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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.  

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.

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.

Tribal Expansion: Nooks and Crannies?

There has been much talk regarding growth in Native American country, especially since the Indian Gaming Act of 1988 moved the gaming industry to the forefront of tribal development. The expansion of commercial and tribal gaming in recent years, however, has led many to believe the gaming industry in North America has reached its saturation level, leading tribes to seek more creative and out-of–the-box economic development strategies to safeguard their communities.

Still, several questions remain:

1) What could potentially be left in Native American development for gaming on new sites?

2) How can tribes continue to earn revenues should the gaming market indeed be saturated?

3) How is the Native American community responding to these factors?

Recognition Road

To address these questions, we looked to land determinations and the federal recognition process for tribes throughout the United States. As of the writing of this article, there are officially 567 tribes that have been federally recognized in the United States. This figure includes the most recent recognition of Virginia’s Pamunkey Indian Tribe on January 28.
According to the Office of Federal Acknowledgement (OFA), “Since 1978, 356 groups have stated their intent to seek acknowledgment through the administrative process. Of this number, 269 groups have submitted only letters of intent or partially documented petitions, and are not ready for evaluation. The remaining 87 have submitted completed petitions. Of this number, the Department has resolved 55 and 19 have been resolved by Congress or through other means.”

The current OFA workload consists of three petitions under active consideration, while 11 petitions are ready and waiting for active consideration. That still leaves nearly 270 tribes that have submitted letters of intent or have petitioned to be federally recognized that have yet to move forward.

The recognition process itself is cumbersome and considered by many to be a somewhat broken process. The process is arduous, costly and can take decades to complete. This was illustrated most recently by Shinnecock Indian Nation, who petitioned in 1978 and didn’t receive recognition until 2010, 32 years and over $30 million later.

It would seem for a tribe that has existed for centuries on the coastal lands of Long Island, the process would have been easier for the Shinnecock tribe, but due to the labored process and lack of sufficient personnel to authenticate the records, the process took much longer than it should have, and at a greater cost.

For a tribe to be federally recognized, it must essentially provide proof of the following criteria:

1) They can be continuously identified as an American Indian body since 1900.

2) They existed as a distinct community and maintained political influence over their members since historical times.

3) They provided governing documents describing their governance procedures and membership criteria;

4) They provided a list of their current members who descend from a historical Indian tribe and who are not also members of another federally recognized tribe.

5) They have never been subject to congressional legislation that expressly terminated or forbade the federal relationship.

Many have identified the lack of personnel and tribal red tape as the greatest reasons for the delays, while others mention the opposition to tribal recognition by non-tribal and tribal people alike. It appears the main reason for tribal opposition is the desire to keep the pie smaller so as to maintain a larger cut of federal distributions for health care and other benefits.

This doesn’t bode well for the hundreds of tribes that can easily meet or exceed the requirements put forth by the OFA. As of September 29, 2015, there were 14 petitioners who have prepared the necessary documentation and are awaiting the chance to get their petitions processed.

Among these are three tribes with petitions in the process, including the Muscogee Nation of Florida, Piro/Manso/Tiwa Indian Tribe of the Pueblo of San Juan Guadalupe, and Fernandeno Tataviam Band of Mission Indians.

According to the OFA, “When resources become available to evaluate a new petition, OFA will begin its review of the petition on the top of this register. When OFA receives a new submission and finds that it meets the requirements for a documented petition, OFA will place the petition at the bottom of this register.” It is this process that keeps tribes waiting for decades for their chance to be recognized.

The ability for tribes to gain federal recognition remains critical for the future of tribal development. What is apparent is that once recognized, tribes will surely look into development. However, what form that development takes has begun to evolve.

The development of choice has historically been gaming, an industry in tribal country that began with bingo halls and flourished into full-scale Las Vegas-style destination resorts such as those seen at Pechanga, Foxwoods, Mohegan Sun, Sandia and Tulalip.

From 2001 to 2014, tribal gaming revenues grew by nearly 120 percent, outpacing commercial growth, which grew just over 40 percent over this period. In recent years that growth has slowed considerably, growing only 1.5 percent in 2014, following only 0.5 percent growth in 2013—despite the opening of 34 casinos over that two-year period.

That being said, the nation’s 459 tribal casinos in 28 states produced record high gaming revenues of $28.5 billion in 2014, marking its fifth year of consecutive growth. This is also partly due to gaming expansion in not only new facilities, but also within existing facilities. While gaming revenues may not be growing at the same high rates that many tribes have become accustomed to, many believe that there is still potential for growth.

Tribes Helping Tribes

The newly recognized Cowlitz Indian Tribe has in mind to develop its new casino resort on 152 acres of tribal land along Interstate 5, approximately 20 miles north of Vancouver, in the heart of southwest Washington. The new facility is expected to include 368,000 total square feet, including a 100,000-square-foot gaming floor, multiple restaurants and meeting facilities. Phase I of the project, which is scheduled to open in spring 2017, is being developed in collaboration with Salishan-Mohegan LLC.

Over the past several decades, gaming has been the primary industry that tribes have looked to for economic stimulus, and while this trend will likely continue, the threat of saturation is real. Therefore, instead of limiting themselves to gaming developments, savvy tribal leaders are looking for alternative means to diversify their tribal businesses. In fact, the joint venture between the Cowlitz Indian Tribe and Salishan-Mohegan LLC is becoming more common as tribes look to each other for collaboration and best practices.

Examples of companies and partnerships leading these efforts include the Laguna Development Corporation (Pueblo of Laguna), Potawatomi Business Development Corporation (Prairie Band Potawatomi Nation) and Four Fires—an economic partnership of the San Manuel Band of Mission Indians, the Forest County Potawatomi Community of Wisconsin, the Oneida Tribe of Indians of Wisconsin and the Viejas Band of Kumeyaay Indians of California.

The focus of these economic development strategies remains on tribal welfare, health care, education, wellness and culture. Self-reliance is also key to the foundations of economic diversification.

Former Laguna Governor Richard Luarkie shared their tribal vision while he held office, quoting, “As a tribe, in order to be successful economically, we cannot have a dependency or entitlement mindset. We have to have a mindset of innovation, of inspiration, of motivation, and dedication to the challenge that lies ahead. We must demonstrate the ability to work together for the benefit of the greater whole, and we have to be able to find economic opportunities that will create a return for the tribe, and for anyone with whom we chose to partner.”

Luarkie explained that Laguna’s business model is one that allows for a unique separation between tribal government and business. The tribe owns the economic enterprises as shareholders, and has structured them as Section 17 Federal Corporations, delegating power to the board of directors to run the business, make key business decisions, develop strategy and manage financial performance. This also puts the impetus on the businesses to create jobs for tribal members, thereby fostering growth and prosperity from within the tribe.

Tribal Blueprint

In a new publication called Defining the Next Era in Tribal Economic Development: The Diversification Imperative for Tribal Economic Development, expected this year, the Blue Stone Group and NIGA provide a virtual playbook revealing real examples of economic diversification throughout Indian Country to help guide tribes moving forward.

Some of the examples include expanding into new markets with existing capabilities or into new capabilities in the same market—for example, extending resort management and hospitality skill sets into elective health care services, making investments off reservation in similar businesses to current enterprise, or taking existing knowledge around project financing and cash management and starting a banking or credit union enterprise.

There are several examples of these practices in Indian Country. For example, the Four Fires collaboration developed the first tribally owned enterprise in Washington, D.C., with the opening of the 13-story, 233-suite Residence Inn by Marriott in 2005. San Manuel has developed the San Manuel Village, a 12-acre mixed-use development project located in the city of Highland, California, that includes a110-room Hampton Inn & Suites and conference center, restaurants, retail space and offices.

What makes tribal development so unique is also what makes each tribe unique—each tribe will have its own set of values, needs, concerns, issues and challenges, as well as its own plans moving forward. To illustrate, one way the tribes have been able to diversify is through government contracting. For the Laguna Pueblo, this occurred out of necessity. Back in the mid 1980s, in order to combat the shock of the Anaconda Uranium Mine’s closing and the resulting economic impact on the community, the Pueblo of Laguna launched Laguna Industries, a strategic move that quickly evolved to become one of the largest Native American defense contractors in the United States.

Energy Alternatives

Another effective industry has been renewable energy, which fits into Indian Country organically as tribes seek self-sustainable practices and have an innate passion for protecting the environment. The benefits to Indian Country are myriad, including long-term stabilization of energy costs, economic development, revenue generation opportunity, opportunity to conserve and sustain natural resources, energy self-sufficiency and strengthened tribal energy infrastructure.

The Cabazon Band of Mission Indians led the pack in 1990 when they allocated a 590-acre portion of their reservation near Mecca, California, for a Resource Recovery Park. The facility accepts a wide range of waste materials from wood waste to electricity, tires and even soil. The plant converts the waste into reusable materials and contributes to the income of the tribe. The tribe continues to work on innovation in renewable energy to develop a model that other tribes throughout Indian Country can replicate and implement on their reservations.

Other forms of renewable energy include concentrated solar power (CSP), wind turbines, geothermal and hydropower to power reservation lands, bio fuel development and other biomass projects. Several tribes, such as Nez Perce, Lake Traverse (Sisseton), Yakima, Coeur d’Alene, and Menominee, are the top five tribal lands with biomass capacity and generation potential. The top five tribes with CSP capacity and generation potential include the Navajo, Tohono O’odham, Hopi, Pine Ridge, Uintah and Ouray tribes.

The top five tribal lands with geothermal capacity and generation potential include the Navajo, Tohono O’odham, Warm Springs, Pyramid Lake and Walker River tribes. According to the Renewable Energy Resource Technical Potential on Tribal Lands publication, there are 196 distinct tribal lands with technical potential to support this type of energy. The top five tribal lands with wind capacity and generation potential include the Cheyenne River, Standing Rock, Fort Peck, Pine Ridge and Rosebud tribes.

The key point going forward is to understand the countless opportunities that are out there for tribal diversification, what fits best with the tribe’s values and vision, and the willingness to choose that path.

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.

America’s Success Story

The National Indian Gaming Association was established 30 years ago by a small visionary group of tribal leaders. At the time—December 1985—contemporary Indian gaming had been active for more than 15 years, and this small group of tribal leaders saw the need to face legal and legislative challenges to protect the ability of tribal governments to use gaming to generate revenue to meet the severe unmet needs of native communities.
   
NIGA filled this void, providing Indian Country with a united voice in Washington, D.C. NIGA united behind the mission of protecting tribal sovereignty and promoting Indian gaming as a way to develop tribal economies. Our purpose was to educate legislators and the public about Indian gaming.
   
Back in the early 1980s, I was a kid playing basketball in our only gymnasium. I remember being frustrated when the court was closed to prepare for bingo games. I just wanted to play basketball, and I resented all these strange folks filling up our gym. Little did I know then that those bingo games were paying for the heat and lights so that I could play basketball.
   
Fulfilling the vision of tribal leaders that launched contemporary Indian gaming, our gaming revenues today fund tribal government programs that provide child care, elder care, language, culture, history programs, improved health care, energy assistance and much more. The early goal of paying the bills for essential utilities has grown much bigger.
   
This same story is true for so many tribes whose gaming operations began from these humble means. Because of Indian gaming, many native youth now have state-of-the-art gymnasiums, fitness centers, recreational and other programs to ensure their total well-being. These are just some of the ways that Indian gaming is working to reshape native communities nationwide.
   
Today, 245 tribal governments operate 445 gaming facilities in 28 states. Indian gaming revenues have reached $28.6 billion annually. This economic activity resonates through tribal communities and those of our neighbors, bringing economic success and prosperity to areas that had faced economic hardship.
   
For many tribes, Indian gaming is first and foremost about jobs. Indian gaming delivered over 665,000 direct and indirect American jobs in 2013 to both Indian and non-Indian employees. These jobs come with health insurance, dental and vision plans, retirement and life insurance—benefits that were unheard of in Indian Country prior to gaming. Indian gaming continues to be an American success story.
   
For years, tribes with gaming have operated ancillary businesses like hotels, restaurants, golf and gift shops and other gaming-related endeavors. Today, more tribes are investing and opening unrelated native ventures that provide all forms of services to Indian Country.
   
Economic development with and beyond gaming continues to be a major focus of our agenda. From something as simple as a local reservation grocery store to more complex business ventures related to improving community technology, manufacturing and agricultural production, these efforts are being undertaken to ensure the long-term economic security of tribal nations.
   
The aspect of this activity that I’m most excited about is it that it’s bringing our people home. Indian gaming is helping shape our next generation of native leaders. Gaming revenues are providing native youth with educational opportunities that were not previously available. After generations without a trained work force, Indian Country now has a talented pool of educated native professionals who are returning home to offer their expertise and contribute to the future success of their communities. This is true self-determination.
   
Over the past 30 years, tribes have used gaming dollars to improve tribal infrastructure, including the construction of roads, hospitals, schools, elder homes, police buildings and water systems. This development comes long overdue. For decades, our communities suffered with outdated and crumbling schools, hospitals and basic government service centers that threatened the health and physical safety of our people and visitors. Thanks in part to Indian gaming, many tribes now offer services in facilities that meet the growing needs of our communities.
   
Just recently, the Mississippi Choctaw Band of Indians held a grand opening for their new health center. The Choctaw Health Department serves more than 10,000 tribal citizens along with many more eligible Indians living in the area. The new $55 million facility now offers a full range of services that includes dental, vision, emergency medical services, physical therapy, a women’s wellness center and now, traditional native methods of healing.
   
As we come together for our annual trade show, we are excited about the new technology that will be on display and the networking and the business interactions that will take place on the trade-show floor.
   
The tribal membership meeting is another vital component of the trade show. Tribal leaders will put their minds together to evaluate local, state, regional and national issues to help develop NIGA’s legislative agenda for the coming year. Protection of all aspects of tribal sovereignty in this Congress and administration will be the main focus of the discussion.
   
It’s been decades since our most visionary tribal leaders launched the first Indian gaming operation to provide tribal governments with a means of achieving economic self-sufficiency. NIGA was established to protect this vision.
   
For 30 years, NIGA has stood strong, providing a unified voice to fulfill the mission of protecting and strengthening tribal sovereignty and the ability of tribes to use gaming as a means to provide for our people. Tribal government gaming has provided tremendous impacts for natives and non-natives alike.
   
We are proud of our legacy and all that it means to Indian Country today and for the next seven generations.

Scientific Games

Casino operators at NIGA 2015 will experience first-hand the strategic benefits of the combination of Scientific Games’ Bally, WMS, Shuffle Master and Williams brands, showcasing a variety of gaming products that address casino operators’ diverse needs across all land-based and interactive channels. Scientific Games will demonstrate how it is Stronger Together through the combination of time-tested brands and comprehensive and differentiated product portfolios created and supported by an extremely talented global team. Uniquely positioned to offer new value to casino operators, Scientific Games seeks to become their partner of choice and a one-stop shop for gaming product and services solutions.

Bally Product Highlights 

The Friends video slot reunites players with the beloved characters from Warner Bros. Television’s worldwide hit comedy that TV Guide Magazine named one of the 50 greatest shows of all time. Players can experience the laughs and loves in a whole new way with many clips of the show’s hilarious moments and a wheel bonus awarding credits and free games. The Friends game is presented on the Pro Theatre, a new cabinet configuration built on the award-winning Pro Wave topped by a massive 1080p 55-inch display.

The Blob theme, on the striking Pro Series V22/22 with Hammerhead cabinet, will capture players’ attention just like the cult classic movie. This new game offers All Up, Reel Ways, a five-level progressive, a U-Choose free games feature and much more.

With Betty Boop’s Firehouse, America’s cartoon sweetheart is back in a playful new game showcased on the Pro Series V22/32 cabinet featuring a 1080p resolution 32-inch vertical monitor. Betty Boop’s Firehouse will fire up players with a classic ladder bonus, free games, Mystery Stacked Reels and Betty’s 5-Alarm Scatter. 

WMS  Product Highlights 

A gaming experience that’s all shook up, Elvis Shake Rattling Reels slots offers three visually different, player-selected interfaces representing three different eras of Elvis’ career. The lighting, music and colors of the game all change to the selected Elvis-themed aesthetic. This theme features a mechanical wheel, a three-level local area progressive and a wide area progressive.

The Austin Powers theme brings “the international man of mystery” to life on the Gamefield xD cabinet. Featuring characters from the Austin Powers movies, players can match symbols for up to a 100x multiplier in the Picture Pay feature, and wheels may award free spins, wheel spins, credits or a progressive.

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

Rymax Marketing Services

Rymax Marketing Services is the premier full-service loyalty provider in the incentive and gaming industry. As an industry leader, its primary focus is on creating effective player loyalty solutions for national and regional properties, Indian casinos and racinos, as well as Fortune 500 companies.

With access to thousands of trending products and merchandise from our renowned brand partners such as Johnston & Murphy, Hearts on Fire and Acoustic Research, Rymax offers clients the power of choice from a vast rewards selection. Its award-winning programs and events are designed to drive ROI for the property while increasing player loyalty and boosting repetitive play from guests.

As the largest national direct manufacturers’ representative in the incentive industry, Rymax understands the important role rewards play in driving player engagement and loyalty. The company’s Gaming Division works with partnered properties to provide customized loyalty programs, merchandise rewards and strategic reward events that meet the needs of a multi-generational audience.

Rymax prides itself on offering rewards that appeal to every market segment that walks through a casino’s door. Rymax’s in-house merchandise team will recommended trending reward options for a program or event that best suits the desired targeted audience, to ensure that the appropriate rewards are being offered.

For example, millennials are particularly brand-name and technology driven, so casinos partnered with Rymax have found great success generating repetitive business from this group through unique opportunities like Rymax’s Strategic Interactive Themed Events or R-S.I.T.E. These events give players the ability to attain in-demand products such as a Michael Kors handbag or the latest Skullcandy headphones that they may not normally splurge on themselves.

Rymax on-site casino events have a proven positive impact on a property’s overall performance and keeps players engaged while at the casino. Rymax works strategically with both the program and the venue to create something that appeals to the target audience by using on-trend, innovative ideas and motivational rewards that will keep these VIP players coming back.

From the initial planning of the loyalty program to executing effective player loyalty events, Rymax works hand-in-hand with casinos to achieve their unique goals. To learn more about Rymax contact Paul Gordon, senior vice president of sales, at 973-582-3272 or pgordon@rymaxinc.com.

 

Red Square Gaming

Red Square Gaming is a full-service advertising agency focused on casino brands. Its specialization and energy bring clients a uniquely deep set of skills that the typical agency cannot. Red Square Gaming combines strategic thinking, imagination, logistics and technology to deliver creative intelligence to help clients dominate the competition.

Reaching gamers in a complex and competitive world:

The world is increasingly complex, the media landscape is shifting at light speed and there are more competitors entering the market every day.

Historically, advertising agencies have strived to be everything to everyone. By doing so, category experience often becomes a talking point, rather than a dedicated focus, and service capabilities are expanded simply to fulfill needs, rather than delivering on greater value. Now is not the time for generalist thinking.

A smarter approach to digital:

Intelligent marketing programs that tightly integrate digital are the baseline requisite to compete these days. Traditional advertising—the blocking and tackling of what casino marketers do—is not dead. Quite the contrary. Red Square Gaming’s approach is to tailor campaigns and platforms to each client, strategically employing the right combination of traditional media, digital, social and mobile. A casino’s marketing should not be purchased off the shelf, nor should it be one-size-fits-all.

Founded on Tribal gaming

Red Square Gaming’s practice was launched a decade ago with PCI Gaming (now Wind Creek Hospitality) in Alabama, adding Cherokee Nation Entertainment in Oklahoma to the client roster a few years later. Both of these groups have been integral to the success of the agency, and all have been very fortunate to grow together. This experience, and the resulting decade of learning, is the basis of who Red Square Gaming is. The agency understands the rigors of the category and respects the nuances of tribal entities.

Simply, Red Square Gaming’s goal is to become the best casino advertising agency in the country. The agency will do so by continuing to partner with casinos who seek to break new ground at the forefront of creative media and gaming.

For a closer look at Red Square Gaming’s portfolio and thinking, visit http://redsquaregaming.com or contact Rich Sullivan, chief executive officer, at rich@redsquaregaming.com, 251-476-1283.

Novomatic Americas

Following an extremely encouraging debut showing at NIGA 2014, Novomatic Americas Sales LLC, the dedicated U.S. arm of Austrian-based gaming giant Novomatic, is ready to move into high gear at NIGA 2015.

With a clear emphasis on tribal government gaming, Novomatic Americas, under the leadership of its president, industry veteran Rick Meitzler, is an integrated global gaming company specializing in the design, development, manufacturing, distribution and sales of electronic gaming machines and advanced technology products. The company already has recruited highly experienced gaming industry professionals to its team and has rapidly expanded over the past 12 months.

Leading the NIGA product lineup will be the brand new Dominator Curve—a dramatic evolution of the hugely successful Dominator, which had its world premiere at ICE Totally Gaming in London.

The Dominator Curve features all the ergonomic and design elements of its predecessor plus the advantages of its unique upright 40-inch full HD curved touch-screen. The player position in the focal point of the curved screen guarantees maximum-impact gaming with sophisticated graphics and sound. The Dominator Curve display at NIGA will feature a wide range of single games and multi-game mixes supported on the server-based-ready platform Novo Line Interactive, blending optimized usability and top-quality design with great looks.

Alongside the Dominator will be the product that was a standout hit at both G2E in Las Vegas and ICE in London—the Novostar V.I.P. II. With an impressively large 50-inch screen, it’s widely regarded as the best slant-top gaming device on the market today.

Electronic multi-player gaming will be represented by Novo Unity II, featuring a live Novo TouchBet Blackjack plus virtual (“flying”) baccarat, poker, sic bo and roulette games to wow the crowds.

In all, NIGA will prove to all tribal government gaming attendees that Novomatic Americas is here, in force and very definitely to stay. Meitzler summed it up: “Novomatic Americas is now officially on the move. Starting with NIGA we will bring our product offerings, backed up by our top-class service, to a market that has already expressed its willingness to accept us.”

For more information, visit novomatic.com or contact Rick Meitzler at 224-802-2974.