Cons of Casinos on Reservations
Gaming on Native American reservations has become a lucrative industry for many tribes. Following two U.S. Supreme Court rulings that approved legalized gambling on reservations, the U.S. Congress enacted the Indian Gaming Regulatory Act in 1988. Although gaming was seen as a partial solution to many of the socio-economic problems faced by the Native American population, the issue remains controversial.
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Wealth Distribution
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Casinos on reservations can bring in considerable revenue, but only 25 percent of gaming tribes distribute the profits to their members. Non-Indian investors reap large portions of casino profits, sometimes up to 40 percent of revenue. Often, outside investors create the casino plans, underwrite the costs and pay the salary of tribal officials. As a result, much of the wealth generated at casinos does not trickle down to the population living on the reservation.
Government Assistance
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While casinos have helped provide a base for employment and income on Native American reservations, they have also eliminated much of the perceived need for welfare-enhancing social programs. One of the main motivations behind the Reagan Administration's push for legislation legalizing casinos on reservations was the rationale that they could replace government assistance. Casinos cannot meet all the needs of a community, which include housing, infrastructure, health care, law enforcement, education, alcohol and drug abuse assistance programs and other long term needs.
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Addiction
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In the three years following the introduction of casinos on reservations in Minnesota, the number of people calling a compulsive gambling hotline and enrolling in gambling treatment centers increased dramatically. Statistically, low-income individuals spend a higher proportion of their income on gambling than do middle and upper class individuals. Consequently, people who can least afford to gamble are the most affected by it.
Corruption
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After being largely chased out of Las Vegas and New Jersey gaming industries by federal pressure, organized crime began expanding into newly built casinos on reservations. Because federal authorities have no jurisdiction on reservations, organized crime was able to infiltrate some tribal casinos. In addition, the Abramoff Scandal in 2006 brought to light the degree to which illegal lobbying had infiltrated the Indian gaming industry. Abramoff gathered $85 million in fees paid by Indian casinos, skimming money off the top for himself, by overcharging and secretly orchestrating lobbying against his own clients. Both forms of corruption divert casino profits from benefiting Native Americans.
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References
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