DOES AMERICA HAVE A CASINO SATURATION PROBLEM?

A November 18 article in The New Yorker suggests that the huge expansion of state-sponsored casinos in recent years may have saturated the gaming market and left many states scrambling to cover budget holes created by declining casino revenues.

The article, by writer John Wolfson, points to the explosion of state-authorized casinos and racinos in recent years. He writes, "Eager for new jobs and new revenues that don’t require raising taxes, states from coast to coast have turned to gambling: in 1978, only Nevada and New Jersey had commercial casinos; today, twenty-four states do."

Wolfson says market saturation is a serious problem for states that have grown to depend on gambling revenues. "This isn't an entirely free-market enterprise, and the casino operators aren't the only ones bearing the risk," he notes. "Each state that has licensed a commercial casino has become a partner in that business...The trouble starts when they become dependent on gambling revenues to pay their bills."

A case in point is Delaware, Wolfson explains. "In Delaware, gambling taxes have accounted for eight per cent of the state budget. That left the state vulnerable when the owners of its three aging racetrack casinos began demanding financial concesssions in order to preserve jobs. The legislature voted to split eight million dollars among the casinos. This year, the operators came back, seeking more money and a new deal." The state legislature voted to give the casinos $10 million this year, $11 million in 2015, and $12 million in 2016.

MIGA Executive Director John McCarthy said the New Yorker article reinforces the experience of Minnesota's tribal casinos. "We've been saying for several years that the Minnesota gaming market is pretty well saturated," he said. "Casino revenues have been level after slight declines during the recession. We're not seeing any meaningful expansion of casino facilities; most tribes have focused on adding or expanding ancillary facilities such as hotels, golf courses and other visitor attractions."

TRIBAL COMPANY SIGNS LANDMARK ENERGY DEAL WITH GSA

The Department of Energy's Office of Indian Energy Policy (OIEP) is reporting that a tribally owned energy company has signed a landmark wind energy deal to provide 140 megawatts of wind power to the U.S. General Services Administration (GSA). The energy will come from a wind farm in Northern Illinois.

In a blog posted on the OIEP website, Acting Director Pilar Thomas wrote that "the historic energy deal marked the largest wind energy purchase from a single source in federal contracting history.  It will supply GSA with all the clean energy it needs to meet the Obama Administration's 20 percent by 2020 goal for federal agencies."

MG2 Tribal Energy, a joint venture between the Mesa Grande Band of Mission Indians and commercial wind developer Geronimo Energy, is the first tribal entity to sign a power purchase agreement (PPA) with the federal government. The energy company is one of several enterprises the Band has created over the past 18 months as part of a comprehensive economic development initiative.

Mesa Grande is a non-gaming tribe located northeast of San Diego, CA. In addition to MG2 Tribal Energy, the Band has launched a call center, a training and events production company, and a waste management firm.

Tribal Chairman Mark Romero said the GSA contract represents an important step forward in the history of the Mesa Grande Band. "Few other economic development opportunities enable us to remain so true to our cultural and spiritual values. This contract is entirely consistent with our historic concern for Mother Earth and the continued availability of clean water, land and air for future generations."

BOIS FORTE HOSTS SUMMIT ON CRISIS FACING INDIAN CHILDREN

A September 25 summit meeting at Fortune Bay Resort Casino in Tower brought tribal, county and state officials together to collaborate on ways to address the crisis facing Indian children in Minnesota, according to Bois Forte Chairman Kevin Leecy.

Leecy said the crisis is showing up in public health statistics that paint an appalling picture. In a news release announcing the summit, Leecy reported that Minnesota's Indian babies are twice as likely as non-Indian babies to die before their first birthday. They are four times more likely to live in poverty than the state's white children. A full 53 percent of Native children are living below poverty.

While only about 3 percent of infants born in the state are Native, American Indian newborns account for 28 percent of those born addicted to drugs. Experts agreed that the recent spike in opioid abuse statewide is partly to blame for these numbers, but they say the situation in Indian country has been dire for years.

Tribal representatives expressed the hope that a Task Force on the Protection of Children recently appointed by Governor Dayton would include Native representatives to help address the serious health disparities that continue to exist between American Indian and non-Indian children statewide.

"Taken as a whole, the situation of Indian children has reached crisis proportions, and that means the future of all Indian Country is in peril," concluded Chairman Leecy.

Listen to the MN Native News report on the story here.

SHAKOPEE TRIBE ANNOUNCES U OF MN SCHOLARSHIP RECIPIENTS

Nine Native American students from Indian nations across the midwest have received scholarships from the Shakopee Mdewakanton Sioux Community (SMSC) Endowed Scholarship Fund at the University of Minnesota, the tribe announced today. The scholarship program is designed to recruit and retain talented American Indian students with demonstrated financial need.The group includes four students from Minnesota tribes, three from Wisconsin, one from South Dakota and one from   North Dakota.

Since 2009, when SMSC donated $2.5 million to the University to create the scholarship fund, more than 190 students from 48 tribes in 18 states have received financial assistance. Eighty-three of them are enrolled this year, 59 in undergraduate programs and 24 in graduate studies, including three enrolled in the Master of Tribal Administration and Governance Program at the University of Minnesota-Duluth.

The University of Minnesota matches the interest earned on the endowment funds, with proceeds dedicated to providing scholarships for qualified American Indian students. The SMSC has donated more than $300 million to organizations and charitable causes since 1992. In addition, it funds its own community infrastructure and contributes generously to regional governments and infrastructure such as roads, water and sewer systems, and emergency services.

SHAKOPEE VICE-CHAIRMAN ANDERSON HONORED BY NIGA

The Vice-Chairman of the Shakopee Mdewakanton Sioux Community (SMSC) has been honored by the National Indian Gaming Association (NIGA) with one of its most prestigious leadership awards. Keith Anderson received the John Kieffer Spirit of Sovereignty Award from NIGA Chairman Ernie Stevens, Jr. on September 9 at the organization's mid-year meeting in Oklahoma.

The Kieffer Award recognizes "selfless dedication to advancing the lives of Native Americans socially and economically, building self-sufficiency, and being an advocate for tribal self-determination." The award is named for John Kieffer, who was Vice-Chairman of the Spokane Tribe and served on the NIGA board from 1993 until his untimely death in 1999. Kieffer was instrumental in NIGA's development and the protection of tribal sovereignty.

Anderson has served as SMSC Vice-Chairman since August 2012, and previously served eight years as Secretary/Treasurer. He is known as a fearless advocate for tribal rights and the empowerment of tribes through economic development and policy engagement.

UMD TO OFFER BACHELOR'S DEGREE IN TRIBAL ADMINSTRATION

The Duluth News-Tribune is reporting that the University of Minnesota Board of Regents has approved the creation of a bachelor's degree program in tribal administration at the University's Duluth campus (UMD). The action follows creation in 2011 of a master's degree program in the same field. Both programs are firsts in the nation.

The Tribal Administration and Governance (TAG) program was developed in response to a "strong need" among tribal governments in the midwest and nationwide, according to Tadd Johnson, director of graduate studies for the Department of American Indian Studies. There are 566 federally recognized Indian tribes in the U.S., including 11 each in Minnesota and Wisconsin.

Much of the program will be offered online, to make it more accessible to those who are unable to travel to Duluth for their studies. The curriculum covers federal Indian law, tribal government and tribal management in key areas such as health and human services, natural resources, education, housing, finance and economic development, and human resources, Johnson said.

MIGA Executive Director John McCarthy said the UMD program will be a tremendous resource for tribal governments. "Many people don't understand that tribal governments have responsibilities and obligations to their citizens, just like states. Whether they're spending federal funds or gaming revenues, they have to provide services and manage programs to meet the needs of the community. They need qualified, well-educated people to do that. Tadd Johnson and UMD have done a great service for Indian country by developing these degree programs, and they should be congratulated for it."

NEW JERSEY EYES SPORTS BETTING TO OFFSET CASINO FAILURES

In the wake of several major casino closings in Atlantic City, New Jersey leaders, including Governor Chris Christie, are "hoping sports betting can end Atlantic City's losing streak," according to a September 9 article in the Washington Post. The  article reports that the Governor's office has filed a motion in U.S. District Court and issued a statewide "directive" that would allow casinos and racetracks to offer sports betting "without fear of criminal or civil liability."

A statement posted on the official website of Governor Christie's office said the directive was issued after  a ruling in the Third Circuit Court of Appeals confirmed that the state is free to remove restrictions against sports betting if it desires to do so. Although Governor Christie consistently has supported the authorization of sports betting, he vetoed a bill to approve the activity because he feared it would violate the federal Professional and Amateur Sports Protection Act (PASPA). The Third Circuit decision found that nothing in PASPA would prohibit the state from removing its own prohibition against sports wagering.

A slow economic recovery and increased competition in neighboring states have been blamed for the closing of three Atlantic City casinos and the loss of 5,900 casino jobs so far this year.  Gambling revenues in the city have dropped by 45 percent since 2006, the Post reports.