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April 24, 2002

Foxwoods, operated by the Mashantucket Pequot Tribal Nation, reported June slot revenue of $35.3 million, down nearly 12 percent from the $40 million recorded in June 2018. The amount slot bettors.

Gaming and the Lives of Native Americans

'An economic tool such as Indian gaming may come only once to American Indian people and they do desperately need such a tool' (Stein 164). Native Americans have battled discrimination since the days of European colonization. They were forced by the 'founders' of the United States to live on isolated pieces of land containing scarce resources. The reservations left the Native Americans in poverty, and the transfer payments they received from the federal government did little to ease their discomfort. Therefore, they needed a way to adequately survive in the United States, and gaming was the answer. Now, the government, who once drew the lines that confine Native Americans, wants to cross them and interfere with tribal business. (Thompson 166). Gaming is the economic advantage that allows native Americans to continue living their lives through their traditions while making enough income to keep up in today’s world.

Foxwoods Casino Gross Revenues

Casinos in Connecticut have registered revenue decline amid increasing competition from the new MGM Springfield casino situated in western Massachusetts. A 10% decline was registered in the slot-machine revenue of the Foxwoods Resort Casino in October, with the drop believed to be happening as an effect of competition, including rivalry from the MGM casino venue. Despite a strong re-entry that saw Foxwoods report gross gaming revenue that was off by only 4.9% from June of last year, traffic has trailed off some since then and August and September revenue.

Casinos and bingo parlors are recent additions to Native American reservations, while tribes have been practicing gaming traditions throughout history. By the year 1907, there were one-hundred and thirty recorded Indian Nations that played dice-like games and eighty-one that played a form of the 'button game' (Stein 145). These games differed from tribe to tribe, but all shared the common themes of chance and wagering. Other games focused around athletic contests, such as archery and horseracing. Intense wagering surrounded the outcome of each game. Wagered items included craft goods, produce, and other valuables. Warriors would play for honor and pride within their community. Even holidays were celebrated through specific forms of gambling. These deep-rooted traditions are what slowly evolved into the gaming facilities found on reservations today.

The first tribe to use gaming as an economic tool was the Penobscot tribe of Maine, when they held weekly bingo games in 1976 (Stein 149). Similar bingo operations were soon opening up around the country. Then, in 1979, the Seminole tribe of Florida began offering cash prizes thousands of dollars, larger than the one-hundred dollar per pot maximum allowed by state law (Davis 55). When the state threatened to close their facility, the Seminole took the case to the Supreme Court. 'The courts ruling states that gambling operations on reservations are subject to state laws that are criminal or prohibitory in nature, but not those that are civil or regulatory' (Davis 55). Only tribal governments have those powers. Also, the court announced that 'if a state permits a form of gaming… then American Indian nations within that state’s boundaries have the right to organize and manage their own gaming venture… within the legal parameters pertaining to that state' (Stein 150).

Although the success of this case brought an explosion of tribally owned bingo operations, the 1987 case California v. CabazonBand of Mission Indians gave way for casino-style gaming on reservations. After state challenged the tribe’s legal right to operate a facility containing bingo, poker and other games, the United States Supreme Court 'guaranteed American Indian nations the right to operate any form of gaming already permitted within the states in which they reside' (Stein 150). This decision maintained tribes’ right so act as sovereign nations, and take advantage of their independence. 'Tribes took note and within five years one-hundred and thirteen Indian bingo operations around the country were grossing two-hundred and $25 million annually' (Denny 163).

As a result of the 1987 Supreme Court case, Congress passed the Indian Gaming Regulatory Act the following year. This received strong opposition from Las Vegas and Atlantic City, two large gaming cities, because of the special rules given to these gaming establishments (Anders 101). The IGRA allowed tribal gaming to be exempt from the Freedom of Information Act, meaning tribes are not required to release financial information (Anders 101). Tribes also do not have to pay taxes to the state or federal governments, although they are 'required to deduct and with hold state and federal income tax… from all non-Indian and non-resident Indian tribal employees… and report gaming winnings to the Internal Revenue Service' (Anders 101-102).

The IGRA categorized gaming activities into three classes. Class one includes social games, with minimal prizes, and Native American ceremonial games. The games under class one have no restrictions. Class two includes all forms of bingo and is supervised by the National Gaming Commission. Class three games include casino games, slot-machines jai-lai, and pari-mutual betting on horse and dog races. These are only allowed if the state permits the games for other purposes, and the state and tribe negotiate a formal agreement (Davis 57-58).

The true reason for owning gaming establishment is not a desire for fame and fortune, but is due to their low economic status. Native Americans living on reservations have the lowest education levels, incomes, and highest unemployment rates out of all races (Davis 53). Their poverty rate, equal to that of African Americans, in three times that of white Americans (Davis 53). 'In 1980, forty-five percent of all American Indians on the reservations were living below the poverty level, but by 1990 the poverty level had decreased to over fifty percent and the unemployment rates hovered above twenty-five percent' (Davis 54).

The causes of the poor reservation condition are because of the geographic location of the reservations. They are socially, economically, and spatially separated from the population and economic center of the country (Davis 54). Many were purposely located in regions poor for agriculture and containing nothing to exploit. Many Native Americans are reluctant to adapt to today’s world, and instead choose to remain on their land living through their beliefs. However, not all are as hesitant. 'Census data indicate that each year fewer and fewer American Indians remain on reservations, but are leaving in search of economic opportunity and a better standard way of living' (Davis 54). By doing this, more and more Native Americans risk losing their culture, only to blend into the homogeneous American being. Those wishing to continue living through their culture are paying a price, and gaming has been the answer for many tribes.

Foxwoods Casino and Resort, run by the Mashantucket-Pequot tribe in Connecticut, is the most successful Native American gaming establishment existing today. When maple-syrup and greenhouse ventures proved unsuccessful, the small 316 member tribe experimented with bingo (Carmichael 68). Foxwoods opened in 1992 and in that year earned a $300 million profit through roulette, blackjack, and craps (Carmichael 68). The next year, the tribe negotiated with the state for exclusive rights to slot machines. The states have since received twenty-five percent of the slot machines profit, which recently has equaled $150 million (Davis 61, Frantz 294). Foxwoods remained New England’s only casino until 1996 (Davis 61).

The casino employs 10,000 people, with tribal members being a priority (Frantz 294, Carmichael 68). Regardless of employment, all tribal members receive a portion of the income, up to $50,000 per year (Carmichael 68). The rest of the profit goes toward bettering the tribal nation. Members of the tribe receive free healthcare, acces