For some Indian tribes, casinos are a bad bargain

Apr 6th, 2008 Posted in NEWS & POLITICS | no comment »


HUALAPAI INDIAN RESERVATION, Ariz. (AP) - To leaders of the Hualapai Indian Tribe, opening a casino on the south rim of the Grand Canyon (PHOTOS)seemed like a great idea at the time.

They dreamed of tourists flocking to play a few rounds on a one-armed bandit before stepping outside for a spectacular, unspoiled view of America’s most famous natural wonder.

But in the rush to bring badly needed jobs and revenue to the reservation, tribal officials overlooked some serious stumbling blocks - like the fact that the road in from the nearest highway is a 14-mile unpaved nightmare of fist-sized rocks, blind turns and tire-eating ruts.

"We thought it would be successful, but we didn’t last seven months," says Hualapai vice-chairman Edgar Walema, sitting in the building that used to be the tribe’s casino before it closed in 1995. The building is now the terminal for a small airstrip where tourists fly in to see the canyon.

"Most of the tourists come here from Las Vegas," Walema continued. "Who wants to come out and play piddly machines when their main concern is visiting the natural beauty of the canyon?"

The popular image of Indian casinos is one of prosperity, of glittering lights and crowds of gamblers and wealthy tribal members.

That image is true for a select few tribes fortunate enough to be close to large cities and thousands of gamblers. Successful casinos like the Mashantucket Pequots’ Foxwoods near New York and the Shakopee Mdewakanton Sioux’ Mystic Lake near Minneapolis are the exception, however, tribal leaders say.

"I call it the Pequot principle," said U.S. Bureau of Indian Affairs spokesman Rex Hegler. "There’s about five tribes that have done very well, but there’s 554 tribes in the country. People that think there’s nothing the tribes need now are confused."

Most other tribal casinos make little more than enough to cover their payrolls. And several tribes like the Hualapais have seen their casino dreams crushed into dust, the victims of their remote locations, competition from other types of gambling or intergovernmental squabbling.

For them, casinos have become a trickster’s gamble, another in a long string of losing bets on economic development.

"Most of the tribes (with casinos) are marginally successful at best," says Jacob Coin, executive director of the

National Indian Gaming Association. "They’re not pulling in the hundreds of millions of dollars that most people tend to think about when they think of Indian gaming."

The Hualapais had to lay off about 15 people when their casino closed - a big impact for a tribe of about 2,000 with about two-thirds of its members in poverty, Walema said.

"There were a lot of disappointments because other reservations were making it big," Walema said. "For us, it just didn’t pan out."

It didn’t pan out for the Kaibab-Paiute 

tribe, either, whose casino near the Arizona-Utah border closed in 1996. Or the Lummi tribe, whose casino in Washington state closed in 1997.

The biggest factor, Coin and tribal leaders say, is the old business adage of location, location, location. Most reservations are, by design, in remote locations far from cities, freeways and airports.

"When you have a population base of 65,000 within 45 miles, you aren’t going to do as well as a Foxwoods or a Mystic Lake," said Jerry Allen, assistant general manager of the Jamestown S’Klallam tribe’s casino near Sequim, Wash.

The tribe’s Seven Cedars Casino in a remote area of the Olympic Peninsula now has about 200 employees, down from a peak of 475, Allen said. The tribe also is hurt by an agreement with Washington state that bans slot machines, Allen said.

Casinos in Canada, Oregon and Idaho do offer the slot machines, which are more popular with gamblers and less costly to run than the blackjack and craps tables at Seven Cedars, Allen said.

"We have a real slot sandwich here so it’s a real challenge to keep people at home playing the table games," Allen said.

South Dakota’s Oglala Sioux Tribe has a similar complaint. The tribe could use a bigger casino than the one it has

under a state agreement, because the tribe’s Pine Ridge reservation is home to one of the nation’s poorest counties, said tribal treasurer Dale Looks Twice.

"I wish we could make more money than we are right now, but it all depends on the machines," Looks Twice said. "If we could get the state to allow more machines, then we could bring more money into the tribe."

Poverty statistics such as unemployment and homelessness actually increased on the Pine Ridge reservation after the tribe’s Prairie Wind casino opened.

"Many of the people who live off the reservation thought, ‘Here’s my chance of getting a job,’ so they all came back home," Coin said. "So that bumped up the numbers on how many people would be counted as unemployed and homeless."

Tribal officials worry that the perception of successful Indian casinos will prompt Congress to cut funding for tribal programs. Tribes are fighting proposals this year that would cut off federal funds to relatively wealthy tribes and have successfully fought a bid to tax casinos and other tribal enterprises.

"Gaming is providing some opportunities, but tribes are still roughly 40 years behind similar communities in infrastructure needs and other areas," said Hegler, the BIA spokesman. "We have 49 percent unemployment in Indian Country right now."

The Hualapai tribe, for example, has only three police officers to patrol a reservation of 1,550 square miles. 

"Unfortunately, back in Washington you have a lot of legislators making decisions about Indian Country without having any reservations in their jurisdictions," Allen said. "When you see the Pequots or some of these other ones, it overglamorizes everything and does a disservice to Indian Country in general because it is, by and large, the exception to the rule."

With the proliferation of Indian casinos, the public is beginning to view tribes as casino operators, not governments, said Hopi tribal chairman Wayne Taylor Jr.

"While tribal gaming successes have provided no direct tangible benefits to non-gaming tribes, the non-gaming tribes nevertheless share the brunt of the Congressional backlash and unfavorable public perception," Taylor told the National Gambling Impact Study Commission last summer.

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BIA Official Memo To Prospective Indians

Apr 6th, 2008 Posted in NEWS & POLITICS | no comment »

U.S. Department of the Interior On The Web Bureau of Indian Affairs on Indian Ancestry and prospective applicants.

Thousands of people throughout the United States have some degree of Indian blood. However, unless such an individual has at least one parent legally entitled to membership in a federally recognized Indian tribe, it is improbable that he/she can qualify for special federal services available to Indians or share in assets owned by an Indian tribe. The burden of proof of Indian ancestry rests with the individual claiming possession of Indian blood.

Many people are descended from eastern tribes that disbanded before the present Government of the United States came into being in 1789. As a result, there are no existing Indian groups with which these individuals can affiliate. Other, descended from western tribes, but cannot substantiate their claim to membership in an Indian tribe due to lack of early family records.

Contrary to popular belief, Indians do not receive payments from the federal government simply because they have

Indian blood. Funds distributed to a person of Indian descent may represent income from his/her own property collected for him/her by an agent of the United States. Other disbursements to individuals may represent compensation for lands taken in connection with governmental projects, comparable to payments made to non-Indians for the acquisition of land for governmental purposes. Some Indian tribes receive income from the utilization of tribal timber and other reservation resources, a percentage of which may be distributed as per capita among the tribes membership. Individual tribal members also share in the money paid to the tribes by the federal government in fulfillment of treaty obligations. Money available for payments belongs either to the tribe or to an individual and is held in trust by the federal government. In this event, Government checks are issued in making payment to individuals or to the tribes. 

To be eligible to receive payment from tribal funds, a person, in addition to possessing Indian blood, must be a recognized member of the Indian tribe whose money is being distributed. Generally, responsibility for establishing this membership lies with the tribe and the individual. Indian tribes establish their own enrollment criteria.

Some early records or censuses of Indian bands, tribes, or groups are on file at the National Archives and Records Service,(WEBSITE) Natural Resources Branch, Civil Archives Division (Eighth and Pennsylvania Avenue, N.W., Washington, D.C. 20408). These records, identified by tribes, are dated chiefly from 1830 to 1940. To search records, the Archivist must be given the name of the Indian in question (preferably both his English and his Indian name), his date of birth, and the name of his tribe. Names of his parents and grandparents should also be given. If ancestry is unknown, there are private research sources that are available. The credibility of the research service should be established before securing the service by contacting local offices of the Better Business Bureau.

The Central Office of the Bureau of Indian Affairs does not maintain comprehensive lists of persons possessing Indian blood or enrollment data of every federally recognized Indian tribe. However, copies of census and membership rolls may be on file in the Bureau’s field offices. A list of these offices can be obtained from the directory "AREA OFFICES." The Area Office list identifies the states over which a particular Area Office has jurisdiction.

If proof of membership in a particular tribe is desired, inquiry should be made to the particular tribe.

The Bureau of Indian Affairs publishes a list of federally recognized Indian tribes in the Federal Register. The latest publication was on October 23, 1997, (60 F.R. 55270), which can be obtained from most libraries, or accessed on the World Wide Web, Internet, at http://www.doi.gov/bia/tribes/entry.html, under the heading "Federally Recognized Native American Tribes, 10/23/97".

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