PRESS RELEASE
February 18, 2016
Steve Stallings, newly elected chairman of the California Nations Indian Gaming
Association (CNIGA), discussed the good news, as well as the challenges facing
tribal government gaming in a "State of the Industry" report at the
organization's 21st Annual Western Indian Gaming Conference, Feb 9-11, 2015 at
Harrah's Resort Southern California.
Tribal Gaming in California continues to expand in employment and revenues, with
California tribes representing over 25 percent of the US total. Of the 28.5
million generated in 2014, revenues for California's tribal enterprises grew by
4.9 percent to 7.3 million, over the 6.9 million earned in 2013.
Stallings discussed the historic origins and accomplishments of the
organization, which passed two state ballot measures, Proposition 5, a
tribal/state compact, and Proposition 1A in 2000, changing the state
constitution to grant Las Vegas, casino-style gaming exclusively to tribal
governments on federally recognized tribal lands. Proposition 1A's passage
secured the original tribal state compact negotiated by then Governor Gray
Davis, and 63 California tribes, after a 10-year battle with the state to win a
compact.
"We can measure CNIGA's achievements by the success of Indian gaming and the
dollars generated. Alternatively, we can measure its contribution, over the past
20 plus years, by the people whose lives have been touched for the better
because of Indian gaming. We all have success stories, and for this, we owe
CNIGA members, past and present," stated Stallings, a member of the Rincon Band
of Luiseño Indians' tribal council.
"We are sitting in Rincon's success story," Stallings pointed out, referring to
the Harrah's meeting room. "It's a nice conference room, beautiful resort, great
restaurants, and so much more. When you look around you see a meeting room, I
see health care for our members. You see a stage, I see a fire department, you
see a buffet, and I see a tribal court. The state of our industry is best
reflected in the growing strength of our governments, the health of our
communities, and our ability to better protect our sovereignty."
Stallings congratulated the tribes for keeping their promise to voters that
revenues from gaming would be used to create jobs and provide government
services to reservations so that tribal people would be self-sufficient. He also
noted how tribal gaming has generated real economic benefits to all
Californians, from jobs for non-Indians to sharing fire and police services with
neighbors. In many rural communities and small cities, the tribes are the major
philanthropic donors.
According to research by Beacon Economics, hired by CNIGA to report on the
benefits of tribal gaming, many lives and communities beyond tribal reservations
benefitted from tribal gaming. The 2014 analysis showed that California tribal
government gaming had an $8 billion annual impact and supported more than 56,000
jobs for state residents. There were 68 tribal gaming enterprises in 2014, up by
four from 2012.
"The 2014 study serves as both an update and expansion to the previous 2013
study by adding research in the areas of non-gaming operations located at tribal
casinos, such as hotels, spas, golf courses and concert halls, revenue sharing
with non-gaming tribes and charitable contributions. By expanding the report,
Beacon Economics was able to measure the totality of benefits generated by
tribal government gaming operations," noted Stallings.
The study's key findings included:
Tribal gaming generated $8 billion for California's economy and supports 56,000
jobs statewide: Tribal gaming operations in California generated an estimated $8
billion in economic output in 2012 - $2.9 billion of which represented earnings
by California workers - and supported over 56,000 jobs statewide. The 2012
operations had a roughly 7%-7.5percentage larger impact on California economic
activity than in 2010.
Expenditures totaled $62.8 million per tribe: Tribal gaming expenditures totaled
roughly $62.8 million per tribe in 2012 and consisted predominantly of
advertising, administration, food and drink, and gaming expenditures.
$4.2 billion in secondary effects: Over half of the economic output generated by
tribal gaming operations came through secondary effects—$4.2 billion—indicating
that tribal casinos have a substantial impact on the state economy above and
beyond their own direct spending.
Non-gaming operations generated $2.3 billion output and supported 14,800 jobs:
Tribal non-gaming operations in California generated an estimated $2.3 billion
in economic output in 2012, supporting over 14,800 jobs statewide, and adding
$1.2 billion in value to the state economy - of which $804.6 million represented
income for California workers.
Tribal non-gaming operations directly employed 8,200 workers: Tribal non-gaming
operations directly employed approximately 8,200 workers statewide and supported
an additional 6,600 jobs through the secondary effects, such as income spent by
tribal casino employees or earnings by suppliers of tribal casinos throughout
the state.
Indirect effects substantial: The indirect effects of tribal non-gaming
operations are substantial. Non-gaming operations stimulated nearly $100 million
in economic activity for real estate firms, nearly $50 million for wholesale
trade firms, and over $35 million for restaurants and bars throughout
California.
Revenue sharing for tribes without casinos: Statewide revenue sharing for tribes
without casinos generated more than $100 million in economic output for
California and supported 433 jobs statewide in 2012.
California gaming tribes active in philanthropic giving: Gaming tribes and their
casinos gave $36.6 million in charitable contributions in 2012, generating an
estimated $109.2 million in economic output, and supporting an estimated 1,038
jobs statewide. The study also shows that gaming tribes often serve as the most
important sources of philanthropic giving in their surrounding communities.
CNIGA will once again be releasing the Beacon Economic report on the impact of
tribal gaming in 2015.
"We owe the voters of California - the people who gave us this opportunity for
economic development-- a report card in return for their support. Also we are
very proud of our record in strengthening our own governments, but also that we
are able to contribute to the state's economy, and participate in the well-being
of our neighbors in many rural areas where jobs and many government services did
not exist until tribal gaming," Stallings said.
Looking to the future, Stallings reminded tribes of their accomplishments when
presenting a united front and warned that tribes need to stay united and not
blinded by their individual successes, all of which were born from a united
front.
"I read somewhere the internet is today's campfire, with a global audience.
Traditional campfires served many purposes among Indian people, from a place for
gathering to make important decisions, and providing for dialogue to build
consensus, to teaching youth, and for entertainment. Today's digital campfire
does much of the same, but has no censors or built in protections to protect the
user from fraud and misinformation.
"As tribes, counting on gaming revenues to fund our government budgets, we
cannot let yesterday's and today's success make us complacent, but must take
risks and prepare for new markets, and changes in the games. The only way we can
protect our businesses is to anticipate the future and what gaming will look
like 10-20 years from now," he explained.
"Given how fast technology changes, the digital campfire with its massive
audiences, pit falls, and opportunities, is the most immediate challenge facing
California tribes. Finding skill based games that appeal to the younger markets,
and diversifying our entertainment venues is one solution. It has been estimated
that California with its population of 30 million offers one of the most
lucrative internet gaming markets in the US. Online Poker, still illegal in the
US, has been reported to currently have over ten million players."
In closing, Stallings pointed to the immediate political challenges that will
test the tribes. These include bills to legalize and regulate I-Poker, Daily
Fantasy Sports, and sports wagering. All three, as witnessed by the 9-year
stalemate over I-Poker, will require diligence, unity and political comprises
among the state's tribal gaming enterprises and governments. "I hope, amidst all
the potential for profits and politics around internet gaming, that the consumer
doesn't get lost and that we will continue to look to gaming that rewards both
the players and the host.
"My personal goal is to revitalize CNIGA. It's our historic home base, our
tribal campfire, the place we come to stay in tune with our industry, to debate
and discuss legal and legislative issues, and to build consensus and resilience
as we look to the future of tribal government gaming," he concluded.
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