“ Other tribes like the Poarch Band of Creek Indians and the Chickasaw Nation are also developing tribal or commercial establishments away from their home state territories .”
Hard Rock Hotel & Casino Sacramento at Fire Mountain ( left ) is owned by the Estom Yumeka Maidu Tribe of the Enterprise Rancheria , and Wind Creek Bethlehem Casino & Resort is owned by Poarch Band of Creek Indians
“ Other tribes like the Poarch Band of Creek Indians and the Chickasaw Nation are also developing tribal or commercial establishments away from their home state territories .”
— Michael J . Anderson , Anderson Indian Law
“ Keep in mind that , though some regions have widely spaced clusters , altogether they are scattered across a state that is roughly the size of Spain ,” Siva says . “ Some are a little more fortunately located near densely populated areas than others , but that has little to do with having a significant number of establishments .”
The advantage is that they often share many common interests , which is where an organization like CNIGA is important , as a forum for them to take collective action on issues of importance to them .
The Hard Rock ’ s expansion in California through its partnership with the Enterprise tribal casino north of Sacramento shows how the market models , branding and standards can be exported beyond Florida . “ Other tribes like the Poarch Band of Creek Indians and the Chickasaw Nation are also developing tribal or commercial establishments away from their home state territories ,” Anderson says .
Looking Ahead
Tribes have proven to be strong economic partners with hundreds of successful ventures with outside investors . To help in that score , the NIGC offers to review loan and development agreements prior to execution to ensure they comply with IGRA .
Among the biggest issues at the moment are California ’ s commercial card rooms offering what Siva calls illegal house-banked games at their establishments in violation of the California Constitution . California card rooms may only collect a fee / rake from each hand . But the card rooms have skirted the issue by a set of regulations that have passed muster in many courts , Siva says .
CNIGA is supporting Senate Bill 549 , which seeks to give tribes standing in state court for a one-time-only lawsuit to resolve the legality of these games . “ The fact that commercial card rooms are fighting this bill so hard is really telling , as a positive outcome for tribes is not guaranteed , and if card rooms feel that what they are offering is legal , they should be eager to have their day in court ,” Siva argues .
Another big issue for tribes is ensuring that the state doesn ’ t overstep its bounds in the tribal-state compacting process and asks only what ’ s proper of tribes in the compact provisions . “ Recently , the courts have sided with tribes , who have won some big decisions ,” Siva says .
There is also the matter of state mismanagement of the Indian Gaming Special Distribution Fund ( SDF ), which is one of two funds that tribes pay into in California that is supposed to pay for the state ’ s cost to regulate tribal gaming , provide mitigation funds for the impacts of tribal developments and contribute to the cost of the state ’ s problem gambling programs , Siva says .
Two state audits , one at the behest of CNIGA , revealed that the state had been using the fund to pay for commercial card room regulatory activities , something not permitted by law , as well as allowing it to collect a massive reserve fund that far exceeds what most good government organizations recommend , Siva says . To begin to address the issues , CNIGA sponsored successful legislation last year to implement time tracking on regulatory activities at the Bureau of Gambling Control and is working on legislation to begin shrinking the excess reserve in this year ’ s legislative session .
“ CNIGA is also holding talks on the other fund tribes pay into , the Indian Gaming Revenue Sharing Trust Fund , which disburses funds to tribes who have limited or no gaming . Discussions are centered around possible ways to increase funding disbursements to eligible tribes ,” Siva says .
As more states pursue legalization and licensing of commercial online sports betting without an equally strong offering to tribes , the bottom line will likely feel the strain , Fontenot says . “ What exclusivity includes and how sports betting fits into the framework , in some cases , may be challenging .”
Certainly , California has had a challenging time in its attempt to be what could be the most successful state in the nation when it comes to sports betting .
California voters want to get sports betting right , and are wary of attempts that would recklessly expand gaming in the state , Siva contends . “ Tribes share these same concerns and believe the slow approach is best . Voters in 2022 saw through the corporate operators ’ ruse to ship revenues out of our state and handed Proposition 27 , which favored commercial operators , one of the most lopsided defeats in California history .”
To be fair , the tribal community pushed Proposition 26 , which suffered its own defeat . This year , outsiders tried to push an initiative that tribes opposed . The effort failed . “ It is critical that tribal governments be included in any discussions relating to the legalization of sports wagering ,” Siva says .
Despite the obstacles still facing the tribal gaming community , the future remains promising . Overall , there is a positive outlook for tribes as they continue to use gaming as an economic engine for their nations .
“ Diversification continues to be important so as to not become too dependent on one source of income ,” Bussmann says . “ This is why tribes look at other businesses besides gaming as well as looking to other markets to expand their gaming expertise . It ’ s important to build upon these talents and expand for the future generations of the tribe and long-term sustainability .”
30 TRIBAL GOVERNMENT GAMING 2024