As the tribal gaming sector continues to grow and evolve, it becomes increasingly crucial that commercial operators looking to embrace the sector understand the nuances of each tribe.
The relationship between Tribal Gaming and the commercial casino sector was at the forefront of discussions during the SBC Summit in Lisbon, as a decorated panel gathered in a bid to gain a deeper understanding of the tribal gaming sector.
Jamie Hummingbird, Chairman, NTGCR emphasised that each tribe requires a very different approach and being meticulous and gaining an understanding is imperative.
He detailed that each tribe holds different cultures, motives and levels of sophistication, therefore doing research should be at the heart of the approach for commercial operators looking to collaborate with tribes.
According to Hummingbird, ‘tribes are protective of their people and sovereignty’ and operators should take note that a licence in one area doesn’t cement an operator’s ability to get a licence in a different jurisdiction.
In its most recent set of figures, the prosperity and potential of the tribal gaming sector was highlighted as the National Indian Gaming Commission reported record annual gross gaming revenue numbers for tribal gaming, declaring $41.9bn for the fiscal year 2023.
Anika Howard, President & CEO of WONDR NATION, also echoed that if commercial operators are to tap into this, understanding tribal sovereignty is crucial.
She revealed such is the importance of sovereignty, commercial operators should understand that tribal disputes will likely be settled in tribal court.
She added that the values of tribal businesses are tied to that of the community, with overall goals for the long term prosperity for the community
When looking to collaborate with tribes, Howard also underpinned that it is crucial that commercial operators develop an understanding of the limitations of each tribe.
The panel was keen to outline that central to a successful partnership with a tribal business isn’t to bombard them with information and new tech, but instead to understand the bigger picture on what the brand is trying to achieve and embark on an educational journey together.
Jason Rosenberg, CEO and Founder of American iGaming Solutions, reiterated that before commercial operators engage with tribes, they simply need to listen.
He added that the tentativeness from tribes stems from their historic treatment by federal governments and states.
Brett Calapp, Chief Operating Officer, NAI, Bally’s, who moderated also cited the importance of the history of tribes in order to develop the best relationship with them and their motivation in the modern gaming space.
As partnerships are formed he added that ‘education is so important with even the most sophisticated retail casinos, sometimes enduring a challenging transition when it comes to moving to online’.
Nonetheless, he lauded the customer service of tribal gaming, with it being an asset that sets them apart.
When questioned by the audience, Calapp also issued a warning over the rise of the sweepstake casino sector: “There’s a lot of money in sweepstakes and that doesn’t always attract the best actors, whilst they are legal there are nuances out there in the regulation that need t be abided by,” he said.
The panel also took a closer look at the state of play for class 2 games and why they are being embraced by tribes too strongly.
Hummingbird stated: “People are still in the dark about what class 2 games are, with class 2 games having at least 2 people playing, not necessarily in the same room. This has led to Tribal gaming leading the way when it comes to server based gaming.”
Meanwhile Rosenberg added that ‘Class 2 games are a driving force in the direction tribes are moving’.
Howard provided a deeper insight into this as she revealed that Class 2 games largely enables Tribes to avoid taxes as they don’t pay taxes on bingo based games, however the sophistication of class 2 games has limited their growth to a degree.
