IAGA SUMMIT BELFAST POTENTIAL EXPANSION OPPORTUNITIES TUELL LAW
Indian Gaming in the United States
In the United States, 2022 marked a new historic high for commercial and Indian tribal government gaming revenues. Commercial gaming grew to $60.4 billion. Indian tribal government gaming grew to $48.4 billion. For now, the pundits predict that both industries will continue to grow as they work to diversify gaming products.
Te stakes are high for Indian country as many states look to expand their current gaming portfolios - all of which could saturate the market place and impact profits. Regardless, history has shown that Indian tribes are resilient and adapt to meet the moment while strengthening their sovereignty.
Currently, in the United States there are an estimated 524 Indian tribal government gaming operations. Tese operations are owned by 245 of the 574 federally-recognized Indian tribes in mostly rural areas. Tese gaming tribes operate in 30 of the 50 states and in 2022, 38 per cent of the Indian gaming revenue was generated in California and Oklahoma.
How did Indian gaming become so successful? In 1988, the U.S. Congress passed the Indian Gaming Regulatory Act (IGRA) to establish the rules for the operation and regulation of Indian gaming on Indian lands - meaning land that is part of an Indian reservation, or off-reservation land that is held in trust for a tribe by the federal government.
Pursuant to the IGRA, an Indian tribal government may conduct high stakes Las Vegas-style gaming activities via a Tribal-State Compact negotiated between the tribe and the state and approved by the U.S. Department of Interior. Essentially, an Indian tribe can conduct gambling on Indian land as long as the type of gambling has been authorised by the state with a few exceptions.
Consequently, for years state governments have largely been in the driver’s seat to define their scope of gaming and future growth. As a result, Tribes learned to be more innovative, stronger negotiators and more politically suave as they worked to grow profitable markets within the parameters of the IGRA gaming classification boundaries, as follows:
Class I Gaming
Defined as "traditional tribal gaming and social gaming" with minimal prizes. Tis class is controlled exclusively by tribal governments.
Class II Gaming
Defined as gambling played exclusively against other players and not the house. Examples are bingo, poker, keno, pull-tabs, punchboards, and other "non-banked" card games. It is governed by a tribal ordinance that must meet federal guidelines and be approved by the National Indian Gaming Commission.
P72 WIRE / PULSE / INSIGHT / REPORTS
1.) Expansion into new forms of gaming - such as, sports betting and online casinos; and
2.) Extension of their brand into commercial operations; and
3.) Continued expansion into international markets.
Today, 35 years after the passage of the IGRA, Indian gaming is poised to prosper far into the future as they diversify their gaming operations. Tree areas where Tribal governments look to advance their economic footprint and prosper —
Class III Gaming
Defined as gambling played against the house and includes slot machines, blackjack, craps, roulette, and "all forms of gaming that are not class I gaming or class II gaming." Tribes negotiate a gaming compact that is in compliance with state laws.
Loretta A. Tuell Managing Principal, Tuell Law
Loretta A. Tuell is the Managing Principal at Tuell Law, P.C. Tuell is an attorney, former senior government manager, and legislative advisor.
In the private legal sector, Tuell was most recently a Shareholder at the international law firm, Greenberg Traurig, L.L.P. Her public service includes serving as the Majority Staff Director and Chief Counsel for the United States Senate Committee on Indian Affairs. Loretta also served at the Department of Interior in several senior positions. In 2009, Loretta received the prestigious Margaret Brent Women Lawyers of Achievement Award from the American Bar Association. She is a graduate of UCLA School of Law and Washington State University. Tuell is admitted to practice law in California and the District of Columbia.
Tuell serves on the Board of Trustees for the International Association of Gaming Advisors (IAGA). Ms. Tuell is a citizen of the Nez Perce Tribe and grew up on the reservation in Lapwai, Idaho.
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