Vol. 4, No. 7, July 2007
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How Far is Up?
Indian gaming revenues hit new high
The expansion of Indian gaming in Florida, California and elsewhere continued a winning streak that reaches back more than a dozen years. From 1996, when gross gaming revenues reported to the National Indian Gaming Commission was $6 billion, the total posted in 2006 was more than $25 billion, an 11 percent increase over the previous year.
“The continued growth is eye-opening, considering the tribal gaming industry is still relatively young. The Indian gaming industry has doubled between 2001 and 2006, going from $12.8 billion to $25.1 billion respectively," said commission Chairman Phil Hogen.
The results in 2006 reflected further expansion of the California Indian gaming industry, with new casinos and huge expansions being completed under compacts negotiated with Governor Arnold Schwarzenegger. The full operation of two Hard Rock Seminole casinos in Florida also contributed to the increase, even though those casinos are limited to offering Class II gaming devices. And the growth of Indian gaming in Oklahoma following a compact with that state’s governor was under way in 2006.
But, as every year, the report gathers information submitted from 415 casinos operated by more than 200 tribes across the country, ranging from full-blown Las Vegas-style casinos with Class III slot machines and table games to small bingo parlors in remote areas. Since the tribes are not required to report their profits, this report is the principal snapshot of the success of gaming in Indian Country. But it is just gross gaming revenue and does not count any expenses—employees, rent, insurance, equipment, etc.
The report comes at time that NIGC is under fire from many quarters, despite a group of commissioners that may be the most knowledgeable in the history of the organization, which was formed by the Indian Gaming Regulatory Act of 1988.
The commissioners—former U.S. Attorney Hogen, former FBI agent Cloyce “Chuck” Choney and former tribal gaming commissioner Norman DesRosiers—are all Native Americans with legal, regulatory and law enforcement backgrounds. They each understand the relationship between regulations and Indian gaming but have been undermined by the court system and by Congress.
A recent court decision has rejected NIGC oversight over Class III gaming. Other challenges question the agency’s right to audit on Indian gaming revenue. Hogen has pleaded with Congress to clarify NIGC responsibilities. Proposed changes to IGRA failed to pass Congress in the past two sessions with amendments that would have given the NIGC a clear mission.
“The public's continued good will is a necessary element to continued growth, which is why the role of the NIGC must be reaffirmed," Hogen said.
