~ Myths stated are taken directly from the December 2000 TIME Magazine series, "Wheel of Misfortune," nine of TIME Magazine’s most blatant and unsupported claims. ~

POPULAR MYTHS IN THE MEDIA:

Misrepresentation #1:

Myth: The Indian Gaming Regulatory Act (IGRA) is "a bill that allows select Indian tribes to create businesses that reap millions of dollars in profits and pay no federal income tax – at the same time that the tribes collect millions in aid from America taxpayers."

Reality: This statement reflects the media’s misunderstanding of Indian Tribes as governments. The U. S. Constitution, Congress, and countless Supreme Court decisions recognize Tribes as governments, and like State government lotteries, tribal government operations are not subject to taxation by another government. Nevertheless, the over 300,000 individual Indian and non-Indian employees, those doing business with Tribes, and Tribes themselves – through compacting agreements – generate over $6 BILLION in Federal and State payroll, income, sales and other taxes and fees each year.

In addition, Indian gaming revenues are fully taxed by Tribal governments. Federal law requires that the majority of tribal gaming revenues be used to fund tribal government programs, community infrastructure, charity, and aid to local governments. Just like revenues from State lotteries go to State programs – tribal gaming revenues must first fund essential tribal government services. Per capita payments from gaming revenues to individuals are also subject to the full federal income tax rate.

Misrepresentation #2:

Myth: "Washington perceived gaming on reservations as a cheap way to wean tribes from government handouts."

Reality: This statement is simply false. Indian gaming is not a federal program, but instead is one tool that tribal governments use – just as States use lotteries – to generate revenue fro their communities. The U.S. Supreme Court, in California v. Cabazon, recognized that Tribes, as governments, retain the inherent authority to conduct gaming on Indian lands pursuant to tribal law. The Indian Gaming Regulatory Act (IGRA) is actually a limitation of these rights. IGRA permits State governments a role in regulating Indian gaming through the tribal-state compacting process. The main supporters for Washington’s involvement in Indian gaming were State governments and commercial gaming interests, who sought to limit competition from Tribes.

Second, the Federal programs that benefit Tribes – which TIME refers to as "handouts" – represent both the fulfillment of the United States’ obligations to Tribes and the recognition of Tribes as governments. The federal programs that apply to Indian Tribes – do so because of the federal government’s recognition of the fact that Tribes are governments. Many of these same programs aid State and local units of government. In addition, the Federal government incurred obligations through treaties with tribal governments when establishing the land base for this Nation, and in return, the U.S. promised to provide Tribes with support for education, health care, and help to build their economies. Federal programs that benefits Tribes – in one way that the government attempts to fulfill these responsibilities.

Misrepresentation #3

Myth: Indian gambling is not regulated. IGRA instead "set up a powerless and under funded watchdog and dispersed oversight responsibilities among a hopelessly conflicting hierarchy of local, state and federal agencies …" "With a budget capped at $8 million, the agency has 63 employees to monitor the $12.7 billion all-cash business in more than 300 casinos nationwide. The New Jersey Casino Control Commission, by contrast, has a $59 million budget and a staff of 720 to monitor 12 casinos in Atlantic City that produce one-third the revenue."

Reality: Tribal gaming commissions, like State lottery and gaming commissions, serve as the day-to-day regulators. Tribes spend over $212 million annually on regulation: that’s over 3 times the $59 million spent by New Jersey. From this figure, Tribes spend over $164 million on self-regulation, including employment of over 2,800 regulatory personnel, with credentials from federal and State law enforcement and gaming regulatory agencies. Tribes also use state of the art technology in regulatory and surveillance equipment. By comparison, the Riverboat gaming industry employs 976 regulators, New Jersey employs 720 regulators, and Nevada employs 432 regulators. In addition, Tribes spend an additional $40 million for state regulation of tribal gaming, and yes, they fully fund the $8 million budget of the NIGC and its 63 employees. Congress increased the NIGA’s budget by 50% to $12 million annually through increased fees to be paid by tribal governments.

No federal agency oversees State lotteries, or commercial casinos, or horse or dog tracks, or jai alai, or any other form of gambling. However, federal oversight of Indian gaming is extensive. In addition to working with the NIGC, Tribes work with the Interior Department, the Financial Crimes Enforcement Network and the IRS within Treasury, and the FBI within the department of Justice.

~ This information is provided by the 184 Indian Tribes of the National Indian Gaming Association. If you have any questions regarding tribal sovereignty or Indian gaming, please contact NIGA or stop by Capital Hill offices: National Indian Gaming Association, 224 Second Street, SE, Washington, DC 20003, Phone: 202-546-7711; FAX 202-546-1755; www.indiangaming.org ~