Presentation on theme: "Indian Gaming in Montana One step to opening the door to new opportunities for the First Montanans."— Presentation transcript:
Indian Gaming in Montana One step to opening the door to new opportunities for the First Montanans
Regulatory Framework - History 1970s: few tribes in several states open high-stakes bingo parlors (CA, FL, ME, NY, WI) Cabazon case (1987) upheld tribal authority over gaming, not state authority in most areas. IGRA (1988) provides for new breakdown of authority over tribal gaming.
Indian Gaming Regulatory Act 3 classes of gaming, each with different regulatory authority Class I – exclusive tribal regulation (traditional tribal gaming) Class II – tribal and federal regulation (non-banking cards, bingo) Class III – state - tribal compact required (casino style gaming: slots, craps, blackjack, etc.)
Post-IGRA Developments Indian Gaming has exploded into a multi-billion dollar industry Tribes across the United States have utilized gaming proceeds to improve social conditions New employment opportunities in traditionally high unemployment areas Tribes have become empowered economically and politically
Benefits of Tribal Gaming 2004: $18.5 billion revenue Over 500,000 jobs provided Studies show crime rates decrease with tribal casinos opening in nearby communities Tribal revenues are used to fund governmental programs and operations, diversified economic development, charitable donations, and to assist other local government operations Most tribes do not pay per capita to tribal members from gaming proceeds under IGRA Tribal members receiving gaming per capita income pay federal taxes
Benefits of Tribal Gaming Nationally, 75% of tribal gaming employees are non-Indian In many economically depressed rural reservations, 80% of tribal gaming employees are Indian. 2004: $1.8 Billion in State Government revenue 2004: $5.5 Billion in Federal Tax revenue
Disparities in Montana Gaming State of Montana unemployment rate: 2-4% Machines in Hardin, MT in 2006: 125 Machines in Billings, MT in 2006: 1997 Machines licensed in the State of Montana: 18,000+, state- licensed operators Crow Tribe unemployment rate: approx % depending on season Machines allowed under current State-Tribal compact on Crow Reservation: 100 Class III Machines on Montana Indian Reservations: ca. 900
Montana’s Stake in Keeping Tribal Gaming Under Wraps Governor claims he is against expanded gaming in Montana Montana has one of the highest per capita concentrations of gaming machines in the U.S. 2006 video gaming taxes: Statewide: nearly $58 Million Billings: $9,415,570 (Roughly $2 million increase from 2003.) Hardin: $517,618 Amount wagered in MT in video gaming in $1.082 Billion Under state law 9 member Gaming Advisory Council includes one Native American, three gaming industry representatives, and three local government representatives
Montana: Known as the Last Worst Place for Indian Gaming Montana State-Tribal compacts are THE POOREST with THE WORST TERMS in the entire U.S. Lack realistic competitive advantage to draw clientele to tribal gaming facilities State’s Questionable ability to negotiate in good faith – conflicts of interest Out of step with national trend in state- tribal relations Continuing lost opportunities for all parties – tribal and state alike!
Where do we go from here? IGRA states that: A principal goal of Federal Indian policy is to promote tribal economic development, tribal self-sufficiency, and strong tribal governments. Tribes in Montana have been repeatedly limited in their ability to use gaming to achieve any measurable economic growth. Preferred solution: true cooperation, true good faith negotiation – that hasn’t happened so far. Other options are being explored. One key to building tribal economic independence in Montana is in creating viable opportunities to expand Indian gaming responsibly.