Tribal casino earnings have soared recently
BY ERICA WERNER
THE ASSOCIATED PRESS
WASHINGTON, D.C. — Indian gambling pulled in
$18.5 billion in 2004, nearly double the take for Nevada’s
gambling industry, as tribal casinos boomed ahead.
The 10 percent increase extended more than a decade
of double-digit growth for the nation’s Indian casinos,
which have mushroomed since Congress passed a law cre
ating the legal framework in 1988.
There now are 411 Indian casinos in the United States,
operated by 223 tribes in 28 states. More than half the
341 federally recognized Indian tribes in the continental
United States operate casinos.
Because tribes are sovereign nations, they don’t have to
pay state or local taxes and are exempt from most zoning
and other laws, a special status that can cause conflict with
neighbors. Tribal casinos have encountered opposition
from some local communities that don’t want the traffic
or strain on resources.
To head off opposition, tribal leaders have grown more
aggressive about asserting benefits. National Indian
Gaming Association officials said Tliesday that tribal
gambling has directly or indirectly created 553,000 jobs,
mostly for non-Indians, and that it generated $5.5 billion in
federal taxes in 2004.
Tribal leaders say gambling has allowed them to lift their
reservations out of poverty.
“We had to overcome insurmountable odds to turn
our economy around. We looked to casino gaming as a
way to do that,” said Dee Pigsley, chairwoman of the
Confederated Tabes of Siletz, which has a casino in
Oregon. “No other development could return the kind of
profits that a casino could offer.”
Major Nevada resorts took in $9.88 billion in gambling
revenue in the 2004 fiscal year. Overall, revenue at Nevada
resorts, including from hotels and restaurants, was
Indian gaming gets some action
Revenue at Indian casinos grew by 10 percent last year compared
to 2003, according to the National Indian Gaming Association.
Indian gaming revenues 2003 market share, by industry
$20 billion
16
12
8
4
0 -
2003 2004
23.0% j 27.4%
Indian gaming Lotteries
SOURCE. National Indian Gaming Association
AP
$19.59 billion in 2004. That figure for Indian casinos
was $21 billion.
“We are creating economic activity that benefits our
communities and surrounding communities,” said Mark
Van Norman, executive director of the National Indian
Gaming Association.
The growth of the industry has been “completely
unexpected and spectacular,” said I. Nelson Rose,
who teaches gambling law at Whittier Law School in
Costa Mesa, Calif. He and other experts predicted it could
continue at the same level for some time.
“At a certain point it may level off because we’ll have
more of the tribes built out,” Van Norman said in an
interview. “But we’re still seeing tribes that are looking to
develop new projects so we’re going to see continued
strong growth for some time. ”
TVibal officials said the biggest growth areas are
California and New York. California Gov. Arnold
Schwarzenegger has sought to tap tribal casino revenue to
close the state’s budget deficit, while Gov. George Pataki
wants to bring five Indian casinos to the Catskills.
Mall of America makes plans
for $1 billion casino addition
BY PATRICK CONDON
THE ASSOCIATED PRESS
BLOOMINGTON, Minn. — The
owners of the Mall of America have
proposed adding a casino as part of a
$1 billion expansion, although it faces
long odds right out of the gate.
Minnesota lawmakers, and possibly
voters, would have to sign off for a casi
no to be built there. Republican Gov.
Tim Pawlenty, who has proposed a new
Twin Cities casino that would bring the
state and northern Indian tribes extra
cash, hasn’t endorsed the mall casino
but hasn’t ruled it out, either.
Nader Ghermezian, president of the
family business that developed and
controls the 4.2 million-square-foot
mall, said Tliesday night that plans to
double the mail’s size could hinge on
the casino. The expansion also calls for
a hotel, a concert hall, an ice skating
arena, an indoor golf course, public
gardens and high-end retail shops.
The expansion would make the
mall the world’s largest, surpassing the
West Edmonton Mall in Canada, also
owned by the Ghermezian family. The
Mall of America opened in 1992.
“When the Mall of America
becomes doubled, it becomes a
New York or an L.A. by itself,”
Ghermezian said. “You won’t have
to fly to Rodeo Drive or New York or
Paris — it’s all under one roof.”
Minnesota’s existing casinos are
operated exclusively by Indian tribes,
and they aren’t required to share
profits with the government.
Pawlenty has proposed that the
state partner with three northern
Minnesota Indian tribes on a casino.
The deal would divert hundreds of
millions of dollars to the ailing state
budget while also allowing the White
Earth, Red Lake and Leech Lake
tribes to tap the lucrative Twin Cities
gambling market.
The governor hasn’t identified
a favored site, but has said he
wouldn’t force one on an unwilling
host community.
State legislators from Bloomington,
where the mall is located, are united in
opposition to adding a casino to the
Mall of America. They said they would
insist on a citywide vote before a
casino could go forward.
Bloomington resident Steve Buck
said he is not a fan of more gambling
in Minnesota, but he said if it’s going
to happen, his city might as well
benefit from it.
An attorney for the Mall of America
told about 250 residents at a
town-hall forum Thesday that the
Ghermezians won’t proceed without
the city’s support.
Atlantic City, gambling mecca, turns to retail projects to stave off rising competition
BY JOHN CURRAN
THE ASSOCIATED PRESS
ATLANTIC CITY, N.J. — It used to
be names like Bally’s, Tfump and
Caesars that drew the people here.
These days, it’s Brooks Brothers,
Bass and Tommy Hilfiger.
Suddenly, this gambling mecca is
getting into the retail game.
With two new shopping develop
ments doing brisk business and a
third set to open this summer, the city
known for casino gambling and
sandy beaches is rounding out its
hand with upscale shops, boutiques
and outlet stores.
Gamblers, conventioneers and
others who have long complained
about the lack of non-gambling
attractions now have some place
beyond the beach — and the slot
machines — to go.
“You need a break from
gambling, ” said Paul Kacsmar, 40, of
Wall Township, carrying shopping
bags through The Quarter during a
recent shopping spree. “You need the
iHUlO VVlldl
people do on vacation —
go shopping, spend a little
money, have some fun.”
Despite its status as
a major gambling destina
tion with 35 million
visitors a year, Atlantic
City has never been
known for its shopping.
The mom-and-pop
clothing, electronics and
shoe stores that line
Atlantic Avenue serve
mostly neighborhood residents,
while the handful of jewelers and
furriers who lease space inside the
12 casinos count mostly on
high-rolling gamblers.
But the proliferation of shopping
ventures in Las Vegas, the Borgata
Hotel Casino & Spa’s success in luring
new customers to the city and the
IF YOU GO
Atlantic City Outlets-The Walk. Located on Michigan Avenue, near
the foot of the Atlantic City Expressway; 41 stores including Banana
Republic, Oshkosh B’Gosh, Guess, Liz Claiborne, Izod, Tommy Hilfiger;
www.acoutlets.com.
The Quarter. Located inside theTropicana Casino and Resort,
2821 Boardwalk; 25 stores including Brooks Brothers, Cache, Mondi,
Rittenhouse Gift & Home; www.tropicana.net.
The Pier at Caesars (opening early 2006). Located across the
Boardwalk from Caesars Atlantic City Hotel Casino, 2100 Pacific Ave.;
90 stores including Gucci, Hugo Boss, Louis Vuitton, Bebe, Burberry,
Armani; www.thepieratcaesars.com.
casinos desire to broaden their offer
ings have driven the new develop
ments. Giving visitors to Atlantic City
more than just casinos also makes
sense as competition grows from legal
ized gambling in neighboring states.
First, it was Atlantic City Outlets
The Walk, a 41-store shopping area
developed by The Cordish Company,
U1 Ddiumuic. i Ilf Miuppillg
area, which opened in Au
gust in a two-block area
close to the casinos, has
big-name stores with facto
ry outlet prices — Nautica,
Banana Republic, Tommy
Hilfiger, Guess and Kenneth
Cole among them.
Next, Ttopicana Casino and
Resort opened its Havana,
Cuba-themed expansion,
which is called The Quarter.
The project, which is a three
story indoor streetscape lined with 25
stores, mixes names like Brooks Brothers,
Chico’s, and Swarovski with an IMAX
theater, nightclubs and restaurants.
Despite opening in November,
deep into Atlantic City’s slow season,
it has flourished, according to store
owners and Ttopicana officials.
And the biggest shopping project is
yet to come.
Caesars Entertainment, the owner
of three Atlantic City casinos, is
spending $175 million to renovate a
former pier into a lavish shopping
and-entertainment adjunct to its
flagship Boardwalk casino.
The project, dubbed The Pier at
Caesars, will feature 90 high-end
retailers, including Hugo Boss,
Armani and Burberry. It is scheduled
to open early in 2006.
Persuading retailers to roll the dice
on Atlantic City wasn’t easy, though.
Some doubted the viability of the
market, which is dominated by
day-tripping senior citizens and slot
machine players who typically stay
only a few hours when they come.
$1
billion
Amount the Mall of America in Minnesota
plans to spend to add a casino
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Number of Indian casinos
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Number of people who visit
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$18.5
billion
Amount Indian gambling
pulled in during 2004
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