A LL IN ? E CONOMIC F ACTORS TO C ONSIDER IN N ATIVE A MERICAN G AMING By Shalin Hai-Jew 1 Native Gaming: The Economics Frame

A BSTRACT : The economic frame focuses on the context of the need for economic development on Indian reservations. This offers a range of considerations for Native economic development. It also looks at the pros and cons of Indian gaming as an economic solution. This asks learners to consider issues of economic development and empowerment. 2 Native Gaming: The Economics Frame

L EARNING O UTCOMES Explore the economic, job creation / shifting and secondary industries impacts of Indian gaming; understand up front costs of setting up Indian gaming Probe competition between tribes of Indian gaming Explore the use of reservation resources for economic health See how different tribes approach the economics questions in terms of their resources 3 Native Gaming: The Economics Frame

L EARNING O UTCOMES ( CONT.) Think of strategies to diversify the economic base beyond Indian gaming! List the possible positive and negative externalities to Native gaming; consider the mitigations to gaming effects Know what some primary decisions are once casinos open. Understand law enforcement issues around Indian gaming 4 Native Gaming: The Economics Frame

S TRUGGLES WITH T RIBAL G ROWTH AND D EVELOPMENT Insufficient access to capital markets Low levels of education Poor endowments of natural resources Indians’ goals and attitudes Institutional resource allocation Ill-advised federal policies A culture of paternalism towards Native Americans Former mismanagement of Native American resources 5 Native Gaming: The Economics Frame

O BSTACLES TO T RIBAL D EVELOPMENT Low access to financial capital Lack of human capital Lack of effective planning Excessive planning with insufficient action Low natural resources Lack of control over natural resources 6 Native Gaming: The Economics Frame

O BSTACLES TO T RIBAL D EVELOPMENT ( CONT.) Physical distance from markets and the high costs of transportation Intense competition from non-Indian communities Counterproductive and / or discriminatory federal and state policies Inept, corrupt or uninterested BIA leadership 7 Native Gaming: The Economics Frame

O BSTACLES TO T RIBAL D EVELOPMENT ( CONT.) Non-Indian outsider control or confounding of tribal decision – making Unworkable or externally imposed systems of government Inept or corrupt tribal politicians and bureaucrats On-reservation factionalism leading to instability in tribal decisions 8 Native Gaming: The Economics Frame

O BSTACLES TO T RIBAL D EVELOPMENT ( CONT.) Instability of tribal government discouraging outside investment Low reservation savings Scarce entrepreneurial skills and experience Non-Indian management techniques fail to work on the reservation 9 Native Gaming: The Economics Frame

O BSTACLES TO T RIBAL D EVELOPMENT ( CONT.) “Non-Indian management techniques will work, but are absent” Inhibitory tribal cultures Long-term negative effects of racism undermining tribal self-confidence Alcoholism’s deleterious effects (Cornell and Kalt, Reloading the dice…, n.d., p. 6) 10 Native Gaming: The Economics Frame

E NVIRONMENTAL S CAN Market analysis High cost of entry for infrastructure High tech demands Risks to the casino / house Possibility of failure due to booms and busts, competition, and economic challenges 11 Native Gaming: The Economics Frame

E NVIRONMENTAL S CAN ( CONT.) Opportunity costs Risks in policy shifts 12 Native Gaming: The Economics Frame

E ARMARKED F UNDS FOR T AXATION, G OVERNANCE AND I NDUSTRY S ELF - R EGULATION Taxation (employment) Governance and infrastructure building for the tribe Industry self-regulation 13 Native Gaming: The Economics Frame

L OCATION S ELECTION / S ITING AN I NDIAN C ASINO Urbanized or rural environment for the most benefit? Nearness of business competitors Optimal customer-friendliness of gaming type for the region State laws / county laws Land use consdierations 14 Native Gaming: The Economics Frame

L ARGER C OMMUNITY I SSUES Shared benefits Intercommunications Relationships with other tribes Forming alliances 15 Native Gaming: The Economics Frame

M ITIGATING P OTENTIAL P ROBLEM G AMBLING Up to 8% of gamblers may have a “problem (pathological) gambling” issue 16 Native Gaming: The Economics Frame

R OLE P LAYING : Scenario: The scenario is a tribal council meeting. A local tribe is considering whether to adopt gaming as part of their economic development strategy. All who may be impacted should attend. 17 Native Gaming: The Economics Frame

R OLES AND S TANCES Have learners choose various roles. Have them research what an individual or group in their role may think, and have them argue a coherent stand. Each individual or group will have particular aims that they want to achieve. Allow room for changes and shifts in ideas if particular aims are met. Have them keep the aims private generally unless they feel it’s strategically helpful to share that with the group. See what sort of final agreement the various individuals may come to. 18 Native Gaming: The Economics Frame

R OLES Tribal Elders: Larger Outside Community: Tribal Community Members: The Economic Development Committee from the Tribe: Pro-Casino Investors: State Officials: Private Gaming Representatives: 19 Native Gaming: The Economics Frame

C ONCLUSION 20 Native Gaming: The Economics Frame