History of Indian casinos

In Indian casinos repay debts to Native Americans is happening.

Such a turn of events would hardly have occurred to Fenimore Cooper: in modern America, many Indian tribes exist on the income from the gambling business. The total annual turnover of casinos on reservations is approaching $13 billion, and luxury and glitz of the largest Indian gambling houses can compete with the best establishments in Las Vegas. Question is if they also went to online sphere with no deposit bonuses or not, but here's the information only about offline business.

To a large extent, their current prosperous tribes that have become rich in the gambling business, owe President Ronald Reagan, who after coming to power closely engaged in the "Indian issue. In the early 1980s, Indians ranked last in terms of living conditions among the national minorities living in the United States. In the 1970s, the government spent more than $30 billion to maintain reservations, but it was clearly not enough, as the poverty rate among Indians was three times higher than that of other ethnic groups. Unemployment, alcoholism, illiteracy, high crime and suicide rates - these problems worried not only the vigilant Soviet press, which described in black colors the unbearable living conditions of the oppressed Indians, but also the "oppressors" themselves.

Ronald Reagan is a friend of the Indians

In January 1983, the White House formulated and publicized an official position on Native American issues. In accordance with the concept of "new federalism", which implied the transfer of some of the powers of the federal government to the states and local governments, the State Department was to strive to ensure that Indian tribes would also be freed from excessive control and bureaucracy, which "encourage dependence rather than self-sufficiency".

Of course, this did not mean that the government forgot its responsibility to the Indian population. At the same time, Reagan ostentatiously showed concern for the wallets of taxpayers who paid for reservation maintenance, unemployment benefits, and other social programs to help Indians. Reagan's idea was to create a favorable regime for tribal economic initiatives and thus help them out of poverty, while at the same time "unloading" the federal budget.

Encouraged by this support, Indians began to look for new ways to make money. Some tribes signed contracts with large corporations and became a source of cheap labor for them, while others organized their own industries. However, the most successful and most popular economic initiative was the opening of various gambling establishments on the reservations. To be fair, it should be noted that this trend had been evident since the late 1970s, but it was under Reagan that Indian gambling gained legitimate status and grew into a real industry.

Prohibit does not mean control

In 1979, a small Seminole tribe opened a bingo hall on their reservation, even though gambling was illegal in Florida at the time (exceptions were made only for non-profit organizations). State authorities tried to shut down the establishment, but the tribal elders refused to comply. They argued that the reservation was a sovereign territory, and therefore the laws of Florida did not apply there. The case went to court. The litigation lasted several years, but finally ended in 1987 with a victory for the Indians.

Even before the end of the process, when it became clear that the court is likely to set a precedent in favor of the Indians, other tribes picked up the initiative of the Florida Seminoles, and on the reservations as mushrooms after the rain began to appear a variety of casinos, arcades and other establishments of this kind. Money flowed to the Indians, and soon it became clear that this process still needs some control.

In 1988 Ronald Reagan signed the Indian Gaming Regulatory Act into law. IGRA confirmed the exclusive right of tribes to open gambling establishments on their reservations - as long as these activities do not conflict with federal or state laws. The law also delineated three main classes of gaming. The first is folk games with minimal prizes and ceremonial or holiday games. The second is all types of bingo plus card games (except blackjack and baccarat). The third is the traditional casino repertoire, including roulette, slot machines, high stakes card games, etc. The first two classes of games are at the mercy of tribal authorities, but to obtain a license to organize games of the third - the most profitable - class, the tribe must enter into a contract with the state. The terms of such an agreement may vary, but the law obliges states not to unreasonably impede, otherwise they can be sued in federal court.

Today, Indian gambling is a huge industry, with 201 of the 562 officially recognized tribes involved in one way or another. In total, there are 321 gambling establishments under their authority. The total annual turnover of the industry is $12.7 billion. According to the National Indian Gaming Association, the Indian gambling industry employs 300,000 people, only 25% of whom are of Indian descent.

From the very beginning, the Indian gambling business had not only supporters, but also opponents. For example, not all Indians are enthusiastic about this way of making money, believing that it undermines traditional values. Among the dissatisfied, especially at first, were the inhabitants of settlements located on the borders with reservations. The success of Indian casinos, they argue, has triggered an increase in crime in these areas. Prostitutes, gangsters and other criminal elements attracted by the smell of easy dollars appeared in the previously quiet towns. And law-abiding citizens, who no longer have to travel across the country to play in casinos, are leaving more and more money on the reservations that could be used for good causes.

On the other hand, even opponents of Indian casinos can't help but recognize that there are some positive aspects to the booming new industry. In many states, Indian gambling establishments are on the list of the largest employers, as well as a solid source of cash flow to the treasury. In addition, improving the welfare of Indians leads to the fact that the state has to spend less money on unemployment benefits, social programs, student scholarships, benefits, etc. Many tribes that have become rich from the games themselves now allocate funds for social programs that include not only Indians themselves, but also people of other nationalities.

Where to sign up?

Of course, not all Indian casinos have been equally successful. Most never managed to get beyond the small halls where old ladies gather on Saturdays to play bingo. But others have grown into real monsters that provide worthy competition to the recognized capital of the gambling business - Las Vegas.

The owners of traditional casinos smelled the threat from them very quickly. Famous billionaire Donald Trump, who owned a network of gambling establishments in New Jersey and other states, in the early 1990s waged an active campaign against the Indian "upstarts", claiming that they have gained an illegal advantage in the competition. With little success, Trump tried to jump on the train himself: a few years ago, he took part in funding a group of Eastern Pequots who were fighting for federally recognized tribal status. Once officially recognized, and with it all the benefits that come with it, the tribe immediately decided to open two casinos.

Quite curiously, the development of the gambling business contributed to the national self-determination of the indigenous population of the United States. If in 1970, according to the census, there were 792,000 Indians in the country, then in 1990 this figure rose to 1.9 million people. The number of federally recognized tribes increased several times as well. "Demographic explosion" occurred not because of an increase in the birth rate - just many Americans, wanting to join the gambling millions, remembered their roots, which used to be shameful. Indian now fashionable, and in the richest tribes are also very profitable - because their members receive from the casino solid dividends, scholarships for children's education in elite universities and other social benefits.

With money came power. Indian gambling business owners annually spend huge sums to lobby their interests in Congress and state legislatures. In 2000, this was allocated about $23 million. For comparison: in the same year, alcohol producers spent $10.6 million for similar needs. With such leverage, Indian casinos can become an influential opponent or ally, and many politicians prefer the latter option.

In 2003, California Indians poured money into a campaign against the election of Arnold Schwarzenegger as governor. The attempt failed, and with the Terminator had to negotiate amicably: last August Schwarzenegger announced as a major victory that he was able to conclude an agreement with ten Indian tribes on the construction of new casinos on their territory. In exchange for this, the gambling houses promised to contribute up to 25% of the proceeds to the state, at the expense of which the California budget will be replenished by about $350 million annually.

Golden Tomahawks

Schwarzenegger borrowed the practice of deductions from Indian casinos in Connecticut, whose authorities have long learned to live in harmony with gambling houses and benefit from this cooperation. "Could we ask Pfizer, Bayer or General Electric to stop developing? - asks the rhetorical question of James Amann, Speaker of the House of the Connecticut legislature. - These casinos have a positive impact on our state."

The Foxwoods and Mohegan Sun casinos that Amann is referring to claim to be the largest in the world. They are huge cultural and entertainment complexes that include not only casinos, but also concert venues, banquet halls, golf courses, hotels, beauty salons, restaurants, and stores. Mohegan Sun even has its own professional women's basketball team. Both casinos are run by professional managers, most of whom are non-Indians. Together, Foxwoods and Mohegan Sun provide employment for 20,000 people.

Foxwoods (owned by the Mashantucket Pequot Tribe) grew out of a bingo hall that opened on the reservation in 1986 with a $4 million loan from a bank. In its first year of operation, the room generated $13 million in sales and a net profit of $2.6 million. After Reagan signed IGRA, the tribe took out another $55 million loan, this time from Genting International, a Malaysian company. The Foxwoods casino built with that money paid for itself in just seven months of operation. Initially it only offered roulette, blackjack, craps and other table games, but the casino later signed a deal with the state governor that allowed it to be the first in the state to open a slot machine room. In exchange, Foxwoods agreed to give the state 25% to 30% of the profits generated by the "one-armed bandits." This arrangement is still in effect today. Since 1993, the tribe has paid more than $2 billion to Connecticut.

In February of this year, members of the tribe (by the way, it has only about 700 people) at a special referendum approved the project to expand Foxwoods, which should be completed in 2008 and will cost about $ 700 million. The project will build a new hotel with 825 seats, another casino, a concert hall for 5000 seats, six nightclubs and restaurants, as well as a huge spa complex.

The Mohegan Sun complex opened in 1996. Despite the late start, the casino is already catching up with its main competitor, Foxwoods. The Mohican Tribe, which owns Mohegan Sun, has a similar agreement with the state to contribute 25% of slot machine profits.