Economic Impact on Indian tribes
Undeniably, the opening of a casino on an Indian reservation has improved the economic climate of the area.
Many of the reservations are located in rural, undeveloped areas of the states. These areas do not have the infrastructure to accommodate any type of industry. Immediately with the arrival of a casino, the economic climate improved.
Large sums of money were spent to construct casino buildings. Local construction increased, and more jobs were available in the communities.
A study of three states, Wisconsin, Minnesota, and Michigan, revealed that many residents on Indian reservations in the states were unemployed or on welfare.
With the arrival of the casinos, the level of both welfare and unemployment decreased considerably.
Also, it is important to note that some of the revenues generated from the casinos become payroll. This payroll is spent not only on the Indian reservation by Indians, but also by non-Indians who create an economic multiplier effect to the local area within a one-to-two hundred mile radius.
The end result is that not only does the reservation benefit, but also the local area and the state.
With regard to its external concerns, Nevada and New Jersey are extremely concerned about all of the casinos springing up on Indian reservations for several reasons.
Initially, perhaps, the main reason for objection may have been a loss of their market share of casino profit.
However, on the other hand, they may really have some legitimate concerns.
America at large is just becoming accustomed to widespread gambling. One of the main stereotypes about gambling is that it has been controlled or influenced by the mob.
Although many Americans are still not convinced this is false, there is a fear that criminal elements may become involved in the gambling on the Native American reservations because of their lack of experience in this area of business.
Another concern about gaming on Indian reservations is the licensing process.
Vigilant observers have indicated that there is a need for a more comprehensive and strict system of regulation and background investigation. The same zealousness that is seen in Nevada or New Jersey is not seen within the licensing process on Indian reservations.
However, it has been observed that several of the contracts for Class III gaming are now contracted to non-Indian corporations and the Indians are not the greatest beneficiaries. Furthermore, it has been noticed that only a small percentage of Native Americans actually work in the casinos.
Without exception, when Native Americans are working within the casinos, they are not in any supervisory or management positions.
There are several other very important concerns about Indian gaming. Since these casinos are located on reservations, it is impossible, or at least extremely difficult to enforce state laws because of their tribal sovereignty.
This restriction makes it difficult to oversee criminal activities. Some activities of great concern are money laundering, fraud, and skimming, which are inherent in well-established casinos.