Indian Gaming in Montana

1
Indian Gaming in Montana

• One step to opening the door to new opportunities
  for the First Montanans

2
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.

3
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.)

4
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

5
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

6
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

7
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, 1600 state-licensed operators

• Crow Tribe unemployment rate approx. 40-80
  depending on season
• Machines allowed under current State-Tribal
  compact on Crow Reservation 100
• Class III Machines on Montana Indian
  Reservations ca. 900

8
Montanas 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 2006 --
  1.082 Billion
• Under state law 9 member Gaming Advisory Council
  includes one Native American, three gaming
  industry representatives, and three local
  government representatives

9
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
• States 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!

10
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 hasnt 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.