Feds load the dice against Indian Gaming
By W. Ron Allen
President, National Congress of American Indians
Indian gaming is the most regulated in the industry and
is without a doubt the most positive context in which gam
ing now occurs. The tribal government programs and in
frastructure funded by gaming bring hope and opportunity
to some of the most desolate places in America. Crime
rates go down, alcoholism and drug abuse go down, and
individual initiative goes up. It would be a tragedy, indeed
an atrocity, to reach the next
century with federal policy
moving tribes back into pov
erty out of which they are
only now rising, but this
seems to be what is happen
ing. Despite our right to self-
determination and self government, and despite economic
situation, federal policy makers are working hard to set up
new stumbling blocks to Indian gaming.
Congress established the National Gambling Impact
Study Commission last year to examine the economic and
social effects of gambling and then make recommendations
to congress. From the first Congressional hearing, tribal
leaders have urged that the panel should have at last one
American Indian member who possesses a firm knowledge
of a federal Indian policy and is familiar with the immensely
positive impacts that tribal gaming has on Indian commu
nities and our economies. In response to our requests, the
White house has promised to appoint such a person, but
that promise is now in jeopardy. The president delayed until
all the other seats are filled except the one intended for an
American Indian. As the seats are filled, The Washington
Post printed three editorials questioning propriety of ap
pointing a commission with a majority of members con
nected to gambling, and the last seat on the commission
became the pivot. The pressure is on to appoint a person
who is anti-gambling, so the White House wants to renege
on its promise.
On April 29,1994, President Clinton held an historic
meeting with tribal leaders where he promised that deci
sions regarding tribal governments would be made in full
and fair consultation with the tribes. That commitment must
mean representation by an Indian person in any political
forum that impacts the future and well-being of Indian
'...federal policy makera are
working hard to eet up
new etumbllng blocks to
Indian gaming."
people. We strongly urge the President to fulfill his prom
ises and appoint an American Indian to the beneficial ef
fects of Indian gaming are fairly considered.
The second stumbling block is a proposal in Congress to
put an unrelated business tax on tribal government gaming
revenues. This effort seems to stem from the notion that an
Indian tribe is sort of a charitable organization, and that
revenues from unrelated business should be subject to fed
eral tax. This is a fundamental misconception. Indian tribes
are government, and, like
state and local governments,
the revenues accruing to
tribal governments have
never been taxed. Tribal gov
ernments are required by law
to use gaming revenues as a
tax base to fund essential tribal services, such as education,
law enforcement, tribal courts, economic development, and
infrastructure improvement. Much like the revenues from
state lotteries, tribal governments are also using gaming
profits to fund social service programs, scholarships, health
clinics, new roads, new sewer and adequate housing and
chemically dependency treatment program among others.
State lotteries bring over $15.5 billion annually, more than
five times as much as tribal gaming governments are going
to be treated equally by the federal government, there is no
one suggesting a federal tax state lottery revenues. Isn't
this gambling as well? Our point is that government should
be treated the same Congress.
In the current political environment, I am, not surprised
by the record news stories of tribes giving political dona
tions in order to have their issues heard. Federal lawmak
ers have enormous power over Indian affairs, and most have
little understanding and great difference. Tribes must in
volve an inordinate amount of their limit resources to en
sure that their interest are not carelessly disregarded. What
tribes really need is a consistent federal policy that respects
their right including the right to engage in a business of
gaming, and is a subject to every political breeze that blows
Washington. When this policy is a place, tribes will be
able to get back the business of rebuilding their broken
economies, without fear that the federal government will
continue thwart their efforts.
Reprinted from Indian Gaming Magazine May 1997.
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