American Indian Gaming
History
Modern day casinos began on December 14, 1979 when the Seminole tribe opened a high stakes bingo hall on the reservation. The state of Florida had specific laws in regards to gambling including regulating the size of prizes allowed, hours of operation, and other laws. This casino violated many of those laws, and it had already been determined by Congress that states had the right to enforce criminal laws on the reservation. Even though the reservation is supposed to be a separate entity, the state of Florida tried to close the new casino. The court case made the U.S. Court of Appeals, and it was determined since Florida allowed gambling for charities, gambling was regulated rather than prohibited. The U.S. Court of Appeals decided since gambling was now a civil issue as opposed to a criminal issue the state had no jurisdiction on the reservation in regards to the casino. Then, in 1987 the U.S. Supreme Court ruled federally recognized tribes could operate casinos regardless of state laws since the reservations were separate entities. Under current laws, if a tribe wishes to open a Class III casino, the state is required to negotiate a compact with the tribe, and if the state either refuses to negotiate of does not act in good faith, the tribe will be allowed to start the casino regardless of the state’s position.

Classes of Gaming
Class I: Social and traditional tribal gaming with minimal prizes, no regulation outside of tribal government.
Class II: Players play only against other players and not against the house. Legal only if it is legal elsewhere in the state.
Class III: Gambling against the casino, a compact with the state is required.

Gaming Industry Grows
After hearing this decision, many American Indian tribes began to get into the gaming industry, and gaming quickly changed from bingo cards to slot machines and card games. The National Indian Gaming Commission now says there are approximately 400 Indian gaming institutions in the United States since the first one started in 1979. According to the U.S. government, there are 560 federally recognized American Indian tribes, so almost three out of every four tribes in the United States own and run a casino on their reservation. California saw its highest rate of growth in the mid 1990’s as over 3,500 slot machines were added each year, and this rate of growth was typical across the country.

Where the Money Goes
The American Indian gaming industry has been extremely profitable in recent years, and in 2009 data from 28 states consisting of 290 casinos showed a profit of $12.7 billion. This would be enough to place the Indian gaming industry in Fortune magazine’s 20 most profitable companies, but since poverty is still an issue with American Indians, the money must be going somewhere else. According to Time magazine, the vast majority of American Indians get nothing, while outside investors and a select few tribal members receive millions of dollars. Also, another problem is that 13% of the casinos make 66% of the profits. This means not every tribal casino makes a large profit and smaller casinos a distance away from population centers may just break even, and even if they intend to divide the earnings among tribe members it would not be a substantial amount.

Impact
Although tribal casinos are extremely profitable, unfortunately they do not solve the poverty and low income issues many tribes face. The money does not get distributed evenly among the tribe members because of corruption, backroom deals, and a select few American Indians receiving the majority of the money. Also, there is the problem that most tribes do not live right next to large population centers, so the tribes that do will receive large amounts of money while the rural tribes will not make much at all. At first glance casinos might look like the answer to solving poverty among American Indians, put in practice it does very little to solve the problem.

References
1. 5oo Nations. "Brief History of Indian Casinos." Native American SuperSite! Casinos, Powwows, Places to Visit, Tribes, Videos, ... Web. 18 Apr. 2011. <http://500nations.com/news/Indian_Casinos/history.asp>.
This article explained the three different classes of gaming and how the first high stakes bingo hall started in 1979.
2. "Indian Gaming." California State Library. Web. 18 Apr. 2011. <http://www.library.ca.gov/crb/97/03/Chapt4.html>.
This article described how the gaming industry expanded after the court case in 1979.
3. Barlett, Donald R., and James B. Steele. "TIME Magazine: Look Who's Cashing in on Indian Casinos." Breaking News, Analysis, Politics, Blogs, News Photos, Video, Tech Reviews - TIME.com. 8 Dec. 2002. Web. 18 Apr. 2011. <http://www.time.com/time/covers/1101021216/story2.html>.
4. Barlett, Donald R., and James B. Steele. "TIME Magazine: Look Who's Cashing in on Indian Casinos." Breaking News, Analysis, Politics, Blogs, News Photos, Video, Tech Reviews - TIME.com. 8 Dec. 2002. Web. 18 Apr. 2011. <http://www.time.com/time/covers/1101021216/story2.html>.
This article described where the money went from the casinos and how it was distributed.
5. National Gambling Impact Study Commission. "Native American Gaming." UNT Libraries: CyberCemetery Home. Web. 18 Apr. 2011. <http://govinfo.library.unt.edu/ngisc/research/nagaming.html>.
This article described where the profits went from the casinos and how outside investors were involved.
6. Arizona Department of Gaming. Arizona Department of Gaming -. Web. 18 Apr. 2011. <http://www.gm.state.az.us/history.htm>.
This paper described the history of the rise in gaming.
7. Nationaol Bureau of Economic Research. "The Social and Economic Impact of Native American Casinos." The National Bureau of Economic Research. Web. 18 Apr. 2011. <http://www.nber.org/digest/feb03/w9198.html>.
This paper addressed the poverty issue.
8. Griffin, Jerry. "A History of Indian Gaming in Michigan." Michigan House of Representatives. Sept. 1996. Web. 18 Apr. 2011. <http://house.michigan.gov/hfa/gaming.asp>.
This paper describes the effects casinos had in Michigan.
9. "Gambling in American History » Native American Gaming: Traditional – Gambling in America." Gambling in American History - Encyclopedia: Gambling in America - History, Issues and Society. 24 Dec. 2009. Web. 18 Apr. 2011. <http://gamblinginamerica.name/native-american-gaming-traditional-gambling-in-america/>.
This paper described traditional American Indian gambling.
10. Indian Reservations and the American Casino Culture- A Brief History - 777.com." 777.com - Online Gambling Guide to Casinos, Poker, Bingo and Sports Betting. Web. 18 Apr. 2011. <http://www.777.com/articles/indian-reservations-and-the-american-casino-culture>.
This article explained the history of gambling in American Indian culture.
11. American Gaming Association. "Fact Sheets : General Info." American Gaming Association. Web. 18 Apr. 2011. <http://www.americangaming.org/Industry/factsheets/general_info_detail.cfv?id=6>.
This article explained the impacts of gaming on Indians since Europeans arrived.
12. 1995, October Of. "Kansas State Gaming Agency History." Kansas.gov - The Official Web Site of the State of Kansas. Web. 18 Apr. 2011. <http://www.accesskansas.org/ksga/History.htm>.
This article explained the history of gaming in Kansas.
13. UC Berkeley. "Indian Gaming in California." UC Berkeley | Institute of Governmental Studies | Home. Web. 18 Apr. 2011. http://igs.berkeley.edu/library/research/quickhelp/policy/government/indian_gaming_history.html
This article had statistics on gaming in California.
14. Labriola Center. "ASU Libraries: Historical and Contemporary American Indian Gaming." Arizona State University. Web. 18 Apr. 2011. <http://www.asu.edu/lib/archives/gaming.htm>.
This paper described gambling games.
15. Lombardi, Michael. Web.
<http://www.cniga.com/facts/History_of_CA_Gaming_Part_2.pdf>
This article describes the challenges gambling creates.
16. "Indian Gaming Revenue Decline but Still Recessionary Winner | Stics - Casino and Hospitality Predictive Solutions." Predictive Analytics and Analytical Software for the Casino and Hospitality Industry - Stics. 25 Mar. 2011. Web. 18 Apr. 2011. <http://www.stics.com/statistical-analysis/report-marks-indian-gaming-revenue-decline/>.
This article describes competition in the gaming industry.
17. "A Brief History of Minnesota Indian Casino Financial Disclosure." Maquah.net - Homepage. Web. 18 Apr. 2011. <http://www.maquah.net/miscellany/casino06.html>.
This describes a financial report about gaming in Minnesota.
18. "Native American Casinos Show Strong Economic Growth." Stacked Odds. Web. 18 Apr. 2011. <http://www.colodec.org/native-american-casinos-show-strong-economic-growth.htm>.
This article describes economic impact of casinos and their growth.
19. Crews, Lary. "Quick Intro: History of Indian Casinos | Made Manual." Mens Online Guide & Mens Lifestyle | MadeMan.com. Web. 18 Apr. 2011. <http://www.mademan.com/mm/quick-intro-history-indian-casinos.html>.
This article describes the history of modern gambling.
20. "Colorado Indian Casinos." Colorado Casinos & Gambling - Poker - Texas Hold'em. Web. 18 Apr. 2011. <http://www.coloradogamblingforum.com/index.php?page=13>.
This article describes problems in Colorado that casinos have caused.