Jackpot: The Possibilities of Indian Gaming Revenue
Written By Paul Szydelko
The various ways Indian tribes use the gaming revenue they generate was the topic of a March 2024 symposium hosted by the William S. Boyd School of Law’s Indian Nations Gaming and Governance (INGG) Program.
Stewart Chang, Associate Dean for Academic Affairs, kicked off the daylong symposium entitled, “Jackpot: The Possibilities of Indian Gaming Revenue.” Chang likened the “jackpot” to a well-played poker hand rather than a sudden, lucky win at a slot machine. It took decades of planning, skill, and knowledge of people at the table to produce today’s robust revenue stream, which has had a transformative effect on tribes and their sovereignty.
Indian tribes generate about 45 percent of all U.S. gaming revenue, which in fiscal year 2022 was a record $41 billion. About 270 tribes run more than 500 gaming operations in 29 states. Since the Indian Gaming Regulatory Act in 1988, enterprises have grown from modest bingo halls to include massive resorts with slots and table games that rival commercial gaming venues.
About 55 percent of the operations produce 5 percent of the total revenue; conversely, 8 percent of the operations produce 51 percent of the revenue.
“Not only does that indicate that tribes have varying amounts of gaming revenue to reinvest in public purposes, but it also suggests that tribes may have very different needs, particularly socioeconomic needs,” said Kathryn Rand, who, along with Steven Light, are Visiting Professors at Boyd Law teaching in the INGG Program.
How gaming revenue is allocated varies widely. National Indian Gaming Commission guidelines require a tribe’s gaming revenues be used to:
• Fund tribal government operations and programs (bolstering police and criminal justice systems, for example).
• Provide for the general welfare of the tribe and its members (such as opening a child development center).
• Promote tribal economic development (reinvesting in the casino itself or diversifying the tribe’s economy).
• Donate to charities (INGG was founded by a generation gift from the San Manuel Band of Mission Indians).
• Help fund operations of local government agencies (one tribe worked with a county sheriff’s office to upgrade communications equipment in patrol cars).
More than a dozen invited tribal leaders and academic experts from around the continent spoke on issues regarding economic development, general welfare, tribal governmental operations, and philanthropy.
“We’re not talking about random gifts to random charities. We’re talking about major strategic philanthropic presences, particularly in the regions where these tribes are located. Their impact is broad,” said Addie C. Rolnick, the San Manuel Band of Mission Indians Professor of Law.
The keynote speaker was Kevin Washburn, Dean of the University of Iowa College of Law, who concluded with a cautionary note: Tribes should treat gaming as a nonrenewable resource because brick-and-mortar casinos face competitive threats from online and mobile gaming.
“We need to be thinking about developing a concerted strategy to begin permanent funds, and tribes should set aside some of their gaming money every year into a fund that is a sovereign wealth fund that will continue to grow and that will be there when gaming is gone,” Washburn said. “It sounds simple, but politically that’s very difficult for a tribal leader, especially for people that have been deprived or living in poverty for decades.”