The continuing expansion and diversification of Indian gaming

TRIBES SEEK COMMERCIAL ENTERPRISES

The advent of a casino industry on tribal lands following the 1988 Indian Gaming Regulatory Act has certainly brought prosperity to many tribes. Money has brought them other advantages apart from the obvious one of raising their standard of living from one of extreme poverty that often existed before the casinos. An increasing voice in local, state and national politics is the result of financial backing and lobbying enabled by funds from casino profits.

With prosperity has come the desire to diversify and grow both gambling and non-gambling activity. The expansion of tribal gaming outside a tribe’s own territory is still the subject of legal cases in several state and federal courts. Some tribes with gambling operations have already made a move into commercial enterprises, competing with the commercial gambling industry in the United States and beyond.

In 2005 Mohegan Sun, under its subsidiary Mohegan Commercial Ventures PA, LLC purchased the Pocono Downs harness track and off-track wagering facilities at Wilkes-Barre in Pennsylvania. Awarded a licence to operate slot machines by the Pennsylvania Gaming Control Board, the Mohegan Sun at Pocono Downs duly opened in November 2006. It was the first venture for the tribe outside its immensely successful operation in Uncasville, Connecticut. Last month the Mohegan Tribal Gaming Authority announced that it had agreed terms with Capital Play Inc to bid for the New York racing franchise.

The Mohegan Sun rival in Connecticut, Foxwoods, has confimed that it is in the early stages of developing casino resorts in the US Virgin Islands. The Mashantucket Pequots are taking the first steps in plans to diversify tribal holdings beyond gaming. Possible future resort projects on St Croix and in The Bahamas would put the emphasis on entertainment and residential development rather than on gambling. Foxwoods has also been awarded a licence to operate slot machines in Pennsylvania, in Philadelphia, and has an alliance with the Pauma tribe in California.

The Seminoles in Florida has always been at the forefront of tribal developments. The first in the US to venture into gambling, last March the tribe became the first to purchase a major international corporation when it acquired the Hard Rock cafes, hotels, 2 casinos in Florida and music memorabilia. It was just one step of a plan to operate in the mainstream economy whilst preserving the unique Seminole culture.

The Indian nations across America are increasingly looking towards investing in commercial enterprises as well as turning reservation casinos into entertainment resorts with more than gambling on offer. With more states passing legislation to allow commercial gambling, competition is growing and, like any well-run business, tribal gaming will adapt, find new markets and seek new opportunities. (E-08.15.07)

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