I know a lot of people won't gamble at an Indian casino, because they don't answer to a gambling regulatory board and they're afraid the Indian casino might not offer fair games. But wouldn't the compact that the Indian casino has to sign with the state require them to offer fair games or be at risk of losing the right to operate a casino in the state?
Yes, it's true that state gaming regulators have some degree of influence over tribal casinos, to the extent that influence is defined by the compacts that the tribes negotiated with the states. The National Tribal Gaming Commission, created in 1988 with the passage of the Indian Gaming Regulatory Act, also monitors and regulates certain aspects of Indian gaming and coordinates its own regulatory responsibilities with tribal regulatory agencies.
From time to time we hear about player-casino disputes at tribal casinos, but no more or less than at commercial casinos, so we don't comment on the contention that "a lot of people won't gamble at an Indian casino, because they don't answer to a gambling regulatory board."
What we did, instead, was to put your question to Richard Schuetz.
Richard has had a fascinating career in gambling, starting out as a blackjack dealer at Harrah's in 1972 while studying economics at UNLV, moving up the ladder to become CEO of the Stratosphere (where we first bumped into him when, coincidentally, he was the boyfriend, later husband, later ex-husband, of then Las Vegas Mayor Jan Jones). California Gov. Jerry Brown appointed him to the Gambling Control Commission in 2011, where he served until 2015 and helped regulate tribal casinos; he also has experience managing them. He responded as follows.
“The tribes are sovereign nations and they have the primary responsibility of regulating their gaming environments. In my experience, they take this very seriously, to the point of generally overregulating. Tribal casinos have been the economic lifeblood of the tribes and they do not want risk this with some stupid cheating nonsense.
“In California, the state had certain responsibilities in the regulatory process as well and these were specified in the compacts. I've also gone public in a number of environments to suggest that the tribes do a much better job regulating their casinos, in general, than state-regulated commercial casinos.
“This may not make sense to some, but a well-run casino is a profitable enterprise and the tribes do not want to screw this up. The tribes take great pride in their casinos. When I was with Grand Casinos, we were doing a road show to raise money from the financial community. We had Marge Anderson, Tribal Chair of the Mille Lacs Band, come on one of our trips to New York City and one of the slick-haired analysts asked how we could trust the Indians. Marge stood up and suggested that if anyone should have a trust issue, it is the tribes and not the white folks.”
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