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Mashpee Beats Carcieri

September 18, 2015 is a day the Mashpee Wampanoag Tribe will long remember: when Kevin Washburn, the assistant secretary for Indian affairs, announced a determination to accept 321 acres in trust for the tribe.

The determination was not made lightly. Much of the 137-page Record of Decision is devoted to a detailed explanation of the assistant secretary’s analysis and conclusion that Mashpee is eligible, under the Indian Reorganization Act (the IRA), to have land held in that status. Mashpee’s accomplishment, in the face of recent obstacles to trust applications, is firmly rooted in its ancestors, whose steadfast attachment to their homeland created a record satisfying a relatively obscure provision of the IRA.

Securing new trust land has never been easy for Indian tribes. Establishing trust land for gaming is much harder, particularly within the narrow constraints imposed by the Indian Gaming Regulatory Act (IGRA) which, with few exceptions, does not permit gaming on lands acquired in trust after the law’s 1988 enactment.

But now, even the IGRA limitations seem minor compared to the nearly impenetrable roadblock created by the Supreme Court’s decision in Carcieri v. Salazar, 555 U.S. 379 (2009). The Carcieri court invented a new and repressive interpretation of the 1934 Indian Reorganization Act, finding that the secretary’s authority to accept lands in trust for tribes “recognized and now under federal jurisdiction” was limited to tribes “under federal jurisdiction” as of June 18, 1934, the date the IRA was enacted.

The direct loss in Carcieri was borne by the Narragansett tribe, whose plans for elder housing were crushed; but it soon became clear that all of Indian trust land acquisition was in jeopardy.

The Department of the Interior has had to reevaluate its trust acquisition authority, and to complete such analysis as a threshold for all trust applications. Congress and the courts have been attempting to address the issue for nearly seven years.

Congressional efforts have not succeeded, and have been repeatedly obstructed by interests seeking to limit expansion of Indian gaming, either entirely or in specific market areas. In addition, there will always be challenges to efforts to by the federal government to enhance tribal sovereignty. Extensive intertribal support for a congressional “Carcieri fix” has been undercut by pockets of opposition, tribal and otherwise, and various legislative efforts have languished.

The Carcieri decision has fueled attacks in a broad range of cases. Tribes have a wide range of traditional enemies. The tribes most directly targeted by Carcieri-based arguments are those that have achieved federal acknowledgment only after 1934. In part, these attacks are based on a fundamental misunderstanding of the Carcieri decision:

The Supreme Court did not hold that the IRA required a tribe to be “recognized” as of 1934, rather it required that a “recognized” tribe, as a separate matter, be “under federal jurisdiction” as of 1934, so as to comply with the court’s interpretation of the IRA language. Thus, the Interior Department has, over the past several years, undertaken an exacting exercise to determine whether an applicant tribe had demonstrated it was “under federal jurisdiction.”

The department’s first such analysis, for the Cowlitz tribe (acknowledged in 2002), determined that the tribe had met its burden, demonstrating Cowlitz’s historical interaction with the federal government in the decades from 19th century treaty negotiations and leading up to the magic 1934 date. Thereafter, the Interior solicitor issued a rare legal opinion detailing a standard for determining existence of “federal jurisdiction” that closely tracked the Cowlitz analysis.

That opinion strengthened the Cowlitz decision, but focused on evidence specific to Cowlitz and other Western tribes, making it perhaps less applicable to other regions. (The Cowlitz ruling has withstood judicial review, although an appeal is pending.) The United States accepted the Cowlitz tribe’s land into trust status in March 2015 and declared Cowlitz’s reservation status last November.

Along the East Coast, a number of tribes have achieved federal recognition through the Interior Department’s acknowledgement process. These tribes had faced colonization early, entered into treaties with European powers, and thereafter were extensively “administered” by colonial and state governments, despite the 1789 constitutional centralization of Indian affairs power in the then-new federal government. Mustering evidence of federal jurisdiction is different for Eastern tribes, and more difficult than for Western tribes having a shorter period of dominating settlement.

The Mashpee Wampanoag tribe, having dealt with colonizing powers for more than 150 years before the birth of the republic, has a rich history of resistance to displacement. The tribal community benefited from their ancestors’ use of foreign land laws to their own advantage, staying in place on lands their leaders had deeded to the community forever, along with all the necessary hunting and subsistence rights—in effect, a self-created reservation. That reservation became the first step to building a future.

The IRA grants the secretary authority to accept trust land for two categories of tribal communities in addition to those under federal jurisdiction in 1934. The second and third categories contemplate building trust land bases for half-blood Indian communities, and for Indians of a tribe living on a reservation in 1934. Mashpee’s history reflects an ancient and continuing reservation community still very much in place in 1934. That history is the foundation for the September decision to accept trust title for Mashpee lands, and for the creation of a federal Mashpee reservation.

In establishing its eligibility, Mashpee was fortunate. Historic leaders of the Mashpee Wampanoag had the foresight to create permanent deeds from themselves to the tribal people and to record those deeds among the others establishing land rights in the Plymouth colony. Unlike most recorded deeds of the period, these protected, rather than terminated, tribal rights. Mashpee was fortunate to have strong, tenacious ancestors who continued to occupy traditional homelands in traditional ways despite centuries of pressure from settlers.

They did so despite overbearing overseers, infringing neighbors, and outright hostility from their neighbors. Those lands provided sanctuary for other displaced Wampanoag people. The lands and waters permitted them to live and prosper in their own, traditional ways.

Mashpee land tenure was acknowledged by the English Crown and its colonial government, and after the Revolution, by the Commonwealth of Massachusetts—for a time. When Massachusetts attempted to break up the community by allotting, taxing and selling off tracts of Mashpee land, the people stayed anyway. And stayed. Mashpee’s long and detailed history of a people inseparable from their land, and a self-governing tribal entity that used the town government structure to serve and protect its people, supported the 2015 determination that the tribe had demonstrated its eligibility under the IRA.

Mashpee now has land in trust. The tribe can move on with its plans for tribal housing, cultural and resource protection, and much needed economic development. The creation of its federal reservation has historic significance, both in reversing the centuries of land loss and in highlighting a path that other tribes might use to restore their tribal land bases.

It is fitting that the tribe whose reservation was allotted before federal policy of breaking up reservations was established, should benefit from the IRA, whose stated goal was to restore some of the tribal lands lost through allotment. There may be other tribes whose history can support this approach.

With only a year left in the Obama administration, the Interior Department has a stated goal of acquiring 500,000 acres of new trust land; to date it has achieved about 300,000 acres toward that goal. We are fortunate to have a government team that takes its trust responsibility seriously, bypassing Carcieri on a path to secure tribal homelands.

Gaming Partners International

Gaming Partners International manufactures and supplies a wide range of table game products and equipment to licensed casinos worldwide.

Under the brand names of Paulson, Bourgogne et Grasset, Bud Jones and Gemaco, GPI provides high-quality casino currency such as chips, plaques and jetons, gaming furniture, layouts, playing cards, dice, table displays and accessories. GPI is a leading provider of traditional RFID and is the exclusive provider of its new Smart RFID products and table-game solutions.

GPI has one of the most extensive suites of gaming currency and currency security features available in the industry. From the American-style Paulson, Bud Jones and B&G chip lines, to the B&G European-style plaques and jetons, GPI provides customers an extensive array of design and customization options that help them meet their property’s specific requirements. All of GPI’s innovative products reflect the importance the company places on developing new solutions to meet customers’ growing and changing operational requirements. 

GPI’s compression-molded Paulson chip line remains the leading currency of choice for casinos in North America. In addition to traditional Paulson chips, GPI also offers customers the latest Paulson Premium chips, which incorporate the same décor materials used in the high-end European plaques and jetons into the chip’s outer ring. The enhancement makes the Paulson Premium an ideal choice for GPI customers who still want a traditional clay chip but with the added style and dramatic visual appeal of European décor. The décor addition also provides a quick visual authentication feature as customers can choose to add LaserTrack to a gold lace overlay on the décor.

GPI has added a new layout product, the EZ Install GFX layouts that make switching out layouts on tables quick and easy, as no special tools or staples are needed. Customers can quickly change the layouts on their tables, reducing the amount of table downtime and labor hours usually required for traditional installation methods. No special manufacturing is required, as the layouts are produced without any additional stitches or tabs.

GPI’s popular casino-quality Gemaco branded playing cards provide customers both paper and plastic playing-card options for all types of table games. These new products along with GPI’s full range of table game products will be on display at NIGA in Booth 1060.

For more information visit gpigaming.com.

Hnedak Bobo Group

Hnedak Bobo Group is taking design to the next level, because great design elevates its clients’ business success.
   
The firm’s 100-person integrated team of architects, interior architects and interior designers strategically delivers creative experiences that delight and engage a client’s guests. As a five-time G2E Casino Design award-winner, and one of only a few architecture and interior design firms working in Indian gaming today to own, operate and develop its own four-star hotel, HBG designers have a distinct edge in understanding what it takes to operate and differentiate in a competitive market. By approaching design from the perspective of both guest and owner/operator, HBG makes design work for its gaming clients.
     
The firm’s role as designers is to connect design, story and a sense of place to a client’s vision while uniquely expressing its culture and brand through the guest experience. HBG believes in developing spaces and experiences from the inside out, translating market influences, heritage and original storytelling into inspired, memorable design that—when combined with carefully crafted details, efficient layouts and well-planned execution—generates the perfect balance between beauty and functionality. The result is elevated design that fully engages guests in the gaming resort experience and performs for clients.    
     
As HBG continues to strengthen its commitment to client service, the company is pleased to announce the opening of its new San Diego, California office, led by Joe Baruffaldi, AIA, LEED AP. HBG’s expansion adds significantly to its team’s ability to provide enhanced personal service to clients in the Western region.  
     
HBG is proud to celebrate the opening of the much-anticipated Desert Diamond West Valley Casino in Maricopa County, Arizona, which held its grand opening in December. The firm eagerly awaits the fall 2016 opening of its latest project under construction in the Pacific Northwest, the Point Casino Hotel in Kingston, Washington. HBG’s projects in the works also include the expansion design of Seneca Buffalo Creek Casino in Buffalo, New York and multiple design and construction projects for Ho-Chunk Gaming in Wisconsin.
   
HBG also is thrilled to officially announce its design collaboration on the new 20th Century Fox World in Dubai, a themed destination hotel project. The firm also is excited that the HBG-designed Guest House at Graceland Hotel, scheduled to open this fall, already has been named by Business Insider and Traveller as one of the “Best, Most Important New Hotel Openings of 2016.”   
    
For more information, visit hbginc.com.

International Game Technology

International Game Technology Plc. is the global leader in gaming, recognized for enabling players to experience their favorite games across all channels and regulated segments, from gaming machines and lotteries to interactive and social gaming.        
Leveraging a wealth of premium content, substantial investment in innovation, in-depth customer intelligence, operational expertise and leading-edge technology, IGT gaming solutions anticipate the demands of consumers wherever they decide to play.
   
The company has a well-established local presence and relationships with governments and regulators in more than 100 countries around the world, and creates value by adhering to the highest standards of service, integrity and responsibility.
   
At the 2016 Indian Gaming Tradeshow & Convention, IGT will demonstrate its industry leadership with a selection of games, systems and solutions in Booth 1147. Highlights will include the Spin Ferno tournament solution for the S3000 cabinet. Fueled by the IGT Tournament Manager 5.0 systems solution, Spin Ferno enables operators to host single or multi-site slot tournaments on the S3000 cabinet and also allows operators to quickly and efficiently switch EGMs from coin-in to tournament mode.   
     
IGT also will demonstrate highlights from its premium product category, including True 3D titles and marquee licensed themes. A variety of core stepper and video products also will be on display, including new content featured on IGT’s new CrystalSlant cabinet.
    
For the IGT Class II portfolio, Indian Gaming 2016 will set the stage for themes such as Air Heart, Quest for the Golden Statue and Riverboat Riches bingo. Representing IGT’s commanding leadership in video poker, the company will offer Game King 8.3, in addition to Super Star, Five Star and the new Super Star 6 Card Poker. In keeping with its legacy of awarding jackpots, IGT also will feature the globally popular Megabucks game.
      
IGT also is recognized for its leadership in systems innovation. Recent advancements to Casinolink, Galaxis, System2go, IGT Advantage and IGT Cloud products include a suite of comprehensive Intelligent Bonusing apps. Additionally, IGT offers its flexible Service Window solution supporting HTML5 and multiple real-time mobile applications including the Mobile Host and Mobile Responder apps.  
    
As part of its exclusive distribution agreement with LT Game, IGT offers electronic table game player favorites such as roulette and baccarat, now featured in North American casinos. ETG terminals will be included at IGT’s booth at the show.
    
For more information, visit igt.com.

The Innovation Group

Over the past 30 years, the Innovation Group’s professionals have helped bring many of the world’s largest entertainment and hospitality brands to life. The company’s strengths span the entire concept cycle, from the big-picture thinking that sparks new development strategies to the meticulous detail management that kicks in during operations.

Diverse Expertise: Successful developments demand a range of talents and capabilities. Visionary thinkers who generate pie-in-the-sky development ideas. Razor-sharp analysts who dive deep into the data and emerge with actionable strategies. On-point operators who keep business running efficiently once the doors open. The Innovation Group’s team of on-staff experts and affiliated experts cover the full spectrum. 

Rock-Solid Reputation: Whether engaged to advise on economic, financial, social or political issues, the Innovation Group has earned a reputation for accuracy, objectivity and reliability—a distinct advantage for clients looking to expedite their projects with the maximum advantage and push their projects to the finish line.

Global Reach: Having worked with clients on multibillion-dollar developments all over the world, the Innovation Group understands the trends, demographics, cultural forces and best practices at work across six continents and 80 countries.

The Innovation Group remains one step ahead of the substantial changes that have transformed the leisure industry, having adapted its own business and services to help clients survive and thrive in the new gaming and entertainment landscape.  

With activity having shifted from the construction of new bricks-and-mortar properties to more efficient technologies and less reliance on capital, the Innovation Group helps clients build out instead of up, taking into account the shift in demand from gaming to non-gaming activities.  

The Innovation Group also continues to strategically navigate the growing Asian market as it sets the stage for massive large-scale resort expansion, and remains on the lookout for alternate growth routes that are less dependent on a singular trend.  

On the technology front, the Innovation Group understands the gaming technology of tomorrow, helping clients capture new online casino and social gaming revenue to balance the decline of traditional slot-based revenue streams.

The Innovation Group collaborates with clients to navigate the long, complex and often tricky road from vision to fruition. The company’s experts work alongside critical stakeholders at every stage of the development process to help create and operate destinations that surpass the dreams that started them all.

For more information, visit theinnovationgroup.com.

Joseph Eve, CPAs

For more than 25 years, Joseph Eve, CPAs has been the go-to accounting firm for tribal and commercial casino operators. Established in 1983, Joseph Eve continues to serve tribal governments, casinos and entities. Working with tribal operators from coast to coast, the firm has earned a reputation for providing powerful solutions through a diligent application of accounting technology by extraordinary people.  

Today, the firm’s team of more than 60 certified public accountants, certified fraud examiners and other experienced professionals provides a wide range of accounting, consulting, audit and advisory services for clients in more than 100 Native American organizations in 26 states.

Each of the 60-plus team members devoted to the industry has a passion for helping clients succeed. The firm’s unparalleled services can be understood in three categories: Attestation, Consulting and Technology. Those services include:

Audit

  • Construction audits for hotels and new properties
  • External and internal audits
  • Financial statement audits
  • Forensic audits
  • IT assessments
  • Title 31/AML assessments

Consulting

  • Accounting assistance
  • Business advisory
  • Casino profitability consulting
  • Controller/chief financial officer advisory services
  • In-sourced/outsourced accounting services
  • Indian Gaming Cost of Doing Business Report
  • Risk assessments

Technology

  • Accounting system implementation
  • Finance process optimization
  • Financial management software
  • Information technology
  • PCI compliance

Joseph Eve also facilitates seminars throughout the year on casino-related topics that are vital to successful operations, to meet maximum compliance requirements.

For more information, visit josepheve.com.

JCM Global

JCM Global has worked closely with tribal operators across North America since Indian gaming’s inception. Over that time, JCM has developed a portfolio of solutions to help tribes enhance customer connections.

As JCM celebrates its 60th anniversary, its portfolio is stronger than ever, with many ways to help tribes do business better, smarter and faster.

JCM’s latest solutions in bill validation technology enhance operational security on the slot floor, while its printer technology builds greater customer connections and JCM system solutions improve operations—all while JCMedia solutions empower operators to communicate their messages in dynamic, easy-to-control fashion.

JCM’s bill validation technology includes the award-winning and field-proven iVIZION, with validation and denomination processes powered by Contact Image Sensor technology that scans 75 times more data points than any competitive product and captures the full image of a banknote or a ticket.

Inside iVIZION is the best security combination in gaming: a combined optical and patented mechanical anti-stringing device that detects and prevents manipulation or mechanical cheating.

iVIZION runs faster with a powerful processor solely dedicated to banknote evaluation, resulting in a 99-plus percent acceptance rate and the fastest banknote-to-banknote processing speed.

Of course, once validated, cash needs to be accounted for, and JCM’s Intelligent Cash Box System is a secret weapon to reduce variance, eliminate human error, streamline the entire drop process and save money. With the all-new ICB 3.0 with web reporting, operators can access reports anytime, anywhere and from any web browser.

While everyone knows JCM’s expertise in bill validation technology, some may not realize JCM has been selling, servicing and supporting printers for diverse industries for more than 15 years. In fact, today, more than 60 percent of printers used in the gaming industry are GEN 2 Universal printers—that’s more than 500,000.

Tribal operators can improve their overall operations with JCM system solutions, including PromoNet intelligent couponing that identifies valuable players, targets both carded and non-carded players, links promotions to game play and delivers promotions exactly where and when they are needed.

Under the JCMedia brand, JCM offers a complete range of digital media services, from way-finders to LED digital video walls, including total media management systems and even creative content concepting and production.

For more information, visit jcmglobal.com.

Novomatic Americas

Established in 2012, Novomatic Americas LLC brings the proven-performing gaming experiences of its parent company, industry giant Novomatic Group, to the North American and Caribbean markets. By leveraging the design, market research and experience of Austrian-based Novomatic Group, Novomatic Americas focuses on developing products that are tailor-made for North American jurisdictions.
     
Novomatic Americas specializes in the design, development, manufacturing, distribution and sales of electronic gaming machines and advanced technology products. As this relatively young subsidiary expands its content library, it is simultaneously focusing on expanding its team, more than doubling its employee base this year.
     
Novomatic Americas always has placed a great importance on its relationship with tribal gaming, appreciating the opportunity to work with, and learn from, the professionals within it. NIGA 2016 will be the subsidiary’s third appearance at the trade show, and this year it plans to exceed expectations.
     
Leading the NIGA product lineup will be the Dominator Curve—a dramatic evolution of the proven-performing Dominator cabinet. Launching with five exclusive themes, the Dominator Curve features all of the ergonomic and design elements of its predecessor plus the advantage of a curved 40-inch, high-definition, vertical touch screen. The Dominator Curve display at NIGA will feature a wide range of stand-alone base themes with unique art packages and varying stand-alone progressive options.
     
New software will be another prime focus for the company at NIGA. The Octavian software suite features 10 themes with a unique approach to game design centered around one distinctive character in each game; it’s a diverse line of games that perfectly complements the current software offerings.
   
Jackpot Edition, a three-level stand-alone progressive option designed to enhance Novomatic base themes, also will be present at the booth. This progressive option is compatible with all Novo line base themes and is designed to boost performance.
     
At NIGA 2016, Novomatic Americas not only plans to show all tribal government gaming attendees a new breadth of products, but also that the company is here and ready to perform.
     
For more information, visit novomaticamericas.com or contact Rick Meitzler at 224-802-2974.

Politics As Usual

Mel Tomasket, a pioneer in the American Indian self-determination movement of the 1970s and a member of the tribal council for the Confederated Tribes of the Colville Reservation in Washington state, occasionally will find himself a bit conflicted.

“I’m in a funny position. I wear my hat sideways a lot,” Tomasket says of his dual roles as a tribal councilman and member of the commission that regulates Colville’s government casinos.

Tomasket is aware it’s best to keep whatever opinions he has on how to manage tribal business enterprises to himself. But he finds the urge a bit too much, for example, when he notices menu prices at the tribal casinos are a bit high.

“It’s difficult for us on the tribal council to keep our political hands out of the economic businesses,” Tomasket says, particularly when tribal elders complain to him that they can’t afford to eat at the tribe’s Mill Bay and Coulee Dam casino restaurants.

“We might get complaints our food costs too much,” he says. “But how much pressure do we put on the board of directors for the tribal business corporation, or the director of gaming, so we can bring things back to reality and help increase the business?

“I’m sure other tribal councils have the same problem. Or issue. Or concern.”

Political Influence

Tribal governments have historically grappled with the need to keep political hands out of day-to-day business decisions, particularly with the dramatic economic and social progress achieved with passage of the Indian Gaming Regulatory Act of 1988.

Most tribes with experience in government enterprises—many in reservation natural resources such as coal and timber—have learned to separate politics from business. The Chickasaw Nation of Oklahoma, Southern Ute Tribe of Colorado and Winnebago Tribe of Nebraska have development corporations skilled in overseeing a vast portfolio of enterprises.

But the issue is heavily nuanced with smaller indigenous communities where the familial ties are strong and whose economic development efforts largely began with government casinos.

The profiles of the 366 federal recognized Indian tribes in the lower 48 states vary dramatically, from small enrollment bands in California to the larger reservations in the Great Plains and Midwest.

“Some of these tribes have a long history of managing businesses,” says Jamie Fullmer, former chairman of the Yavapai-Apache Nation of Arizona and CEO of Blue Stone Strategy Group, which consults with tribes on economic development.

“Other tribes are just getting into diversifying their business economies outside of gaming, natural resources, timber, fishing or whatever their primary revenue driver is.”

“For many tribes gaming is their first experience in running a government enterprise,” says Dr. Katherine Spilde, chair of the Sycuan Institute on Tribal Gaming at San Diego State University.

“It’s hard to make sweeping generalizations,” says Bill Lomax, a member of the Gitxsen Nation of Canada and president of the Native American Finance Officers Association (NAFOA).

Many tribes accelerating economic diversification efforts in the wake of a decade-long plateauing of tribal casino revenues are attempting to keep tribal politics from getting in the way of business development, both on and off the reservation.

“There is a desire among tribes to set up separate economic development corporations to be able to create autonomy,” says Kristi Jackson, vice chairwoman and CEO of Tribal Financial Advisors. How the government and economic development is structured “depends on the tribe,” she says. “But where there’s a will, there’s a way.”

A number of tribes have adopted business strategies modeled after Harvard University’s Project on American Indian Economic Development and the Native Nations Institute at the University of Arizona.

The hallmark of the Harvard and Native Nations plans recommends vesting long-term economic strategies and land use policy to tribal councils as representatives of the indigenous citizens.

But to ensure success and an ability to compete, experts believe business enterprises should be operated independent of tribal politics.

“It is appropriate that strategic decisions regarding the disposition of reservation resources and the character of reservation life be brought into the political arena,” Harvard economics professor Joseph Kalt testified in 1996 before the Senate Committee on Indian Affairs.

“This does not mean, however, that tribal governments should make all or even a significant number of the day-to-day business decisions on reservations,” he said. “Inserting politics into day-to-day business decisions invariably undermines efficiency and productivity, saps the resources of the organizations and runs enterprises into the ground.”

A number of tribes with Bureau of Indian Affairs constitutions drafted with passage of the Indian Reorganization Act of 1934 have business enterprises under tax-exempt Section 17 federal corporations. Others utilize state corporations subject to state taxes and regulations.

Still others have tribal corporations, such as the highly regarded Ho-Chunk Inc., the economic development arm of the Winnebago Tribe of Nebraska, with 30 subsidiaries in the United States and five foreign countries.

Chickasaw Nation Industries, Inc., a federally chartered corporation wholly owned by the Chickasaw Nation of Oklahoma, serves as holding company for a dozen subsidiaries.

And the Southern Ute Tribe of Colorado established the Southern Ute Growth Fund, which manages the tribe’s extensive energy production and real estate investments.

“What structure works for one tribe will not work for another,” says Levi Esquerra, program director for Northern Arizona University’s Center for American Indian Economic Development.

Accelerating Diversity

With the plateauing of the $28.5 billion tribal casino industry—the result of market maturation and the recession of 2008—Indian communities are accelerating efforts to diversify their business portfolios. The more successful tribes have formed corporate structures and acquired skilled management free of political pressure.

Tribes also have improved their business acumen, in many cases as a result of casino financing ventures.

In addition, many tribal leaders who have grown to adulthood in the tribal self-determination era are looking to advance government independence in attaining community economic and social progress.

“You can’t just build on your gaming forever,” Jackson says. “There’s a move to find new avenues for growth. It’s no longer, ‘I’m going to build more on my reservation.’ Tribes are looking beyond their reservation borders.”

“You are seeing tribes do their best to diversify and try to establish other economic engines,” Esquerra says.

Maintaining a continuous economic strategy can be difficult with tribal elections every two to four years.

“Different administrations want to set up their own projects and establish their own priorities,” Esquerra says.

“During the political changeovers those separate enterprise entities are looked at and changes are made,” Fullmer says.


Role of the Tribal Council

While there are advantages to an economic strategy that remains consistent with changing administrations, council input in economic affairs is often necessary in representing the will of the corporate shareholders, which in the case of tribal businesses are the indigenous citizens.

“Regardless of whether there is a separate enterprise corporation, there are certain things the tribal government needs to be involved with and agree to,” Jackson says. “After all, it’s the tribe that needs to sign these debt agreements.”

“Sometimes there is too much separation,” Fullmer says. “It’s important that the enterprise board and management team is reporting to the community so there isn’t a distrust being created.”

Tribal councils must be involved in decisions regarding both trust and fee lands in private ownership within reservation boarders.

“The tribal council is responsible for overseeing use of tribal trust land,” Fullmer says. “Council members are not just going to hand that over to their business enterprises. They are responsible for leasing it out or obligating it.”

“Separating the two functions (tribal councils and government enterprises) shouldn’t mean the tribal leaders and tribal citizens don’t have a say in business decisions,” Spilde says. “Nobody would claim that tribal economic development is not inherently political.

“There should be a partnering between the institutions.”

Tribal economic strategies and enterprise governing authorities can undergo sudden and often violent upheavals. That has been the case when issues such as per-capita distributions of casino revenues resulted in leadership changes in general elections and recall votes.

“Indian gaming has been a savior to Indian Country, but it’s also been a curse,” says a tribal official who requested anonymity. “And the curse is per capita.”

But there are times when change is necessary.

Spilde says tribes have an advantage over non-Indian governments in that they are flexible to change.

“That’s how many governments fail, not being able to change and adapt to changing circumstances,” she says. “It’s not about building the perfect system. It’s about building a system that can be innovative.

“Tribes get to decide how these institutions are to be formed,” Spilde says. “Then they can change them, very quickly.”
Balancing Act

“There has to be clear communication between management, enterprise boards and tribal councils,” says Muckleshoot Casino General Manager Conrad Granito, who has operated six tribal casinos. “You find those challenges in any operation.”

While Granito believes in an open-door policy, encouraging tribal leaders to bring complaints and observations to his attention, he hasn’t experienced any serious meddling.

“I don’t get the calls, ‘Why did you fire my cousin?’ or ‘Why are you charging $6 for a grill cheese sandwich?’” Granito says.

But he realizes those complaints are often directed at tribal leaders.

“When you change the cheese on the grilled cheese sandwich, they (tribal officials) are going to get a call,” Granito says. “I realize that. I tell them, ‘When you guys (tribal officials) hear something, tell me.’”

Derrick Watchman, CEO of Navajo Nation Gaming Enterprise, which manages four tribal casinos, has a more formal line of communication with a tribal council that oversees a three-state reservation with 300,000 citizens.

“I have two people assigned to lobby, to update, to keep big Navajo—the Navajo government—informed about what we’re doing,” Watchman says.

There has been some criticism over decisions on reinvesting and dispersing casino revenue, he says, but issues of meal prices do not disturb him at all.

“We were charging five-star prices and we were a three-star town,” he says of the flagship Twin Arrows Casino Resort outside Flagstaff, Arizona. “Over time I got it. Now we’re in line. But obviously I got a lot of flak from our leadership.”

There were occasions in the past when Tomasket thought directors of the Colville Tribal Federal Corporation (CTFC), which manages 13 enterprises including the two casinos, were not engaged enough in managing the businesses.

But he was hesitant to speak out, in part because he was friends or acquaintances of many of the 10,000 tribal citizens, including the five CTFC directors.

“It’s difficult is when you live in an area where you know so many people,” Tomasket says. “You try to bring it up to them—knowing you don’t have the authority to tell them what to do or not to do—but if they don’t respond, what do you do?”

Tomasket believes in diplomacy when passing on suggestions to CTFC directors or enterprise managers.

“I talk to them as a friend,” he says.  “I don’t order them around. I say, ‘This is what I’ve noticed. You might want to take a look at it.’

“I don’t believe in bullying or interfering, though I suspect some tribal councils might do that.

“Each tribe has its own set of circumstances.”

Purchasing Management International

Purchasing Management International is the leading FF&E and OS&E purchasing company in the gaming industry. With extensive experience in large luxury gaming projects, working with the leading designers, architects and owners, PMI offers owners the accuracy, integrity and buying power necessary to successfully work on the most demanding gaming projects.

The company has purchased and installed more than $2 billion in hotel, resort and casino furnishings, operating equipment and systems worldwide. PMI’s services include FF&E and OS&E purchasing for renovation and new construction, operating supplies purchasing and advisory services for capital budgeting, inventories and due diligence for acquisitions and valuations.

In Las Vegas, PMI recently completed the renovations of the 800-room Bellagio Spa Tower, the 400-room Bellagio Suites Tower and the 1,100-room Tropicana. In the past, PMI has completed major works at Caesars Palace, Trump International, MGM Grand, Harrah’s, Treasure Island, Mirage, Hard Rock and Station Casinos’ Red Rock Resort. Outside of Las Vegas, PMI has worked on casinos from the East to West Coast including Revel, Borgata, Harrah’s Cherokee, Wind Creek Casino, Wild Horse Pass Casino and Sandia Casino. PMI expertly advises Indian gaming clients, tribal associations and native nations as part of their economic development activities.

PMI uses a unique purchasing management system to deliver the speed and accuracy required by gaming projects. PMI’s experienced staff is the best in the industry, and has deep vendor knowledge plus the creativity to keep projects moving forward under the pressure of a gaming project’s requirement. PMI’s system of checks and balances includes a separate expediting department to control the custom approval process, project deliveries and final delivery costs. Time and again, PMI saves clients money and time.

PMI’s mission is to provide a selected number of clients worldwide with its proven purchasing, renovation and technical expertise at the best quality and pricing obtainable in the industry.

For more information, please visit www.pmiconnect.com.