Economic Impact of Native American Gaming

by admin on March 16, 2011

It was in the 70’s that native Indian tribes decided to open gaming enterprises that led to opposition from both state and federal governments. Finally, Indian Gaming Regulatory Act of 1988 was passed that legalized gaming operations started by tribals. Today there are more than 300 such casinos operating in the country. Judging by their success after a few years of their operation, it can be said that these gaming enterprises have generated employment for the poor which has increased by 26% while the population of the tribals has gone up by 12%.

This increase in economic activity has had effect on health also, and on an average mortality has fallen by about 2% in areas where these gaming enterprises are operating. However, casinos have their cons also and it has been seen that these casinos have led to a series of bankruptcies, violent crimes, auto thefts and many petty crimes that have gone up by 10% in all such areas. In some cases, gambling has been extremely beneficial as it has led to prosperity in the tribes living in the surrounding areas but at the same time it has made tribals poorer in many cases.

It has been observed that even in those cases where gambling hasNative American Gamingled to an increase in economic activities, it has been mainly because of an i9nflux of tourists to the area. Casinos do create jobs and increase independence in tribals leading to less dependence upon welfare schemes of the federal and state governments. Many tribes have been able to improve their living standards because of gambling. The common underlying phenomenon is that casinos stimulate economy by increasing economic activities such as hotels, pubs, bars and restaurants which become self sustaining in the long run. This is evident from the functioning of golf courses and entertainment centers that run independent of gaming enterprises later on.

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