Why Are There Casinos On Indian Reservations



Last of five installments. You can read the whole series here.

Sharon Schmickle and I began this project with a Big Question: Have casinos improved the lives of those living on Minnesota’s Indian reservations?

Participation in the Agriculture Department’s Food Distribution Program on Indian Reservations increased 8.2 percent from 1990 to 1997 among tribes with casinos, compared with 57.3 percent among. Tribes generally have authority over other forms of economic development such as ranching, agriculture, tourism, and casinos. Tribes hire both members, other Indians and non-Indians in varying capacities; they may run tribal stores, gas stations, and develop museums (e.g., there is a gas station and general store at Fort Hall Indian Reservation.

Specifically, have casinos enabled Minnesota’s tribes to meet goals set out in the Indian Gaming Regulatory Act of 1988? In other words, have the tribes turned casino profits toward developing their economies, achieving greater self-sufficiency and strengthening tribal governments?

If you’ve followed the other installments of this series, you already know the overall answer we heard from Native people: mixed bag.

We heard something more, though. We heard a different question.

Ojibwe and Dakota people across Minnesota added a measure of casino success that rises above issues of poverty, jobs, education and tribal self-sufficiency: Have casinos enabled tribes to restore their endangered languages and steep a new generation in cherished cultural values and traditions?

Nearly everyone we met placed a high priority on that question, often bringing it up before we even got around to asking.

Why Are There Casinos On Indian ReservationsWhy

Bois Forte band member Don Chosa used the analogy of tribal sovereignty as a stool, with one leg being language. He told me that in the Bois Forte Nation of several thousand, only 14 fluently speak the Ojibwe language.

Fond du Lac Chair Karen Diver’s face lit up when I asked her whether gaming funds should be used to promote cultural awareness and restoration.

“A large part of the policy of the federal government through the years was to undermine the identity of Indian people,” she said. “Part of the resiliency of Native American people is the preservation of our identity, which is all about language and culture.”

This video expands on her points:

Judging by the flourish of cultural activities throughout Minnesota’s Indian country, the state’s Native Americans are doing far more than talking about this objective. To name just a few developments:

  • Leaders of the White Earth Nation teamed up with University of Minnesota experts to tap Native culture for the teaching of science, technology, engineering and mathematics. So effective was the approach that kids eagerly spent big chunks of summer vacations studying the chemistry, physics and limnology behind time-honored activities such as gathering maple syrup, building canoes and judging the prospects for healthy wild-rice harvests. Elders enhanced biology studies with traditional stories about red willow, cattail and other valued plants. Students were so engaged that “a lot of times they don’t even realize they are learning math and science,” said White Earth member Joe LaGarde.
  • Mille Lacs members created a museum on the shore of their namesake lake where exhibits tell the story of the band’s 250-year history in east central Minnesota. A craft room features demonstrations of traditional cooking, birch-bark basketry and beadwork. Beyond the museum, the Nay Ah Shing Schools offer Ojibwe language and culture programs that bring elders into classrooms. At a culture center, band members can practice language, music, dance, wigwam construction and other traditional activities.
  • Another museum on the Fond du Lac reservation features stone arrowheads and other artifacts illustrating the history of Natives who inhabited the Upper Midwest’s lakes region long before white immigrants arrived. At the Fond du Lac Ojibwe School, the mission statement reads: “In order to survive both as a people and a culture, we must return full circle to our traditional manner of education.”
  • In Bemidji, Ojibway language signs stand alongside English signs in the public schools and local businesses. You can read more in Cynthia Boyd’s MinnPost report. Better yet, you can read an Ojibwe translation of the article. If you yearn to hear the language spoken, check the website of the Ojibwe People’s Dictionary.
  • Classes are springing up in Dakota language as well. In all, more than 100 programs in Minnesota provide exposure to Dakota and Ojibwe languages, says a report to the Legislature by the Minnesota Indian Affairs Council. The report laments a dire shortage of people who know the languages well enough to teach them. “Those elders who speak Dakota and Ojibwe as their first language are our most precious resource for language revitalization . . . several of these few ‘first speakers’ have passed away, and each passing is an irreparable loss that intensifies the urgency of our work,” it says.

How much of this spirited revival of Indian language and culture can be credited to casinos? No one can say for sure. Certainly, a good share of the drive for preserving the languages was independent of casino profits.

Yet, we heard time and again that casinos have revived Native pride and lent psychological momentum as well as financial resources to renewed cultural celebration.

Building on the economic thrust from casinos, tribes have moved to revitalize their communities and to revive cultural sovereignty which had been “under assault quite powerfully all of the way . . . to the 1960s,” said David Wilkins, a University of Minnesota professor of American Indian Studies.

“They just didn’t have the opportunity to do that before, at least not at the scale to which they are doing it now,” Wilkins said.


MinnPost photo by Steve DateFond du Lac Chair Karen Diver: “Part of the resiliency of Native American people is the preservation of our identity, which is all about language and culture.”

What’s next?

Cultural restoration is a fragile enterprise, though, something that takes generations to achieve. Its keystone is enduring hope.

In this case, hope is clouded by the realistic fear that Minnesota’s tribes will lose their exclusive franchise to run gambling casinos. Year after cash-strapped year, politicians have called for the state to grab a greater share of the lucrative business. Meanwhile, online gaming has grown.

Tribes have maneuvered to thwart competition so far. Still, their leaders brace for the day when gamblers will have other places to spend their money.

Have tribes used their 20 years of casino operations to build for a time when this cash cow is gone? Or have they wasted the opportunity? I asked Indian people what would happen if their exclusive rights to casino gaming were compromised. This video gives a sampling of the responses:

‘They’ vs. ‘We’

Reservations

As I drove through Minnesota’s reservation communities this year, toured impressive new buildings and learned about ambitious programs, I couldn’t help but wonder what these places will be like 20 years from now. Almost certainly the gaming revenue landscape will have changed, whether slightly or drastically.

Will the buildings still shine? Will the same level of programs and services be offered? Thinking optimistically, will most tribal members have landed good jobs so that a lot of these government services won’t even be necessary?

Will Native people own and operate more businesses?

Pa indian reservation casinos

Will Native culture be stronger? Will more people fluently speak the Native languages?

Why Are There Casinos On Indian Reservations

Will everyone have a decent place to live? Will all enjoy better health? Will addictive behaviors decline? Will high school graduation rates rival those of Minnesota’s general population?

As a (so far) loosely connected member of the White Earth Nation, will I be saying “we” more often than I say “they,” when referring to Anishinabe people?

I hope so – with or without the casinos.

Sharon interviewed me recently, asking me to reflect on my experiences while doing this series. That video:

Finally, thank you for following these reports. We’d love to hear your thoughts about the questions and issues they raise.

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QUESTION: What is the Difference in Gambling at Indian Reservations and Regular Casinos?

ANSWER: In the world of brick-and-mortar gambling, there are traditional casinos and then there are Indian reservation casinos (or Indian Casinos). At first glance, the two might not seem much different, but scratch beneath the surface and you’ll find a whole host of distinctions.

Knowing the difference in gambling at Indian reservations casinos and regular casinos might not make much difference to your bankroll, but it should provide you with a greater understanding of how the industry works. And for those who take their gaming seriously, every scrap of information is valuable on some level.

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Distinctions between Traditional and Native American Gambling

The items listed below are some of the most notable differences between gambling in Las Vegas and at a Native American casino. The next time you decide to go on a gaming road trip, give both locations a try and see if you can spot additional variations.

Location – The most fundamental difference is related to location. As the name would indicate, Indian reservation casinos are always located on lands set aside by the government for the use of specific Native American tribes. Regular casinos, meanwhile, can exist on any other property.

The total geographical area of reservation land equals 2.3% of the total area of the United States. Some tribes have multiple reservations allotted to them, while around 200 of the nation’s 550+ recognized Indian tribes have no land at all.

Revenue – While Las Vegas and Atlantic City would hate to admit it, the annual revenue from casinos on Indian reservations exceeds the combined totals for gaming in both cities. In 2009, for example, Native American locations pulled in $26.5 billion across 28 states.

Selection of Games – Most reservation casinos offer the same games as their competition. Some states have different laws though, so you might not find certain table games in a particular casino, for example. Or the way the slot machines work might vary. (See our post about Class II and Class III slot machines for more details about that.)

Payback Percentage – This is the biggest difference between gambling at regular casinos and Indian reservations. In many states (Connecticut is a notable exception), Native American -Indian- casinos are not required to report their payback percentages, which means the number could be decidedly unfriendly to the player. However, any Indian reservation casino manager will tell you that their rates are on a par with the competition, and there may be some truth to that. After all, a lower payback percentage on slots and other electronic games means fewer winners. Over time, a casino with a reputation for paying out less will begin to lose business. Whether they offer a 75% or 90% payback, the casino is still going to turn a profit.

Size – When it comes to the overall size of a brick-and-mortar gaming establishment, the folks in Atlantic City, Reno, and Las Vegas have a hard time competing with casinos built on Indian lands. Much of this has to do with location, as regular casinos have to build in cities that are already filled with everything from residential housing to shopping malls. Indian land is more wide open, which makes it easier to allot massive tracts of land for construction.

Today, the second largest casino in the United States is the Foxwoods Resort Casino on the Mashantucket Pequot Indian Reservation in Ledyard, Connecticut. It has over 6,300 slot machines, 380 table games, and the biggest bingo hall on the planet. The largest U.S. casino (WinStar World Casino in Thackerville, Oklahoma) is owned by the Chickasaw Nation of Oklahoma, although it is not located on an Indian reservation.

Legality – While traditional land-based casinos are subject to all state and federal laws, a 1979 Supreme Court decision ruled that states could not regulate activities on Indian reservations or tax their occupants. This was bolstered by a 1987 decision that said casino activities could not be state regulated as long as the type of gambling offered was legal in the state.

The law was further defined by the Indian Gambling Regulatory Act, which requires Indian tribes to consult the state before offering casino gaming. In the case of an impasse, the Secretary of the Interior is called upon to mediate and make an eventual ruling.

The revenue from casinos on Indian reservations is meant to be spent on charitable ventures and tribal government operations. In some cases, however, the profits eventually find their way into the hands of tribal members, although you can count on the state and federal government getting their cut.

Cultural Considerations – While traditional casinos offer a wide variety of themes, visitors to gambling locations on reservations should expect a certain Native American flair to the décor. This isn’t always true, of course, but tribal leaders tend to be proud of their heritage and make every effort to provide displays and exhibits to educate their customers. At the very least, some basic decorations in the Native American tradition can usually be spotted in certain locations throughout the establishment.

Other cultural issues sometimes relate to traditional Indian beliefs and superstitions. An interesting example occurred when the Fire Rock Navajo Casino was under construction in New Mexico. Numerous problems led some to believe that the endeavor was being cursed by skin-walkers, magical practitioners adept at turning into animals and generally behaving in a sinister fashion. The construction continued, however, and the CEO of the casino later assured visitors that various blessings had been performed to ward off evil. Despite possible efforts from the forces of evil, the casino is still in operation.

Management – While you might suppose that casinos on Indian reservations are managed by members of the tribe, you would be wrong in many cases. In this way, gambling at Indian reservations isn’t much different than regular casinos, as they want to bring in experts who can squeeze every ounce of profit out of the business. For example, Harrah’s manages one such location in North Carolina, and Donald Trump once tried his hand at managing a reservation casino in California.

Duck Valley Indian Reservation Casino

Next time someone is wondering about the differences in playing at Indian Casinos and regular casinos you’ll be able to provide an appropriate and informed answer. Armed with this knowledge, serious players can then make a determination about the best place to play.





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