iGaming Business North America issue 1

Page 62

Tribal Gaming

Where Does Indian Gaming Fit in the Digital World? For many Native American nations gaming is a key factor allowing tribes to fight poverty on their lands with self-sustaining revenue and to create stronger tribal governments. The Indian Gaming Regulatory Act (IGRA) of 1988 was essential to this process. As online gaming becomes a very real prospect in the political framework of the United States, tribes must once again fight for their seat at that table. When “Black Friday” effectively sent the international Internet gambling business running from the US market, lobbying organizations took to Congress with a renewed and near-frantic effort to pass federal legislation to regulate the industry for Americans. At the same time, states like Nevada, New Jersey and California amped their own efforts to pass intra-state gaming legislation within their borders. Indian tribes knew, beyond any doubt, that it was time to increase their own grasp of the issue and become a strong voice in the discussions. Tribes have strength in numbers, as the National Indian Gaming Commission (NIGC) reports there are approximately 442 Indian gaming establishments in the United States operated by 237 federally recognized tribes in 28 states. They generate more than $26.5 billion annually, according to the National Indian Gaming Association

62 | iGamingBusiness North America | Issue 01 | May 2012

(NIGA). And of the 565 federally recognized tribes in the United States, more of them are likely to indicate interest in gaming revenue going forward. Any type of Internet gaming, whether on the federal or state level, cannot ignore Native American interests as protected by IGRA and subsequent state compacts. Moreover, any gaming entities will want to partner or work in conjunction with Indian gaming interests in order to maximize their customer base and profit expectations.

Gorilla in the room Tribal leaders began to realize the potential effects of online gaming on their land-based casino operations in recent years, as their revenue and the consequential livelihood of their communities were at risk of suffering losses should major companies step in with popular Internet casino games. They realized that federal bills were being introduced to Congress with little to no input from tribes, meaning issues like sovereignty and taxation were in question. As Jerome Encinas, lobbyist for the California National Indian Gaming Association (CNIGA) and the Rincon Band of Luiseño Indians, noted at the 17th Annual

Western Indian Gaming Conference, “It is the 700 pound gorilla in the room, and it’s time to look at it closely.” An organized effort to oppose federal legislation amassed a groundswell of support from tribal leaders and organizations in 2011 and began to take hold in 2012. A February hearing in the Senate Committee on Indian Affairs was a prime example. The Honorable Robert Odawi Porter,

“ Any gaming entities will want to work in conjunction with Indian gaming interests in order to maximize their customer base and profit expectations.” President of the Seneca Nation of Indians in New York, put it bluntly in his testimony: “We will not tolerate any legal authority that shoves aside tribal gaming operations from the table. We already own the table.” This sentiment was reiterated by an opinion piece published in a February issue of ‘The Hill’ by Senator Daniel Akaka (DHI) and Representative Mary Bono Mack


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