![]() Newsletter Signup
Stay informed with the
NEW Casino City Times newsletter! Recent Articles
Best of Ken Adams
|
Gaming Guru
Bits and Pieces from Indian Country -- May 200612 July 2006
He clearly thinks that, besides being "in charge" of reforming Indian gaming, he has the moral high ground and whatever he believes is right.
Sovereignty is a moving target. In some states it is a cigarette sales issue; in others it is a gasoline sales issue. It is very much a gaming issue in most states and even an Internet gambling issue in some. But a recent development promises a new frontier: abortions. South Dakota is leading the country is passing anti-abortion legislation to test the new Supreme Court. The Oglala Sioux have used the opportunity to propose a new test for sovereignty - tribal "family planning" services.
Rhode Island has stepped up to the plate to provide this month's gaming entertainment. The Narragansett Indian tribe of Rhode Island and Harrah's have been trying for years to get a casino approved. The process has been slow, complicated, and I would assume expensive for Harrah's. This month, with his usual flare, Donald Trump stepped in - saying that if there is going to be a casino in the state it should be put out to bid and, of course, he would like to make a bid. That struck a nerve - as it always does with politicians - with some opponents of gaming in Rhode Island including the governor.
Harrah's must just love it when the Donald shows up at the end and wants the license without ever having laid any of the groundwork that created the opportunity. But then Mr. Trump is known for just that, showing up late and stealing the show. He did it in Gary, Indiana, and a couple of times in Indian country. He may not be the most successful operator in casino history, but he would qualify for the top ten in making an impression on the decision makers. Following his appearance in Rhode Island he turned up in Dubai, where he promised to build a $600 million hotel (no casino) in the $33 billion airport-resort city to be built there. The news in Indian country over the past year has been dominated by off-reservation and sovereignty debates - mostly framed in negative terms. In April there were some positive and interesting developments in Indian country. Maybe the most surprising was the announcement by the Mashantucket Pequot tribe of a partnership with MGM Mirage as well as a move to put a casino in Biloxi, Mississippi.
There have already been dozens of articles speculating on the reasons and underlying advantages and future partnerships of mega-casino companies with major casino operating tribes. In Connecticut there is conjecture by the press and the attorney general that something is amiss and that MGM has found a way to sneak through the backdoor of Indian gaming. In Nevada and elsewhere the speculation is the opposite: that super-rich tribes with untaxed gaming revenues from other states will come in and somehow gain an advantage over the local industry. To me it seems a little simpler: a partnership of two very large gaming companies who plan on using their relationship to strengthen their core business and extend into new jurisdictions. Nothing illegal or sinister - just good business - something like Chrysler and Mercedes. Of course, there are those who see the auto merger as Germany invading the U.S. IGT is testing its server-based gaming in California at Barona. One serious advantage that Indian country has is in the game approval process. It is easier, faster and much less expensive to try new games and new technology in Indian country. Conventional jurisdictions often struggle over the legalities of new technologies, while if a tribe is interested and sees commercial applications, it can test the technology. Eventually the two processes cross, and any technology the major manufacturers develop and market has to be acceptable to major jurisdictions as well. But for a quick test, Indian country is often a better place to run out the early models.
Technology and mergers, whether they are in Indian country or not, are more than just a major story for the month - they are the major story of the gaming industry last year and this year. Harrah's and MGM-Mirage announced record results, reflecting the results of last year's two major mergers. MGM and Harrah's have both purchased about all the law will allow, so now both are strengthening their positions in Indian country and making strategic partnerships for new domestic and foreign opportunities. The bidding war over Aztar shows just how competitive the industry has become as other gaming corporations strive to join the giants at the top. Internet and server-based gaming (aren't they really two sides of the same coin?) are driving change across the board and driving revenues. American gaming companies are going to want to embrace server-based gaming, and just as surely are going to want to embrace the Internet. The major gaming companies also want to embrace Indian gaming. Okay, it isn't exactly the same, but strategic partnerships involving major tribes and major gaming companies make sense. At the end of the day, you'll no longer have an industry where each segment has to be described separately, as if each were a different industry composed of completely different customers and operators. The pieces are Internet, Indian and commercial, but when the pieces are combined, there will simply be gaming, regulated and operated differently in different places, but still one industry - and one industry dominated by very few players. Not much opportunity for the little guy to own or operate any of the casinos, real or virtual, but at least we can still own stock.
Ken Copyright GamingWire. All rights reserved. Recent Articles
Best of Ken Adams
Ken Adams |
Ken Adams |