30 YEARS OF TRIBAL GAMING


A render of the Hard Rock under construction in Hollywood, Florida, near Fort Lauderdale


and 135 casino operations. OIGA’s 25 members operate diverse properties. We have giants like the Winstar, offering the world’s largest casino floor – 1.5 miles long – along the Texas border, to travel plazas with a few machines.” Despite challenges, Morago says tribes see political opportunities. She says: “We will work with each administration and applaud tribes for making the voting margin ballot difference of a few per cent.” However, expanded tribal power introduces


increased regulations. Gushin states, “Many original state compacts that used tribal commissions as primary regulators may also face scrutiny from jurisdictional law enforcement. In New York and Connecticut, their respective State Police agencies now conduct background checks.” Gushin also cites increased federal


Financial Crimes Enforcement Network (FinCEN) expectations since 2013. All financial institutions – including casinos – with assets over $1 million must submit direct written compliance plans, based on their casino products’ and services’ specific risks. The Seminole Tribe of Florida is among America’s most successful tribal gaming operations. The 4,100 members, whose history dates back to the 1500s, live on and off reservation lands in Southeast and Southwest Florida. Their first high-stakes bingo hall, the Seminole Classic Casino, opened in December 1979. Outside management supervised all operations during those early years, but the Seminoles transitioned throughout the 1990s towards self-management by 2000. Under the leadership of Seminole Gaming CEO Jim Allen, the Seminole Tribe has evolved from a regional company operating five Florida casinos into a global conglomerate. Allen, born near Atlantic City in 1960, first


42 MAY 2018


worked as a cook at Bally’s Park Place in 1979. This job launched his casino career three years after New Jersey voters approved Atlantic City casino gaming. Over the next two decades, Allen worked for multiple gaming corporations until the Seminole Tribe hired him in 2001. The Tribe’s international presence


skyrocketed with its 2007 acquisition of Hard Rock International (HRI) from UK leisure group Rank for $965 million. Respected among the world’s most recognised brands, HRI operates 11 casinos, 180 cafes and 25 hotels in 75 countries. Longtime Seminole Spokesperson Gary Bitner says, “Following an earlier Florida compact, the Tribe negotiated a new 20-year compact in April 2010. Outgoing Governor Charlie Crist signed the 54-page agreement, which remains in effect through 2030.” One important component is the detailed


tax formula that mandated the conversion of all Class II bingo-based machines into Class III slot machines within five years. Because of its successful implementation, the Tribe paid nearly $300 million to Florida during this past fiscal year. Current Florida Governor Rick Scott claims that while governor, the Seminole compact has generated more than $1.75 billion to invest in areas like Florida’s education and environment.


NIGA AND AGA UNITE By 2015, hundreds of commercial and Indian casinos operated across the US. This motivated the American Gaming Association (AGA) and National Indian Gaming Association (NIGA) to collaborate on mutually-beneficial goals. The AGA Board recognized and endorsed the power of cooperative efforts. AGA CEO/President Geoff Freeman says:


“We started with two simple ideas…more unites us than divides us. Our first meeting with Chairman Ernie Stevens and NIGA focused on eliminating barriers between tribal and commercial gaming. We emphasized common issues and recognized that most consumers do not differentiate between tribal and commercial casinos. With big issues, we’re swimming upstream if we’re stressing differences. AGA has prioritized inclusivity, so the membership reflects all of gaming. Tribal gaming members actively help shape organizational and industry priorities. Together, we have successfully fought and will continue to fight antiquated slot tax thresholds, while also advancing growth opportunities like sports betting. The alliance will also address outdated shipping regulations and advance anti money laundering efforts with FinCEN.” Both groups have had a learning curve to


understand each other’s business. Their cooperation has forged a strong foundation for a long and fruitful partnership. “The vast collective industry makes


communication our greatest challenge. Looking ahead, Ernie and I embrace helping all to understand the ‘ins and outs’ of various issues,” Freeman states.


FUTURE ISSUES The industry awaits the Supreme Court’s sports betting ruling while DOI will evaluate off-reservation gaming. On October 4, 2017, DOI Acting Assistant


Secretary – Indian Affairs John Tahsuda III testified before the Senate Committee on Indian Affairs that DOI will thoroughly analyze the off-reservation gaming issue. Tahsuda stated that despite benefits to tribal and non-tribal communities, off- reservation gaming ...” can also introduce new complications to communities…there needs to be a thoughtful and thorough consideration of all factors relating to gaming applications…local voices must have a fair opportunity to provide insight and input into these decisions.


“…an in-depth and balanced consideration of all factors will be at the core of the Department’s decision-making process for any off-reservation gaming or land into trust applications.”


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