Gaming
Tribal
1. MYTH: The Indian
Gaming Regulatory Act
(IGRA) Created Indian
Gaming.
FACT: Gaming is a
Right of Indian Nations.
Gaming is one of the oldest
forms of recreation; not only
did Europeans bring new
games to the New World, but
Indians have traditional
games still played today. In
fact, Indian gaming existed
long before Europeans settled
in America. Large-scale
Indian gaming, mainly in the
form of bingo, predated
IGRA by about 1 0 years. The
U.S. Supreme Court in 1987
recognized Indian people's
right to run gaming when it
ruled that states had no
authority to regulate gaming
on .Indian land if such
gaming is permitted outside
the reservation for any other
purpose (California v.
Cabazon). Congress estab
lished the legal basis for this
right when it passed IGRA in
1988.
2. MYTH: Indian Gaming
is Commercial, For-Proflt
Gaming.
FACT: Gaming on In
dian Reservations is Oper
ated by Tribes to Fund
Governmental Programs.
IGRA requires that all rev
enues from tribal gaming
operations be used solely for
governmental or charitable
purposes. Much like State
Government and the use of
funds from 40 state lotteries,
Tribal Governments deter
Gaming: Myths and Facts
mine how gaming proceeds
are to be spent. In direct
contrast to the opulent ex
penditures on yachts and jets
by commercial casino opera
tors such as Donald Trump,
Indian tribes are using gam
ing revenues to build houses,
schools, roads and sewer and
water systems; to fund the
health care and education of
An artist's rendering of Spirit Mountain Resort.
their people; and to develop a
strong, diverse economic
base for the future.
3. MYTH: Tribal Gaming
is an Unregulated Magnet
for Organized Crime.
FACT: Indian Gaming is
More Heavily Regulated
and More Secure Than
Commercial Gaming.
The tribes, as governments,
are the first to be vigilant in
protecting the integrity of
projects they rely upon to
feed, clothe, educate and
employ their people. Ever
before IGRA created a fed
eral framework for regulat-
ing certain forms of tribal
gaming, tribes regulated res
ervation gaming activities by
exercising their inherent po
lice powers and, when neces
sary, taking violators to
court. Many tribes have had
existing Law Enforcement &
Court systems for years. In
compacts negotiated between
State Governments and Tribal
i !-rfrtirrr,!-t-'- 1 1 im-magm!
Governments, such issues as
law enforcement and secu
rity measures are considered.
States like Arizona, for
example, have reached agree
ments with Tribes to coordi
nate background checks and
other security measures.
While many of the opponents
of Indian gaming challenge
its security, they have no
evidence to support their
claims. In fact, at an
October, 1993 House hear
ing, Jim Moody, FBI section
chief for organized crime,
testified there is "no informa
tion to support claims" that
organized crime has infil
trated Indian Gaming,
"We've heard more rumor
and innuendoes than we've
been able to prove," Moody
told lawmakers. The third
level of Regulation is the
Federal Government: the
Department of Justice, FBI
and Bureau of Indian Affairs
provide oversight on crimes
committed on Reservations.
Finally, the Law (IGRA)
established the National In
dian Gaming Commission
which became operable in
February, 1993 to regulate
Indian Gaming.
4. MYTH: Indian People
Do Not Pay Taxes.
FACT: Indian People
Pay All Taxes Required by
State and Federal Law.
All Indian people pay federal
income, FICA and social
security taxes. Most Indians
also pay state income and
property taxes. Only the
small percentage of Indians
who live and work on
federally recognized reserva
tions - not unlike soldiers and
their families living on mili
tary installations - are ex
empt from paying state
income and property taxes.
However, they still pay taxes
such as sales and Federal
Income tax.
Indian tribes are govern
ments with responsibilities
to their citizens, but tribes
almost uniformly lack a tax
base to support their govern
mental needs. Some tribes
have found in gaming a
means to not only provide
jobs and economic activity
on their reservations, but also
a source of badly needed
government revenue. As
iuj . . '.;
r sovereign governments,
tribes do not haveJ to pay
taxes on their revenues to any
other governments.' Do
states pay taxes on their
resources derived from gam
ing or from any other source?
NO!
5. MYTH: IGRA Has Not
Worked and Cannot Work.
FACT: Indian Gaming is
Providing Substantial Eco
nomic Benefits in States
Where IGRA Has Been
Given a Chance to Work.
IGRA is working to the
benefit of Indians and non
Indians in several states,
including Minnesota, Wis
consin, Michigan and Con
necticut. Reservations are
slowly recovering from de
cades of failed government
programs and building new
houses, community centers,
roads and much more. Indi
ans and non-Indians are