The history of tribal casinos dates back to the 1970s when Native Americans started operating bingo halls to raise funds for their tribal needs. These casinos are regulated by the land’s tribal governments where the casino is located, the National Indian Gaming Commission, Interior Department, Federal Statutes, and tribal-state gaming compacts. Indian Gaming Regulatory Act is one of the most important pieces of legislation related to tribal gaming. It outlines the important requirements needed for a tribal casino to operate.
Legalization and the boom in online casinos have made economies worldwide receive income worth billions of dollars in recent years. For example, in 2016, the revenue realized from online casinos surpassed $31 billion marks which accounts for 21% of America’s gambling revenue. It means tribal casinos are claiming $2.10 from every $10 gambling in the United States.
However, there has been a pushback against online gambling legalization from the tribal casinos in the United States together with those seeking to protect them. In the United States, tribal casinos exist outside federal and state law since they are situated on tribal lands. Tribal casinos are a significant source of income to the tribes generating $27 billion in revenue annually.
In this article, we will look at how tribal casinos benefit from iGaming legalization and the boom in the United States.
Re-energization of Tribal Casinos
Despite the tribal casino business being lucrative operations, most of the oldest tribal casinos record a huge decline in revenues. In states like California and Florida, where the industry is established, most tribal casinos are recording a drop in profit due to online gaming.
Instead of fighting the inevitable emergence of online gaming, tribal casinos should adapt to the new technology, which can help reverse most of their lagging operations.
Tribal Casinos Do No Remit Huge Taxes
Although it sounds like a dream to most of the casino operators, it is actually true! Tribal casinos can offer their services without paying huge taxes to the government. However, in certain stipulations, these casinos pay local states some percentage from their profits.
Looking at the Future
There is a possibility of tribal casinos becoming obsolete in the future if they fail to adapt to online gaming arrival in the US. Tribal casinos can easily benefit from online gambling legalization if they open up to the idea. Although they will start competing with different outfits across the nation, some of them not being tribal, the existing casinos will have the experience of having a great head start on the competition.
iGaming Boom Has Galvanized the Native American Youth
Tribal casino stakeholders and owners who will adapt to online gaming will be offering their children an exciting inheritance. The world is becoming more technological, and online casinos will overtake the brick and mortar. Tribal casinos should use tech-savvy youth to develop websites, games, applications, and more, making them profitable for future generations.
Most of the casino games at tribal casinos are not regulated like all the latest casino games as each tribal casino game has its payment schedule, and there are no clear regulations for displaying the payout percentages. However, this does not mean tribal casinos are tight compared to the latest casinos on the strip. Some tribal casino games have looser odds since each casino can follow a different rule, with most anecdotal experiences. It appears that table games are more generous, with the slots being tighter at most tribal casinos.
The benefits the iGaming boom will offer to the tribal casinos are near endless. Apart from the immediate benefits, the intergenerational and long-term plusses that will spring up from iGaming will be monumental.