BETTER CHANGE
Two sides of the same industry
So what are the key diff erences between the two sides of the industry? 1. Their Legal Framework: Tribal gaming is governed by the Indian Gaming Regulatory Act (IGRA) of 1988, a federal law that established the framework for regulating and overseeing gaming on tribal lands. Commercial gaming, on the other hand, is regulated by state laws and regulations, and is typically authorised through state legislation.
Better Change founder, Victoria Reed, hits the road to get under the skin of responsible gaming in the United States.
T 34 JUNE 2023
he Better Change team recently returned from one of the most insightful trips I’ve made in my career so far. We started in Las Vegas before heading down to San Diego for the 2023 Indian Gaming Tradeshow and Convention.
The purpose of the trip was to really get under the skin
of responsible gaming in the United States and to see the key differences between what we’re doing here in Europe and what’s happening Stateside. It’s clear that responsible gambling has become an
increasingly important issue in the United States, and many states have implemented measures to address it, however there is not only a huge chasm between the US and Europe but even internally between the Indian gaming industry and the commercial operators. Not only are they subject to different regulations and governed by different laws, but it’s clear that the US commercial operators are currently still focusing on the development of their commercial sustainability whereas the more established tribal operators are looking towards setting standards and for innovative ways to both protect and retain their customers.
2. Sovereignty: Tribal gaming is operated by Native American tribes on their sovereign lands, which are considered separate from state and federal jurisdictions. This is based on the legal concept of tribal sovereignty, which grants tribes certain inherent rights to self-governance and the ability to establish and regulate their own gaming operations. Commercial gaming, on the other hand, is typically operated by private entities and is subject to state and local government oversight.
3. Compact Requirements: Tribes must negotiate compacts, which are agreements between tribes and states, in order to conduct what they refer to as ‘Class III’ gaming (such as slot machines and casino-style games – more on that later!) on tribal lands under IGRA. These compacts outline the terms and conditions for the operation of tribal gaming and revenue sharing with the state. Commercial gaming, on the other hand, is authorised through state laws and regulations, and does not require such compacts.
4. Revenue Sharing: Tribal gaming operations are often required to share a portion of their revenue with the state or local governments as part of their compact agreements. This revenue sharing is intended to compensate the state for potential impacts of tribal gaming, and the specific terms vary depending on the individual compacts. In commercial gaming, revenue generated by the casinos typically goes to the private entities operating the casinos and may be subject to various taxes and fees imposed by the state or local government.
5. Social and Economic Impact: Tribal gaming is often seen as a means for Native American tribes to generate revenue for their communities and promote economic development on tribal lands. It is often viewed as a way to
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