Tribal gaming in the United States has had plenty of news coverage this week and from all reports the industry is thriving. The release of the Indian Gaming Industry Report 2007-2008 by Casino City Press may show that growth in 2006 slowed from 15% to 11% but tribal gaming facilities continue to make significant contributions to the US economy. California heads the list of top five Indian gaming states, with revenue of US$7.7 billion.

Yesterday the California legislature voted to allow four of its richest tribes to add up to 17,000 slot machines, a victory for the tribes but a defeat for the labour unions that wanted to unionise workers at Indian casinos. The tribes are at last being recognised as having considerable political power and they use their gambling revenue for lobbying, just as other businesses have done for decades.

Before the vote there were verbal promises to allow unions to organise workers on tribal lands but these are not legally binding. The tribes consider that the unions infringe upon their sovereignty, and argued that the 1999 gambling compacts that are still in effect provide sufficient worker protection. Minor concessions have been granted to give workers compensation rights and to combat problem gambling.

In Florida it has been reported that despite so far being limited to Class II gaming the Seminole tribal casinos are still grossing far more gambling dollars than the Broward County pari-mutuels with Class III gaming. According to the Casino City study, revenue from Class II gaming nationwide grew much more rapidly than Class III although it still lags far behind the more lucrative Class III machines. Florida saw the biggest percentage increase in tribal gaming revenue, up 21.5% to US$1.5 billion.

A bill to restore regulatory powers over tribal gaming to the federal government has been drafted in Washington. Proponents of increased oversight argue that many states do not have the resources or expertise necessary to regulate the rapidly expanding Indian gaming industry. Recent federal court decisions have left the National Indian Gaming Commission (NIGC) with few regulatory powers over Class III gaming.

The bill seeks to grant NIGC the powers to enforce minimum internal control standards for security, cash handling, internal auditing and the operation of games. The amendment to the existing federal laws is likely to meet strong opposition from the tribes. Their own tribal gaming commissions and the states themselves already regulate the gaming operations. Any possible encroachment by federal agencies would once again raise thorny issues of tribal sovereignty. (E-06.29.07)

© Copyright 2007 CasinoCompendium



>>> return to archives
>>> return to frontpage