Finance, Forex and Investments

how much revenue do indian casinos make and where does that money go?

I read on wikipedia that the indian reservation gaming industry is a 67 billion dollar a year industry, is that right? and if so where does that money go? is it used to give back to the native americans, or does it go to the management and people that own the casinos?

Public Comments

1. 67 billion is the revenue, not the profit... although I'm sure the profit is high. Some money is probably to help out those on the reservation, but I'm sure the owners get plenty. I'm sure that varies by location.
2. CASINO CORPORATIONS saw a way to expand their business ventures via loophole in the law, by establishing casinos on Native American land. Basically, Casino agreements are between the CASINO CORPORATION & the STATE. Native communities are just pawns in that process. The CASINO CORPORATIONS and the STATE gets the “lions share” of the profits. For many tirbes very little actually benefit the Native community. Since the CASINO CORPORATION are the financial backers they have the advantage as to the percentage of the profits. (eg 60% or more). --------------- The STATE set their percentage. Here are two examples: Fiscal effect on government: Each tribe would pay tens of millions more to the state each year under their amended agreement. If voters approve all four propositions, the increased annual revenue to the state will be roughly $200 million in the next few years and may increase to the low to mid hundreds of millions of dollars in future years. Indian Casino Agreements http://www.easyvoter.org/0802/c67.html The Pequots negotiated the first memorandum on January 13, 1993. It gave them the exclusive right to operate slot machines in return for a monthly contribution of 25% of gross slot machine revenue. If the tribe's contribution fell below $100 million in any year, the rate would increase to 30% in order to reach a minimum $100 million. http://www.cga.ct.gov/2001/rpt/olr/htm/2001-r-0635.htm ------------ The Indian Gaming regulation defines how Native American Tribes can use the profits from casinos. INDIAN GAMING REGULATION (b) Regulation of class II gaming activity; net revenue allocation; audits; contracts (B) net revenues from any tribal gaming are not to be used for purposes other than— (i) to fund tribal government operations or programs; (ii) to provide for the general welfare of the Indian tribe and its members; (iii) to promote tribal economic development; (iv) to donate to charitable organizations; or (v) to help fund operations of local government agencies; http://www4.law.cornell.edu/uscode/25/usc_sec_25_00002710----000-.html .