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Cuningham Group Architecture

Cuningham Group Architecture, Inc. exists to create beautiful places for a balanced world. Simple and eloquent, the statement embodies its passion for design and its impact on clients, communities and the world.

Founded in 1968, the full-service design firm provides architecture, interior design and planning services for a diverse mix of client and project types, with significant focus over the last 25 years on gaming and entertainment. More than 300 employees in Minneapolis, Los Angeles, Las Vegas, Biloxi, Denver, San Diego, Phoenix, Seoul and Beijing provide the resources necessary to explore new ways of solving clients’ problems with dynamic and innovative design solutions that add value and advance the art of entertainment design.

The firm’s world-class portfolio—covering the spectrum from small, delicate spaces to complex, expansive projects—includes casinos, hotels, theaters, convention centers, restaurants, retail venues, master plans and support facilities for gaming and resort destinations throughout the U.S. and around the world. 

As leaders in contemporary Native American design, Cuningham Group understands the importance of culturally relevant design and the central issues involved in the development of tribal casino resort projects. Native authorship, culturally specific references and tribal community involvement in design help fulfill tribal self-determination and sovereignty goals by allowing tribes to control and shape the future of their communities from a truly native perspective.

Cuningham Group helps clients determine an appropriate design expression that achieves these goals while balancing cultural, social and economic priorities.

Cuningham Group also is on the cutting edge of imaging “casinos of the future.” Shifting demographics and the younger generation’s desire for experiences that are personal, mobile and social are the challenge—and ultimately, the opportunity—facing the future of games and the facilities that house them.

Backed by a client-centered, collaborative approach called “Every Building Tells a Story,” Cuningham Group challenges clients to embrace brick-and-mortar changes that support the evolving nature of gaming and its customer base while setting new standards for the future of entertainment. 

Recent projects include the LEED Gold, 19-story hotel for Potawatomi Hotel & Casino in Milwaukee; the newly opened Harrah’s Cherokee Valley River Casino & Hotel in North Carolina; the renovation and expansion at Little River Casino Resort in Manistee, Michigan; and the new Rhythm City Casino in Davenport, Iowa, opening in mid-2016.

For more information, visit cuningham.com.

DIY Nightmares

So you think you can build or renovate your hotel casino with your in-house construction and purchasing departments? Think again.

I have been building hotel and casino projects as an owner’s project manager and purchasing agent for over 40 years. As CEO of PMI for 20 years, we have provided over $2 billion dollars of FF&E procurement services to hotels, casinos and tribal casino properties. I have seen every type of project management and project type one can imagine for casino hotel renovations, additions and new construction.

I can tell you there is a right way to do it and a way to make your life miserable during construction or renovation of projects that need to be completed on time and on budget.

You can hire the best designers, best architects, best contractors, and best FF&E procurement agents in the world for your project, but if you do not manage them properly, you will end up with disappointment. When I say disappointment, I mean projects that are way over budget, way past schedule and an end product that is substandard because the contractors and FF&E vendors were not given enough time to build a quality product.

Every project large or small needs a dedicated development owner’s representative that has a successful casino/hotel track record. These folks are not contractors from the past or pedigreed from a university with a BS in construction management. The true owner’s representative is someone with years of experience working either for a large gaming/hotel company design and construction department or running hotel/casino projects directly for the owner.

The worst projects we have been involved with are those where the owner of the property has put an on-property person in charge. Typically, that would mean an in-house engineer, purchasing agent, construction manager or other executive. The same goes for corporate asset managers, financial executives and operations staff. The problem arises because typically those people, who may be excellent at their jobs, do not have development experience and/or are not 100 percent dedicated to the role of project manager.

The next worst project manager is one that has no experience in gaming, tribal projects or hotels. Each of these projects is very different than other types of development and construction. They are vastly more complex, and the downside of not opening or turning rooms back on time is exponentially larger than other types of assets. Without experience in this field, it is very hard for that project manager to see what needs to be done to have a successful project.

An experienced project manager will manage the expectations of the ownership, tribal council, operators and gaming executives as to the product that will be delivered, when it will be delivered and the cost of that product, before starting the project. They will also understand the needs of hotel management and casino management and integrate those needs into the design process.

Once the feasibility is complete, one of the main tasks of a good development project manager is to set the budgets for the design team and make sure they stick to designing to that budget. The next major task is to manage the delivery of documentation from the design team to the construction and purchasing teams in a timely manner.

At the same time, schedules for each phase of work need to be created and refined. Too many times we have seen projects where an inexperienced project manager or owner simply lets the professionals design without a budget or definitive direction. There is usually a big surprise when it gets costed out way over budget. If a redesign is required, you cannot make up the time in construction or purchasing.

The best project managers we work with are usually independent, and may even be a project management firm. They usually are small and only handle a couple of projects at a time. When working for a large casino/hotel development departments or large project management firms, many times there are too many politics and procedures that get in the way of efficiency at the project level. Casino hotel projects typically move too fast to have a bureaucracy managing the process.

In today’s hospitality market, the pace of new construction and renovation is fast and furious compared to our recent economic downturn. Many casino/hotel project managers left our business, so there are fewer project managers to choose from. Consequently we see asset managers, financial people and operations executives trying to fill the role of project manager. It simply does not work well, because most of them do not have the experience to manage these fast-paced, high-dollar projects.

So where do you find these project management experts? The best way to find them is to talk to your contractors, design firms and procurement professionals. They know who is experienced and who they can make money with by not having to do things twice. Call your competitors that just completed a project and ask how it went. When you interview the project managers, call their references. Ask them who was on their construction and design team, and call them too!

Finally, many owners feel that the cost of an owner’s representative or firm is too high. I would say the cost of not having a good owner’s representative is much more than the fees they charge. An owner should look at the fees like an insurance policy to make sure the project is on time and within budget.

Everi

Formed in late 2014 when two leading casino industry companies—Global Cash Access Inc. and Multimedia Games Inc.—joined forces, Everi is uniquely positioned to offer the latest in exciting gaming systems, efficient payments solutions and comprehensive compliance products to the casino floor.
   
Everi is set to showcase some of its best products at NIGA 2016, including Bonus Attack, the first exclusive Core HDX cabinet gaming title to feature Everi Bet, the CXC line of full service kiosks offering integrated cash handling solutions and Everi Compliance, the complete Title 31 solution for casinos.
     
Front and center on the gaming side is Everi’s newest gaming cabinet, Core HDX. This sophisticated and attractive cabinet boasts dual wide-screen 23-inch monitors with 1080p capabilities and integrated touch screens. The sound effects and music are enhanced with a premium three-way sound system that envelops players, making them feel like they are part of the game.
   
The five-reel, 40-line Bonus Attack game is the first exclusive Core HDX gaming title that includes Everi Bet, the unique bet configuration system that gives casino operators the power to optimize the casino floor for maximum returns.     
   
Additionally, at NIGA, Everi will debut High Voltage Blackout, the latest addition to the company’s successful High Voltage game series, on the Core HDX cabinet.
     
Everi’s popular Platinum MPX cabinet will return to NIGA this year with a new theme guaranteed to make a lasting impression—the Money Man Easy Street. The 40-inch monitor, custom 6.2-channel surround-sound system and integrated sound chair with Earthquake Shakers help bring the theme to life.
     
Carnival in Rio HD, the first gaming title developed out of Everi’s new Chicago studio, “will delight players,” the company said. The high-denomination version of this popular gaming title will draw in players who want a gaming experience that “brings the ultimate party atmosphere to the casino floor.”
     
On the payments side, Everi’s full-service CXC 4.0 SR and CXC 4.0 R kiosks will be showcased, both featuring high-resolution monitors, integrated touch screens and multiple TITO and bill interfaces. These kiosks come equipped with Everi’s patented 3-in-1 Rollover technology that allows patrons to easily turn an unsuccessful ATM transaction into a credit card advance or POS debit card transaction.
     
Everi also will show JackpotXchange at NIGA. This time-saving kiosk automates jackpot payments and reduces player and casino personnel wait times. JackpotXchange offers two payment options—cash or slot ticket—and allows players to print multiple tickets.
     
Everi Compliance offers a number of integrated solutions that allow casino operators to easily meet Title 31 regulatory requirements. This system has become the gold standard for anti-money laundering compliance across the gaming industry.
     
Everi’s core cash access solution, CashClub, gives operators a single, easy-to-use interface for processing credit/debit card transactions and check cashing. CashClub allows for electronic signature capture and dynamic currency conversion, and interfaces with several other Everi solutions such as the CashClub Wallet and Everi Compliance, to improve compliance with Title 31 requirements and expand player access to funds. Operators also can use their existing cage equipment with CashClub, eliminating the need for a separate, stand-alone terminal.
    
Also to be showcased at NIGA is Central Credit, the world’s leading gaming patron credit bureau that provides casino operators with a single point of access to millions of patrons’ gaming credit history and transaction data. Using a private data network, casinos looking to extend credit to players can improve their decisions by utilizing Central Credit to obtain Social Security number verification, credit reports and real-time market activity updates.
     
Combining decades of casino industry knowledge and experience with the ability to offer a complete suite of products that power the casino floor, Everi is focused on building momentum as the casino industry’s single-source provider of robust payments solutions, vital compliance offerings and engaging gaming machines.
    
Currently, Everi is responsible for more than 87 million casino transactions that  total over $22 billion and has slot machines in approximately 600 casinos across North America. Everi is a longtime partner of tribal casino properties across the country and is eager to unveil its latest games, payments solutions and compliance products at Booth 847 at NIGA 2016.
 
For more information, visit everi.com.

Tribal Momentum

Our nation is in the midst of a historic presidential election. Dozens of debates and the early primaries have made it clear that the 2016 election will be one of the most hotly contested, dramatic elections in our lifetimes.

To assess what’s at stake for Indian Country, we need only look to the accomplishments achieved on the federal level over the past seven years.

Since January 2009, the Obama administration has opened doors within the executive branch that were long closed to Indian Country. At the forefront of Indian Country’s progress is access to the White House. President Barack Obama opened his house by establishing the position of senior policy advisor for Native American affairs to directly report to the president.

President Obama has by far posted more natives to key decision-making positions within his administration than any prior president. He appointed the first-ever Native American solicitor of the Department of the Interior, the first female director of the Indian Health Service, the first female native chair of the National Indian Gaming Commission, and dozens of other Native Americans to serve in key positions throughout his administration.

Thanks to the president, tribal governments now have direct relationships with liaisons and “offices of tribal relations” within nearly every federal agency, from the Department of Agriculture to the Department of Veterans Affairs, all the way up to the White House. Tribal officials are to be credited for seeking out and working with their governmental counterparts in an administration that showed openness to education and respect for the government-to-government relationship with tribal nations.

This administration also is responsible for a number of major policy gains for Indian Country in the areas of health care, public safety, land acquisition, resource protection and much more. The president has worked to begin to reverse a public safety crisis on Indian lands by signing the Tribal Law and Order Act of 2010 and the Violence Against Women Act Reauthorization of 2013 into law.

His Department of Justice (DOJ) has worked with tribal justice officials to stop violence on Indian reservations at the local level, empowering America’s first peoples in the protection of their communities. Where federal prosecutions declined in past administrations, DOJ took great measures to investigate tragic crimes and bring justice to native people, allowing families to heal and communities to move forward.

The president also has worked to improve Indian health care, working to pass the 2010 Indian Health Care Improvement reauthorization. Thanks in large part to the budgets that he put forward—and the work of our champions of Indian Country in Congress who sit on the Interior Appropriations subcommittees—tribes have seen steady and significant increases in funding for critical services to native communities. When the president took office, the Indian Health Service was funded at $3.5 billion. As he enters the final year of his presidency, the IHS will be funded at nearly $5 billion in FY2016. A $1.5 billion increase, during a time when most federal programs are facing budget cuts, is nothing short of remarkable.

The president has also taken administrative action to reform Indian education, economic development, and the restoration of traditional Indian homelands to tribal government control. His administration, more than any other in the past, has worked to protect sites sacred to native people and provide access for religious practices on federal lands. Tribal leaders, be those on the ground in tribal government or those appointed to positions of importance, have fought to have many injustices made right in this historic administration. We applaud them for pushing for humanitarian solutions to age-old problems in Indian Country.

President Obama also has worked tirelessly to help right longstanding wrongs against tribes and individual tribal people. His administration negotiated settlements in decades-old lawsuits, including the $760 million settlement with Native American farmers and ranchers in the Keepseagle case. In December 2010, he signed the Claims Resolution Act into law, which includes the Cobell settlement and four water settlements, benefiting seven tribes in Arizona, Montana and New Mexico.

In addition, the administration recently reached a nearly $1 billion settlement in a decades-old contract support cost litigation to the benefit of hundreds of tribes. The administration also reached settlements with more than 40 other tribal governments in 2012, to compensate for more than a century of federal mismanagement of tribal resources.

Previous administrations either refused to admit fault or offered far below what equity demanded. These settlements bring long-needed justice to thousands of families and individuals throughout Indian Country. They help to begin rebuilding trust that had been fractured due to acrimonious negotiations in past administrations.

An official from the Justice Department summed up the importance of a recent settlement that applies to all of the agreements noted above:

“This agreement does more than simply resolve this pending litigation. It also is an embodiment of a stronger relationship between the United States and the sovereign tribal nations, a relationship that is stronger today than perhaps any time in history.”

In 2017, tribal governments nationwide will begin working with a new administration to institutionalize these historic policy gains.

Possibly more importantly, Indian Country will also work to ensure that these doors remain open by pressing candidates for president to make commitments that they will carry on—and build upon—these policy gains in the next administration. Tribal participation is essential to continued growth and success throughout Indian Country. This why it is imperative that Indian Country get out the native vote, surpassing historic levels in the 2016 election.

While several presidential candidates have made outreach efforts to earn the native vote, and some have even hired natives to help their campaigns, none of the top candidates has yet expressed a policy position in any of their electronic platforms addressing issues that impact Indian Country.

This, despite the fact that federal laws, regulations and court decisions significantly impact the lives of Indian reservation residents more than any other jurisdiction or group of people in the United States.

The first Americans were the last to be granted voting rights in the U.S. Without representation in Congress and without the right to vote, Native Americans suffered the devastating federal policies of removal, allotment and assimilation. These policies cost millions of American Indian lives, took hundreds of millions of acres of tribal homelands, and authorized the forced removal of Indian children from their homes and suppression of native language, culture and religion. With no right to vote, our ancestors fought—and many died—to protect tribal sovereignty and preserve our way of life.

In honoring their sacrifices, we must press presidential candidates in both parties for answers in advance of election day. Will they build upon the respect for the government-to-government relationship established by this administration? Will they appoint Native Americans to serve as decision-makers in their administration? Will they appoint justices to the Supreme Court and the federal bench who understand the federal government’s treaty and trust obligations? All of Indian Country must unite to educate candidates and demand answers.

At the same time, we must hold ourselves accountable. Tribal leaders and grassroots activists must encourage native communities nationwide to get out the native vote, participate in the federal election process, and make a positive impact on these elections. We must show our native vote in numbers that this country has never seen before so that we can continue to rebuild our communities.

No matter who is in the White House, our communities ultimately rely on their local leaders and those native professionals appointed to federal positions to carry on the gains that we have made through history in the protection of tribal sovereignty. The time to vote is now!

As chairman and spokesman for the National Indian Gaming Association, I will continue to work with our sister organizations and tribes nationwide to get out the native vote in 2016. To build on the extraordinary gains of the past seven years, we must continue the tireless work of educating all candidates for federal office about the government’s unique and solemn treaty and trust obligations to all of Indian Country.

Though many strides have been made, there is still a great deal of work to do. I challenge all of Indian Country to be involved in this presidential campaign, and most importantly to make your vote count in 2016.

Gaming Laboratories International

Gaming Laboratories International is dedicated to being the trusted global compliance and quality expert relied upon by its clients, delivering world-class customer service and unmatched value. The company has proudly partnered with tribes across North America for 26 years to provide certification and assessment services to their gaming operations.
   
GLI is a longtime supporter and advocate of tribal gaming and has been a proud associate member of the National Indian Gaming Association since 1999. Currently, GLI is the exclusive training provider for NIGA’s Level III Commissioner Training. As a sponsor of NIGA 2016, GLI will be on the floor in Booth 825.
     
More than 250 tribes rely on GLI for their testing and certification services, and of the 475 jurisdictions GLI tests worldwide, more than 130 trust GLI exclusively. GLI works hard to assist tribes in getting more from their experience with the company, and the company is dedicated to ensuring the highest levels of compliance. GLI is the recognized leader in Class II and Class III testing, ISS audits, IT and internet security assessments and on-site casino floor verification and inspection. GLI is an independent, impartial third party that doesn’t take sides.
     
The company also offers a complete set of value-added tools, such as GLiCloud, an award-winning, modern inventory management and tracking system; GLI Mobile; and GLIAccess.   
     
GLI has more than 850 employees worldwide, with specialized teams—such as engineering, mathematics and development—designed to provide personalized service. Beyond testing, GLI offers a wide range of professional services, including network security and internal system security audits, project management, regulation and responsible gaming assessment, quality assurance system testing and payment card industry compliance.
   
GLI also offers various field testing services, from gaming floor, online accounting and promotional system audits to kiosk and system verifications. The company is No. 1 in legal iGaming testing and certification as well. Since iGaming’s inception 21 years ago, GLI has been leading the way, testing and certifying products for legal iGaming jurisdictions and for new legal iGaming markets around the world.
     
To discover how GLI is so much more than just testing visit gaminglabs.com.

Underutilized Marketing Strategies

In a few markets, the competition for Native American casinos is from commercial casinos as well as other Native American casinos. In these markets (Florida, Michigan, Lousiana and Mississippi, to cite a few), it appears that the Native American casinos embrace the safe road by not taking full advantage of their unique protected positions.

Let’s consider the state sales tax from which most Native American enterprises are exempt when conducted on reservation land. Rather than wear a white hat claiming the obvious benefits to the patron, real and implied, of “a no-sales-tax zone,” they continue to charge the sales tax. Why? Because they can! Patrons are accustomed to paying the sales tax everywhere else in the immediate area.

A different descriptive term may be used, but the net result is a misrepresentation to the gaming patron. When discovered, the patrons feel duped and immediately become suspicious of all activities at the casino. What confidence should casino patrons have that the casino games they play are not misrepresented, if the operator misrepresents the alleged “tax?”

Transparency is a sound initial marketing strategy. The competitive commercial casinos are required by law to pay the sales tax. Sharing the Native Americans’ unique no-sales-tax benefit with gaming patrons goes far to build loyalty. Everyone enjoys minimizing taxes.

When positioned properly, patrons cite the sharing of this benefit as a motivating factor for casino selection. Inform the patron that there’s no sales tax, and besides increased loyalty from transparency, the casino will benefit when the patron has a bit more money to play in the casino.

The primary independent revenue source for a casino is gambling revenue. The more money patrons play, the greater the profit potential for the casino. Patrons are in a casino to gamble. Money is the measuring stick. The casino should encourage play by minimizing or eliminating unnecessary finance charges.

This particularly applies to ridiculously disproportionate fees for ATM, check cashing and other financial services. Patrons lament the $4 or more ATM fees the casino charges, which are further increased by the patrons’ bank charges. Fees are even greater for check cashing or cash advances. Virtually all patrons who use these financials services put the money immediately in play. So, why charge a fee?

The chief financial officers may view the fees as a significant revenue source, but the CFO is not a gambler. The CFO would never pay similar fees, and does not understand the frustration of the gaming patrons when forced to pay the fees.

The patrons judge the fees as just another way the casino seeks to minimize the patrons’ play time in the casino. Eliminating ATM fees and minimizing other financial fees significantly increases patron casino loyalty. If the CFO is concerned about too many patrons taking advantage of a “no fees” policy, then the program can be presented as an exclusive benefit to higher-tier, higher-value gaming patrons.

Now that we have two strategies to get more money to the gaming patrons, what can we do to improve the patrons’ overall casino experience? Patrons seek more play time in the casino. They seek new games that will give them the perception of more time.

Staying with the general transparency strategy, the casino should introduce new games in a fashion similar to automobiles.

Rather than a showroom of models from one manufacturer, offer the patrons the opportunity to play new games with their own money from multiple manufacturers in a separate, unique area before the games are placed on the general casino floor. There would be total disclosure describing the hold, the degree of volatility, what the patrons can expect in play, the wagering options and what to expect at each wagering option, as well as the bonus minimum and maximum sizes, to name a few. This would educate patrons, leading to a more satisfactory gambling experience. Barona Casino successfully employs a similar practice.

Gaming patrons have indicated time and again they seek to stay in play for their available or allotted time on their predetermined gambling budget.

While they appreciate promotional drawings, they dislike what they perceive as the disproportionate drawing prize sizes. This is particularly true where there is one large-size, say $10,000 prize, and 10 smaller prizes of $1,000 each. There is a far greater chance the patrons will play back the smaller amount as opposed to leaving the casino with the larger amounts to spend on other expenses. A sound marketing strategy is to learn from the patrons what motivates more and deliver the same.

A gaming-centric reward program featuring many relatively smaller prize sizes with heavy emphasis on individual customized rewards works well. Sure, patrons appreciate the food and hotel coupons, but if they have enough time to play in the casino they earn enough comp points to have comped food and comped hotel rooms. It is the play time they seek, and what the casino must deliver.

Gaming patrons have modest expectations, like more time on the machine and less strain on their gaming budget. They do not expect to win life-changing jackpots, or even IRS W2G jackpots. They seek escapism through active participation in casino games in a live casino environment.

The more gaming-centric opportunities—increased free play, hot seats, double prize periods—the casino can present to the patrons, the greater the win for both.

Identifying Gamesmanship

As chairman of the National Indian Gaming Commission—both in an acting capacity for 18 months and since my confirmation in April 2015, I have made protecting against anything that amounts to gamesmanship on the backs of tribes a top priority for the agency.

Simply put, our extraordinary team is focused on doing whatever we can within our authority to work with tribes and relevant partners to defend against any third-party threats to the tribes’ legally protected interests in their gaming operations. We recognize that gaming continues to be a critical economic engine for hundreds of native communities which simply seek to improve the lives and opportunities for their people.

Accordingly, we are solemnly committed to fulfilling our responsibility as regulators to serve as strong partners in protecting tribal assets and preserving the integrity of tribal gaming.

The Indian Gaming Regulatory Act (IGRA) was enacted to support and promote tribal economic development, self-sufficienc, and strong tribal governments through the operation of gaming on Indian lands. IGRA established the NIGC to regulate and support tribal gaming with authority to enforce IGRA to ensure its purposes are achieved. (See 25 U.S.C. § 2704.)

The NIGC is taking a targeted approach based on IGRA’s statutory requirements to ensure that tribes are truly the primary beneficiaries of their gaming enterprises by reducing gamesmanship in the Indian gaming industry and helping tribes develop ways to prevent gamesmanship before it occurs.

Gamesmanship in Indian gaming occurs when a non-tribal government interest manipulates business, professional and employment relationships associated with the Indian gaming operations to further its own interests at the expense of the tribal gaming operation and, therefore, the tribe and its people. Gamesmanship often results in the violation of IGRA, NIGC’s regulations, or the tribe’s gaming ordinance (and often other federal laws) and may include: managing an Indian gaming operation without an approved management contract, misuse of gaming revenue, a violation of the sole proprietary interest requirement, or all three.

Such gamesmanship is even more egregious when the parties engaging in said gamesmanship have undue influence over the tribal decision making process, as can be the case when the gamesmanship is facilitated by trusted tribal advisers.

Gamesmanship may manifest itself as a third-party entity managing a tribal gaming operation without an NIGC-approved management contract. This is often done through schemes offered as legal methods for achieving the same goal as a management agreement with less regulatory oversight.

By managing without an approved contract, third parties are able to avoid the protections that IGRA provides to tribes and tribal operations, through IGRA-required contract terms such as caps on the amount a manager can be paid, guarantee of dollars for the tribe, dispute resolution procedures and backgrounding of managers to ensure no corrupt influences exist. When gamesmanship is employed, one or all of these protections are missing from the arrangement, resulting in the third party entity taking more than the permitted 30-40 percent of revenues and denying the tribe the resources to which it is statutorily entitled.

Gamesmanship may also be employed to allow third parties to gain access to net revenues without management and can lead to the misuse of gaming revenues. Under the guise of providing services not related to the gaming activity (marketing, security, parking, financial), third parties have received unearned compensation, bonuses or premiums, based on percentages of net gaming revenues.  In those instances, the parties have found themselves violating IGRA’s limitations on the use of net revenues.

Unapproved management contracts and misuses of net revenue can happen simultaneously or individually, and can be so egregious that they are a violation of the sole proprietary interest requirement of IGRA. Gamesmanship often results in the non-tribal entities acquiring a substantial financial benefit for minimal input, indicating a proprietary interest.

Every approved tribal gaming ordinance must provide that the tribe will have sole proprietary interest and responsibility for the conduct of any gaming activity. Gamesmanship results in parties violating these gaming ordinance provisions and, in turn, IGRA’s requirement.

Gamesmanship is not always identified quickly and, unfortunately, tribes suffer the substantial consequences from gamesmanship. Not only can tribes be deprived of the fruits of their gaming, but may be subject to fines for failing to protect them. In one notable circumstance, the tribe received less than 30 percent of the net revenue from their facility, had a non-tribal entity owning and operating a gaming operation on their property, and was deprived of the ability to develop their own gaming operation.

NIGC is always mindful of the incredible work that tribes, as the primary regulators of Indian gaming, have done in building and protecting the industry, making it the success it is today. To that end, tribal leadership, gaming commissions and tribal employees are best situated to identify gamesmanship. The integrity of the industry is best protected when tribes avoid gamesmanship at the outset, before IGRA, NIGC regulations or tribal gaming ordinances have been violated.

Two ways tribes can prevent the most prevalent forms of gamesmanship is by having strong conflicts-of-interest statutes and ensuring that there is adequate supervision of all gaming operation employees, including management officials.

NIGC is committed and well-positioned to provide tribes and tribal regulators with robust assistance to prevent, and enforce against, gamesmanship and protect tribal assets. Together, the commission and tribes can work to prevent gamesmanship on the backs of tribes and to ensure that native communities are the primary beneficiaries of their gaming revenue.

Indian gaming’s continued economic success is dependent upon our mutual vigilance. Please do not hesitate to contact NIGC if you have concerns about third-party gamesmanship.  

The New Millennials

We’ve heard about millennials over the past year until that word has become odious. Yes, we understand that millennials are the future of the gaming industry, but since none of them are even 40 yet, I think it’s a bit premature to worry about whether they’re going to evolve into gamblers the same way their mothers, fathers, grandparents and great-grandparents did. After all, we’ve still got a relatively healthy and prosperous baby boomer generation to serve.
   
What isn’t premature about millennials, particularly in tribal gaming, is the transition of leadership from the first generation of tribal leaders to the next. And remember, the first generation were and have been incredible people—national leaders like Rick Hill and Tim Wapato; legal and legislative geniuses like Frank Ducheneaux and Sharon House; tribal leaders like Richard Milanovich and Marge Anderson. These people—and hundreds like them—established tribal government gaming, led it through the early tumultuous years, and brought it to the respectable, profitable business it is today that benefits all Native Americans and the communities in which it operates.
   
But what happens now? The transition to the second generation of leaders in tribal government gaming is just beginning. Over the past several years, I’ve met many people who would fit this description, Native Americans and casino executives who have come to realize that tribal gaming is the most fulfilling part of the casino industry.
   
And while I hesitate to compare them to the greats of Indian gaming, there are dozens of examples of young leaders learning to take over: Kevin Brown, the chairman of the Mohegan tribe in Connecticut; Richard Manuel, who is mentoring future leaders, and will soon take over as COO of the Gila River gaming operations; Kara Fox-LaRose, a Mohegan tribal member who was recently named the GM of the new Cowlitz casino resort in Washington; Cody Martinez, the new chairman of the Sycuan Band in San Diego; Angela Heikes, who will take over from the legendary Don Stevenson at Mystic Lake in Minnesota; Roman Carrillo, the GM at the Paiute Palace Casino in California; Shannon Keel, the CEO/general manager at the St. Regis Mohawks’ Akwesasne Casino Resort in New York; Joe Olujic, the COO of the Osage Casinos in Oklahoma; Crystal Janvier, who does research for the First Nations of Saskatchewan in Canada.
   
These are but a few of the great young leaders in Indian gaming who will inherit the mission begun by the first generation.
   
A few years ago I was doing a story about the expansion of Casino del Sol in Tucson, owned by the Pascua Yaqui Tribe. I was interviewing several of the tribal leaders, who were about my age (old), and they were telling me about their childhoods, with no electricity, running water or even a fourth wall on their houses. It seemed inconceivable that in this day and age, there were still people who had suffered those indignities. But these leaders had, as have thousands of other Native Americans across North America. And it was tribal government gaming that rescued them from that life.
   
The younger generation can listen to these stories, but can never experience that hardship, so will they ever understand how important tribal government gaming was and is to their tribes and their gaming operations? I believe they can, because if these leaders tell those stories with the passion and the courage that I heard from the leaders of the Pascua Yaqui, you can’t help but be moved.
   
The younger generation has the advantage of education, the business history, and frankly, the creature comforts that gaming allows us all to enjoy. They have the ability to advance tribal gaming to the next level if they think about the future and why gaming is crucial to the survival of the tribe-owners of the gaming enterprises.
   
But it’s up to the first generation to spread the story—good or bad—and explain what the stakes were in the beginning and why those stakes haven’t really changed. Tell them your most difficult experiences, your darkest times, and then reveal to them how it takes a community to build a gaming operation that works for everyone.
   
I am confident that tribal gaming will survive and thrive, so passing the torch to our new leaders is the most important thing that the originators of tribal government gaming can do. 

Working Free Play

The Sycuan Institute on Tribal Gaming is dedicated to producing research that is responsive to ongoing tribal public policy needs while also launching a new body of work analyzing tribal casino operations management practices.

Because tribal gaming revenues are directed toward improving tribes’ social and economic welfare, it is critical for tribal budgets that tribal casinos are operated with maximum efficiency. Any dollar wasted on flawed marketing strategies, for example, is a dollar that could have been invested in tribal scholarships, health care or housing.

Consistent with the requirements of the Indian Gaming Regulatory Act, tribal governments are investing gaming revenues into a variety of tribal programs and services (health, law enforcement and education, to name a few) and promoting economic diversification, among other endeavors. As such, inefficient or wasteful tribal casino management, whether a result of ignorance or apathy, impacts tribal lives directly.

The net gaming revenues available for tribal government investment vary considerably across the United States. Tribal government gaming facilities closer to larger gaming markets logically produce more revenues for investment and recovery.

Until recently, most research directed at tribal economic and social recovery from gaming has focused on tribal governments’ uses of revenues after they have been transferred to the tribal government. However, tribal casino management and marketing practices also play a significant role in how much money ultimately flows to tribal communities.

One of the biggest investments by tribal casinos, free play, is a meaningful place to start evaluating casino performance.

Free-play (FP) awards have been established as a critical and costly play incentive in most U.S. casinos, and tribal government casino marketing reflects that trend largely through the long-term practice of importing casino executives from existing markets. In spite of their industry-wide popularity and the considerable cost of these offers, however, little is known about their effect on customer behavior, especially in tribal government-owned gaming facilities.

The Sycuan Institute recently funded and completed an analysis of the differential impacts of discretionary FP (DFP) and earned FP (EFP) in two tribal properties as a way to test the assumption that free-play offers will stimulate increased spend per trip. Specifically, tribal casino marketers must know whether and to what extent FP redeemers gamble with their own bankroll.

Two tribal gaming properties, named Resort A and Resort B to protect their identities, shared detailed marketing data to allow for our analysis. Like many casinos, these properties relied heavily upon slot revenues and operated in competitive markets where other properties were offering similar FP programs.

The model used for analysis was originally developed to analyze FP performance in non-tribal properties and had consistently revealed that FP generally underperformed relative to the assumptions of management. Importantly, the tribal property called Resort B shows outstanding performance on FP relative to all other properties tested to date, demonstrating that FP can perform as intended if it is tailored to the market.

(The full results of the study are available from the authors and will be published in an academic journal in 2016.)

For Resort A, one dollar increase in DFP resulted in a $11.75 increase in coin-in. EFP also produced a positive and statistically significant effect at Resort A. Resort B also showed a positive result.

At first blush, these results suggest that the free-play program is a huge success. However, once the costs associated with implementing the DFP program are considered, the resulting analysis of Resort A’s success suggests that the incremental win (i.e., revenue) associated with DFP redemption is insufficient to cover the offer costs.

Computing the incremental revenue associated with DFP redemption demonstrates that Resort A had to invest $1 in DFP to produce an incremental win of 88 cents. This suggests that for every one dollar of DFP redeemed in Resort A, management can expect to see an 880cent -increase in carded win, the equivalent of exchanging $1 for $0.88.

Additionally, there are many other operating and LP program costs to cover, aside from the direct offer costs. This result for Resort A suggests that management should to take a critical look at the DFP program. (It certainly does not mean that DFP is not a viable option for the LP, it simply suggests that revisions to the offer process should be seriously considered.)

For Resort B, a $1 increase in DFP resulted in a $24.27 increase in coin-in, which ultimately translated into $1.64 of incremental win. That is, for every FP dollar redeemed in Resort B, management can expect to see a $1.64 increase in carded win.

Although much more favorable than Resort A’s result, again, there are other operating and LP costs to cover. Still, this outcome is more encouraging with respect to the efficacy of Resort B’s current DFP program. While differences in resort-level results are to be expected, it is worth noting that Resort B’s investment level in DFP appears lower than that of Resort A. For example, Resort B redeemed 9 percent of its theoretical win in DFP, while Resort A redeemed 11.7 percent of its theoretical win in DFP. While this correlation does not provide a definitive explanation, Resort B’s superior result could be due in part to a more restrictive DFP offer protocol, indicating that less may be more.

Diversity by Design

Tribal gaming reveals a compelling ascent.

Operators have authored a carefully sculpted, sometimes frenetic path to prominence. Despite rising competition and volatile economic cycles over the past three decades, tribes own a market share approaching $30 billion. Sovereign ideals, design excellence and careful planning have fueled gaming growth.

Three distinct eras, marked by a delicate juggling of business and cultural expression interests, have occurred since the 1988 Indian Gaming Regulatory Act enabled tribes to run casinos. It began simply with people flocking to properties, practically sight unseen, in the tribal equivalent of Field of Dreams: If one built it, people came, sprinting.

 Design standards rose during the amenity-filled 1990s, gaming’s second market phase. Patrons could not simply be hosted. They would be wined, dined and wooed via comps, nightclubs and special events. Market saturation began forcing  the need for engagement.

 In the modern realm, age-group considerations gain more clout. Social media has produced young gamers with apps, phones and touch-screen speed-of-play.

Tribes embrace these factors to script their gaming presentation, from building size to design, as stakes rise. It was one matter for operators to build structures. Yet in a market replete with small properties and monoliths like Foxwoods, Mohegan Sun and WinStar (the nation’s largest casino in gaming-floor space), the trick is to keep them up. Tribes must know their message, their market and themselves.

Well-known architects and designers help sculpt the product. They blend natural elements, state-of-the-art materials and the wishes of tribal officials into buildings that reflects a property’s identity. Competition increases, but so do the tools of construction.

It’s been some ride.

Every Era Has A Theme

Minnesota-based Cuningham Group capitalized on the advent of tribal gaming. Since the late 1980s, it has produced projects of all sizes for its clients. Cuningham received several awards for an expansion project at Cherokee, N.C., which entailed more than half a billion dollars.

Tom Hoskens, Cuningham partner and vice president, witnessed the entire tribal architectural story.

“We were in at the beginning, and the first structures we did were, shall we say, a decorative box,” Hoskens recalls. “It was very simple. You had the option to create a signature porte cochere, because many of our properties were on the prairie. A large porte cochere could be something that popped up in the landscape and brought people there.

“That was the standard. Let the porte cochere make the statement. You could put some of these buildings up in six to nine months, which was very important. Back then, the whole idea was to get one up quickly. The faster you got open, the more money you made. Gaming was taking the country by storm. You had to get in the game as quickly as possible.”

Inside? Stick to a main gaming floor, restaurant and bar. Gambling drew people, food kept them on premises and time-on-device, a term that would later become significant in the gaming world, was still a loosely configured idea.

As the initial phase waned, mid-era tribal design sought staying power. Operators lured overnight patrons by creating a destination resort rather than  a day-trip market. Amenities gained significance, from convention space and nightclubs to 24-hour food courts and gourmet restaurants.

From an architectural standpoint, the challenge was bringing it together.

“When you stay at a non-gaming hotel, you want to be near the checkout when you come down the elevator,” Hoskens says. “At a casino property, you are hopefully going to see the gaming floor. We developed a philosophy during that era and trademarked the term ‘Every building tells a story.’ You can give the property a look, feel and sound that is only part of that community. We discussed this with tribal leaders and created something they wanted.”

It bore fruit with varied levels of creativity. The Harrah’s Cherokee property in North Carolina, for instance, became  draped in architectural symbolism.

“We took the layers of curve in the Great Smoky Mountains (where the property sits) and curved the rooftops,” Hoskens remembers. “The Cherokee also has seven clans. We have seven waterfalls coming off the porte cochere to symbolically represent that. That can be a metaphor for them.

“The main pathway of the casino has a series of curved, linear light elements throughout. The curved  LED lights meander through the casino above the path. Adjacent to those lights are beads that are strung down. We shine lights on the beads. The lights move on the beads and the flicker of energy represents the wind (movement of light) and the wisp, two elements highly thought of by tribal leaders.”

The newest  era incorporates a budding age group. Millennials become an increasingly high priority. Architects debate what forum to give people who like playing socially, against one another, rather than against the house. Gen-X lounges become a premier consideration for this group.

And then there’s nature.

Because of technological advancements and people spending more time inside buildings and cars, it is argued that the lack of biophilic activities strengthens the disconnect of humans from nature. A smart gaming design can address that.

“Many of our casinos are in gorgeous settings,” Hosken says, “allowing us to open the windows and have glass going through. This helps bring the nature inside. If you can create a facility with natural light and natural views, people will stay longer and play longer. Some casinos that don’t have that natural advantage have gone as far as to create monitors that show waterfalls and forests.”

Variations on Tribal Themes

Chief Boyd, a Cherokee tribal member with more than 50 years architectural experience, revels in the tribal design evolution. Thalden Boyd Emery’s CEO began working on bingo halls for his tribe in the 1960s. What transpired over the years astounds him.

“What excites me about Indian gaming is how the tribes are receiving the economic impact,” says Boyd, whose company is based in Tulsa, Oklahoma and has a long relationship with tribal properties. “They are getting money for which they can decide what to do. If you gain money from the federal government, for instance, you are told that you have to spend it on this or that.

“You also have to lobby and fight for that money by going through so many regulatory hoops. As a taxpayer, I understand that, but by the same token, it is wonderful to make money that you can decide how to use, say to build roads, improve water systems, build hospitals and clinics, etc..”

He cites $2 million the Cherokee Nation donated to public schools a few years ago. “It is wonderful to see what  the tribes have accomplished; it’s dramatically different from the past,” he says. “It’s mind boggling.”

The reasons vary. Boyd advocates a mix of pragmatism and gaming savvy to complement cultural pride for the tribes. Each  places its own level of cultural expression into the gaming mix.

“Some want the display to be in an area like a museum,” Boyd says. “Some want the overall structure to have a contemporary Las Vegas look. Some want it very tribal. That’s their decision.”

And it’s not an easy one. Tribal entities must balance the interests of cultural expression with the modern-day need to battle nearby properties.

“You are first trying to determine  how to draw the gamer, get that person excited about the facility,” Boyd indicates. “You give them all the amenities they want from a property. Another aspect to consider is the tribal members themselves. You want them to believe that it’s not just a casino that draws customers, but that it is their casino. When a Cherokee tribal member sees all the Cherokee motifs out there, that’s a real positive for that person.”

The Buffalo Thunder casino near Santa Fe, New Mexico  made such a declaration of heritage. It is operated by the Pueblo of Pojoaque organization and oozes the Pueblo theme, Boyd says. The front entrance is guarded by a fierce bronze dancer. The property contains artwork from every Native American tribe in New Mexico. Pueblo influence comes from the hotel rooms, floor, wall and glass patterns, along with the furniture.

“They spent a fortune on it,” says Boyd, whose company worked on the project.

While expression is one consideration, the bottom line is a different area to tribal officials. When the amenity-filled “middle ages” era emerged,  concert halls, nightclubs and restaurants became high-profile investments. That idea became standard.

Yet the low-profile investments  have long bolstered revenue, Boyd contends.

“We  like to go after what we would call the low-hanging fruit,” Boyd says. “Parking garages have been an excellent return on investment for the tribes. Nearly everybody  thinks it’s the price of land and the real estate value that will ultimately reward you, and I understand that. But a parking garage will pay off in less than two years. What’s wrong with that?”

Boyd considers movie theaters another strong revenue source. Build it once, recoup the money and receive several methods of return. One, charge for the movies. Two, provide a theater where one family member can drop off children or grandchildren while parents gamble. It is more attractive to them than simply hiring a babysitter, and will likely produce a post-gambling family activity like dinner.

Tribal Story a Bestseller

Memphis-based Hnedak Bobo Group  has authored a success story along with Native American clients for many years.

“Indian Gaming has come a long way,” principal  Dike Bacon asserts. “It’s a great story. Who would have guessed tiny casinos in smoky block buildings and Sprung structures called ‘bubbles’ would grow into a $28 billion industry?

“In the early days, customers were convenience gamblers with minimal expectations and even fewer demands. Nobody stayed overnight because there were no hotels. Nobody wrote critiques on the internet.”

It evolved into something more definitive, he says. Gamblers became gamers, the gamers became guests and “guest experience” entered the vocabulary during the second wave of tribal gaming design. It was the Roaring ’90s. Even during the mid-phase of tribal design, when consumer demands grew, companies could stay on top of it, according to Bacon.

“Customers became internet-savvy and expectations grew for things like better food and something called customer service,” Bacon recalls. “Databases were established and the demands for consistency and quality had a platform. Times were great. Growth was exponential. It was easy to be successful. The industry in those days was in large part ‘reactive’—simply give the customers what they want and they’ll keep coming back. Everybody won.”

That is, until the Great Recession flipped the scoreboard. Stock portfolios nosedived throughout the world. Real estate values  plummeted. Homeowners were upside down and confidence waned. The casinos which streamlined emerged the strongest, and now their lessons, combined with updated technology and consumer needs for “new,” influence planning. Properties must present an updated feel without overreaching.

“As the customer continues to evolve and age out, gambling  and spending habits will keep changing,” Bacon says. “Trends like experiential travel, luxury, and culinary diversity will become more prevalent. The proper and respectful incorporation of unique Indian culture and context will continue to be distinct differentiators. Non-gaming amenities will be a substantial growth engine, and expectations of higher quality and quantity will continue to rise. Lower price point but higher quality, chef- driven fast casual and food hall concepts will influence new F&B venues.”

These, and other trends, present a conclusion to Bacon.

“This,” he asserts, “is how Indian gaming will continue to be a great story. ”  

Seminole Surge

Las Vegas-based Cleo Design has enjoyed a strong relationship with the Seminole Tribe of Florida for the past 16 years. Ken Kulas, who co-founded the company with Ann Fleming, smiles as he recounts its origin.

“Seminole Bingo,” as South Floridians dubbed the operation that pre-dated casino gaming, was already a hit when Kulas and Fleming met with tribal officials in 2000. It would become something  more.

“We were escorted to a tiny single-story existing bingo parlor,” Kulas remembers. “We studied the existing design, knowing it was personal to the Seminoles, and we wanted to embrace the essence of the Native American tribe. The bingo room was to be relocated. Ann and I, along with others, were introduced to the new brand, a joint venture with Hard Rock Inc.

“The tribal members were gracious and humble, but they also knew something incredible was about to happen in their future.”

It did. Seminole Bingo would soon surge beyond the parlor era.

Visionaries saw growth potential via the expansion of gaming licenses. A megaresort was conceived to give Indian gaming a new definition. Amenities, gaming, guest rooms and design materialized.

By 2001, a master plan of what would become the famous Hard Rock was under way.

As tribal gaming moved forward, so did the debate over cultural expression. Proponents both for making it subtle and making it loud made good points.

“The design process is unique to each tribe,” Kulas says. “In the mid 2000s, most consuls and tribal leaders looked for an influence to the design that was special and relative to the specific tribe. The patterns in casino carpet or a decorative chandelier might have had a suggestive design element that was filled with pride and regional references. Indian gaming facilities all over the country began to adopt the formula.”

Just as Las Vegas found a competitor in Atlantic City, the gaming industry at large had to respect the tribal presence, he says. The modern Native American casino may ask its  design team for a “Vegas-style” casino, but that term could also mean a high-level tribal casino, Kulas indicates.

“In the current day, you still see a very hands-on approach to casino development by a select group of tribes, but the trend to outsource the development process to professional teams specializing in achieving the tribes maximum potential is becoming more common,” Kulas contends. “This allows more focus and funds to be on tribal wellness centers, education, and the preservation of historical teachings and artifacts.”

What lessons has he drawn from watching this evolution?

“Our involvement shows us that when a tribal consul is still a contributing force to the development of the gaming resort, that sense of family is still very much visible, as in the days of the beginning Native American bingo parlors.” Kulas says.

Seeing Similar Paths

YWS Design & Architecture is an international design firm specializing in leisure environments in hospitality, gaming, retail, dining and entertainment. Founded in 2001, it has offices in Las Vegas and Singapore, strategically located in the world’s leisure and entertainment markets. The company also has been active in the tribal gaming world.

One of its most recent projects includes the Sandia Resort and Casino in Albuquerque, New Mexico. It has led a massive expansion of a distinctly New Mexican resort into a regional hot spot for the Sandia Pueblo Tribe. An ethereal spa experience starts the transformation. The earth is reflected in sandstone walls and the sky is reflected via dramatic skylights. It is situated at the base of the Sandia Mountains with expansive views of the river valley below.

Mike Stewart, the global director of design for YWS, believes the tribal ascent mirrors that of its non-tribal cohorts over the past three decades.

“I think this is how the majority, if not all, gaming markets evolved, including Las Vegas and Macau,” he says. “Las Vegas developed before other markets by taking large-scale risks in an effort to reinvent itself and increase the size of its market. Macau is in a similar position to Indian gaming, as they’re looking for the right combination of amenities to attract new customers while retaining their existing ones. That being said, other markets throughout the U.S. should continue to reinvent themselves as well, but not necessarily on that large scale.”

While there is no model for cultural expression, Stewart’s  company has gained mileage from subtle implementation.

“I think this is really up to the tribe,” Stewart acknowledges. “Some of our clients don’t want their culture on display, while others do. We typically like to infuse the design with a story that is reflective of the culture in subtle ways.

“For example, using inspiration from indigenous materials, natural landscape formations, cultural stories, etc. but incorporating it without being blatant or obvious about it. This allows the tribe and the operators to feel a connection with the property beyond its functional use and promotes communication with customers explaining how the design reflects important elements of the tribe’s story and culture.

As for the future,  Stewart believes tribal officials must remain visionaries, regardless of their ties to history.

“Existing Indian casinos are going to need to compete as integrated multi-use venues by including retail, more competitive and desirable food and beverage offerings, and compelling entertainment and hospitality venues,” he says. “It’s important that they do this in a way that is brand-appropriate, market-relevant and in a way that allows their customers in these different venues to interact and react with each other.”

And so it evolves. Tribal gaming design will continue to entice architects and designers, working within tribal parameters.

Their ideal scenario involves working with small decision-making bodies authorized to honor tribal wishes but operating apart from cyclical events like council elections. That creates faster project completion in an age of intense competition.

It will be interesting to see how that dynamic unfolds.

And when the next era of tribal architecture takes off.