Native Americans have long been at an economic disadvantage, primarily because reservation lands have been far removed from mainstream society and unable to provide reasonable economic opportunity. But the gaming industry has changed that, transforming reservations from poverty-stricken wastelands to economic powerhouses. In fact, government estimates show annual revenues from Indian gaming in excess of $16 billion.
How It All Began
Indian Gaming by kla4067
The history of Native American gaming can be traced to a Chippewa couple living in northern Minnesota in the 1970s. Faced with a county property tax bill, the couple insisted that the sovereignty of Indian lands freed them from tax liability. The case went to court, and the county prevailed both at the state level and with the Minnesota Supreme Court.
However, upon review by the U.S. Supreme Court, a unanimous decision by the federal justices upheld the couple’s claim of tribal sovereignty. So sweeping was the decision, it opened the door for Indian reservations to conduct any number of business activities without having to comply with individual state laws. The birth of Indian gaming had arrived.
Congress Steps In
Following the Supreme Court decision, various tribes in Florida and California began gaming enterprises by opening bingo halls. If state law was violated, local police agencies responded by raiding them, seizing assets, and shutting them down. Yet time and again, courts sided in favor of the reservations. Finally, in order to clarify once and for all how Indian gaming was to be regulated, the U.S. Congress intervened after nudging by the Supreme Court.
The Indian Gaming Regulatory Act was passed in 1988, dividing various gaming operations into three classes based on the types of games being played and the amount of money changing hands. The various classes of gaming are regulated by Congress without state intervention. Only when a specific state does not recognize a particular class of gaming within their jurisdiction do they have the right to step in.
Congress Acts Again
In order to protect non-Indian enterprises now being economically threatened, Congress intervened again in 2006 by passing legislation to tightly control the establishment of new gaming operations not located on reservation soil. Furthermore, the Bureau of Indian Affairs has directed Congress to be more vigilant in this area. From these actions, it appears that tribal business is once again under assault. Undoubtedly, as Indian leaders sense their sovereignty being threatened the courts will see an increase in gaming cases. Only time will tell the future of Native American gaming.