Hollywood, FL. The local cops came in and shut it down. There was a legal battle, and the court ruled for the casino, allowing the Seminole’s to manage American’s first legitimate abluent tribally own casino

1987 United States Supreme Court Approved Indian Casinos

The court ruled that federally recognized tribes could manage and operate casinos outside of their State’s jurisdiction, as tribes are sovereign entities, free from the laws of the state.

1988 Congress passed the Indian Gaming Regulatory Act

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This act goes even further than the approval from the supreme court the previous year. It divides the gaming regulation into three classes; Class 1 (social gaming with low prices), Class 2 (poker rooms, ‘non-banked’ card games, only games against other players and not the house), and into Class 3 (full on casinos, slot machines, roulette wheels, etc.). The casinos that are in the Class 3 category are not only allowed to operate the casino, but they’re also allowed to work every aspect. This includes prize payouts, licensing, and procedures. They are the end-all be-all authority. This complete freedom from federal regulation allowed casinos to adapt quickly and avoid typical red tape.

1996 Casinos have a Growth Spurt

Since 1988,