Why Do Indian Gaming Casinos exist?

A lot of people wonder why gambling exists on indian reservations here in th e United States as well as Canada. It all boils down to regulation and the fact that due to their state sovereignty they can get around regulation and create gambling safe havens.

Here is a bit more history:
First, they noticed that a lot of Americans liked to gamble. It was hard not to notice this, since many people would go to the reservations for their games. They did that because a majority of states (Nevada and New Jersey are notable as exceptions) have strict laws regulating or forbidding gambling, whether casino based or private games.

Second, the tribal leaders began to realize that their reservations were islands of legal gambling within the states. To take one example, Michigan simply forbade casino gambling until the mid-1990s. To take advantage of this, the tribes on the Isabella Indian Reservation, near Mt. Pleasant, built the Soaring Eagle Casino: a first-class resort hotel and casino, complete with five-star restaurants and spas. Soaring Eagle is only a few hours north of metropolitan Detroit, and is a well known vacation destination in Michigan and Ohio.

The final thing the tribal leaders saw was the sheer quantity of money to be made from operating casinos. This writer has been to the Isabella Reservation; casino profits have paid for new school buildings, fire and police stations, emergency vehicles, and an ambulance service. Verified tribal members are entitled to a percentage of annual profits, as well. The reservation can set its own gaming regulations, and pays no taxes to state for Federal governments.

The effects, both positive and not
Most tribes within the US made the same realizations, and Indian casinos have popped up all over. The income from them has permitted tremendous improvements in the standard of living at most reservations. Several of the tribes used their unique regulatory status to get around Federal regulations and enter the Internet gaming market, as well. Canada, with a similar history to the US, is home to the Kahnawake Gaming Commission.

The picture, of course, is not completely rosy, but it’s not likely to change anytime soon. Most legal gambling in the US is based on Indian reservations, in the Indian casinos.