In 1976, in a case called Bryan v. Itasca County, the Supreme Court made a ruling that sowed the legal seeds that would eventually give rise to the Indian gaming industry.[1] In an opinion written by Justice William Brennan, the Supreme Court highlighted tribal independence from state regulatory authority. Since regulatory authority is the primary legal mechanism for regulating some forms of gambling, this case would prove relevant to the impending controversy of Indian gaming.
Gambling is a part of many traditional Indian cultures (as well as the larger US society.) Tribal games include dice and shell activities, archery competitions, races, and so on. The use of gaming to generate profit did not begin until the late 1970s and early 1980s within Indian communities. Several tribes, especially in California and Florida, opened bingo parlors as a way to earn revenue. Their actions were related to the search for new sources of revenue, given the emphasis which the Reagan administration placed on economic self-sufficiency for the tribes.
While bingo was legal in California and Florida, the states had stringent regulations. Operating on the history of tribal sovereignty, some tribes did not comply with these laws. High stakes Indian bingo operations soon arose in California, Florida, New York, and Wisconsin. The industry grew rapidly. State governments began contending that revenues from their own gaming operations dropped as Native American operations increased the potential stakes.
Discussions about codifying Indian gaming began in 1983.[2] In 1987, the U.S. Supreme Court ruled in California v Cabazon Band of Mission Indians that as sovereign political entities, tribes could operate facilities free of state regulation. The court also recognized that gaming could be used to encourage tribal self-sufficiency and economic development. This court case can be seen as a victory for the tribes. As the growth in Indian gaming continued in the 1980s (grossing over $110 million in 1988), though, tensions increased. [3]
States began lobbying the federal government to allow state government to regulate Indian gaming. States argued that their regulation was needed to stop infiltration by organized crime. Furthermore, states wanted to be able to tax revenues gained by Indian gaming. Tribes fought the states in an effort both to maintain tribal sovereignty and to protect Indian gaming revenues to support economic development.[4]. Congress responded with the set of compromises which evolved into the Indian Gaming Regulatory Act [2]
The primary legislators involved in drafting the Act were Senator Daniel Inouye of Hawaii, Representative and then (as of 1987) Senator John McCain of Arizona, and Representative Mo Udall of Arizona.[5] As S.555, the bill passed the United States Senate by voice vote on September 15, 1988.[2] The House then passed the same bill, without it going through committee, by a 323–84 margin on September 27.[2] President Ronald Reagan signed it into law on October 17, 1988.[2]
As is often the case, some aspects of the law had to be clarified later through court cases. Whether revenue from the Indian casinos was subject to other governmental taxation was determined in Chickasaw Nation v. United States.[6]
References
- ^ Kevin K. Washburn, "The Legacy of Bryan v. Itasca County: How an Erroneous $147 County Tax Notice Helped Bring Tribes $200 Billion in Indian Gaming Revenue" 92 Minnesota Law Review 919 (2008), [2].
- ^ a b c d e Mason, W. Dale (2000). Indian Gaming: Tribal Sovereignty and American Politics. University of Oklahoma Press. ISBN 0-806-13260-4. pp. 60–64.
- ^ Kramer, Kelly B.. "Current Issues in Indian Gaming: Casino Lands and Gaming Compacts", Gaming Law Review 7, Number 5(2003): 1-7.
- ^ Light, Steven Andrew, and Kathyryn R.L. Rand. Indian Gaming and Tribal Sovereignty: The Casino Compromise, University Press of Kansas, 2005. (41-43)
- ^ Johnson, Tadd (September 1998) (PDF). Regulatory Issues and Impacts of Gaming in Indian Country. Increasing Understanding of Public Problems and Policies: Proceedings of the 1998 National Public Policy Education Conference. pp. 140–144.
- ^ "Chicksaw Nation vs. United States". National Tribal Justice Resource Center's Supreme Court Decisions.
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