From Gaming to Green
The diversified tribal economy
By Chris Irwin
Electronic pull-tabs threaten the gaming revenues of tribal casinos in Minnesota and Wisconsin
The Mashantucket Pequot tribe built a museum honoring its heritage in Connecticut
Over the past several decades , Native American tribes in the United States have made incredible economic strides , in no small part due to the operation of casinos on their lands . These ventures have infused tribal economies with much-needed resources to invest in critical infrastructure , education , health care and other vital community services to support their people .
However , despite overall growth in gaming revenues , tribes are beginning to feel the squeeze of new competition . Markets are increasingly saturated , with fewer opportunities for profitable development , particularly within the confines of reservation boundaries .
Ongoing gaming expansion in Illinois will threaten tribal operations in nearby Wisconsin , like Milwaukee ’ s Potawatomi Hotel & Casino . The potential introduction of multibillion-dollar integrated resorts in Texas looms over tribes in southern Oklahoma who have enjoyed near exclusivity over the massive Dallas gaming market . In Minnesota , electronic pull-tabs , which have proliferated under the umbrella of charitable gaming despite effectively being a mobile slot machine , are projected to close $ 2.3 billion in sales this year ( or more than $ 340 million in revenue at a 15 percent hold ) despite tribal exclusivity over casino gaming in the market .
And these are only the land-based threats , to say nothing of the emerging online casino landscape likely to be dominated by large commercial operators . With this growing threat to their sustainability , tribes are increasingly focused on economic diversification . It would be impossible to share all the ways tribes are working to diversify their cash flows in a short article , but here we discuss several examples of tribes working across varying lines of business that we think are illustrative .
Gaming & Hospitality : Leveraging Assets
A natural first step for some tribes has been to extend their existing casino businesses into the commercial realm . The San Manuel Band of Mission Indians made headline news purchasing Palms Casino Resort in Las Vegas . The Seminole Tribe of Florida — owners of Hard Rock International — followed suit with an agreement to purchase and re-brand The Mirage Hotel & Casino , where they plan to build an iconic guitarshaped hotel tower on the Las Vegas Strip .
But before these Las Vegas purchases came several regional plays . The Poarch Band of Creek Indians purchased Sands Bethlehem and two Renaissance hotels in Aruba and Curacao . The Mohegan Tribe bought its Poconos property and announced its $ 5 billion Inspire integrated resort near Incheon , South Korea , set to open later this year .
And , the Chickasaw Nation added Remington Park in Oklahoma City to its growing Global Gaming Solutions portfolio , including Lone Star Park near Dallas and other operations . Further , three of these operators — Mohegan , Seminole , and Chickasaw — are among the bidders for
26 Global Gaming Business AUGUST 2023