All in Economic Factors to Consider in Native American Gaming

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All in? Economic Factors to Consider in Native
American Gaming

• By Shalin Hai-Jew

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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.

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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

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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

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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

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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

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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

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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

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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

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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
• Alcoholisms deleterious effects (Cornell and
  Kalt, Reloading the dice, n.d., p. 6)

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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

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Environmental Scan (cont.)

• Opportunity costs
• Risks in policy shifts

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Earmarked Funds for Taxation, Governance and
Industry Self-Regulation

• Taxation (employment)
• Governance and infrastructure building for the
  tribe
• Industry self-regulation

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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

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Larger Community Issues

• Shared benefits
• Intercommunications
• Relationships with other tribes
• Forming alliances

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Mitigating Potential Problem Gambling

• Up to 8 of gamblers may have a problem
  (pathological) gambling issue

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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.

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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 its
  strategically helpful to share that with the
  group. See what sort of final agreement the
  various individuals may come to.

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Roles

• Tribal Elders
• Larger Outside Community
• Tribal Community Members
• The Economic Development Committee from the
  Tribe
• Pro-Casino Investors
• State Officials
• Private Gaming Representatives

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Conclusion