![]() Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter! Ken Adams Archives
More Strategy Experts
|
Ken Adams Gaming GuruBits and Pieces from Indian Country - October 20083 November 2008
By Ken Adams It is difficult to consistently write a separate column on Indian gaming. It was easy years ago, when everything about Indian gaming was new and to some extent different from conventional gaming. There was less competition, a very different system for contributions to local governments – as a tax per se levied by a non-tribal government is against federal law – and even financing was very, very different in Indian Country. Over the years, the differences have diminished dramatically. Certainly most Indian casinos face as much competition as any other casino faces. And while taxation is still not legal, most states have negotiated a share of the tribal gaming revenues under some other category. But whatever it is called, it generally mirrors the amounts non-tribal casinos pay in taxes. And now even financing is pretty much identical. This month Mohegan Sun announced a postponement – as did many other Indian and non-Indian casinos in the country – of the next phase of its latest $900 million expansion. Mohegan Sun was also a losing bidder in Kansas, while its in-state competitor had withdrawn its bid for a license in that state. But each tribe has other locations or possible locations – places where they will operate as any other licensee and not in the category of Indian gaming.
However, there are still places where Indian gaming is different. There are some very remote locations where the conditions are unique and not at all like most conventional casino locations. Tribes in those locations struggle just to break even, pay off the construction debts, provide employment to tribal members and hope to put some money in the tribal general fund. The Blackfeet in Montana are an example or how difficult operating a remote casino can be.
The other way that Indian casinos can be different is in the way traditional tribal values can influence the way the tribe operates a casino. The Eastern Band of the Cherokee in North Carolina have Harrah's as an operator – so you might expect that the casino would look and behave the way Harrah's casinos look and act. However, there is a difference; the tribe thought serving alcohol was inconsistent with tribal values. That may change as it has at some other tribal casinos, but even if it does change, the casino operated for years without serving alcohol – an act that would, according to Principal Chief Michell Hicks, shame their forefathers. I have been to many board or executive committee meetings at many different casinos and that is a phrase and a concept I have never heard expressed.
Another moral issue that has impacted Indian and indeed the rest of gaming is still playing itself out – the final stages of the Abramoff scandal. Abramoff is in jail and his testimony is still sending to jail with him some of those who took his money and gave their influence in return. Abramoff may have scammed several tribes, but he didn't keep them from understanding that contributing to politicians and their campaigns was useful. That is another thing that has changed since the National Indian Gaming Regulatory Act first passed; tribes have significantly more political influence than they had in the early days. The influence comes from the importance gaming has to local and state economies and from the amount of money and effort that tribes have learned to put into political campaigns. The Jack Abramoff lobbying scandal may have given the Indian tribes he was convicted of defrauding plenty of reason to check their participation in the political process. But they really haven't. Aside from a brief pause in campaign contributions during the 2006 election cycle, the tribes have continued to flex their muscle by giving millions to candidates and are on pace now to possibly break previous contribution levels. In 2006, the tribes that were one-time clients of Abramoff gave $1.2 million to candidates and parties, a drop of $700,000 from their 2004 contributions. They had already matched that $1.2 million as of the end of July this year, and could possibly reach 2004 levels by the end of the election. Overall, Indian tribes have reported more than $8.9 million in contributions so far this election. Although they were victims of Abramoff's influence peddling schemes, the scandal led to intensified scrutiny of Indian tribe money flowing into Washington and prompted many lawmakers to return tribe contributions. Still, not all the tribes that were tied up in the Abramoff affair have resumed their participation. For example, no donations have been reported this election from the Tigua Tribe of Texas, or the Coushatta and Chitimacha tribes of Louisiana. (Emily Cadei, Congressional Quarterly, 9-10-08) Abramoff did something important for the country besides exposing others who were as corrupt and unprincipled as he was – he exposed a form of racism. Abramoff treated his tribal clients with disrespect and contempt. He thought of them as primitive and stupid, and as prime candidates to be exploited and then laughed at. Abramoff thought about tribes the way many people have thought of them. If Indian gaming has done anything, it has made significant inroads into that attitude. Tribes are now very often seen as important community members, astute business operators, and members of a distinct culture that deserves our respect, not contempt. But now, that is simply my opinion, isn't it? Ken Quick-takes: The month's trends in a glance - October 20083 November 2008
TAKE ONE
Gaming is going to the polls again this November with Maryland, Maine, Ohio, Missouri, and Colorado all having a gaming question on the ballot. There is even a move in Florida for a casino in Miami; it is not likely to be an issue this year, but gives us something to look forward to next year. ... (read more)
Quick-takes: The month's trends in a glance - September 20081 October 2008
A war may be brewing – a slot machine war. The slot machines themselves will not be dueling; instead the management of slot companies and the management of casino companies will be the duelists. We all know that casino revenues are down and operators are doing everything they can to reduce expenses and preserve their margins. ... (read more)
Bits and Pieces from Indian Country - September 20081 October 2008
Indian tribes are often noted for being very aggressive in pursuing business opportunities; it was, after all, tribes that pushed the gaming envelope that led to Indian gaming. Tribes in California, Florida, and Michigan were operating bingo games and small casinos in the hopes of gaining funds and jobs for tribal members and tribal programs. ... (read more)
Ken Adams |
Ken Adams |