ALL IN? ECONOMIC FACTORS TO CONSIDER IN NATIVE AMERICAN GAMING

By Shalin Hai-Jew1

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

ABSTRACT:

The economic frame focuses on the context of the need for economic development on Indian reservations. This offers a range of considerations for Native economic development. It also looks at the pros and cons of Indian gaming as an economic solution. This asks learners to consider issues of economic development and empowerment.

2

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

LEARNING OUTCOMES

Explore the economic, job creation / shifting and secondary industries impacts of Indian gaming; understand up front costs of setting up Indian gaming

Probe competition between tribes of Indian gaming

Explore the use of reservation resources for economic health

See how different tribes approach the economics questions in terms of their resources

3

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

LEARNING OUTCOMES (CONT.)

Think of strategies to diversify the economic base beyond Indian gaming!

List the possible positive and negative externalities to Native gaming; consider the mitigations to gaming effects

Know what some primary decisions are once casinos open.

Understand law enforcement issues around Indian gaming

4

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

STRUGGLES WITH TRIBAL GROWTH AND DEVELOPMENT

Insufficient access to capital markets Low levels of education Poor endowments of natural resources Indians’ goals and attitudes Institutional resource allocation Ill-advised federal policies A culture of paternalism towards

Native Americans Former mismanagement of Native

American resources 5

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

OBSTACLES TO TRIBAL DEVELOPMENT

Low access to financial capital Lack of human capital Lack of effective planning Excessive planning with insufficient action Low natural resources Lack of control over natural resources

6

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

OBSTACLES TO TRIBAL DEVELOPMENT (CONT.) Physical distance from markets and the high

costs of transportation Intense competition from non-Indian

communities Counterproductive and / or discriminatory

federal and state policies Inept, corrupt or uninterested BIA leadership

7

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

OBSTACLES TO TRIBAL DEVELOPMENT (CONT.)

Non-Indian outsider control or confounding of tribal decision – making

Unworkable or externally imposed systems of government

Inept or corrupt tribal politicians and bureaucrats

On-reservation factionalism leading to instability in tribal decisions

8

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

OBSTACLES TO TRIBAL DEVELOPMENT (CONT.)

Instability of tribal government discouraging outside investment

Low reservation savings Scarce entrepreneurial skills and experience Non-Indian management techniques fail to

work on the reservation

9

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

OBSTACLES TO TRIBAL DEVELOPMENT (CONT.)

“Non-Indian management techniques will work, but are absent”

Inhibitory tribal cultures Long-term negative effects of racism

undermining tribal self-confidence Alcoholism’s deleterious effects (Cornell and

Kalt, Reloading the dice…, n.d., p. 6)

10

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

ENVIRONMENTAL SCAN Market analysis High cost of entry for infrastructure High tech demands Risks to the casino / house Possibility of failure due to booms and busts,

competition, and economic challenges

11

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

ENVIRONMENTAL SCAN (CONT.)

Opportunity costs Risks in policy shifts

12

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

EARMARKED FUNDS FOR TAXATION, GOVERNANCE AND INDUSTRY SELF-REGULATION

Taxation (employment) Governance and infrastructure building for

the tribe Industry self-regulation

13

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

LOCATION SELECTION/ SITING AN INDIAN CASINO

Urbanized or rural environment for the most benefit?

Nearness of business competitors Optimal customer-friendliness of gaming type

for the region State laws / county laws Land use consdierations

14

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

LARGER COMMUNITY ISSUES

Shared benefits Intercommunications Relationships with other tribes Forming alliances

15

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

MITIGATING POTENTIAL PROBLEM GAMBLING

Up to 8% of gamblers may have a “problem (pathological) gambling” issue

16

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

ROLE PLAYING:

Scenario: The scenario is a tribal council meeting. A local tribe is considering whether to adopt gaming as part of their economic development strategy. All who may be impacted should attend.

17

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

ROLES AND STANCES Have learners choose various roles. Have

them research what an individual or group in their role may think, and have them argue a coherent stand. Each individual or group will have particular aims that they want to achieve. Allow room for changes and shifts in ideas if particular aims are met. Have them keep the aims private generally unless they feel it’s strategically helpful to share that with the group. See what sort of final agreement the various individuals may come to.

18

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

ROLES

Tribal Elders: Larger Outside Community: Tribal Community Members: The Economic Development Committee from

the Tribe: Pro-Casino Investors: State Officials: Private Gaming Representatives:

19

Nativ

e G

am

ing: T

he E

conom

ics Fram

e

CONCLUSION

20

Nativ

e G

am

ing: T

he E

conom

ics Fram

e