A Closer Look at Indian Reservations
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The Act was passed as a way for the US government to support the Indian tribes in their efforts to remain economically independent and thus keep out influences that could be devastating to their small communities. Operating land based gaming venues by tribes was believed to help achieve this. The profit from the operations is tax exempt and remains within the tribes.
In fact, IGRA has created an industry so powerful that today it competes with the commercial gaming industry in Las Vegas and Atlantic City. So it seems from Foxwoods Resort Casino's plans to join private partners and build a land based casino on the banks of the Delaware River in Pennsylvania. It is run by the Mashantucket Pequot Tribal Nation, which is from Connecticut. It joins another Indian run operation from Connecticut as well, which also has ventured in Pennsylvania in November. The Ivenue has also ventured into other business fields. The first such case in which an Indian tribe has purchased a major corporation is the recent Seminole Tribe of Florida offer to acquire Hard Rock International for nearly 1 billion dollars. These are examples of the success some tribes have enjoyed since and due to the Act which allows them to operate and profit from gambling. It should be noted though that other tribes, perhaps the majority of them, have not fared as well from the Act. Either way, there is a call and a tendency these days in the US to re-evaluate the Act and look at its consequences in light of its original intention. |
The framework that governs Indian run gambling operations is called the Indian Gaming Regulatory Act. It was passed in 1988 by the US Congress and appoints the FBI as its regulator and enforcer. From an industry that produced about 100 million dollars in profits in its first year, the Indians count about 360 venues and generates about 22 billion dollars in revenue annually.
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