Indian Gaming fun and games?

Commerce Clause: Article 1, Section 8 “Congress shall have the power to regulate Commerce with foreign nations and among the several states, and with Indian tribes.”

Marshall Trilogy 1823-1832 Legal standard changed: From “foreign nations” To “domestic dependent nations” = no absolute political autonomy = semi-sovereign nations Power over internal matters Form of government Requirements for tribal citizenship Enforce laws Tax members Regulate domestic relations

Stats 2015 US Census: approx 1.2% pop American Indian (3mil) US Population 321,418,820 WI Population 5,771,337 WI American Indian Population 1.1% (57k)

Income stats 30% live in poverty ($13k/fam of 4) Life expectancy 47 yrs Euro-American 78 yrs Unemployment rates typically 10X national av. Indian Country: higher rates of teen suicide, alcoholism & spousal abuse

Why gambling? Saw state lotteries bringing in revenue for states Employment opportunities Means to economic sovereignty Historically were involved in gambling Lotteries helped fund Revolutionary War, Harvard and Princeton Universities! Nevada 1931; Atlantic City 1977 1998: 27 states allowed casino-style gambling; 48 today

Forms Casinos Lotteries Horse and dog race wagering Card games Bingo Charitable fund raising

Debate 1970s – Seminole Nation opened a bingo parlor & FL threatened to close 2 cases: Seminole Tribe vs Butterworth (‘79) California vs Cabazon Band (‘87)

Rulings: right to conduct gaming on their reservations as long as comply with state criminal & gaming laws If state law criminally prohibits a form of gambling, tribes within state can’t engage in that activity. If state law merely regulates a particular form of gambling, then the tribes within the state may engage in that gaming free of state control. The Indians had the right to conduct gaming operations on their own land, as long as gaming such as bingo or “Las Vegas” nights were not criminally prohibited by the state.

Now BIA reports 212 Indian tribes in 24 states operated 267 Indian gaming casinos 556 Federally recognized nations (eligible for US government services) 22 in Wisconsin Indian gaming represents about 10% of all gaming in US ($9.6 billion in profit - $26b gross) 50% of all – Nevada and New Jersey 40% - state lotteries

Trust responsibility Interpretation of treaties ceding land = perpetual trust relationship with federal government US government promised to provide benefits & rights to American Indians for an indefinite period of time Includes right to hunt, fish & gather on land that had been theirs Requires states to negotiate in good faith with the tribes If don’t, federal court steps in

Indian Gaming Regulatory Act (IGRA) 1988 Goal to promote: Tribal self-sufficiency Economic development Strong tribal government Nations have exclusive right to regulate gaming on Indian lands (as long as not prohibited by Federal law or State regulations)

IGRA requirements Negotiate with states concerning games played and regulation of gaming activities Tribal governments must be sole owners & primary beneficiaries Gaming must promote economic development of tribes

Part of IGRA – National Indian Gaming Assoc. Non-profit Advances economic, social & political lives of Indian peoples Preserve the general welfare of tribes striving for self-sufficiency through gaming Maintain & protect Indian sovereign government authority

US Government Regulations Have way to regulate against organized crime Indian tribes are primary beneficiaries Gaming is conducted fairly and honestly by operators and players

Benefits 330k employed ($12B in income) 75% non-Indian 25% Indian In areas of ND & SD (high Indian populations) – 80% are Indian Programs for pathological gamblers – in some areas they are the only funders

¾ of gaming tribes devote ALL revenue to tribal government services Economic & community development Neighboring communities Charity No per capita payments ¼ per capita payments (47 tribes) Recipients pay federal income taxes $6B in federal taxes $3.8B in state support $2.5B to local governments

Positives Increased self-esteem Revitalization of culture & identity Increased self-sufficiency with revenues Increased funding of cultural maintenance programs Improved infrastructure, maintenance (housing, community centers, healthcare, roads, educational centers, firehouses, law enforcement, etc.)

Positives continued Reduction of Indians & non-Indians on welfare 10,000s of new jobs Increased local & state government tax revenue Improved maintenance of land & natural resources Population growth

Negatives Gambling addiction Conflict between tribes and states Greed (inter-tribal conflicts) Increased debt Unemployment (in areas with high per capita payments) Not required to disclose records to public – hard to determine profits and distribution numbers

Not universal for all tribes Exploring the controversy MN Post 1 MN Post 1A MN Post 1A2 MN 1B MN Post 1C MN Post 1D MN Post 4 Aaron Huey Ted Talk