Indian gambling is an issue I tackled in brief last year, but now I’m going to warm up the 155 mm guns. What is going on here?
In Western New York State there are now three Indian casinos, in the Rome area, in Niagara Falls, and in far western New York in Salamanca. There are plans to build one in Buffalo. WTF? This is the part of New York that never benefited from the Clinton boom, that’s been bleeding manufacturing jobs for over a decade, and now we’re the land of opportunity for Indian gaming? It must be so, because the State itself, through its operation of racetracks, has set up casinos at two tracks in Western N.Y., Batavia Downs and Finger Lakes. Why is Indian Gaming booming in a region that is slower to recover than the rest of the state?
It begins to occur to me that money spent in casinos doesn’t get spent on food, cars, new stoves, new homes, you know… All that stuff that makes the economy operate. It’s like taxation in that respect. Now, when taxes take a little of your disposable income, that’s not too bad. But when taxes take a bite out of your paycheck, that’s bad. Indian gambling is doing that, I believe.
These aren’t Las Vegas casinos, nor even Atlantic City. “Whales” don’t fly in from Europe to drop a million at the craps table. The people here are primarily the residents of the area; people living within a three or four hour drive.
Where are the Native Americans? Where are the Indians?
I asked a bell hop how many Oneidas worked at Turning Stone. He didn’t know of any. He told me that it was mostly Mexicans and Bosnians. I can attest that the place was crawling with folks from the Balkans, doing all the menial jobs. (OK, I know because they weren’t speaking Spanish, and were speaking a Slavic sounding language. And they were darker in complexion and hair than the average American.) The folks working with the customers, and the management I saw, were all white folks. Really white folks. Minnesota type white folks.
When you look at the “reservations” that the tribes maintain who have these casinos, you have to wonder where the money is going. Some of these places make Haiti look like a resort. Dirt roads, garbage strewen yards. Shacks along with rusting, dented and aged trailer houses. But the elections for chief are always fiercely contested, and violence is not foreign to the process. The American Indian tribes in this area seem to operate like little Third World dictatorships than organizations run by American citizens within the United States.
The home of the once-destitute tribe that built the world’s biggest casino now resembles an upscale suburb like East Amherst. Members of the Mashantucket Pequot Tribe live in gigantic new homes amid hilly woods, with Hummers sitting in many driveways. The former home of a tribal leader, is now on display in the tribe’s glitzy $193.4 million museum.
The Pequots aren’t the only tribe to make big money on gambling. Since Indian casinos were legalized in 1988, the federal government says, Indian gambling has grown into a $14.5 billion a year industry.
But with money comes complication. The Pequots’ Foxwoods Casino allowed them to give members annual stipends of $30,000 or more - just for being Pequots. But some members got far bigger stipends than others, and rivalries developed. Some tribal business ventures went belly-up, and Pequots acknowledge that drugs and family violence remain problems on the reservation despite its wealth. “We’ve essentially been rebuilding a community, and that’s a challenge the Senecas don’t face,” said John Guevremont, the tribe’s chief operating officer.
Meanwhile, in Central New York, the successful Turning Stone Casino Resort enabled the Oneida Nation to offer its members $50,000 grants to build new homes. Yet some Oneidas claim that money and power have turned the Oneidas’ chief executive officer, Raymond Halbritter, into a vindictive dictator.
Some tribes in California have feuded and filed lawsuits over bloodlines and the tribal membership rules that determine how money is distributed.
“When Indian tribes had $100, they fought over it. You can imagine how much fighting there can be when they have billions,” said Lance G. Morgan, the Harvard-educated business leader of the Winnebago Tribe in Nebraska. “But believe me, the tribes are much better off with billions.”
Seneca Nation leaders have been observing the experiences of other tribes. If the Seneca casinos continue to do well, they could bring in as much as $4 billion in profits over the next 21 years, estimated Cyrus M. Schindler Jr., chairman of Seneca gaming operations.
Schindler expects to square off against Tribal Council Chairman Barry E. Snyder Sr. in the next election for the Seneca presidency in November. Both men say the tribe must find ways to use the gambling windfall to help the Seneca people, especially those in need of better housing. On a person-by-person basis, the Senecas will never be as wealthy as the Pequots. There are about 700 Pequots - and 10 times as many Senecas. But some Senecas want the nation to double or triple the stipends given to Senecas, which totaled $1,000 last year. President Rickey L. Armstrong said it would be “imprudent” for the nation to hand out huge amounts of cash. He favors using the money for improving government services and encouraging business growth.
Morgan, chief executive officer of the Winnebagos’ highly successful business operations, has a few suggestions. The Winnebagos have earned a national reputation for developing noncasino businesses that generate more than $50 million a year. A casino provided the seed money for a wide array of businesses - ranging from a data systems company to one that builds modular homes - and provided enough jobs for every adult tribe member. The Winnebagos even started their own two-year college.
Morgan said the Senecas should try to develop new ventures - other than tobacco, gasoline and casino businesses - and should also set money aside to address serious social problems, such as alcoholism. “The Senecas need a game plan,” Morgan said. “We set aside 30 percent of our profits for long-term investment, 20 percent for economic development, 10 percent for tribal per capita payments, 5 percent to education and the rest to address social problems. “The Senecas were sort of stuck with tobacco and gasoline. Gaming is different. Now the tribe really has a chance to bloom.”
Andrew Lee, a Seneca who serves as executive director of the Harvard Project on American Indian Economic Development, said successful tribes build successful governments. “You can have the assets of sovereignty, but if you can’t back them up with institutions that work, you’re not going to get too far,” Lee said. “The real task is to develop an environment in which economic development can take off.”
Seneca leaders face another challenge in the years ahead, one involving bloodlines and tribal traditions that date back centuries. The Senecas are a matrilineal society. Only those whose mothers were Senecas are considered to be enrolled members of the tribe. Only enrolled Senecas can inherit reservation property and receive full benefits from the nation, including health care and annual stipends. A growing number of Seneca males - including several tribal leaders - are married to non-Senecas. Some Senecas suggest that anyone whose mother or father was a Seneca should qualify as an enrolled tribe member.
Gambling Magazine
You will recall that the Pequots were recognized as a tribe for the sole purpose of building that casino. It did not exist prior to the move to build the casino, had no reservation, and had to recognize Americans with as little as 1/16th Indian ancestry as members in order to drum up the few members they have. This is a tribe that vanished in the colonial era but was reinvented by the white people who wanted to build a casino.
Both the Senecas and Oneidas claim that they are being prudent. OK, but where is the money going? Turning Stone can afford to build a new hotel that appears to double or triple the existing capacity. Meanwhile, some of its members are being evicted from tribal lands because they question the tribal leadership and the way money is being used.
On top of all that, there are Oneidas in Oklahoma and Wisconson, separate tribes who are claiming that because they once lived in the region, they deserve a share. A share of the gambling revenues and a share of everything else. There’s a land claim by these three tribes that would take a large chunk out of Central New York. But, of course, that’s not what they want. They want the millions of dollars they believe that they can extort from the various governments involved.
Isn’t it time that we began to ask if the entire notion of tribes being “foreign” powers is outmoded? Indians vote in our elections. They pay our taxes. They fight in our military. They attend our schools. Why are we allowing this vacuum on the economy to exist? If they are foreign, let’s set up border controls. Otherwise, it’s time to end the farce, end the graft and corruption, end the self-imposed poverty, and eliminate the notion of Native Americans and Native American gaming. Why? Because there’s more coming:
The Bureau of Indian Affairs has recommended approval of an off-reservation casino for the Cayuga Nation of New York.
The tribe and partner Empire Resorts plan to open the casino on 30 acres in the Catskills. The area is 90 minutes north of New York City.
The BIA’s eastern office in Nashville approved the off-reservation land acquisition, according to The New York Times. The BIA’s central office in Washington, D.C., has not yet published notice in the Federal Register.
State law authorized three casinos in the Catskills. The BIA has given approval for the St. Regis Mohawk Tribe and partner Caesars Entertainment for one of them. The Oneida Nation of New York, the Stockbridge-Munsee Band of Mohicans from Wisconsin, and the Oneida Nation of Wisconsin, are also want a shot at a casino.
The Cayuga Nation has not yet signed a compact with the state. The tribe won court approval to build a Class II facility on ancestral territory in western New York.
Indian Gaming