The History of Indian Gaming

1
The History of Indian Gaming

• By Bryan Sturmer and Nicholas Marz

2
Indian Gaming Regulatory Act

• Enacted in 1988 and defines the framework of
  Indian gaming
• Allows federally recognized tribes to run gaming
  operations, but only on federally recognized
  trust lands
• Establishes a separate Federal regulatory
  committee to protect gaming as a means of
  generating tribal revenue

3
Different Classes of Gaming

• Class I
• defined as traditional Indian gaming and social
  gaming for minimal prizes.
• Tribal governments have authority over Class I
  gaming

4
Gaming Classes (cont.)

• Class II
• Defined as a game of chance, such as bingo
• Includes card games that are not played against
  the house, but instead against other players,
  such as poker
• Specifically excludes slot machines

5
Gaming Classes (cont.)

• Class III
• Includes all forms of gaming that doesnt fall
  into Class I or II
• Includes slot machines, black jack, craps, and
  roulette, and the electronic versions of such
  games
• The IGRA restricts full authority of Class III
  games, must have negotiations with the State

6
Tribes Negotiate With California

• In December, 1991, sixteen tribes attempted to
  negotiate compacts
• Governor only approved video games where gamblers
  only competed against each other
• Indians wanted video poker and slot machines
• Even though negotiations fell through, forty
  tribes opened up casinos that included video
  gaming machines without the compact

7
Where Does the Money Go?

• Tribal Regulatory Authorities regulate annual
  audits on casinos, ensuring that the money may
  only be used
• To support Tribal Governmental expenses
• For Tribal economic development
• For charitable contributions
• For the general welfare of the Tribe
• To support local neighboring governments for
  services

8
The Growth of Indian Casinos

• The year the act was passed, there were 70
  casinos in operation
• In 2001, there were over 290 casinos across the
  country
• Thirty-nine of these grossed over 100 million
  dollars each
• Largest Indian casino employs nearly 12,000

9
Casinos Flourish Throughout CA

• Popular casinos, such as Viejas (below), begin
  to earn enormous amounts of profits
• Casinos are regulated by the NIGC, or National
  Indian Gaming Commission

10
Revenues of Casinos in Millions of Dollars
11
Future of Indian Gaming

• As profits increase on Indian Reservations, more
  tribes are trying to build casinos in order to
  boost their tribes economy
• By looking at recent data, one can conclude that
  casino revenues will grow exponentially