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You are here: Home » Policy Issues » Community Development » Gaming Gaming
Indian gaming has given impoverished tribal communities a much needed boost in their struggle to achieve economic growth. After decades of failed federal policy to provide economic stimulus to Indian Country, the enhanced decision-making power of tribal sovereignty has provided tribes with the means to increase sustainable economic development on reservations. The policy of Indian self-determination coupled with benefits of Indian gaming has helped tribes achieve modest results in improving tribal economies.
Indian gaming history
Large-scale gaming sponsored by tribal governments started in the early 1980's at the same time that state lotteries began to proliferate. Relying on fundamental federal Indian law, the Supreme Court ruled that if state law criminally prohibits a form of gambling, then the tribes within the state may not engage in that activity. However, if state law civilly regulates a form of gambling, then tribes within the state may engage in that gaming free of state control.
Government regulation
In 1988, Congress formally recognized but limited the right of Indians to conduct gaming with the passage of the Indian Gaming Regulatory Act (IGRA). The IGRA created the National Indian Gaming Commission to regulate Indian gaming. The IGRA generally allows tribes to use Class II games such as bingo, so long as not criminally prohibited by the state. However, for Class III casino-style gaming, the tribes must first negotiate compacts with states concerning games to be played and regulation.
Indian gaming revenue
Like state and local governments, the revenues accruing to tribal governments from any source are used as a tax base to fund essential services, such as education, law enforcement, tribal courts, economic development, and infrastructure improvement. In fact, Indian tribes are required by IGRA to use their gaming revenues for such purposes. Much like the revenues from state lotteries, tribal governments also use gaming revenues to fund social service programs, scholarships, health care clinics, new roads, new sewer and water systems, adequate housing and chemical dependency treatment programs, among others. Furthermore, many tribal governments are sharing their proceeds with local non-Indian communities through philanthropic institutions providing funds to local schools, clinics and social programs.
Indian gaming by the numbers
Overall, only 224 of the 562 Indian tribes in the U.S. are engaged in gaming of any kind, and many of these operations are very small with great limitations on the types of games. The National Indian Gaming Commission, the federal regulatory agency for Indian gaming, reported gross revenues for 2003 exceeded $16.7 billion, a $2 billion (13.7%) increase over 2002 revenue.
What is the overall impact of Indian gaming?
While Indian gaming has often been scrutinized, it has had a huge beneficial economic impact on some of the most impoverished Native communities in the U.S. It has provided thousands of jobs for Indian and non-Indians, and paid millions of dollars in payroll taxes and other direct benefits to state and local governments. Many tribes engaged in gaming have not found this great success, but have been able to create successful small businesses that provide a moderate amount of much needed revenue to the tribe. However, for most tribes Indian gaming has not been an answer to their overwhelming needs. Even after the advent of gaming, Indian reservations continue to have a 31% poverty rate, a 46% unemployment rate and similarly Indian health, education and statistics are the worst in the country.
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