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 The tribal gambling industry is experiencing a strong upturn




The tribal gambling industry is experiencing a strong upturn
Origin: Ernie Stevens Jr.
Published: 2021-11-03

I joined with Oklahoma tribal leaders to celebrate industry success at the Oklahoma Indian Gambling Association (OIGA) annual conference. The 2021 OIGA conference and trade show was held August 16-18 and brought together all 39 sovereign tribal nations at the Oklahoma City Convention Center.

 

 Along with Executive Director Jason Giles we helped kick off the conference with a panel discussion in front of tribal gambling leaders and industry professionals, where we discussed the challenges Indian Country has faced during the pandemic.

 

This was an unprecedented time and challenge for Indian Country and our tribal leaders. It took a tremendous amount of unity and information sharing to overcome all the unknowns of the virus when our gambling operations were forced to shut down to protect our communities.

 

The National Indian Gambling Association immediately adapted to the new normal. We joined with our member tribes to organize our congressional outreach to meet this most pronounced challenge in our history.

 

We couldn't get on a plane and travel to Washington DC, but we spent countless hours in virtual meetings, webinars, and conference calls with federal decision makers

 

Everyone answered the call, and through our work together, tribal governments secured significant resources in both the CARES Act and the American Rescue plan to alleviate the health and economic impact of the pandemic on Native communities. These resources provided us with a bridge to keep Indian Country moving, while protecting and helping to heal our people.

 

Later, National Indian Gambling Commission (NIGC) Chairman Sequyah Simermeyer and Vice Chair Jeannie Hobland announced revenues of $27.8 billion for 2020, a decrease of nearly $7 billion from 2019, which was not expected given the shutdown that occurred during the year. He shared that the most impacted regions were California and the Upper Midwest.

 

This decline in gross gambling revenue (GGR) was expected; what was not known was the impact COVID-19 had on Indian gambling. Each year, the annual GGR figure tells a story about the successes of Indian gambling, contributions to Indian communities, and economic impacts. This was further highlighted during the pandemic.

 

However, tribes were at the forefront of creating standards, developing new safety protocols, and sharing community resources. I predict that this decline is only a temporary setback for Indian gambling.

 

The NIGC report on tribal gambling revenues for 2020 represented an amazing affirmation of the unity and hard work of Indian Country during this pandemic.

 

Our early projections for 2020 showed revenues down 50% or more, but tribal gambling recovered faster than expected, and it was accomplished with safety first and thanks to the hard work of our tribal gambling regulators.

 

Compared to other industries that relied heavily on federal government subsidies and have yet to fully recover, the $27.8 billion in tribal gambling revenue by 2020, during the worst pandemic of our lifetime, reflects the resilience of our industry. It is a success story that is still being written. All credit must be given to our tribal governments, our tribal gambling regulators, who have teamed up with all of our frontline employees who worked tirelessly to ensure our safety and economic survival. The tribal gambling industry is experiencing a solid rebound. We are working to rebuild carefully and safely as we move forward in this challenging era. Hats off to all of them.

 

The NIGA has been in regular contact and has worked hand-in-hand with the NIGC and the tribes throughout these unprecedented times. It is important to maintain this dialogue as we rebuild this industry because we must remain diligent in our efforts until everyone recovers.

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Casinos in Colombia, it is not a good time to invest in expensive equipment, there are no guarantees. 

The tribal gambling industry is experiencing a strong upturn

A week ago I was in Medellín and I don't know if I'm the only one, but when I'm in another city I usually walk around machine shops to see “what's new or strange”; To be honest, I do it more to see how the market is and I was surprised to see that what all the machine sellers say is true: a market saturated with products that rotate every six months and that become obsolete with the arrival of a better machine. in the place next door.

 

 

That is why international sellers prefer the mountain capital to do their launches and garage sales.

 

The paisas (name given in Colombia to people born in Medellin) fell into the consumerist trap that ultimately makes them work for companies that offer two-year loans, prices in dollars that “since it is on credit they don't feel like it,” but that perversely end up leading the operator into a vicious circle where they end up quota number 16 out of 24 and production has fallen so much that they must update a new game for a price sometimes of 3rd PART OF THE VALUE OF THE EQUIPMENT.

 

I saw in Medellín that in the most "perrata" place - as the Paisas say -, one can find in a corner state-of-the-art machines that no one seems to play, but that make their owners feel the happiest because they are fashionable and the They make you feel first world.

Possibly some fell into the trap, due to arguments; But without a doubt the Paisa operators have been getting on this train that finally ends up reducing their profits at the end of the year.

 

Updating equipment is very important but do the math so you don't pay the price later. Could it be that many operators have not realized that there are more economical ways to decorate their living room?

 



Tribal Casinos - Economic Giants beyond Las Vegas 

The tribal gambling industry is experiencing a strong upturn

Native American casinos, otherwise known as Indian Tribal casinos, have long had a major influence on gambling - especially in the US and, for a long time, these were the only establishments where it was legal to gamble, outside of Las Vegas and Atlantic City.

Indeed, there are Indian gambling establishments in over 50 percent of US states (29 in total), and all of these can be found on tribal-owned land, though as a side note, while this land is sovereign, it doesn't necessarily mean that all casinos that are found on tribal land are run by Native Americans.

 

What many people do not necessarily realize, is that Indian casinos are big business. Furthermore, the annual revenue that is generated by tribal gambling establishments significantly exceeds the figure that the entire Las Vegas strip churns out. In 2021, Native American casinos recorded a GGR (Gross Gaming Revenue) of $39 billion - over five times more than Las Vegas, which stood at $7 billion.

There are some misconceptions relating to tribal casinos, with many people believing that to enter one of these, you must be of Native American origin - this couldn't be further from the truth, and, in fact, there are those who prefer Indian casinos.

 

It is understood that the population of Native Americans in the US stands at 6.79 million in 2024 (roughly 2.9 percent of the entire US population). Furthermore, the vast number of Native Americans are considered 'poor', which essentially suggests that they do not have the means to use tribal casinos.



Bets & Prays in Brazil 

The tribal gambling industry is experiencing a strong upturn

In Latin America (LatAm), somewhat surprisingly, no country has an official state religion. However, many associate Christian denominations with the region, finding LatAm in general synonymous with faith.

The Latin American people are, for the most part, Christian,” says Magnho José, editor of BNLData and president of the Instituto Brasileiro Jogo Legal. “In most countries, this figure exceeds 80%, including Catholics and evangelicals.”

And according to both José and Hugo Baungartner, vice-president of global markets at Aposta Ganha, religion is having an increasing impact on politics in the region.

Currently, the strength of religion on the continent and the advancement of a religious influence in institutional politics is notorious and more and more religious people, whether progressive or reactionary, have come together to propagate their projects in the public sphere,” José explains.

Baungartner adds, “[Religious] influence has been growing year by year with the increase of different religion types. Nowadays they even have their own politicians, including forming groups to execute their power and influence.”

 

Influence on Brazil’s legislative outcomes

Few LatAm countries have seen religious influence on their gambling policy like Brazil, despite being a religiously free country, which even boasts a national day devoted to the principle – 7 January.

According to the Global Religion 2023 study – carried out across 26 countries – Brazil has the highest percentage of citizens who believe in God or a higher power, at 89%. Predictably, this has bled into the country’s political regime.

Over the last 82 years, several topics have caused controversy in Brazil and among them is the legalisation of gambling,” explains José. “Those who do not live in Brazil will have difficulty understanding the lack of objectivity and common sense of Brazilian politicians when it comes to gambling. Religious issues end up contaminating and distorting the debate.”

Brazil has been rocked by the evangelical movement over the last few years, with around a third of its population identifying as evangelical in 2022. It is no surprise, then, that evangelical lawmakers greatly opposed Bill 3,626/2023, the long-awaited law to regulate sports betting and igaming, almost stopping its progress completely.

The most important country that faced [religious opposition] was, and will be, Brazil,” says Felipe Fraga, an expert on Latin America.

The reason is that when we look over the most populated countries, no one has more than 20% of an evangelical population. Also, the movement of neo-pentecostalism is very powerful in Brazil and the political connections they have are very strong.”

 

Unintended effect of the black market

As with any regulating market, concerns remain over the presence of black and grey markets in Brazil. For Baungartner, the religious-centred aspect of the evangelical argument might do more harm than good in this respect.

They say that [gambling] is against their faith and their God which, also, is against it,” he explains. “They use it to influence other politicians.

Literally, for them it is devil’s business. They don’t understand that the world changed and it is better to have it regulated, instead having the grey market.”

Fraga – an evangelical himself – agrees, proposing that regulation will safeguard Brazilian citizens.

They claim about a social point of view, looking to risks of addiction and how it can affect society, also arguing about money laundering and match-fixing,” he explains. “They say that the bill will allow or facilitate bad behaviour and criminal acts, which is completely wrong, since the idea of regulation guarantees for the country itself taxation and societal safety.

It is exactly what the industry is looking for: fair rules for keep offering modern ways of entertainment.”

Right at the forefront of evangelicalism’s strongly-held beliefs about gambling is family values, according to José. He notes that at the recent National Conference of Bishops of Brazil (CNBB), gambling was slated as bringing “irreparable moral, social and, particularly, family damage”.

The following was heard at the event: “A vote in favour of gambling will, in practice, be a vote of contempt for life, for family and its fundamental values.”

But the dispute goes beyond a moral perspective. Evangelicals and other religious politicians also point to legitimate industry concerns, such as money laundering and tax evasion – which regulation would naturally address.

 

A long winding road to regulation

Religion’s influence on gambling law in Brazil stretches back much further than the last few years. Gambling was banned in the country in 1946 due to religious influence and bingo was legalised between 1994 and 2005 before being prohibited once again.

This is why the passage of Bill 3,626/2023 received such a positive reception when it passed in December – it was a long time coming.

Brazil is currently in the process of regulating its igaming and sports betting market. The country’s ministry of finance, in conjunction with the newly established regulator – the Regulatory Policy of the prizes and betting secretariat – is continually publishing rules for the market, which include prohibiting credit card and cryptocurrency payments.

 

Could Brazil backtrack on gambling regulation?

But to those rejoicing in the market regulating, José warns them not to get comfortable.

There is a great risk of backsliding,” he states. “I don’t believe it will get to the point of repealing gambling laws, but the religious will hinder expansion and try to stifle existing gambling operations.

The ecumenical opposition that criticises the possibility of legalising gambling should reflect that the positive benefits of legal gambling far outweigh the disadvantages proposed by any person or group against gambling.”

Baungartner is insistent that, at the end of the day, gambling is a business and its acceptance in other countries neutralises its standing saying: “The mentality has changed over the years.”

So outright revocation might not be on the cards – not yet, at least. As long as the industry plays ball, says Fraga, it should be a smooth road ahead for Brazil’s regulating market.

As much the industry grows in Latin America and shows that it is an important part of society – generating jobs, moving economics, entertaining, controlling addiction, etc – there will be no reason to revoke the laws,” he says.

Even though we can consider the risks, there will be nothing happening soon.”

 



Is more regulation the answer to keeping players happy? 

The tribal gambling industry is experiencing a strong upturn

During last week’s SBC Summit North America at the Meadowlands Expo Center in Secaucus, New Jersey, a group of amateur gamblers were asked what they sought in the North American gaming market.

 

Regulators need to do their job – regulate,” said professional gambler Captain Jack Andrews during “Player’s Panel: What are Professional and Amateur Gamblers Looking for in the North American Market.”

 

That answer might seem surprising – ostensibly, less regulation would be preferred, there mostly was an expressed preference for stricter regulations and fairness from the operators with which they placed bets.

 

Sharps – those with long-term winning records as sports bettors – don’t get the preferential treatment they deserve, according to Andrews.

 

This is an industry where it’s a game of skill, and so your VIPs are the ones with the least amount of skill, and your toxic assets are the ones with the most amount of skill,” Andrews said.

 

I have a feeling like they’re building these terms and conditions to be these ironclad guards against themselves where if you have a dispute, you have already agreed to go to an arbitrator of their choosing to have this adjudicated,” Andrews said. “That’s not fundamentally fair. The regulators need to do their job – regulate.

 

Other participants on panel were agree with John Gordon´s slogan:

 

In the end, is more regulation necessary to force companies to be `fair.’ or do we as consumers hold the power to direct change, it’s a bit of both,”

 



President of Coljuegos recognizes that he was wrong about Casinos, the winner is respect. 

The tribal gambling industry is experiencing a strong upturn

What more could you expect from someone outside the industry was the title of my last column that caused a stir at all levels of the gaming industry.

 

Making mistakes is human, Marco Emilio, president of Coljuegos, in a gesture of kindness, publicly acknowledged his mistake and issued a statement apologizing, which I appreciate for the sake of respect for all the actors in this industry and the good name of those of us who are part of it.

 

Any stumbling block occurs in life, and this is a good time for us to be heard and the wheels of Coljuegos to be put in motion so that the approval of the impounded procedures is accelerated, which since the entry into the entity of Marco Emilio It was promised by the legal department and that deadline of October 26, 2023, was left in limbo.

 

ACTA NON VERBA, of course I am not being pedantic, but that you have understood that the industry does not live on chance and lotteries alone, gives it a more equitable approach in proceeding and I hope that you listen to both operators and manufacturers of casino machines, that we are stranded by laziness in attention.

 

The past two weeks I received several messages constraining me to retract my comments, which not only restricts freedom of expression, but also demonstrates the lack of character of those who servilely believe that for the benefit of all we must endure... respect we all deserve since there are no people more or less than others; Remember we are all pushing forward in the Games of Luck and Chance industry.

 

Once again, the winner is respect.


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