Are Casinos Only On Indian Reservations

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An Indian reservation is a legal designation for an area of land managed by a federally recognized Native American tribe under the U.S. Bureau of Indian Affairs rather than the state governments of the United States in which they are physically located. Each of the 326 Indian reservations in the United States is associated with a particular Native American nation. Foxwoods Resort Casino features deluxe accommodations, fine dining, a wide variety of entertainment attractions and shopping.

QUESTION: What is the Difference in Gambling at Indian Reservations and Regular Casinos?

ANSWER: In the world of brick-and-mortar gambling, there are traditional casinos and then there are Indian reservation casinos (or Indian Casinos). At first glance, the two might not seem much different, but scratch beneath the surface and you’ll find a whole host of distinctions.

Knowing the difference in gambling at Indian reservations casinos and regular casinos might not make much difference to your bankroll, but it should provide you with a greater understanding of how the industry works. And for those who take their gaming seriously, every scrap of information is valuable on some level.

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Distinctions between Traditional and Native American Gambling

The items listed below are some of the most notable differences between gambling in Las Vegas and at a Native American casino. The next time you decide to go on a gaming road trip, give both locations a try and see if you can spot additional variations.

Reservations

Location – The most fundamental difference is related to location. As the name would indicate, Indian reservation casinos are always located on lands set aside by the government for the use of specific Native American tribes. Regular casinos, meanwhile, can exist on any other property.

The total geographical area of reservation land equals 2.3% of the total area of the United States. Some tribes have multiple reservations allotted to them, while around 200 of the nation’s 550+ recognized Indian tribes have no land at all.

Are Casinos Only On Indian Reservations

Revenue – While Las Vegas and Atlantic City would hate to admit it, the annual revenue from casinos on Indian reservations exceeds the combined totals for gaming in both cities. In 2009, for example, Native American locations pulled in $26.5 billion across 28 states.

Selection of Games – Most reservation casinos offer the same games as their competition. Some states have different laws though, so you might not find certain table games in a particular casino, for example. Or the way the slot machines work might vary. (See our post about Class II and Class III slot machines for more details about that.)

Payback Percentage – This is the biggest difference between gambling at regular casinos and Indian reservations. In many states (Connecticut is a notable exception), Native American -Indian- casinos are not required to report their payback percentages, which means the number could be decidedly unfriendly to the player. However, any Indian reservation casino manager will tell you that their rates are on a par with the competition, and there may be some truth to that. After all, a lower payback percentage on slots and other electronic games means fewer winners. Over time, a casino with a reputation for paying out less will begin to lose business. Whether they offer a 75% or 90% payback, the casino is still going to turn a profit.

Size – When it comes to the overall size of a brick-and-mortar gaming establishment, the folks in Atlantic City, Reno, and Las Vegas have a hard time competing with casinos built on Indian lands. Much of this has to do with location, as regular casinos have to build in cities that are already filled with everything from residential housing to shopping malls. Indian land is more wide open, which makes it easier to allot massive tracts of land for construction.

Today, the second largest casino in the United States is the Foxwoods Resort Casino on the Mashantucket Pequot Indian Reservation in Ledyard, Connecticut. It has over 6,300 slot machines, 380 table games, and the biggest bingo hall on the planet. The largest U.S. casino (WinStar World Casino in Thackerville, Oklahoma) is owned by the Chickasaw Nation of Oklahoma, although it is not located on an Indian reservation.

Legality – While traditional land-based casinos are subject to all state and federal laws, a 1979 Supreme Court decision ruled that states could not regulate activities on Indian reservations or tax their occupants. This was bolstered by a 1987 decision that said casino activities could not be state regulated as long as the type of gambling offered was legal in the state.

The law was further defined by the Indian Gambling Regulatory Act, which requires Indian tribes to consult the state before offering casino gaming. In the case of an impasse, the Secretary of the Interior is called upon to mediate and make an eventual ruling.

The revenue from casinos on Indian reservations is meant to be spent on charitable ventures and tribal government operations. In some cases, however, the profits eventually find their way into the hands of tribal members, although you can count on the state and federal government getting their cut.

Cultural Considerations – While traditional casinos offer a wide variety of themes, visitors to gambling locations on reservations should expect a certain Native American flair to the décor. This isn’t always true, of course, but tribal leaders tend to be proud of their heritage and make every effort to provide displays and exhibits to educate their customers. At the very least, some basic decorations in the Native American tradition can usually be spotted in certain locations throughout the establishment.

Other cultural issues sometimes relate to traditional Indian beliefs and superstitions. An interesting example occurred when the Fire Rock Navajo Casino was under construction in New Mexico. Numerous problems led some to believe that the endeavor was being cursed by skin-walkers, magical practitioners adept at turning into animals and generally behaving in a sinister fashion. The construction continued, however, and the CEO of the casino later assured visitors that various blessings had been performed to ward off evil. Despite possible efforts from the forces of evil, the casino is still in operation.

Management – While you might suppose that casinos on Indian reservations are managed by members of the tribe, you would be wrong in many cases. In this way, gambling at Indian reservations isn’t much different than regular casinos, as they want to bring in experts who can squeeze every ounce of profit out of the business. For example, Harrah’s manages one such location in North Carolina, and Donald Trump once tried his hand at managing a reservation casino in California.

Next time someone is wondering about the differences in playing at Indian Casinos and regular casinos you’ll be able to provide an appropriate and informed answer. Armed with this knowledge, serious players can then make a determination about the best place to play.

There are two typical venues for casinos in the United States – Indian reservations and commercial casinos. Each comes in varying sizes among the groups. There are also differences within the class inside certain states that have different rules for reservations and casinos on state land.

Casinos

Pa Indian Reservation Casinos

Indian casinos are always located on reservation land. The land often belonged to the tribe for generations. In some instances, Native Americans put the land into a trust and asked for the U.S. Department of Interior to declare the land sovereign to a tribe.

Commercial casinos are located in places specifically approved by the state legislature or voters. In many states, this means on a boat on or near a body of water. Some jurisdictions permit casinos only in tourist areas. This may include historical mountain communities or beaches. Others only permit gambling at racetracks or assign one license to a specific geographical area.

Why Do Some States Not Have Indian Casinos?

There are two reasons a state may not have any Indian casinos. Some do not have any reservations. The other reason is that the state has not reached a compact with tribes within the border. Georgia and Tennessee are examples of the former. Utah, South Carolina, and Alaska are examples of the latter.

Why Can’t All Native American Tribes Have Casinos?

The Indian Gaming Regulatory Act requires one of two situations to occur before a reservation may offer gambling. The type of gambling that the tribe would like to offer must already be legal in the state. In that case, the version of gaming may be spread without limitations or taxes. Examples of this often include bingo or raffles. If a state has legal horseracing or casinos available by commercial licenses, the tribes may also offer this type of gaming.

The other scenario involves a gaming pact with the governor of a state. In this situation, tribes propose a tax rate and set of games they would like permitted. The governor can decide whether or not it may happen. This may require approval by voters or the state legislature. In this situation, tribes often pay taxes to the government because the activity has a monopoly. The state government has the leverage to require this as part of the gaming pact.

USA Casinos – State Laws

For more information about specific gambling laws for each state, visit our State Casino Laws page.

Are Casinos Only On Indian Reservations

Differences Between Games at Indian and Commercial Casinos

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  • State Legislation – The differences between the types of games on reservations and at commercial casinos depend on the state. If the state permits commercial casinos, tribes may offer the same games. There are instances where tribal casinos offer more games. California, Washington, Minnesota and North Dakota are examples of this. That is because some card games are legal outside reservations but the Native American tribes created compacts to expand the offerings.
  • Game Variations – The most common games added to reservations are slots and video poker. This may include video versions of table games that card clubs cannot spread. In some circumstances, gaming outside reservations is limited to bingo, horseracing, and raffles. In this case, all table games and poker are typically offered on reservation land, assuming a gaming compact has been reached.
  • Video Poker Machines – There may be some differences between video poker machines offered on a reservation when compared to commercial casinos. Indian casinos may not spread typical class II machines that are commonly found in Nevada, Atlantic City, and regional commercial gaming markets. Some Indian casinos that have internal regulators may opt to offer class III machines. These may not be totally random when it comes to cards and numbers.This means that the cards or symbols dealt to players does not resemble a true deck or whatever it is meant to represent. The machine has a level it is set to return and does so. A player that is dealt four of a kind could discard it and receive four of a kind on the current hand or next one to help maintain the set payout on these devices. This is also common in backroom casinos in truck stops and bars. This is why one may find unusual video poker and real money keno machines on a reservation that are not carried by commercial casinos.
  • Payouts – The payouts at tribal casinos are not necessarily the same as commercial ones, even between those located in close proximity. Different reservation casinos may also offer different payouts. This can vary due to the rules of the game. For example, one casino may hit soft 17 at blackjack and another could stand on it. Video poker pay tables may be different. Some may use class II machines, even if they are not required to do so. Others may choose to spread class III devices to lower variance.

Each Indian casino’s management team is different. The tribe is typically the sole beneficiary of the profits, however, this is not always the case. Some large tribal casinos opt to enter into management contracts with experienced commercial gaming operators. Examples of these types of companies include Caesars Entertainment with casinos like Harrah’s Cherokee and Station Casinos like the Graton Resort & Casino.

Are Casinos Only On Indian Reservations Near

Size of Different Types of Casinos

Are Casinos Only On Indian Reservations Map

Tribal casinos and commercial casinos can vary greatly in size. Some may be no larger than a convenience store or bar. Others may be lavish resorts with full amenities. There are typically no state laws that restrict the size of a tribal casino or resort. The large ones tend to be in heavily populated areas. Rural casinos are often on the smaller size, especially if there is competition. In rare occasions, a casino may not be permitted to build a hotel if there are already enough rooms in the local market when it is developed. This restriction is never found at tribal casinos.

Why Can Casinos Only Be On Indian Reservations

Native American casinos often use branding that is related to the tribe. This may include the name of the tribe or a part of its culture. Casinos and connected hotels may offer a museum of sorts to tell its rich history. There may also be some games within the casino that share this type of branding.