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Wells Fargo Gaming Division

The Wells Fargo Gaming Division is a specialized lending group serving businesses and Native American governments all over the United States.

The division provides creative, customized solutions to perfectly suit industry segments including hotel-casinos, riverboat casinos, parimutuel racetracks, racinos, gascinos, card rooms and Native American gaming enterprises.

With a focus on relationship banking, the Gaming Division team provides financial guidance on capital-raising for expansion, financial restructuring and recapitalizations.

It also provides innovative cash flow management specialization in equity investments for high-risk and start-up gaming opportunities.

The team also assembles customized employee and tribal member benefit packages, tribal lending and governmental financial services, and provides risk management to its clients.

To learn more, call 775-843-7848 or visit www.wellsfargo.com/com/industry/gaming.

Fighting the Good Fight

In addition to the jobs that tribal gaming creates for thousands of Americans, the deeper economic impacts achieved by Indian gaming are well documented, but very often overlooked.

The impact of the goods and services purchased by those who live within tribal communities as well as their tribal governments, business patrons and tribal employees is further magnified by the history of tribal philanthropy and tribal non-gaming investments.

Despite the fact that these ongoing positive impacts are still largely ignored by most major American media outlets, no reputable professional even disputes the economic benefits created by Indian gaming these days—that is a good outcome created by the sweat of many of Indian Country’s modern-day warriors.

These modern-day warriors have included (for a very long time) leaders like Rick Hill, Ivan Makil, Mark Macarro, Ron Allen and Ernie Stevens fighting for all tribes as well as their own. One of the even less publicly recognized things that each of them still fight for to this very day is the provision of essential tribal government services to Native American communities.

Each of them, and many more Native peoples, recognize that most of these essential services will either be provided through Tribal self-determination, or they will simply not be provided to Native communities at all. Among the most essential services that these leaders fought and fight for are those that focus upon preserving and sharing our tribal histories and tribal cultures.

Preserving tribal culture is important to all Native American people. It is very important to those of us who actively fight to save the languages, songs, dances, ceremonies, oral histories and documented histories of our people. Ironically enough, cultural preservation is even more important to those within our tribal families who do not actively join the fight.

Language is probably the most critical piece of any culture. So much of our identity as peoples can only be accurately reflected within the beautiful ancient languages that tribes continue to speak today. The boost provided by Indian gaming revenue for language preservation and reclamation efforts in Native American communities across America is a reflection of tribal self-determination in action. The end result is the provision of essential government services.

Tribal government gaming is helping many attempts to rebound from some of the ugliest chapters of American history in providing these language based essential government services. The forced assimilation policies of our country’s past created inter-generational negative impacts upon tribal communities that can still be clearly observed at work among our people today.

The forced boarding school experiences that many of our elders lived through gives us an understanding of the inhumanity behind historic attempts to eradicate Indian languages. My ancestors were executed for speaking their language in public, which was actually against the law in Connecticut during the 17th century.  

Another set of common, and critically important, essential government services that are supported by Indian gaming revenues relate to the accurate reflection and full preservation of tribal histories. This source of revenue enables many tribes to preserve and reflect tribal history from their own perspective, producing yet another wave of tribal self-determination and tribal community progress impacts.

The incredible historical centers and museums that have been developed by tribes through the devotion of Indian gaming revenues are educational, cultural and historical treasures that should be viewed as a doing a service to all Americans and foreign visitors alike. Despite recent improvements in this area, the history class curriculum content utilized within most American school systems still contains little, if any, local or regional tribal community perspective.

This unfortunate fact makes tribal historical centers and museums the only place to get a sense of the full story that is so often buried within many commonly accepted portrayals of tribe-related American history.

In terms of providing a deep mutual community benefit, the approach of almost all of the tribes who have developed such institutions includes a strong focus upon sharing Native American culture and history with people of other cultures.

The sharing of inter-tribal culture is greatly supported by Indian gaming revenues, and also deeply emphasized by most tribes—the point of most pow-wows is to preserve the song and dance traditions that tribes share while enabling the general public to be entertained and to actually encourage them interact with Indian people on a person-to-person level.

These important cultural interactions help to temper, and sometimes even to reverse, the historically dehumanizing public perspectives about Native Americans that still plague us today. Increasing numbers of tribes are seizing the opportunity to be aligned, and to also be more mutually supportive, when it comes to serving critical tribal historical and cultural needs such as these.

It is heartwarming to see how these important cultural ends continue to be served as tribes gather for national inter-tribal meetings like the upcoming NIGA trade show and convention in San Diego. As we spread the word about Indian gaming and all of the American lives that have been changed for the better by Indian gaming, we can take comfort in knowing that several of the most important perpetual Native American focal points—culture, history and a tradition of sharing—are also being very well served by the collective focus of Indian Country.

Hnedak Bobo Group

As one of the top-tier entertainment and hospitality design firms in the United States, as ranked by Hotel Business, Hotel Design and Hotel Management, HBG offers a proven history delivering distinctive design solutions that drive competitive advantage and successful performance results for its clients.

The firm’s own firsthand experience as owner and developer of hospitality real estate, including the Four-Diamond Westin Memphis Hotel, helps inform design that is grounded in development economics, operational functionality and efficiency, and guest expectations.

Adding to its longstanding reputation in the commercial hospitality market, HBG is uniquely positioned as one of the largest providers of professional services in the vibrant Indian gaming industry, with client relationships representing some of the most high-profile tribal business enterprises across the country. The firm aggressively leverages technology in the development of innovative and interactive initiatives. 

HBG’s project results have been recognized by the press, the gaming industry and most significantly by its clients’ bottom line. The new 52,000-square-foot, $40 million Four Winds Hartford Casino in Hartford, Michigan, has been noted for its ability to meet the rising need for smaller, efficient, profitable casinos that are also energized and stylish.

The HBG-designed Potawatomi Bingo Casino expansion in Milwaukee has been celebrated by the Chicago Tribune as “the region’s top spot for gaming entertainment,” and the G2E Casino Design Awards recognized HBG’s Riverwind Casino with a “Best Casino Design” award. Two of HBG’s casino resort projects—the Northern Quest Resort and Casino outside Spokane, Washington, and the Wind Creek Casino and Hotel, near the Alabama Gulf Coast—also were honored with coveted AAA Four Diamond awards.

HBG is currently completing designs for a number of diverse Indian gaming projects. The firm is continuing its planning and design activities for the newly announced Seneca Buffalo Creek Casino in Buffalo, New York, and the proposed Kewadin Lansing Casino in Lansing, Michigan. HBG also looks forward to the phased opening of the Winstar Casino expansion for the Chickasaw Nation of Oklahoma this spring. 

 Hnedak Bobo Group is passionate about creating engaging and memorable experiences that deepen the connection between tribal gaming clients and their customers, while remaining highly focused on delivering market-supported investments that are positioned for long-term viability and financial success. 

For more information, visit www.hbginc.com.

A Great Warrior

Indian country mourns the passing of Richard Milanovich, 69, chairman of the Agua Caliente Band of Cahuilla Indians. Richard was a man of wisdom, honor and grace. He was a visionary, with the foresight to see what Indian tribes can achieve through inherent sovereignty and tribal economic development. He was a mentor, colleague, and good friend. Chairman Milanovich is survived by his wife Melissa and his six children—Scott, Reid, Trista, Sean, Travis and Timmy.

Chairman Milanovich lived during an era of great tribal leaders, and embodied those great Indian leaders of the past who led with a true heart, loved their people and brought them from poverty to great success. His heartwarming smile kindled a fire in all our hearts to do the best for Indian Country.

As a leader, I knew Chairman Milanovich to be quick with a smile and a laugh, and one who could easily impart an important lesson about Indian sovereignty and the importance of living our tribal traditions. Serving on the tribal council over a period of more than 30 years and as chairman for almost 20 of those years, Richard Milanovich fought and won many battles over tribal sovereignty.

He met with presidents, senators and congressmen in pursuit of justice for Indian Country. He negotiated with several California governors while educating the state legislature on what it means to have sovereign tribes within state borders. Despite moving in these political circles, Chairman Milanovich never lost his connection with his people, neighbors and community.

Chairman Milanovich led the effort to preserve and consolidate tribal lands for the benefit of the Agua Caliente people. His list of legislative accomplishments is long and varied, but always in the interest of protecting his people and tribal lands.

• In 1992, under his leadership and against the advice of many, the Agua Caliente Band acquired the Spa Hotel in downtown Palm Springs.

• In 1995, he led the effort to establish gaming at the Spa Hotel and Casino.

• In 1998, Agua Caliente partnered with neighboring tribal governments to secure the passage of Proposition 5, authorizing tribal-state compacts with the state of California.

• In 2000, Chairman Milanovich worked with neighboring tribes to secure state constitutional amendments to recognize Indian gaming through the passage of Proposition 1.

• In 2003, he led a $95 million effort to remodel the Spa Hotel and Casino.

• In 2008, Chairman Milanovich led the effort to build the four-star Agua Caliente Casino Resort Spa on Bob Hope Drive in Rancho Mirage, California, with 340 guest rooms, five restaurants and 10,000 square feet of convention space. He helped build the Agua Caliente Casino Resort as a showcase for Indian gaming.

Chairman Milanovich led the way on Indian sovereignty by advocating to preserve the integrity of the Indian Gaming Regulatory Act, seeking amendments to federal labor laws to restore the treatment of Indian tribes as governments, and fighting for federal tax provisions to recognize the status of Indian tribes as governments.

Chairman Milanovich was also a strong proponent of Indian culture and Indian values. “He was one of the most highly respected leaders nationwide in Indian Country,” said retired U.S. Senator Ben Nighthorse Campbell (R-Colorado). “We call it living in two worlds. He was a strong practitioner and supporter of the ancient traditions, ceremonies and practices that are important to Indian people. But he was also a very strong leader in 21st century Indian America. He understood business and was a wonderful advocate for Indian enterprises.”

Chairman Milanovich was a man of his people and a true national Native leader. He narrated a video explaining Cahuilla culture and history at the National Museum of the American Indian’s historic Alexander Hamilton Customs House. One would often see Chairman Milanovich at the president’s congressional dinner, conversing with senators and congressmen, and other top national leaders.

Chairman Milanovich led the Agua Caliente in their support for the construction of the National Museum of the American Indian on the Capitol Mall in Washington, D.C. Under his leadership, Agua Caliente was a generous contributor to many charitable causes in the state of California as well as a primary contributor to the National Congress of American Indians.

In 2005, Chairman Milanovich was a recipient of the National Indian Gaming Association’s Wendell Chino Humanitarian Award, Indian Country’s most prominent tribal award for outstanding leadership, courage, generosity and statesmanship.

I will always remember Richard as a man with heart and kindness who never lost his faith and sense of optimism even during the most trying times. Indian Country will truly miss one of the most significant leaders of our time; most of all we will miss his smile. We offer our sincere sympathy, prayers and condolences to his family and his people.

Acting on Emotion

Anyone who has been to Indian Gaming, the annual trade show and conference of the National Indian Gaming Association, will be familiar with Adam Beach. When he first started showing up at the NIGA show, Beach was a relatively obscure actor drawing on his Native American heritage to build his reputation in Hollywood. Over the years, his profile began to expand, as he landed roles playing strong Indian characters in movies and television shows such as The Rez, Walker Texas Ranger, Windtalkers, Coyote Waits and many more.

Beach first connected with a wide audience in 1998 when he played a troubled Spokane youth in the critically acclaimed movie Smoke Signals. The role made him a cult figure among Native American tribes, and other impressive roles followed, including a leading part in director John Woo’s World War II epic Windtalkers, for which Beach spent six months learning the Navajo language. He went on to star in Skinwalkers (2002), an adaptation of the popular Tony Hillerman book—he would reprise his role twice as Officer Jim Chee in the PBS mystery series.

But Beach’s mainstream breakthrough came in 2006, playing Ira Hayes in Clint Eastwood’s Flags of our Fathers. As one of the six Marines to raise the American flag on Iwo Jima, the role showcased the actor’s emotional depth and earned him two Best Supporting Actor Award nominations. His role as Charles Eastman, the Sioux doctor, author and advocate, in the HBO mini-series Bury My Heart at Wounded Knee came a year later, broadening Beach’s appeal and garnering him a Golden Globe nomination.

By the time he was awarded a key role in the long-running TV series Law and Order in 2008, Beach was considered a crossover performer with more than 60 appearances on both the big and small screen.

Just last year, Beach starred with Harrison Ford and Daniel Craig in the hit movie Cowboys and Aliens, where, ironically, he played a cowboy.

A citizen of the Dog Creek First Nation in Manitoba, Canada, Beach has also been long involved in Canadian film and television productions. He produced and starred in the independent film Older Than America, and played the lead in the aboriginal sitcom Moose TV.  His latest venture is Arctic Ice, a Canadian TV series about saving lives above the Arctic Circle.

Gaming Guy

Pursuing his interest in Native American affairs, Beach has become an advocate for Indian gaming. It’s a subject he is passionate about, as he has witnessed the positive effects of casino revenue on local communities. While he’s reluctant to call it the “new buffalo,” Beach recognizes what gaming has done for many tribes across the U.S. and Canada.

“So much progress has been made in Native American communities across North America because of Indian gaming,” he says. “But like all enterprises, you must have some business acumen to make it work.”

Beach speaks from experience. His home province, the First Nations of Manitoba, lacked casino industry expertise and lost out on an early opportunity.

“In Manitoba, two licenses were put up for bid,” Beach explains. “My tribe wasn’t involved, but we would have shared in the revenues.”

The managers of the casinos were chosen from politically connected groups in Manitoba, and a contract was signed that favored those groups instead of the tribes. Today, the casinos’ profits have not gone to the tribes, but to the managers.

“They should have found a tribal partner from the States,” he says. “Maybe a tribe that had already operated successful casinos. All they knew was Manitoba and Winnipeg. They don’t know that there’s anything else outside of there. They’re so hungry that they’ll sell themselves short.”

Beach, who hopes to one day be elected to a leadership role in the Lake Manitoba First Nation, emphasizes the need for education and informed business decisions in today’s competitive casino market. He celebrates tribes that can contribute to their communities via gaming, without losing sight of their heritage.

“That relationship of culture and business is important for a tribal casino,” he says. “The downfall of every successful business is greed and failed leadership. When you’re running a company that involves tribal gaming, you have to consider the health of your tribal community. That’s what determines the success of any tribal business. The most successful and independent tribal gaming operations are the ones that can balance their culture with the economic growth of the tribe. You can really see the value in those areas.”

Beach says tribes that remain true to their culture will be rewarded with more than just money.

“No matter how much you move forward with finances and wealth, you can’t forget who you are, and that’s the cultural component,” he says. “It provides balance for people and for tribes. We have a responsibility to our ancestors.”

Technology & IDENTITY

As a fixture at the NIGA trade show, Beach was approached by slot manufacturer Cadillac Jack to help design a slot machine that would recognize and honor Native culture. Working closely with Cadillac Jack designers and engineers, the company released “Ghost Bear,” which has become a leading earner in several Native American jurisdictions.

“Ghost Bear speaks about culture,” says Beach. “This game wasn’t designed for my benefit. I wanted to work with Cadillac Jack to create a game that represents Indian Country. People are tapping into their cultural identity. Like in Native media, where we don’t have to depend on Hollywood to determine who we are as Native peoples, tribal gaming can use culture to expand the technology and their identities.”

Beach says he wants to spread the new technology in Indian Country, as well, to encourage more participation from the tribal members.

“The technology is changing so fast,” he says. “The new platforms are changing the conventional slot machine, and much of that started in Indian Country. It’s like the start of a new generation.”

Life imitated art when Beach was chosen to play a casino manager of a tribal gaming establishment in the HBO series Big Love. He says he didn’t have to do much research for that role, and wanted to bring a sense of reality to the set.

“I wanted to add a little flavor to the idea of an outside entity trying to control a sovereign entity,” he says. “Indian gaming has been around for more than 20 years now, and was controlled for a long time by corporate America, which would issue mandates about how things should be run. Now that the tribes understand their sovereign rights, they are moving forward in a tradition sense of tribal leadership.”

Dedication to Culture

Beach has become an inspiration to many Native Americans, particularly the younger generation. He is asked to speak to youth groups all the time, and he encourages them to think for themselves when deciding what path to take. He points to his own youth, when he lost both parents in the space of a few months at age 8, and he and his two brothers were sent to live with their grandparents. 

“I didn’t have a mother or father who was determining my life path,” he explains. “No one told me you are going to become a doctor or lawyer. So I didn’t know any better when I wanted to become an actor. I just went for it. Also, I lost the most important things in my life, so I always felt, ‘What do I have to lose?’”

Beach has dedicated his life to erasing the stereotype perception of Native Americans as drunks or drug addicts, and keeps himself clean and sober to reinforce that message.

“In Hollywood, there are only a handful of us who are dedicated to changing the perspective on Indians,” he says. “For me, I want to be the one guy who is not going to fall and fail because he has a drug or alcohol problem, or who is just a jerk. I want to be the guy who is respected because that’s the way I walk.

“I want to be in the game all the time. I want to be the guy who gets the opportunity to play someone like Ira Hayes, or to play Cowboys and Aliens as a cowboy. I want to use that fame to be able to talk to kids who have suicide issues. I actually did last month. One Native community had 200 suicide attempts in the last year, and they asked me to come in there to speak to them. That’s the value I have, and I’ll always maintain that responsibility and leadership.”

One of Beach’s most moving experiences in his career was to portray the legendary Eastman in Bury My Heart at Wounded Knee. He describes an incident on the set that truly changed his art—and his life.

“When we were shooting the film, I was working with Eddie Spears, one of the actors who actually came from the Pine Ridge Reservation where we were shooting,” he explains. “We were doing a scene where one of his daughters was dying and he was crying. But when they called ‘cut,’ he couldn’t stop crying. He had to step outside. I went after him and asked what was wrong. He told me that all he was seeing were ghosts. ‘Adam,’ he told me, ‘this is where I’m from. The girl in the bed could be my great grandmother. I’m playing someone who could be directly related to me. All I’m seeing is ghosts, and it scared me.’ From that point on, I could see them too. And I still see them.”

The Innovation Group of Companies

The Innovation Group of Companies provides financial, management, investment banking, development, marketing and diversification advisory services to a signature, worldwide client base. The organization is now comprised of five complementary affiliates, highlighted below. Together, the companies evaluate operational and development opportunities, make strategic recommendations and offer the tactical tools to help clients implement them.

The organization has been associated with more than $60 billion in investment decisions over the past 20 years. Additionally, its areas of specialization have naturally expanded into such related disciplines as F&B, mixed-use retail, convention centers, sports/performance venues, social media, online gaming and other offerings that define the ever-changing world of leisure and entertainment.

The company’s leadership has helped bring many of the world’s largest entertainment and hospitality developments to fruition, and has been exposed to industry best practices across six continents.

• The Innovation Group—Premier provider of consulting services for the gaming, entertainment and hospitality industries. Services include feasibility studies, market assessments, economic impact studies, strategic and financial planning, economic diversification, legislative and government advisory, litigation and expert witness support and i-gaming strategy/research.

• Innovation Capital—Leading boutique investment banking firm, offering Gaming & Leisure and Restaurant & Retail practices. Services include mergers and acquisitions, corporate finance, financial restructuring and valuations/fairness opinions to mid-market clients ($20 million-$500 million). Since 2004, Innovation Capital has advised on transactions aggregating more than $2.8 billion. Member: FINRA/SIPC.

• Innovation Project Development—Experienced project management firm providing oversight of the industry’s most complex developments. IPD provides owner representative services, project and process management, schedule and budget controls, facility expansion analysis and planning, facility development and FF&E/purchasing.

• Innovation Marketing—Translates the unparalleled consultancy, analysis and research of The Innovation Group into industry best practice marketing tactics. Services include strategic advisory, marketing and business plans, research and focus groups, “voice of the customer” programs, player development strategy, account services, media/social media, public relations, database analysis and direct marketing.  

• Innovation Management Services—Exclusive network of operational experts offers short-term crisis management, operations evaluation, turnaround implementation, management strategy and pre-/post-opening services.

• Innovation Food & Beverage—Specialty advisory team offers research and analysis, operations and management, concepting and implementation, positioning and marketing, development and renovation, and financing and asset management specific to F&B considerations.

• Innovation Sports & Entertainment—Practice to further establish the organization’s presence in a broader range of sports, entertainment, performance venue, convention center and related amenity segments.

The Pot of Gold?

Probably the most contentious issue facing the gaming industry today is internet gambling. For the last 10 years, offshore companies operating illegally in the United States have earned millions, if not billions, of dollars from players anxious to enjoy poker on the internet. We’re now at the point where governments realize it can’t be prevented so it’s time to regulate, tax and control it.

This realization has put tribes between a rock and a hard place. Some tribal governments believe internet gambling threatens their land-based casino operations. Others see the same opportunity that commercial casino companies envision. If players are going to gamble at home, they can parlay their bricks-and-mortar operations into that home-based play, retaining player loyalty—and revenue.

Complicating this quandary is the lack of a federal bill legalizing online gaming (actually, online poker, since the consensus seems to be that full online gaming would not pass in any form). Hearings before Congress have emphasized that tribes must have a role in any legal online poker industry, and the members of Congress seem to agree. But in this election year, the possibility of passing any controversial bill seems slim to none.

So, it’s left to the states to legalize intrastate online gaming/poker. Where, then, does that leave the tribes?

One of the biggest hurdles for tribal participation in online gambling is the insistence that it not impact tribal sovereignty by forcing the tribes to pay taxes on their online revenues. This is a violation of the principle that one government cannot tax another. But if commercial casinos are going to be taxed on their revenue, how do you not tax tribes that are participating in the identical activity?

Companies like Hard Rock International, owned by the Seminoles, are taxed like any other company on their profits. They enjoy no special shield against lawsuits in state or federal courts or tax increases implemented by those governments. Or how about the Mohegan Sun Casino at Pocono Downs in Pennsylvania? That facility is owned by the Mohegan tribe, but pays gaming and corporate taxes to Pennsylvania like any other casino there. So if these examples don’t threaten tribal sovereignty, why would a tribal internet gambling operation paying taxes to a government be a problem?

Tribes will have to make a determination very soon whether they want to participate in a legal online gaming industry. If so, there are other concerns.

First, is internet gambling covered by the Indian Gaming Regulatory Act of 1988? Most experts say it is not, which would require an amendment or two to IGRA. But tribes have long been resistant to amending IGRA for fear it would open a door they want to remain closed.

Second, if internet gaming is licensed by the state where the tribe is located, would you need to renegotiate the gaming compact that allows tribal gaming in that state? Like IGRA, it’s something most tribes want to avoid.

Third, just how much revenue would come out of online gaming, and how much risk are tribes taking to invest? When online gaming was legalized in Europe over the past decade, more than 90 percent of the websites launched to host online casinos and/or sports books failed. It’s not as easy at it looks.

In reality, how much of a threat is online poker? Anyone who runs a “real” casino understands that poker isn’t a huge money-maker, and it’s also limited to a small universe of players. Would the availability of online poker truly impact a land-based casino? How many slot players would rather stay home to play online poker? I’m betting that number will be very, very small.

If states take the lead, you can be sure that the state lotteries will be ready. Lottery directors are sure to ask their governor, “Why would you allow commercial casino companies or Indian tribes to operate this activity for a tax of 20 percent, when we can operate it and return all the revenue—minus our expenses—to the state?” What kind of response do you think the governor will have?

These are just a few of the questions that remain unanswered (and we didn’t even address some of the technical concerns). Yes, let’s pay attention to what’s happening on the legal landscape, but let’s not blow it out of proportion. Tribes can live, survive and prosper with whatever happens.

Solving the Riddle

Tribal gaming is the perpetual Rubik’s Cube for the nation’s leading designers and architects.

Its varied look—entailing both subtle enhancements and overt design statements—mirrors the layered complexity of the world’s largest-selling toy. Designers figuratively turn the blocks, flip them, change colors and tinker endlessly to solve the financial puzzles of a multibillion-dollar industry.

More than 400 tribally owned facilities generate about one quarter of the nation’s gaming revenue, with operations ranging from small and intimate to monolithic powerhouse.

Tribal leadership is equally varied. Some operators make quick decisions. Others have large chains of command with conflicting views over property design message. Some tribes advertise their culture; others minimize it. Gaming houses look different on either coast and in the Native American heartland.

All of this must somehow blend into construction, on time and on budget, especially now. For the first time ever, Indian gaming revenues slid last year (slightly), meaning that tribes must increasingly blend heritage with sound gaming and hospitality principles.

So how do new trends in culture, finances, marketing and the customer base determine the design and direction of tribal government gaming?

It’s like asking the Pope about religion: Everyone has a different opinion.

Design flexibility is most essential because it enhances creativity and separates them from cheaper counterparts with cookie-cutter approaches.

Tribal properties will spend millions to make a statement, but the question is, “what statement,” and “where on the property will it go?”

The Heritage Home Run

Chief Boyd, a Native American and co-founder of Thalden Boyd Emery, says his company works with 87 tribes and 130 casinos, at last count. Gaming has twofold significance for Boyd, a principal of the company, based in Las Vegas, Tulsa and St. Louis. Many of its tribal projects are in Oklahoma.

As a Cherokee Nation member, Boyd is acutely aware of improving the lives of the tribal community. The 50-year architectural and design veteran has seen a rise in the living standards of Native Americans in the Oklahoma region. He proudly notes that advances in health care have just begun pushing the life expectancy of Indians beyond 59 years.

Boyd understands the need for tribal elders to make decisions, even if that means a deliberate process followed by an abrupt change. Oklahoma tribes often maintain more individuality than brand-driven counterparts on the East and West Coasts.

“Because cultural expression varies from tribe to tribe, what you generally end up with is a modern facility with a lot of heritage woven into it,” Boyd says. “You may, for instance, want to be sensitive about what type of carpet you will select, because that is going to be walked on. There are different feelings about that. We follow the lead of the tribe we are working with.”

A typical blend of these concepts may produce tribal expression in the ceiling and the floor and a gaming center focused on the action. Architects must also reconcile scores of opinions.

“When we worked on the original Potawatomi casino in Milwaukee, we were involved with 84 elders,” Boyd says. “A lot of what we designed came from them. In the center of this casino, one of the things they found exciting was the expression of the four seasons. Not only can it be culturally pleasing, but it can help the customer who wins find it easy to go back and find the machine he was on. He can line it up by what season the machine was in.

“The impact was huge. We were told that for a time it was the highest-drop casino in the world, getting $1,000 a day per slot.”

In this case, too many cooks did not spoil the broth. Architects must not only listen to their clients, but maximize natural geographic advantages. The Art Deco area of Tulsa, Oklahoma, enhanced by an oil boom, created factors that led to the formation of successful casinos, Boyd says. Many Cherokee casinos combine tribal culture with Las Vegas excitement.

They also embraced innovation. The Building Information Model (BIM) has become a significant part of the presentation process for big projects over the past seven years. It replaced hand drafting with electronic models, an effective tool for tribes which often change their design plans.

The BIM allows clients to visualize their expected changes quickly and even walk through a 3D model. This is an important benefit, allowing tribal executive members, staff, architects and a slew of structural, mechanical, electrical and plumbing engineers to get on the same page. It enables everyone to witness the impact of changes before they occur and therefore make quick, uniform decisions.

Corporate Sophistication

Tribal culture occasionally forges its own branding. Memphis-based Hnedak-Bobo Group works on scores of tribal gaming projects. It garnered the 2007 Best Casino Design under $200 million, as recognized by G2E’s Casino Design Awards, for Riverwind Casino in Norman, Oklahoma.

More recently, Hnedak Bobo showed its diversity in creating two variations upon a client’s theme, via the Four Winds in Hartford, Connecticut, and New Buffalo, Michigan.

The New Buffalo property opened in April 2011 and Hartford is under construction.

 “The Four Winds Hartford Casino design is a multi-phased master plan with a first-phase 500-slot casino constructed on a 15-acre site,” principal Dike Bacon explains. “This first-phase design and construction was successfully completed on schedule (14 months from design start to construction end) and was completed on budget (52,000 square feet and $40 million all in).”

Bacon says the design intent of the new facility was to expand the brand of the tribe’s New Buffalo model. The design basis for the new facility in Hartford was to maintain a similar palette of materials, characteristic of Four Winds New Buffalo, without creating an exact copy of that first facility.  

“We used materials such as stone, copper and red cedar to detail the exterior façade of the gaming facility,” Bacon explains. “A 50-foot-tall stone chimney sits adjacent to the three-lane porte cochere, acting as a landmark for casino guests. The tall icon feature helps to promote the Four Winds brand, as well as signify the tribe’s cultural identity as the ‘keepers of the fire.’ Other details such as the round red cedar log columns at the porte cochere and the standing seam metal mansard roofs on the east façade were designed to help link the property to the first Four Winds Casino in New Buffalo.”

This was one case where the tribe openly celebrates its heritage via the design. That gave Hnedak Bobo free rein to maximize the tribe’s identity.

“The interior design incorporates a range of significant tribal motifs and symbolism—from N/S/E/W elements informing the directional placement of building elements, to important animals such as the river otter and bear that are integrated into highly visible custom-designed light fixtures and fireplace elements,” he says. “Within the chimney tower, located between the entry foyer and the retail shop, is an ‘eternal flame’ hearth room for guest lounging, featuring a 360-degree circular fire pit covered by a copper hood, holding further symbolism of the tribe’s cultural heritage. The tribe was the first to use copper metal in tool and jewelry making.”

A Grand Design

Tom Hoskens viewed the evolution of tribal pride into corporate muscle. His Minnesota-based Cuningham Group jumped out of the box by servicing seven Grand Casino properties at the advent of Indian gaming in the late 1980s. The incorporation of partners like Hard Rock at the Pueblo Isleta in Albuquerque, New Mexico and Harrah’s in Cherokee, North Carolina, propelled several of his projects to prominence.

Harrah’s Cherokee, nestled at the foot of the Great Smoky Mountains, provides an excellent example. The Cuningham Group has already been awarded a prestigious HOSPY (given by the Network of Executive Women in Hospitality) award, for its work on a $630 million-plus expansion scheduled for completion in the summer. Cuningham won it for Suite Design and Hotel and for having the best hotel lobby in the country.

 “We have a philosophy of the metaphor in that each building should tell a story,” he says. “For the Cherokee property, the original metaphor was in the fact that this is a mountain lodge, perfectly placed in the Great Smoky Mountains. It is a wonderful site right alongside a mountain stream with trout fishing. This modern lodge reflects the Great Smoky Mountains and even has soft curves on all the rooftops.

“We modeled the casino after the curving lines of the Great Smoky Mountains. The tribes grew up in the mountains. They have assimilated nature into what they do; it is a part of them. The casino has four major parts. You have Mountain Breeze, Woodland Moon, Rivers and Valley and Earth Water. Each has a zone, each has different colors and each is separate visually from the other.”

The Harrah’s branding enables financial muscle and flexibility for the designer or architect. High-end name restaurants, convention centers and additional hotel rooms all fall under this category. Hoskens says the grand finale of the five-year expansion will be a magnificent rotunda, with eight large trees within it, waterfalls, an extraordinary light show and a number of other technological components. And what about 10-15 years hence?

The tweaking, years down the road, could entail changing the way the water looks coming down the glass, he says, or the operators may want to add a bar area. Carpets change all the time. But the exterior of the building would not.

Hoskens notes that tribal properties, just like non-Native American interests, are expanding into resorts.

Flexibility Meets The Future

Bergman, Walls and Associates, based in Los Angeles, Las Vegas and Ho-Chi-Minh City, has operated for 18 years and employs 50 people. Its Snoqualmie (Wash-ington) tribal gaming project garnered an Annual Excellence Award from the Wall and Ceiling Bureau in 2009.

While noting the diverse nature of tribal gaming preferences, the company has seen some subtle, relatively recent shifts.

Top executives Joel Bergman and Brad Schulz, who account for nearly 50 years experience, say those tribes are upgrading their dining areas, seeking more live entertainment venues and trying to position themselves against increasing competition. The architecture and design provide the environment for them to pursue and maintain market share. In a constantly changing industry, tribes need game plans both for now and in another decade.

“If a property goes 10 years without being modified, you’re doing pretty well,” according to Schulz, who was elevated to a fellow by the American Institute of Architects in 2010. “Properties have to reinvent themselves anyway, more than just with a new coat of paint. If you have been the only property in town, you know that people would jump over a couple hoops to come to your property. Now, with so much competition, you may want to guard against the casino five miles away being the kinder, gentler property, so to speak.

“So we design for flexibility, allowing things that can change easily. You won’t be limited, for example, by structural elements that can’t be moved. The buildings are open.”

Both architects see a slow transformation of the prototypical gaming facility over the next few years. Fewer machines. More electronically driven action via devices like iPads, utilized by players at the pool or another remote portion of the property.

“Tribes are going to start asking for more lounges to be placed throughout their facilities,” says Bergman, who garnered a Sarno Lifetime Achievement Award for casino design in 2006 at G2E. “They will want to have them placed throughout the facility, helping to attract a younger crowd. We are going to be seeing more gaming lounges. That will attract a younger crowd at night and on weekends, but at the same time the tribes will have to be able to do that without alienating a good segment of their older customer base.

 “There will always be a segment of the population that wants to sit at the sports book and scream for their bets alongside other people, but we are heading for a time when the last of the traditional ‘action’ will be at the pit. As younger players come in and are more adept at the iPad and iPhone, this will cause a change in the makeup of the properties.”

 
Seminole Agenda

Ken Kulas, principal for Las Vegas-based Cleo Design, witnessed his own version of tribal gaming evolution. Along with Ann Fleming, he runs an 11-year-old company that grew in step with the Seminole Tribe. Cleo Design helped build the original Hard Rock casinos in Tampa and Hollywood, Florida, followed with several renovations, and now designs a Tampa expansion entailing restaurants, bars and larger gaming space.

The parties have learned together.

“Our first encounters were very surprising in that ‘tribal’ design influences were not requested,” Kulas says. “With the exception of ownership branding, the design directive was to be more ‘Las Vegas’ in influence first. As projects progressed, we typically found ourselves adding more subtle tribal signatures or retail venues that consolidate education of the heritage.”

Cleo Design has been named in Interior Design magazine’s Top 200 for the last six years. Kulas says some things don’t change regardless of the client. Every property needs an arrival statement, for instance, and large open spaces require an over-the-top feature to set the facility’s design tone. Kulas considers the large space a great opportunity to use iconic forms or imagery, whether abstracted or literally interpreted.

While tribal properties face similar challenges to non-tribal facilities, they offer one intangible.

 “Even though the cash-flow support may come from within rather than traditional banking entities, committees and current revenues (pending the current success of the gaming floor), all are deciding factors to the level and speed of the design and construction,” Kulas says. “Indian gaming, however, sometimes has the advantage of being located in a unique geographical area that has less competition. There may be a less of a risk factor in the development of gaming institutions with remote locations being ‘the only game in town.’”

Seeing The Contrast

SOSH Architects, based in Atlantic City and New York, has worked in several Native American hospitality projects in the Northeast, Southwest and Northwest. Its clients-served list reads like a who’s-who in Indian Country: the Mohegan Tribe and the Mashantucket Pequot Tribal Nation in Connecticut; the Seneca Nation of Indians in Buffalo and Niagara Falls; the Seminole Nation of Indians in Florida; the Cabazon Band of Mission Indians and the 29 Palms Band of Mission Indians, both in Palm Springs; the Cachil Dehe Band of Wintun Indians in Sacramento; the Gila River Indian Community in Phoenix.

Partner Tom O’Connor sees many examples of the three major tribal design philosophies.

 “Any differences that exist between tribal and non-tribal design are as much related to the story that is being told by the project as they are tied into the differences between corporate and tribal owners,” he says.

“Clients usually want a design to express specific goals that relate either to brand, culture, customer or locale; and often it’s a combination of these factors. We also see tribes play against type, by requesting their cultural history not be the defining element.

“Finally, there has been such an integration of non-tribal executives into tribal gaming positions that the lines have been further blurred between tribal and non-tribal gaming design goals.”

Ongoing or recently completed projects for SOSH include Revel in Atlantic City, premiering in May 2012; several projects for the Seminole Hard Rock Casinos; the Town Center at Fantasy Spring Golf Resort; and Spotlight 29 Casino Resort Expansion in California. The success of the Spotlight 29 Casino and the collaboration that resulted in the property’s stunning design produced a Sarno Awards first prize for casino design in 2007.

Interbrief.org

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The Online Quandary

Even if there were no tribes in the United States, adopting appropriate legal rules for internet gambling would still be a difficult endeavor. To begin with, the major problem is distributing power between the federal and state governments. Although there are a few helpful guideposts for resolving the issue, for the most part it is completely unsettled legal territory.

The 50 state legislatures have traditionally enjoyed a constitutional right to make and enforce their own laws for gambling that takes place within their territory, and none of the states do so in precisely the same way. Nevada, for example, has authorized literally hundreds of gaming operators in its territory. Twenty-one other states also license and regulate casinos, but unlike Nevada, most states (except New Jersey and Mississippi) statutorily restrict the number of casinos to a small number.

Theoretically, the regulatory decisions of each state should be based on its citizens’ value judgments about the appropriateness of gambling in their communities. And a significant factor in making these decisions is the recognition that gambling is a unique sort of activity which creates no product of tangible value, but nonetheless can exert great social costs on the community, including addiction and crime, if not managed properly.

The state legislatures should maintain control over these decisions even when gambling takes place on the internet rather than in brick-and-mortar casinos. States like Utah might very well always continue to insist that all gambling be prohibited in their territory. But more importantly, among the states that will dare to allow gambling on the internet, there will be differences in terms of precisely how it should be regulated.

For example, states may disagree on what sort of consumer safeguards, such as betting limits and advertising restrictions,

will be necessary to protect communities from the social costs

of gambling. Other substantial considerations include how

many and what type of entities should be permitted to operate gambling on the internet, and what sort of tax rate will be acceptable.

Furthermore, these decisions will be influenced heavily by circumstances that are unique to each state. The presence of organizations with vested interests in the decisions, such as gambling companies and other informed groups, will be particularly important to the process. In 28 of the states, this includes Indian tribes.

Power Struggle

The unique status of tribes compounds the crisis of distributing power between the federal and state governments. Legally, tribes resemble states in important ways. Tribes generally enjoy the freedom to make and enforce their own laws, even if those laws differ from the laws of the state in which the tribe is located. But there are also important ways in which tribes are very different from states.

Tribes began experimenting with gambling in the late 1970s with games of bingo. Although the game of bingo was legal in the states in which the tribes who ran the games were located, the tribes did not completely comply with the laws of the states. For example, some of the tribes operated games for higher stakes than would otherwise be permitted by the states. Over time, some of the tribes grew bolder with regard to the wagering opportunities they provided on their territory.

From the states’ perspective, oversight over Indian gaming was essential because the great majority of customers were citizens of the states, which meant that the great majority of the social costs of gambling were absorbed by the states. Meanwhile, the tribes incurred few of the social costs of gambling and delivered no tax revenue to the states to justify or offset those costs.

A series of conflicts between states and tribes culminated in 1987 with the U.S. Supreme Court case California v. Cabazon Band of Mission Indians. In deciding the Cabazon case, the Supreme Court relied on an earlier case which held that the states have no power to apply gambling regulations to the tribes. The court noted, however, that the states could obtain the power to impose regulations on the tribes if the U.S. Congress were to delegate the necessary power to the states. The reason for this is that the U.S. Constitution empowers the federal government rather than the states with authority to enter legal relations with the tribes.

The logical result is that the states only have power to interact with tribes to the degree that Congress has delegated its own power to the states. Hence, the court ruled in favor of the Cabazon tribe because Congress had not delegated power to the states to administer gambling regulations on the tribes.

And so, one year later, as an immediate reaction to the Cabazon case, Congress enacted the National Indian Gaming Regulatory Act of 1988 as a means of delegating some of its power to the states. The statute was enacted as an attempt to

balance the states’ interest in controlling the social costs of

gambling against the tribes’ rights to sovereignty and economic development.

Internet Grounds

Today, Indian gaming is a $26.5 billion-per-year industry, regulated every bit as thoroughly as the state-licensed commercial casino industry. Overall, 237

tribes operate 442 casinos of varying sizes within 28 of the states.

Refusing to allow tribes to participate in internet gambling is not likely to severely harm their land-based establishments or the jobs they support. After all, internet gambling has already been flourishing in America despite its official prohibition. Simply introducing new state-approved operators into the market therefore seems unlikely to dramatically shift action away from Indian casinos.

But then again, since legislation on average will make it easier for Americans to establish accounts with internet operators and to feel safer about the funds they deposit, then the amount of wagering on the internet is likely to increase, so in that regard, there is a real chance that some dollars that might otherwise have been spent on Indian gaming will instead be spent on the internet. But there is also the chance that legalization of internet gambling could stimulate more land-based gaming as well. For many players, the internet is a way to practice, but it cannot replicate the thrill of playing and socializing at a casino.

The real question is not whether tribes will be hurt if they cannot compete, but rather whether they are entitled to compete on the internet with operators in the states. Of course, tribes already do possess the power to license and regulate internet gambling, but because of their small populations, the benefit of doing so is not very attractive unless they can reach outside their territory and into the states.

In some cases, there are compelling reasons why a state should select a tribal operator to become one of the state’s licensed internet operators. In Connecticut, for example, there are two large tribal casinos but no state-licensed casinos. These two casinos can therefore present a good case that they are the most competent prospective operators because of their already-existing relationship with the state and its citizens.

Meanwhile, in California, a coalition of 29 tribal poker operators has banded together for the purposes of competing for one single operating license in the state. Of course, if any of these tribes were to obtain licenses, they would be expected to deliver tax revenue to the state.

The few examples of legislation that has been introduced so far in the states generally give preference to entities that are already located within a state. Nevada’s interactive gaming statute, for example, only allows an entity to apply for a license if the entity is a “resort hotel” that already possesses a non-restricted gaming license. However, there really is no particular reason grounded in law why a state must prefer to award licenses to entities that already have a presence in the state.

If an entity from another state or tribe or country is a better candidate, then it would probably be in the state’s best interest to select that other entity rather than a local one, provided the foreign entity establishes necessary connections in the state. Hence, there is no legal reason why the coalition of California tribes should be barred from applying for a license in another state if they can show they are the most suitable operator and are willing to establish necessary connections in the state.


Jump In The Pool

While states may be perfectly capable of conducting their internet gaming markets in isolation, the ability to pool players together from multiple states presents the opportunity for better multi-player games such as poker and hence the potential for higher revenue. One way this could happen is through negotiated state-to-state and state-to-tribe agreements. Another way is through an enactment of Congress establishing minimum standards for participation in an interstate network.

In the event a federal statute were to be enacted, the fair and easy solution would be to permit tribes to participate in the interstate network to the same degree that the states and their operators can. In that scenario, tribal regulators would be permitted to license and regulate their own operators in conformity with the minimum standards of the federal statute.

Certain federal legislators already seem poised to make sure that Indian gaming interests are an active part of the discussion and will be dealt with fairly by any prospective federal legislation. The leaders of both committees who have conducted hearings on internet gambling—Rep. Mary Bono Mack of the House Subcommittee on Commerce, Manufacturing and Trade; and Senator Daniel Akaka of the Senate Committee on Indian Affairs—insist this must be the case.

Incidentally, the one already-existing federal agency with any experience regulating gambling is the National Indian Gaming Commission, which was created pursuant to the federal Indian Gaming Regulatory Act. The agency currently shares the responsibility of overseeing gaming on tribal land with regulatory bodies local to the tribe.

If the federal government is to assume new duties with regard to gambling on the internet, it might make good sense to delegate those duties to the agency that already has relevant experience. And based on its purpose and experience, there is good reason to believe the agency would make a fair guardian of tribal rights to participate.