A University of California, Riverside study on the social and economic effects of tribal gaming on localities has compared changes in key indicators of well-being between 1990 and 2000. The findings indicate that, on the whole, gaming operations have had a beneficial effect on surrounding communities and that poorer areas received larger benefits than more prosperous areas. Funding for the study came from the California Nations Indian Gaming Association and the Pehanga Band of Luiseño Indians.

There are those that still begrudge the success of Indian gaming despite the long-term and far-reaching detrimental effects that past government policies have had on Native Americans. Federal economic development policies dating to the late 19th and early 20th centuries are recognised to have had a disastrous impact on tribes. The study points out that while tribal governments must provide social services, housing and other programmes for their citizens, they cannot levy property taxes on their land (as counties do), collect income taxes (as states do) or leverage their land and other assets (as traditional business developers do).

The passing of the Indian Gaming Regulatory Act in 1988 brought tribal gaming operations to California and around 25 facilities opened in the early 90s. However, it was not until a negotiated deal in 1999 between the then California Governor and 61 tribal governments clarified the legal parameters for gaming in California that gaming facilities expanded rapidly. Now 57 of the 107 federally recognised Californian tribes operate 58 casinos in the state.

In 2000 the Revenue Sharing Trust Fund (RSTF) was set up to require some gaming revenue from Indian casinos to be distributed to non-gaming tribes. Since then over US$148 million has been contributed, but as that was the year that the study ends it has been unable to quantify how the RSTF has reduced the inequality existing among reservations. However, a 2005 survey suggests that these funds have allowed non-gaming tribes to add critical governmental services at the same rate as gaming tribes.

Economic progress between 1990 and 2000, judged against national standards, shows that all tribal governments – including those in California – continue to experience significant socio-economic deficits compared to non-Indians in the US. Over the term of the study, Californian tribes with gaming reduced the number of families living in poverty from 36% in 1990 to 26% in 2000, but the rate is still over twice the national and state average.

The study comments on the impact of tribal gaming beyond the reservations for the decade under examination, “Our analysis indicates that tribal government gaming has had strong economic and social benefits that reach beyond the reservations in California. As we have shown, tracts in close proximity to gaming reservations experienced significantly greater income growth than tracts that were not in close proximity.”

The study also finds that as well as being associated with a large increase in family median income in the poorest tracts of California, tribal gaming has brought a stronger growth in higher education among Californians. Areas in close proximity to gaming reservations saw a much larger increase in the population of better educated people. In conclusion the study reveals that tribal gaming has improved social and economic outcomes on tribal lands and in surrounding areas. It has increased employment and reduced dependence on public assistance both on the reservations and nearby communities.

“While the benefits of tribal government gaming in California have been substantial for tribal members and their neighbors, it will take more time for the economic and social benefits of tribal government gaming to be fully realized. As this Census analysis shows, large gaps remain between the conditions on Indian reservations in California and those enjoyed by other Americans. The decade from 2000-2010 is a critical developmental period for tribal government gaming in California.” (E-09.04.07)

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