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Native American gambling industry

Written by Mihaela Florea   
Sunday, 23 May 2010 20:24
Native American gambling industryIt is known that many Native American tribes operate casinos, using gambling as a way of increase the tribe’s incomes. It all started back in the first years of 1970s, when a married Chippewa couple, Russell and Helen Bryan that were living in a mobile home on Indian lands in northern Minnesota received a property tax bill from the local county. They went to a local attorney firm and sued the state.

After several trials and appeals process they won their case at the United States Supreme Court. The Supreme Court stated that states do not have the authority to tax Indians on Indian reservations, and furthermore, they don’t have the authority to regulate Indian activities by Indians on Indian reservations.

This is where it all started because the recognition of tribal authority gave Indians courage to use it for their best interest. Within few years, many Indians and tribes began to operate gambling businesses especially bingo operations in numerous locations around the United States.

All Indians that operated gambling businesses had problems with local authorities that arrested everyone involved and closed the gambling halls claiming that they broke the laws. They all sued the local authorities in federal court and won their case.

In 1988, during President Ronald Reagan mandate, the Congress passed the Indian Gaming Regulatory Act (IGRA) which continued to recognize tribal sovereignty to create casino like halls, but also gave the federal government the power to regulate the gaming activities. In addition of that, the states and Native Americans were obligated to create Tribal-State agreements.

In the same year was created the National Indian Gaming Commission, having as main objective to regulate high-stakes Indian gaming. After IGRA was signed, the Indian gaming revenue substantially increased from $100 million in 1988, to a staggering $16.7 billion in 2006.