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Oct. 17, 2008
Copyright © Las Vegas Review-Journal

Indian gaming dominates 20 years later

By TONY BATT
STEPHENS WASHINGTON BUREAU

Frank Fahrenkopf
Lobbyist says Indian gaming law 'changed the landscape' of the industry

WASHINGTON -- Twenty years after President Reagan signed the Indian Gaming Regulatory Act, tribal casinos rake in more money than those in Las Vegas and Atlantic City combined.

"I believe the expectation of almost every lawmaker then was that the future of Indian gaming was going to be in high stakes bingo," said Phil Hogen, chairman of the National Indian Gaming Commission.

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    • Instead, about 90 percent of the $26 billion in Indian gaming revenue last year came from casinos. By comparison, Nevada casinos collected $12.8 billion and New Jersey casinos collected $4.9 billion.

    Indian gaming employs more than 700,000 workers; more than half of them are not American Indians.

    Frank Fahrenkopf, president of the American Gaming Association, said the act signed Oct. 17, 1988, by Reagan "changed the landscape" of the casino industry.

    "I don't think anyone ever thought the result would be as dramatic as it has been," Fahrenkopf said.

    Senate Majority Leader Harry Reid of Nevada, who played a key role in drafting the legislation, said the objective was to protect Nevada casinos from competition.

    "Just the opposite has occurred," Reid said.

    Northern Nevada has borne the brunt of an explosion of tribal casinos in California. Especially during winter, casinos in Carson City, Lake Tahoe and Reno see business plummet as customers from the once-fruitful market of Sacramento stay home to play at the slot machines and card tables offered by tribes.

    On the other hand, some mainstream gaming companies such as Harrahs and Boyd Gaming Corp. have entered into lucrative management contracts with tribes.

    Despite their success, Indian gaming officials still regard the legislation as a violation of tribal sovereignty "What other business in America has a federal law that tells it what it has to do?" said Ernie Stevens Jr., chairman of the National Indian Gaming Association.

    Tribes gained the upper hand in 1987 when the U.S. Supreme Court ruled in California vs. Cabazon Band of Mission Indians that federally recognized tribes could operate gambling businesses without state regulation.

    Fearful of being unable to control gambling within their borders, states turned to Congress for help and the result was the 1988 regulatory act.

    In addition to Reid, one of the primary architects of the legislation was Sen. John McCain of Arizona, this year's Republican presidential nominee.

    The Senate passed the bill by voice vote on Sept. 15, 1988, and 12 days later, the House approved it 323-84.

    "It's one of the ugliest pieces of legislation there is. That old saying about legislation being like making sausage fits it," said Kevin Washburn, a law professor at the University of Arizona who served as general counsel of the National Indian Gaming Commission from 2000 to 2002.

    For example, the law sought to encourage negotiations between tribes and states to establish regulations for Indian gaming.

    But that has not happened. After giving the tribes a major victory with the Cabazon decision in 1987, the Supreme Court ruled in Seminole Tribe vs. Florida in 1996 that tribes could not sue states that refused to negotiate gaming compacts.

    "The drafters just blew it. They should have caught that when they wrote the bill," Washburn said.

    Stevens, the NIGA chairman, said every piece of legislation proposed by tribes now includes a provision attempting to "fix" the Seminole decision.

    The law also hamstrings tribes by limiting management contracts with mainstream casino partners to seven years, Washburn said.

    "That's unduly paternalistic," Washburn said. "The tribes have become capable business people at this point and if they want a 20-year contract, they should be able to get it."

    Nevertheless, tribes remain fiercely opposed to any attempts by Congress to amend the regulatory act, which has allowed them to finally develop a wildly successful economic tool to help their people.

    As Hogen, the chairman of the federal commission overseeing Indian gaming, said, "There were so many abject failures before."

    Contact Stephens Washington Bureau reporter Tony Batt at tbatt@ stephensmedia.com or 202-783-1760.

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    Clark Curtin wrote on October 18, 2008 08:27 AM: IGRA is just another form of the rape i of the continued rape of the American people (excluding the Indians, of course.) It wasintended to give them a financial hand by allowing them an industry in which they could work. Instead, it still allows them to sit on their lazy asses and let the white men who work there continue to hand them much larger payments than they have ever seen. I wouldn't object nearlt so much if they had to educate themselves and actually work and be productive to receive these benefits. With 26 billion available to about 1 million recipients, you'd think they could get themselves off the government pad, but we taxpayers just keep doling it out to them. At the very least, Indians should no longer be eligible for governments grants, subsidies, etc. If indians want to be sovereign, let them spread their wealth among themselves, although I'm not sure how much of the $26,000 per cap is actually left after they finish paying off their friends, the politicians.


    Tom Burbank, Idiot wrote on October 17, 2008 11:35 PM: Uh, Tom. Indians. Genocide. Reservations. You poor, white victim you. How unfair. Victim Tom.

    Stop picking on Tom from Burbank!


    temple of doom wrote on October 17, 2008 11:01 PM: 2zero, you said it all.


    Stop playing wrote on October 17, 2008 08:52 PM: I'm glad to see the Indian casinos doing very well. The tight machines in Las Vegas and related gaming areas has had a dwindling customer base because of the greed of the local casinos. People go to play and have fun. The casinos just look to take and take without giving anything back except stupid little trinkets made in China. I suppose their customers should be happy they get that junk!


    2zero wrote on October 17, 2008 08:48 PM: Mormons for many years have proclaimed "Indians" as the "chosen" people the so called "lost tribe". Reid was only doing what God told him to do...through an aged man, "the prophet" living in Salt Lake City.

    As for McCain...kiss Vegas goodbye and say hello to Yucca Mountain!

    This just in...Cindy McCain is part Indian and will be getting royalties.


    Free Nevada wrote on October 17, 2008 06:53 PM:
    http://www.youtube.com/watch?v=9Q55Gmey7wE


    Now, about that 300mph mag-lev train to Anaheim (bypassing the Indian casinos by way of the "flat" route through Searchlight and Bullhead City, you know, Reid and McCain country).... Beyond the 4th, I just can't picture those finely dressed Chicago civil rights activists caring about 50,000 casino workers in Nevada losing their jobs (affecting at least 500,000 of our citizens who depend on them). But maybe that's just me.


    Tom, Burbank wrote on October 17, 2008 03:54 PM: Indian gaming is discrimination based on ethnic origin. Those who are of a certain heritage can do something that those who aren't can't. This is wrong and must end. as apartheid did. Everyone should have the right to own and operate a casino. You can't correct discrimination by practicing discrimination. 2 wrongs don't make a right.


    Old Vegas wrote on October 17, 2008 03:23 PM: I second that-- Vegas now has to be what Vegas is - a adult playground. We have regulated it to much. Some may say well when there were woman in the hotels during commdex it offended my wife - but you can bet your wife wanted to come every year and we were filled with people doing what people like to do!!!

    Lets Go Vegas - We do's what we do's and we are the only one who do's it right!!!


    Vic wrote on October 17, 2008 01:15 PM: I stopped visiting Indian casinos a long time ago. I live in CA, have a second home in Palm Springs, which has 4 casinos to choose from, and they stink. It is near impossible to win there. The slots are so tight it's a joke. The bottom line it's just not fun to play at any of them. Eventhough Vegas is 3.5 hours away, it's the only place where I'll gamble. I know I'll lose most of the time but I havea good time doing it. Vegas needs to go back to old school vegas and if it does, it will put a serious dent in the amount of people and money that visit Indian casinos. My favorite place to stay is the Las Vegas Hilton.


    Chief Inter - net wrote on October 17, 2008 12:44 PM:

    BRILLIANT -



    Kind of like banninginternet gambling wich is costing American Industry 100's of Billions a year.



    starting to look at these guys like they have a Dr. Evil Mentality - when there are BILLIONS to be made they are sitting back licking their chops and saying with a snicker ,hahah we made a million...



    Freekin BRILLIANT


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