Tribal government gaming on Indian lands is dramatically changing life for many of the 4.1 million American Indians in the United States. There are 567 federally recognized Indian tribes in the United States, including 226 Alaska native villages and 341 Indian tribes in the lower 48 states. Two hundred and twenty tribes in 28 states operate 377 Indian gaming facilities for the purpose of generating tribal government revenue. Only three of the 220 tribes are Alaska Native villages. Roughly 65 percent of Indian tribes in the lower 48 states use Indian gaming to generate government revenue. As a comparison, 78 percent of the 50 states and the District of Columbia use state lotteries to generate government revenue.
The 220 Indian tribes engaged in gaming in 2003 generated an estimated 15.9 billion in gross gaming revenues and another $1.8 billion from hospitality, restaurant and entertainment enterprises related to the gaming industry. The Indian Gaming Regulatory Act provides that Indian tribes shall use net revenue for five general purposes: 1) to fund tribal government services, operations and programs; 2) to promote general welfare; 3) to promote tribal economic development; 4) to make charitable donations; and 5) to help local government agencies.
The National Indian Gaming Association in 2003 conducted a survey to its member tribes concerning the use of net government revenue generated by Indian gaming. Survey results revealed that Indian tribes spend net government revenue as follows: 20 percent is used for education, child and elder care, cultural preservation, charitable donations and other purposes; 19 percent goes to economic development; 17 percent to health care; 17 percent to police and fire protection; 16 percent to infrastructure; and 11 percent to housing.
Indian gaming generated a total of 495,000 jobs nationwide in 2003. The wages associated with these jobs generate federal, state and local payroll, income, and other taxes and help reduce welfare payments and unemployment benefits, freeing up more revenue for the federal, state and local government. Thus, in 2003, Indian gaming paid $15 billion in wages generating $2.2 billion in federal income taxes, $2.5 billion in Social Security taxes, and decreasing welfare payments by $1.2 billion. As a result, federal treasury revenues increased almost $6 billion in 2003 due to the increased economic activity generated by Indian gaming.
While Indian Gaming is providing the economic stimulus that is greatly needed to individual tribes, where Indian gaming is viable, the overall need in Indian Country is not met by the success of Indian Gaming.
“Because of Indian gaming, our tribal government are stronger, our people are healthier and our economies are beginning to grow,” said Ernest L. Stevens Jr., chairman of the National Indian Gaming Association and a member of the Oneida Indian Nation of Wisconsin. “Indian country still has a long way to go. But Indian gaming has proven to be the best available tool for tribal economic development.”