Victor Rocha, a member of the Pechanga Band of Luiseño Indians and chairman of an important convention, has raised alarm over what he describes as an assault on tribal sovereignty. He points to conservative organizations that oppose tribal sovereignty and gaming rights as the main culprits behind these threats. "We’ve been sleeping with one eye open since Columbus landed," Rocha stated. "This is the latest in a long line of threats we’ve had to deal with. It has the potential to be foundational that tribes would lose their exclusivity of government."
This tension arises as tribal gaming enterprises are experiencing a recovery from the impacts of the Covid-19 pandemic. Many tribes are renovating and expanding their facilities to enhance their offerings, turning properties into fully developed resorts akin to those in Las Vegas. A report from the National Indian Gaming Commission revealed that tribal gross gaming revenue reached an unprecedented $39 billion in the fiscal year 2021, marking a 40% increase from 2020 and surpassing figures from 2019 by 13%. This amount is closing in on the $53 billion generated by commercial gaming.
Currently, there are 510 gaming operations managed by 243 federally recognized tribes across 29 states. Out of these, 43 operations reported gaming revenues exceeding $250 million, which accounted for more than half of total revenues. The Indian Gaming Regulatory Act (IGRA), enacted in 1988, established the framework regulating gaming on tribal lands. At that time, tribal gaming generated about $121 million, compared to $4.1 billion collected by Nevada casinos.
As tribes have expanded over the past 35 years, many have ventured beyond their reservations into commercial gaming, taking advantage of their successes. The San Manuel Band of Mission Indians acquired the Palms Casino in Las Vegas for $650 million from Red Rock Resorts and reopened it in April 2022. Similarly, the Seminole Tribe of Florida took operational control of The Mirage from MGM Resorts International for over $1 billion, with significant renovations planned.
However, tribes continue to face challenges to their exclusive rights. Last November, they defeated a sports betting initiative backed by companies such as MGM Resorts, DraftKings, and FanDuel. Despite 82% of voters opposing commercial operators' involvement in sports betting, the executives involved indicated they might pursue the issue again in 2024.
Susan Jensen, executive director of the California Nations Indian Gaming Association (CNIGA), emphasized the broader implications of the threats faced by California tribes, highlighting the need to garner public and governmental support in order to protect tribal rights.
In February, a federal court in Washington state ruled in favor of tribes by dismissing a lawsuit filed by Maverick Gaming, a card room operator, which challenged a state law allowing only tribes to conduct sports wagering. This case has been appealed and may ultimately reach the U.S. Supreme Court. Rocha expressed concerns about changing perceptions of tribal governance, stating that operators like Maverick aim to redefine tribal governments in a way that undermines their sovereignty.
The stakes are high as tribes await the U.S. Supreme Court's decision on Haaland v. Brackeen, a case examining whether Native American families receive preference in foster and adoption situations under the Child Welfare Act. This case, initiated by a non-native couple from Texas, parallels arguments targeting tribal sovereignty seen in gaming discussions. Jensen conveyed worries over potential repercussions of such court rulings and mentioned that California is preparing legislative measures as a safeguard should the outcome be unfavorable.
Tribes have also expressed dissatisfaction with IGRA, arguing it restricts their sovereignty, particularly regarding sports betting. For instance, tribes in Idaho are unable to offer sports betting due to competitive limits from tribes in Washington. Laura Penney, CEO of the Coeur d’Alene Casino Resort, acknowledged the need for sports betting as a means to remain competitive and attract revenue.
In Florida, legal discussions are underway regarding a 30-year agreement giving the Seminole Tribe a monopoly over sports betting, which would allow mobile betting and other gaming options. Opponents claim this expansion requires voter approval, further complicating tribal-state gaming agreements.
The Bureau of Indian Affairs, under Secretary Deb Haaland, has proposed new regulations permitting tribes to engage in mobile and online gambling beyond their reservations. Rocha remarked that as tribes seek to maintain their competitiveness against commercial interests, such changes are necessary. However, the proposed adjustments might encounter resistance, with some suggesting that an overhaul of IGRA would be more beneficial.
Certain tribes are exploring options outside state compacts to gain federal oversight. In January, the Rincon Band of Luiseño Indians announced its decision to leave Class III gaming, which permits slot machines and table games but necessitates a state compact. They aim to transition to Class II gaming, which involves bingo and non-banked games governed by the National Indian Gaming Commission, alleviating them from state taxation.
Across the board, tribes are concerned that new gaming options in neighboring states could negatively impact their operations. Texas’ legislative discussions regarding gaming are particularly worrisome as new options could draw patrons away from tribal casinos in Oklahoma and Louisiana. The Las Vegas Sands Corporation is heavily lobbying for this expansion, and if realized, it might prompt calls for more tribal casinos in Texas.
Despite the complexities surrounding tribal gaming rights, leaders like Jan Jones Blackhurst from Caesars Entertainment underline the community-oriented benefits that tribal gaming brings. She compared it to the commercial gaming industry's short-term focus and highlighted the need for greater respect toward tribes' self-governance and community development efforts.
"It’s not ours but theirs," Jones Blackhurst reiterated, emphasizing the importance of collaboration and understanding in the gaming landscape.
