Indian+Gaming+Regulatory+Act+of+1988

=Legislature= toc

This piece of legislature which was signed into law October 17, 1988 created the Indian Gaming Commission and clarified three classes of gaming. The classes govern different levels of gambling based prominently on the stakes and each level requires more governmental supervision.

Class I
The first class is reserved for traditional tribal gaming with prizes that have little value. This class of gaming is completely controlled by the tribal governments.

Class II
The second class of gaming is comprised of games like bingo or card games that are played against other gamblers and there is no 'house' participant claiming winnings directly for the casino. This class requires a permit attained from the Indian Gaming Commission, and the permit can only be attained in states that allow these types of gambling.

Class III
Class three games are chosen by exclusion, they are the games of chance that do not fit under either class one or two. They include all games which bets are made against the house as well as electronic gambling machines. There are several factors a tribe must meet in order to hold class three games. For starters, the type of gaming proposed by the tribe must be legal in the state of operation, next the tribe must get a permit from the chairman of the Indian Gaming Commission, and finally, it must be approved by the Secretary of the Interior.

The Indian Gaming Regulatory Act was created in order to facilitate and protect Native American gaming as a source of revenue for the tribes. Even though this law has been in effect for over twenty years Native Americans still have the highest poverty rate of any ethnic group in the United States. Generally, gambling has helped some Native Americans tribes, but it has also hurt others.

=Benefits of Indian Gaming=

Using the US Census data from 2000 which is the most recent available data and comparing it to previous census data sets yields positive results from the perspective of Native American poverty rates. When comparing the 2000 poverty, mortality, and unemployment rates on reservations with those of 1990 all three declined over this ten year period for both the gaming and non-gaming tribes. When evaluating the population growth versus employment rates between these two sets of census data the tribes with casinos unemployment rates dropped approximately ten percent while the same comparison made of non-gaming tribes results in a decrease in unemployment of about seven percent. Mortality rates as well as poverty rates declined in likewise patterns with the greater improvements on reservations of tribes that are gaming nations.

Tribes with successful gaming operations use different means of benefiting their reservations. Some tribal governments simply split the income into pieces and each tribe member is given a portion. This allows the individuals to better their lives as they see fit with their share of the casino profit. There are other tribes that have a more social means of improvement. These other tribes use portions of their gaming earnings to improve the most run-down poverty stricken parts of the reservations. This method gives more help to those who need it most. Some tribes also donate part of this money into charitably organizations to help improve the lives of Native Americans who are not in the position to have their own gaming. This money is also used to support political candidates who support Native Americans.

=**Detriments of Indian Gaming**=

Not all of the effects of gaming are positive. Even though the socioeconomic factors that determine the level of poverty for a reservation appear to be positive there are also problems and misinterpretations that exist apart from the raw data. The employment rate goes up around casinos; however, it is becoming apparent that most of the employees working inside of the casinos are not members of the respective tribes. After a casino is opened in a particular area the counties around it suffer an increase in the number of bankruptcies filed. The rates of violent crimes also rise in the areas around a casino.

There have been a number of incidents around gaming nations where tribe members are stripped of their citizenship. People outside of the tribe or those being removed see these actions as greed among the members of the tribal government. However, the tribal governments argue that when the economy of the reservation improves that many flock in to take advantage of the reservations' new found wealth. Both sides appear to have valid points of interpretation and this problem will most likely persist as long as the tribes continue to make money from gaming.

Hualapai Tribe
The Hualapai live on a reservation in a remote area near the Grand Canyon. They had grand intentions to build a casino along a heavily visited part of the canyon. Soon after the casino was opened, however, it became quite clear that even though there was a stream of tourists the casino was not turning a profit. The story of the Hualapai is a reminder that just because a tribe can build a casino does not mean that it will be successful. In this case, people had no desire to drive several hours down a bumpy dirt road to gamble in the middle of nowhere given that Las Vegas is relatively close and is much more appealing to gamblers. Many other tribes suffer from a similar location problems. People just will not travel several hours down poorly maintained roads to gamble.

There are other issues that affect both gaming and non-gaming tribes directly resulting from the casinos. Many Native Americans are opposed to casinos because they feel that gaming exploits their culture in order to make a profit. The biggest problem with the gaming tribes is the false impression that is created for the general population of the United States that Native Americans are all rich from the gaming income. In reality less than half of the tribes recognized by the United States government run any type of gaming establishment, and only the tribes that are located near metropolitan areas turn a profit from their casinos. Not all reservations see the positive effects of the casinos either. Most of the gaming tribes in Oregon have seen exactly the opposite. Not only did the areas near the casinos generate negative factors like an increase to violent crimes, but their poverty, unemployment, and mortality rates also increased.

=References= Anders, G. C. "Indian Gaming: Financial and Regulatory Issues." //The ANNALS of the American Academy of Political and Social Science// 556.1 (1998): 98-108. Print. This article looks at the legislation which allowed for tribes to create casinos and the oversights of the legislation. It also looks at the ways in which gaming can help tribes as well as looking into ways that it hurts tribes. Antell, Judith, Audie Blevins, Katherine Jensen, and Garth Massey. "Residential and Household Poverty of American Indians on the Wind River Indian Reservation." Print. This article is about the Wind River Indian Reservation. It describes poverty in relation to household and education. The article also provides information about programs designed to help with reducing the effects of poverty (in 1987). Bazar, Emily. "Native American? The Tribe Says No - USATODAY.com." //USATODAY.com//. 29 Nov. 2006. Web. 09 Apr. 2011. . This article describes how some gaming tribes are creating high standards for citizenship in the tribe. There are also interviews done with some people who were kicked out of their tribes for not meeting the new standards. Brown, David L., Louis E. Swanson, and Alan W. Barton. //Challenges for Rural America in the Twenty-first Century//. University Park: Pennsylvania State UP, 2003. Print. The third chapter of this book is about Native American sovereignty and goes into details about the trends of socioeconomic factors. It talks briefly about Indian gaming and its connection to welfare. "Characteristics of American Indians by Tribe and Language: 1990." //Census Bureau Home Page//. Web. 09 Apr. 2011. . I used table eleven which lists income and poverty levels of selected Native American tribes. This table can be used to compare the poverty levels between tribes of different reasons. Dempsey, Jeffrey A. "Surfing for Wampum: Federal Regulation of Internet Gambling and Native American Sovereignty." //American Indian Law Review// 25.1 (2001): 133-52. Print. This article is about internet gambling and its possible effects on Native American casinos. There is a fear that over regulation of internet gambling could cause other regulations which govern Indian casinos. There is also an opportunity for Native American casinos to move into cyberspace, and potentially eliminate location problems. Duncan, Cynthia M. //Rural Poverty in America//. New York: Auburn House, 1992. Print. The eighth chapter in this book begins by giving a brief history of how the Native Americans were treated by the US government. It expresses some early legislative work that had been done to try and help with poverty, but it was quickly overturned. Evans, William N., and Julie H. Topoleski. "The Social and Economic Impact of Native American Casinos." //NBER Working Paper No. 9198// (2002). Print. This article explains the positives and negatives associated within the counties and surrounding areas where casinos operate. The employment rates go up, but not necessarily from Native American Workers, poverty rates decrease, mortality rates decrease, but some violent crime statistics increase. "For Some Indian Tribes, Casinos Are a Bad Bargain." //News for Natives//. Web. 9 Apr. 2011. . This article is about the Hualapai Indian Tribe and their failure to create a profitable casino. Due to several factors including location and a means of getting people to the casino, this tribe's casino failed. "Indian Gaming Regulatory Act." //NIGC Home Page//. Web. 13 Apr. 2011. . This webpage outlines the Indian Gaming Regulatory Act of 1988. This legislation allowed for Native Americans to create and run casinos. "Indian Tribes and Casinos: The Last Shall Be First | The Economist." //The Economist//. 12 Apr. 2007. Web. 09 Apr. 2011. . This article talks about factors that make Indian casinos profitable. It also expresses the idea that the few tribes that have made large profits from casinos give a false impression of Native American poverty in general. Marks, Mindy, and Kate Spilde Contreras. "Lands of Opportunity: Social and Economic Effects of Tribal Gaming on Localities." //Policy Matters// 1.4 (2007). Print. This article describes how Native American reservations are positively affected by tribal gaming. Not only are the poverty rates decreased, but the additional income is being used progressively. It helps poorer areas the most. "Native American Gaming." //UNT Libraries: CyberCemetery Home//. Web. 09 Apr. 2011. . This article describes the political process in which tribes were allowed to create casinos. It draws an image of the 'The Federal-State-Tribal Triangle' which explains why there is so little legislation and many court battles with this issue. Pitkin, James. "The Longest Odds." //Willamette Week//. 17 Nov. 2010. Web. 09 Apr. 2011. . This article argues that the poverty level of Native Americans in Oregon has gotten worse since the casino was built. It claims that college enrollment has dropped and alcohol related death as well as prison incarcerations have risen over the past ten years. Rodgers, Tom. "Native American Poverty." //Spotlight on Poverty and Opportunity//. Web. 13 Apr. 2011. <[]>. This webpage describes the state of poverty that many Native Americans face and makes statements about our perceived idea of the native people rich with casino money. It is an appeal to voters to help fight for programs that will help Native Americans. Sandefur, Gary D., Ronald R. Rindfuss, and Barney Cohen. //Changing Numbers, Changing Needs: American Indian Demography and Public Health//. Washington, D.C.: National Academy, 1996. Print. This book gives poverty data from earlier times than my other resources. It claims that during the 1960s poverty rates were declining, however, during the 1970s all of the progress regressed. "The Social and Economic Impact of Native American Casinos." //The National Bureau of Economic Research//. Web. 09 Apr. 2011. <[]>. This article analyzes several social and economic aspects of reservations that operate casinos over the past twenty years (1988-2008). In general, unemployment as well as poverty and mortality rates declined; however, there was an increase of criminal activity. Taylor, Jonathan B., and Joseph P. Kalt. //American Indians on Reservations: a Databook of Socioeconomic Change between the 1990 and 2000 Censuses//. [Cambridge, Mass.]: Harvard Project on American Indian Economic Development, Malcolm Wiener Center for Social Policy, John F. Kennedy School of Government, Harvard University, 2005. Print. This book takes census data from 1990 and compares it to the census data from 2000 to make socioeconomic comparisons between Native American Tribes that have gaming and those which do not. This source indicates that living conditions have improved in both types of reservations, but more so in tribes with gaming. Vinje, David L. "Native American Economic Development on Selected Reservations: A Comparative Analysis." //The American Journal of Economics and Sociology// 55.4 (1996): 427-42. Print. This article aims to identify other strategies that Native Americans could use to improve their poverty rates should gaming fail. The paper stresses that selling natural resources and private employment are not enough. Education, however, is helping indirectly. Wells, Barbara. "Native Americans Can't Always Cash in on Casinos | Barbara Wells | Comment Is Free | Guardian.co.uk." //The Guardian//. 9 Aug. 2010. Web. 09 Apr. 2011. <[]>. This article reaffirms the fact that Native Americans have the highest rates of poverty and alcohol and drug abuse of any ethnic group in the US. It goes on to say that Indian gaming has benefited some people, but will not work for all of them.