1. Indian Gaming
fun and games?

2. 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.”

3. 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

4. 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)

5. 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

6. 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

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

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

9. 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.

10. 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

11. 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

12. 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)

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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.)

19. 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

20. 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

21. 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