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According to The American Gaming Association (AGA), the gambling industry in the US is worth $261 billion and supports 1.8 million jobs in 40 states (1); however, gambling has had a difficult (and illegal) history in the USA and it is just up until now that the path is being cleared.

Several anti-gambling laws have been in place since the great depression and gaming has been heavily regulated ever since. Some of those regulations haven’t been updated since the 60’s. Despite this, the widespread use of the internet (and online casinos) have made the betting scene change notably and laws have started to shift (2).

Mohegan Sun and Foxwoods Resort Casino on Tuesday both posted September slot revenue declines of about 5.5 percent. For the month, Mohegan Gaming &. With estimated 1999 revenues of about $1.3 billion, the Pequots' Foxwoods Resort Casino accounts for about 15 percent of the entire $8.2 billion in gaming revenue brought in last year by all 198.

Today, the industry faces a rapid growth and increased revenue moving away from the stigma it once held, making it easier for people to access online gaming and betting.

Gambling Revenues in the USA

USA gambling revenues increased to over $160 billion in 2018. Now that sports betting is legal, most gaming experts and financial analysts predict the total revenues for US betting each year will top $200 billion. Whether it’s a lottery ticket, slot machines, sports bets, bingo, or poker, Americans love to gamble.

As each year passes, US state governments expand legalized and regulated games of chance, which encourages more gambling. 2018 was no different. Below is a breakdown of the revenue generated by each form of betting each year.

US commercial casinos generated $41.2 billion in 2017, a 3.7% increase year-to-year from 2016 and a new record for gross gaming revenues for US commercial casinos. New casinos in Maryland and New York added to the increased revenues in 2017. MGM National Harbor in Maryland was the most successful new casinos, but Del Lago Resorts, Rivers Casino, and Resorts World Catskills in New York state also contributed.

In all, commercial casinos generated $51,395,562,664 in revenues in 2018. The total represents a 3.5% increase over 2017. Commercial casinos sustained 737,450 jobs and paid $34.334 billion in worker income. The Las Vegas Strip generated $6.59 billion in gaming revenues in 2018, making it the top destination. Atlantic City came in second with $2.51 billion, which shows a strong 5-year bounce back from its $2.1 billion in 2014. Chicagoland, Baltimore-Washington DC, and New York City finished 3rd, 4th, and 5th among commercial casino markets.

The National Indian Gaming Council still has not released full tribal casino statistics, so the NIGC’s 2016 gross gaming revenues are the most recent official revenue statistics. In 2016, America’s tribal casinos generated $31.195 million in gross gaming revenues. That is up nearly $1.3 billion from 2015, which itself increased $1.4 billion from 2014. If one projected similar growth year-to-year from 2016 to 2017, one might expect to see gross gaming revenues in the range of $33.3 billion for 2017. To avoid speculation, we list the 2016 official statistics. The NIGC releases the previous year’s figures in June or July each year, so check back for the latest results.

Tribal casinos generated $32.801 billion in 2018 — a 3.5% increase over 2017. At its current pace, the tribal casino industry should overtake commercial casino revenues by the year 2030. Like the commercial gambling industry, a handful of tribal casinos launched sportsbooks.

Foxwoods Casino Gross Revenue Refund

The Mississippi Band of Choctaw Indians opened sports betting at their three land-based casinos, while the Pueblo of Santa Ana opened a sportsbook at Santa Ana Star Casino near Albuquerque, New Mexico. The bookmakers’ success could open the door for many other tribal sportsbooks across the United States.

Nevada poker room revenues showed less than 1% growth, as gross gaming revenues were $118.46 million. The 2017 poker rake was $117.7 million. The Nevada figures were a minor miracle, considering that several Nevada poker rooms closed in the past year. MGM Resorts closed the Mirage poker room in February 2017, while the Hard Rock Las Vegas poker room closed in March 2017 and Luxor cardroom closed in May 2017. (The cardrooms for the Linq, Eastside Cannery, The Plaza, and Aliante Casino closed in 2016.)

Atlantic City’s seven poker rooms added $28.38 million in gross gaming revenues in 2017. Pennsylvania’s live poker revenues equaled $60 million. MGM National Harbor in Maryland collected $44.5 million in poker rake alone last year, which was the vast bulk of Maryland poker revenues in 2017. New York’s new live poker rooms, on the other hand, contributed only $6.7 million to the nation’s live poker revenue total. It is difficult to calculate accurately the live poker revenues for America’s 6,100+ live poker rooms. Tribal casinos contain many card rooms and they do not have to report their earnings to states. Thus, it is likely that some poker revenues might be listed under tribal casino statistics.

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Nevada poker rooms increased their total rake from $118.45 million to $120.1 million. On the other hand, Atlantic City poker revenues dropped from $28.38 million in 2017 to $27.028 million in 2018. Pennsylvania’s live poker revenues remained in the $60 million range. MGM National Harbor remained high with over $45 million in poker rake, while the New York state live card rooms continued with a week haul with a little over $7 million in revenues. As always, it’s difficult to gauge total poker revenues, because tribal casinos include their poker rake with their other casino games.

Ultimately, the official US poker room revenues remained steady at $1.9 billion. 2018 showed the US poker industry holding steady after two years of decline. Fewer Las Vegas casinos have card rooms than they did ten years ago, but 2018 did not have any major Vegas poker rooms close. 2016 and 2017 showed a marked decline. MGM Resorts closed the Mirage poker room in February 2017, Hard Rock Las Vegas’s poker room closed in March 2017, and the Luxor cardroom closed in May 2017. In 2016, the cardrooms for The Plaza, the LINQ, Eastside Cannery, and Aliante Casino closed. Still, the United States has over 6,100 poker rooms, so the revenue stream remained steady throughout 2018.

US online gambling produced $247.5 million in revenues in 2017. New Jersey’s online gambling industry continues to grow. In 2017, the combined revenue of Atlantic City’s online casinos and poker sites was $245 million. That’s a 21% increase from 2016 when New Jersey’s iGaming niche generated $195 million. Delaware added only $2.4 million in online gambling revenues, which was an 18% decline.

Mike Lawton of the Nevada Gaming Control Board said online poker revenues are included in total poker revenues for the state, so it is hard to get official statistics for Nevada online poker. Given the fact, only two Nevada online poker sites exist and state regulators try to hide the small revenue stream, one can assume Nevada’s iPoker stats are tiny. Nevada has about twice the online gamblers as Delaware, so $5 million is a safe assumption. Those poker revenues are not included in our figures, though, because they are included in Nevada’s overall poker stats.

New Jersey grabbed the lion’s share of legal US online gambling revenues in 2018 with $298.7 million. Five years into its experiment with online gambling, New Jersey’s online casino and poker portals continue to grow apace. Delaware and Nevada both have regulated online poker, but despite the Multi-State Internet Gambling Association (MSIGA), their revenues were negligible. Pennsylvania will be a huge factor in 2019, but its online poker and casino industry was still getting off the ground in 2018.

Interstate online gambling faces a severe test in 2019. The U.S. Department of Justice declared in January 2019 that interstate online poker is illegal under federal law, striking a blow to the MSIGA pact between Delaware, Nevada, and New Jersey. The New Hampshire Lottery sued because its online lotto ticket sales are endangered by the 2019 DOJ opinion, while New Jersey and Pennsylvania filed their own lawsuit to protect their online poker and casino industries. Whatever happens with the legal cases, US online gambling revenue growth should be significant in the coming year, because Pennsylvania’s iGaming industry launches.

Like the tribal casino revenues, compiling an official list of lottery revenues takes a bit longer each year, because of the patchwork of state-run lotteries and multistate lottery associations. In 2016, US lottery ticket sales were $80.5 billion. The projected figures for 2017 are expected to exceed $85 billion, due to upticks in the sale of scratchcards and the increases in the Powerball and Mega Millions jackpot sizes. Scratch-off tickets are the biggest contributor, with the Powerball and Mega Millions multi-state lottery association games contributing the second and third-most to the revenue pool.

New York state had the biggest lottery ticket sales, with over $10 billion. California, Florida, Massachusetts, and Texas were next in line. Each of those four states had between $5 billion and $6.5 billion in lottery sales.

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The combined revenues of US lotteries for 2018 sit around the $72 billion mark. The U.S. Census Bureau releases the official lottery revenue statistics each year. So far, the Census Bureau has not released official 2018 lottery revenues. The 2017 lottery total was $71.826 billion, while the 2016 lottery statistics were $72.649 billion. That shows a regression of nearly $800 million from 2016 to 2017, though that number reflects a statistical anomaly in lottery drawings more than a loss of interest in the state and multistate lotteries.
State politicians are leery of allowing legal online gambling, though, because they fear it would harm lottery sales. Departing Michigan Gov. Bill Snyder vetoed an online poker and casino bill in December 2018, because he said lottery taxes are higher and iGaming would hurt lottery sales (thus tax revenues). Given the recent trends, it’s a safe bet that US lottery revenues in 2018 were around $72 billion for the year. Mega Millions and Powerball drawings continue to dominate national attention, while their revenues increase year to year.

The revenue figures for US legal sportsbooks came from Nevada and Delaware in 2017. Nevada bookmakers won $248 million from sports bettors in 2017, which was a record year. New forms of betting on eSports helped, though the growing impact of William Hill USA on the Nevada sports betting scene helped. Even hockey betting was up in 2017, thanks to the inclusion of the Las Vegas Golden Knights to the NHL. The Golden Knights’ surprising first-year performance helped drive local sports betting, though it was general NFL, Super Bowl, MLB, NBA, and March Madness betting which generated the most revenues.

Delaware, which had legalized sports lotteries, generated the remaining $6 million in sports betting revenues. Delaware’s sports lotteries require players to make parlay bets of 3 or more games. Delaware sportsbook revenues should increase significantly in the wake of the US Supreme Court’s repeal of the PASPA sports betting ban. Delaware plans to open legal sportsbooks at Dover Downs, Delaware Park, and Harrington Raceway on June 5, 2018. New Jersey sportsbooks at the Atlantic City casinos and Monmouth Park Racetrack in Oceanport should follow suit quickly. US sports betting revenues should have a big jump in 2018.

Given the landmark US Supreme Court decision to strike down the Professional and Amateur Sports Protection Act (PASPA) as unconstitutional, US sports betting revenues increased significantly. Several states (New Jersey, Delaware, Mississippi, West Virginia) legalized sports betting in the months after the May 14 SCOTUS decision. Led by New Jersey, the new sports gambling jurisdictions generated $129.6 million in a little over 6 months of activity.

Meanwhile, Nevada benefited from the additional media coverage given to sportsbooks, so it generated $301.0 million. In all, the legal US sports betting industry generated $430.6 million in revenues – a $182 million increase from 2017. The number should increase significantly in 2019, when New Jersey and Mississippi feature a full year of sportsbook operations. Pennsylvania bookmakers also launched in late 2018 and early 2019, which should boost numbers greatly.

Pari-mutuel racebooks generated $300 million in revenues in 2018. Pari-mutuel wagering is the legal term for betting on horse racing and dog racing. Bettors receive winning for the thoroughbreds, harness racers, or greyhounds which finish in the top three of a particular race (win-show-place). Pari-mutuel wagering also includes a variety of trifecta bets and parlay bets, which pay out more, but hit for the bettor less often.

Dog racing now is allowed in only 5 US states, as the Florida electorate voted to ban greyhound racing (Amendment 13) in the coming years. Most greyhound tracks continue to act as off-track betting facilities (OTBs), offering simulcasting and wagers at over 200 race venues worldwide. Churchill Downs, site of the annual Kentucky Derby, continues to generate almost 60% of the racebook revenue ($175 million) in the United States. Besides the world-famous Louisville-area horse track, Churchill Downs Incorporated owns racetracks and even a few land-based casinos across the United States.

The US pari-mutuel racebook industry must find new ways to drive customers or die a slow death in America. Race betting declined significantly in the past generation due to competition from the lottery, tribal casinos, online casinos, and mobile betting. After the US Supreme Court repealed the federal ban on sports betting (PASPA) in May 2018, sports betting should grow significantly in the coming 5 to 10 years. US pari-mutuel racebooks face another major competitor, so they’ll need to find innovative ways to bet on horse and dog racing or that $300 million total will decline.

For generations, charitable bingo halls have generated cash for civic organizations, veterans groups, religious groups, fraternal organizations, firefighters, and other charity organizations. Charitable bingo remains a major focus, but organizations also hold raffles, poker nights, and sell pull-tab games to the public.

As lottery betting and tribal casinos have increased over the past two decades, charitable gaming and bingo participation has decreased in many states. Charitable gaming is a major source of fundraising for nonprofit organizations in the United States. The numbers haven’t declined across the board, as Michigan’s poker nights (millionaires clubs) increased greatly from 2002 to 2012, due to making it easier to attain a charitable gaming license. Even in Michigan, though, the decline since 2012 has been significant. Meanwhile, Minnesota increased its charitable gaming revenues significantly, as part of a plan to fund the Minnesota Vikings’ football stadium.

As the US population has increased in the past 16 years, the number of charitable organizations holding bingo nights and raffles has increased. That means the overall decline in charitable gaming revenues was slight, from $2.2 billion to $2.15 billion, though the decline in revenue-per-venue and real money value due to inflation is stark.

Each US state organizes and regulates charitable gaming in their own way. Groups pays taxes to the states, but otherwise remain coy about their fundraising. Different states have different terms for their games (Millionaire’s clubs, pickle games, fish games), which adds to the confusion. This makes a completely accurate total of charitable gaming revenues more an estimate than an official tally. Charitable gaming revenues stayed in the $2.1 billion range for 2018.

What Is Online Gambling in the US?

The gambling industry in the United States is the sum total of all forms of legal betting. US gambling includes commercial and tribal casinos, state and multistate lotteries, sportsbooks and racebooks, real money online casinos and poker sites, as well as charitable gaming and bingo halls.

US gambling statistics do not include unregulated online gambling, local bookies, organized poker games in your neighborhood, office pools, fantasy leagues, or March Madness brackets. Because such gaming is unregulated and untaxed, it is hard to get accurate statistics for them. The American Gaming Association and other groups estimate yearly betting turnover of illegal gambling, but the AGA’s data is an educated guess.

In this US gambling report, Online United States Casinos stick to the facts. Most of the statistics below are compiled from state regulatory agencies. Each month, gaming commissions, gaming control boards, and state lotteries across the United States produce gambling statistics. We’ve collected the latest gaming data and compiled it into several gambling categories, which we present below.

Is Gambling Legal in the US?

Many forms of gambling are legal in the United States, but no form of gambling is legal everywhere. Because the United States is a constitutional republic with a federated system of government, the USA is a patchwork of state and federal gaming laws. That makes gambling legality complicated in the United States. What it does mean is Americans who love to bet can find places to live with permissive gambling laws, while Americans who dislike gambling can find states where gambling is 100% banned.

US gambling laws are complicated because each state deals with its own gaming interests and social mores. Nevada is the most pro-gambling states in the United States, as Las Vegas and Reno are gambling destinations. At the same time, Nevada is one of a handful of states which bans lotteries — because it would compete with the billion-dollar resorts on the Las Vegas Strip. Kentucky bans casino betting, though it is the center of the United States horse racing (and horse betting) industries.

As a general rule, legalized gambling has expanded greatly in the past 25 to 30 years. After the Indian Gambling Regulation Act of 1988, tribal casinos expanded to 28 states. California and Oklahoma are two US states with huge tribal gaming industries, but dozens of others exist. The expansion of tribal gaming caused US states to liberalize their commercial casino industries, so states like Illinois, Ohio, Arizona, and Kansas expanded casinos greatly. Pennsylvania legalized casino betting at racetracks and now collects more gaming tax revenues than any states besides Nevada.

Lottery gambling has grown exponentially, too. The Powerball and Mega Millions have the biggest lottery jackpots in the world. State lotteries’ scratch-card tickets generate the most tax revenue. Meanwhile, online and mobile casino gambling and poker betting has grown in popularity. While many Internet gaming sites are unregulated, legal online/mobile gambling exists in 4 states and is expected to be legalized in other US states in the coming years.

Utah and Hawaii are the only two US states which have a 100% ban on all forms of gambling. In Utah or Hawaii, you can’t visit a casino, buy a lottery ticket, make a sports bet, or even play in a bingo hall. All 48 other U.S. states have some form of legalized gambling. In the USA, many southern states restrict gambling significantly, because of the social conservative values in many states. Despite that general statement, all southern states can’t be pegged as anti-gambling.

Alabama bans gambling (even lotteries) in anything but tribal casinos, while Mississippi has dozens of casinos on the Gulf Coast and Tunica County. South Carolina bans most forms of gambling, while Florida allows expanded gambling for the Seminole Tribe and even 8 counties throughout the state. Texas bans all but lottery betting and horse racing, while its neighbors, Oklahoma and Louisiana, allow casino betting; Texans flock to those casinos.

Types of Gambling

Readers might be wondering about the types of gambling that takes place inside the United States. Below is a glossary list of the betting opportunities Americans have, along with a quick description of each form of gambling. We provide revenue data for each type below.

• Commercial Casinos: Owned by private companies and publicly-traded companies alike. Commercial casinos can be land-based casinos, riverboat casinos, airport casinos, racetrack-casinos (racinos), or casino cruises. Many have Class III or Las Vegs-style slot machines, while others use Class II Video Lottery Terminals (VLTs) or Video Gambling Terminals (VGTs).
• Tribal Casinos: Owned by Native American tribal gaming authorities and based on Indian reservation lands. A landmark 1986 US Supreme Court case (Cabazon v. California) stated Native American reservations are sovereign lands (and thus able to house casinos) if they were recognized by the US Department of the Interior’s Indian Affairs Bureau by 1934 or before. The Cabazon case led to the US Congress passing the 1988 Indian Gaming Regulatory Act, which says Indian tribes which reach a gaming compact with the states they are inside can have casino gambling with Class II slot machines. States can tax tribal casinos for the cost of regulation but can tax more, if the state gives special concessions like statewide monopolies on certain gaming types.
• Card Rooms: Card rooms can exist inside or outside a land-based casino. Many Las Vegas Strip casinos and Atlantic City have their own poker rooms. In certain states, commercial card rooms or poker clubs exist. The Bicycle Club, Hollywood Park Casino, and Cameo Club in Los Angeles are a few examples of private card rooms. Tribal casinos like WinStar World Casino, Choctaw Casino, Mohegan Sun, and Foxwoods have poker rooms.
• Charitable Games: Charitable gaming takes many forms. In most places, charitable gaming organizations host bingo nights, but other forms of gambling are allowed. Not-for-profit charitable gaming organizations sometimes host Las Vegas Nights (Millionaire Clubs), raffles, bell jar competitions, pickle card contests, and pull-tab contests. Pickle cards and pull-tab tickets are similar in many ways to a lottery scratch-card. Bell Jar gaming is a kind of raffle.
• Bingo: Bingo is the most popular and widespread form of charitable gaming. Church groups, veterans’ groups, police and firefighter organizations, medical research groups, and civic organizations all host bingo nights. Organized bingo nights might be found in a dedicated bingo hall, a community center, or a VFW outpost; online bingo has become widely popular as well.
• Lotteries: State lotteries have existed since the early days of the United States. During the Revolutionary War, the Continental Congress funded the war partly with lottery betting. In the latter half of the 20th century, many US states enacted state lotteries to produce public school funding and scholarship funding. Since the 1980s, the multistate lottery associations, Powerball and Mega Millions, have grown to include 44 US states apiece. State lotteries also sell scratch-cards, the best revenue producer.
• Sportsbooks: Legal sportsbooks are found in land-based casinos in Las Vegas. For the past 25 years, sports lotteries are legal in Delaware, Oregon, and Montana. After the US Supreme Court struck down the PASPA federal ban on sports betting in the 46 other US states, any US state can legalize sportsbooks. Delaware and New Jersey plan to open sportsbooks in the coming weeks, while 5 other US states have sportsbook legalization bills in committee. Lawmakers in 13 other US states are discussing the legalization of sports betting.
• Horse Racing: Horse racing has been legal in many US states for generations because betting on horses is considered a less dangerous form of gambling — and one wealthier Americans enjoy. Horse racing, harness racing, and greyhound racing involve pari-mutuel wagering, in which one bettor’s win means other bettors lose. The horse bettor competes against other bettors and not the racebook, though the bookmaker sets the odds based on betting volume for each horse. Off-track betting facilities now exist, with simulcast horse races and betting on historical horse races. Because the horse betting industry has struggled, many states now allow slot machine gambling at horse tracks.
• Online Casinos: Online casinos, poker sites, and sportsbooks were a huge industry in the USA until 2006 when the US Congress passed the Unlawful Internet Gambling Enforcement Act. The UIGEA banned all forms of Internet gambling which were banned for interstate telephone lines under the 1961 Wire Act. From 2007 to 2011, this meant casino sites, online cardrooms, and bookmaker sites. A 2011 US Department of Justice opinion reversed the DOJ’s stance on online casinos and poker sites, so four US states now have legal online casinos and poker sites: New Jersey, Delaware, Nevada, and Pennsylvania. New York, California, and others might follow suit eventually. It is estimated that between 65% to 85% of casino revenue in the US comes from real money slots.
• Smartphone Betting: In most parts of the United States, mobile casino and poker sites are banned or unregulated. Now that sportsbooks are legal, live/in-play smartphone betting apps could become legal. Tom King of the Readyfire smartphone trivia apps says legal US sports betting will transform Android and iOS gaming apps in America.

Other Types of Wagering: Other forms of gambling takes place in the United States. 50 million Americans bet on Super Bowl office pools and March Madness brackets each year. Though it’s illegal, so many people engage in office betting that authorities look the other way in most cases. Fantasy football and fantasy baseball leagues involve small season-long wagers. In over a dozen US states, fantasy sports have been legalized, but in many other states, fantasy sports betting is allowed to happen. Some argue that daily fantasy sports gaming sites like FanDuel and DraftKings are sports wagering, but they exist in a gray area. Over a dozen US states have legalized DFS sites. Jai Alai is a legal form of sports betting in Connecticut and Florida.

Cathy Wiesner
ATL 125, 010
Frank Manista
April 24, 2002

Gaming and the Lives of Native Americans

'An economic tool such as Indian gaming may come only once to American Indian people and they do desperately need such a tool' (Stein 164). Native Americans have battled discrimination since the days of European colonization. They were forced by the 'founders' of the United States to live on isolated pieces of land containing scarce resources. The reservations left the Native Americans in poverty, and the transfer payments they received from the federal government did little to ease their discomfort. Therefore, they needed a way to adequately survive in the United States, and gaming was the answer. Now, the government, who once drew the lines that confine Native Americans, wants to cross them and interfere with tribal business. (Thompson 166). Gaming is the economic advantage that allows native Americans to continue living their lives through their traditions while making enough income to keep up in today’s world.

Casinos and bingo parlors are recent additions to Native American reservations, while tribes have been practicing gaming traditions throughout history. By the year 1907, there were one-hundred and thirty recorded Indian Nations that played dice-like games and eighty-one that played a form of the 'button game' (Stein 145). These games differed from tribe to tribe, but all shared the common themes of chance and wagering. Other games focused around athletic contests, such as archery and horseracing. Intense wagering surrounded the outcome of each game. Wagered items included craft goods, produce, and other valuables. Warriors would play for honor and pride within their community. Even holidays were celebrated through specific forms of gambling. These deep-rooted traditions are what slowly evolved into the gaming facilities found on reservations today.

The first tribe to use gaming as an economic tool was the Penobscot tribe of Maine, when they held weekly bingo games in 1976 (Stein 149). Similar bingo operations were soon opening up around the country. Then, in 1979, the Seminole tribe of Florida began offering cash prizes thousands of dollars, larger than the one-hundred dollar per pot maximum allowed by state law (Davis 55). When the state threatened to close their facility, the Seminole took the case to the Supreme Court. 'The courts ruling states that gambling operations on reservations are subject to state laws that are criminal or prohibitory in nature, but not those that are civil or regulatory' (Davis 55). Only tribal governments have those powers. Also, the court announced that 'if a state permits a form of gaming… then American Indian nations within that state’s boundaries have the right to organize and manage their own gaming venture… within the legal parameters pertaining to that state' (Stein 150).

Although the success of this case brought an explosion of tribally owned bingo operations, the 1987 case California v. CabazonBand of Mission Indians gave way for casino-style gaming on reservations. After state challenged the tribe’s legal right to operate a facility containing bingo, poker and other games, the United States Supreme Court 'guaranteed American Indian nations the right to operate any form of gaming already permitted within the states in which they reside' (Stein 150). This decision maintained tribes’ right so act as sovereign nations, and take advantage of their independence. 'Tribes took note and within five years one-hundred and thirteen Indian bingo operations around the country were grossing two-hundred and $25 million annually' (Denny 163).

As a result of the 1987 Supreme Court case, Congress passed the Indian Gaming Regulatory Act the following year. This received strong opposition from Las Vegas and Atlantic City, two large gaming cities, because of the special rules given to these gaming establishments (Anders 101). The IGRA allowed tribal gaming to be exempt from the Freedom of Information Act, meaning tribes are not required to release financial information (Anders 101). Tribes also do not have to pay taxes to the state or federal governments, although they are 'required to deduct and with hold state and federal income tax… from all non-Indian and non-resident Indian tribal employees… and report gaming winnings to the Internal Revenue Service' (Anders 101-102).

The IGRA categorized gaming activities into three classes. Class one includes social games, with minimal prizes, and Native American ceremonial games. The games under class one have no restrictions. Class two includes all forms of bingo and is supervised by the National Gaming Commission. Class three games include casino games, slot-machines jai-lai, and pari-mutual betting on horse and dog races. These are only allowed if the state permits the games for other purposes, and the state and tribe negotiate a formal agreement (Davis 57-58).

The true reason for owning gaming establishment is not a desire for fame and fortune, but is due to their low economic status. Native Americans living on reservations have the lowest education levels, incomes, and highest unemployment rates out of all races (Davis 53). Their poverty rate, equal to that of African Americans, in three times that of white Americans (Davis 53). 'In 1980, forty-five percent of all American Indians on the reservations were living below the poverty level, but by 1990 the poverty level had decreased to over fifty percent and the unemployment rates hovered above twenty-five percent' (Davis 54).

The causes of the poor reservation condition are because of the geographic location of the reservations. They are socially, economically, and spatially separated from the population and economic center of the country (Davis 54). Many were purposely located in regions poor for agriculture and containing nothing to exploit. Many Native Americans are reluctant to adapt to today’s world, and instead choose to remain on their land living through their beliefs. However, not all are as hesitant. 'Census data indicate that each year fewer and fewer American Indians remain on reservations, but are leaving in search of economic opportunity and a better standard way of living' (Davis 54). By doing this, more and more Native Americans risk losing their culture, only to blend into the homogeneous American being. Those wishing to continue living through their culture are paying a price, and gaming has been the answer for many tribes.

Foxwoods Casino and Resort, run by the Mashantucket-Pequot tribe in Connecticut, is the most successful Native American gaming establishment existing today. When maple-syrup and greenhouse ventures proved unsuccessful, the small 316 member tribe experimented with bingo (Carmichael 68). Foxwoods opened in 1992 and in that year earned a $300 million profit through roulette, blackjack, and craps (Carmichael 68). The next year, the tribe negotiated with the state for exclusive rights to slot machines. The states have since received twenty-five percent of the slot machines profit, which recently has equaled $150 million (Davis 61, Frantz 294). Foxwoods remained New England’s only casino until 1996 (Davis 61).

The casino employs 10,000 people, with tribal members being a priority (Frantz 294, Carmichael 68). Regardless of employment, all tribal members receive a portion of the income, up to $50,000 per year (Carmichael 68). The rest of the profit goes toward bettering the tribal nation. Members of the tribe receive free healthcare, access to a community center and health club, subsidized housing, full college scholarships, job training, and nursing care (Carmichael 68). In August of 1998, the tribe opened a $150 million Museum of the American Indian which has a 'research library on Native American subjects that contains one-hundred and fifty-thousand volumes in addition to educational exhibits on the tribe’s history' (Frantz 295). The leaders of the Mashantucket-Pequot tribe believe the museum is 'an example of the vitality of their culture as they enter a new century' (Frantz 295).

Other successful gaming establishments are being operated on reservations. For example, the Shakaopee Mdewakanton Sioux tribe runs the Mystic Lake Casino in Minnesota. 'Second only to Foxwoods, Mystic Lakes’ gross revenues exceeded $175 million in 1993' (Davis 61). The profits are distributed among tribal members, and thousands of dollars can be received per person. Another example is the Oneida tribe in Wisconsin. Since they opened their bingo hall, their 'unemployment rate fell from forty percent in 1976 to seventeen percent in 1991' (Magnuson 175). The tribe’s profits have gone towards a $10.5 million hotel and convention center, an environmental testing lab, Head Start programs and an elementary school (Magnuson 175). The Mille Lacs tribe on Minnesota has experienced similar success, using their profits to build roads, homes, a health clinic, and schools for tribal members. (Davis 61). 'The Mille Lacs have reduced their unemployment rate from sixty percent to almost zero since the casino opened' (Davis 61).

In 1993, Native American tribes grossed $2.6 billion out of the $28.9 billion wagered, with class three gaming accounting for eighty-five percent of this revenue (Davis 60). Indian gaming, however, only accounted for 7.5% of the total gaming profits, with most going to non-Indian casinos, state lotteries, and pari-mutual gaming operations (Davis 60). A similar situation was seen in 1996. In that year, the total amount spent on wagering in the united states exceeded $590 billion, with the Native American portion at $65 billion or eleven percent of the total (Frantz 294). As stated by David Segal, assistant editor for the Washington Post, 'The shame is that a few tribal success stories suggest that, if properly run and carefully regulated, Indian gaming can pay off as promised' (Segal 183).

It must be made clear that not all attempted Native American gaming operations are successful. Profits are more often seen in the thousands, instead of millions, of dollars (Davis 62). One reason, as previously mentioned, relates to geography. All tribal-owned gaming establishments have to be located within federally recognized reservations. These tend to be isolated areas of land where there simply aren’t enough people to form a strong customer base. In addition, there are fourteen states in the east with no federally recognized tribes (Davis 62). For this reason, most tribally-owned facilities are located in the Midwest, Southwest, along the west coast, and in Oklahoma. Another reason for failure has to do with the size of the tribe (Davis 62). The Foxwoods casino is extremely successful partially due to the tribe’s small number of members. In larger tribes, the profit is shared in more directions, making the dollar amount per person less.

Furthermore, there is a strong opposition toward Native American casinos. First, states disagree with their lack of control over what happens on reservation land. Some states have come up with methods to prevent Native American establishments from existing. Fourteen states have refused to negotiate contracts, claiming the IGRA infringes on their Tenth and Eleventh Amendment rights (Davis 64). The only way tribes can retaliate is by filling lawsuit, but this does not always prove successful. Consequently, thirty-seven tribes in nine states illegally operate gambling institutions without state contracts (Davis 64). Governors and state officials have even pressured congress for results (Davis 64). 'Congress has felt pressure from constituents and has put forward several bills proposing to tax casinos profits or to cut federal funding in relation to casino revenues' (Frantz 299).

Foxwoods Casino Gross Revenues

Secondly, businesses also think tribal-gaming is unfair, because tribes are not required to file income or sales tax. 'Store owners near reservations object to the fact that Indian enterprises are selling gasoline and cigarettes tax free, and state governments are seeking ways to collect revenues on such sales' (Laying 75). Other challengers of the gaming operation fear crime and social problems associated with gambling, which include compulsive gambling and alcoholism.(Davis 63). Still more oppenents are simply jealous of the perceived wealth associated with Native American gaming.

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There have been incidences where Native American tribes oppose the gaming phenomenon. Some tribal members feel that this form of gambling attracts the wrong kinds of people, and is associated with the mentioned social problems, along with social dependence, loss of privacy, and ultimately the destruction on their heritage (Davis 64). In 1994, the Navajo tribe voted against a high stakes gambling on their reservation. 'The Desert News reported that even though gambling is a traditional part of the Navajo culture, many people oppose commercial gambling because of its association with criminal behavior and social problems (Davis 64).

For many Native Americans, the most valuable possessions being threatened by the opposition is their new sense of pride. 'Gambling’s success is building something else on reservations that money cannot buy: rising pride and can-doism' (McAuliffe 81). These psychological gains cannot be measured, but are vital in maintaining the Native American culture. For those living on reservations, the employment at casinos possibly offer the first real job they have ever had (Berg 85). 'Many tribes now have a real possibility of achieving long-held goals of self-determination and self-sufficiency, and for the first time the achievement of these goals is largely in the hands of the Native people themselves' (Frantz 294). This rise in self-esteem and work ethic provide the feeling of independence Native Americans have long desired.

The economic opportunity can be seen helping the Native American community in several ways. First of all, 'gambling revenues effectively allows the federal government to save money on Indian programs' (Layng 85). The gaming facilities are the equipment that boosts many tribes out of depending on the federal government. According to Steve Thompson, a member of the Chippewa in Minnesota, his people 'will be able to live independently, without interference from the United States Government' (Thompson 167). Additionally, the new wealth has sometimes helped tribes’ relationships with citizens outside of reservations. 'Tribal representatives are now courted by politicians, consulting firms… and are invited to sit on boards and councils where member ship by a Native American would have been rare fifteen years ago' (Frantz 293).

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'The federal government has already established that federally recognized tribes of Native Americans have every night to casinos… for their economic betterment' (Belka). Yet there still remains a strong opposition against gaming on reservations. Since there are so many forces against gaming, most Native Americans feel that they should profit from it while they have a chance. In a survey conducted in 1995, 'eighty-four percent of gaming tribes would recommend to other tribes a serious look at gaming ventures a revenue gaining opportunities (Stein 159). However, the long-term future of gaming is unknown, and Native Americans should look ahead and plan accordingly. 'There is a window of perhaps five to ten years in which tribes must reinvest gaming profits to create balanced reservation economies,' in preparation for a time when gambling no longer proves successful (Frantz 293). Native American tribes should be encouraged to continue taking advantage of the economic tool given to them today, using the rewards as a means to help preserve their traditions forever.