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Media Myths |
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Misrepresentation #9
Myth: "Many non-Indian investors are extracting hundreds of millions of dollars … from casinos they helped establish, either by taking advantage of regulatory loopholes or cutting back room deals. In many cases, the big winners are non-Indian investors." Reality: Prior to Indian gaming, no one would invest tone dime in Indian country. Tribes had no access to capital markets, and had no assets that would serve as collateral (Indian lands are restricted - held in trust by the federal government – and thus, do no serve as an alternative for investment). In addition, non-Indian businesses chose not to invest in Indian country, because there was no infrastructure or trained labor pool, and because they were not familiar with tribal justice systems. So it’s no surprise that some initial investors garnered profitable deals to work with tribal governments on several early gaming operations. Tribes partnered with non-indian investors for two reasons: access to capital for investments; and management expertise in developing and operating facilities. However, under IGRA, the role that non-Indian investors play in Indian gaming operations is limited in years and dollars – with the expectation that Tribes would eventually take over all operations. This has played out as Congress expected. Over the past 10 years, Tribes have turned the tables. Today, Tribes are calling the sots and no longer need outside investors for capital or operational expertise. Capital markets that were unavailable in the past now roll out the welcome mat for tribal governments. Today, tribes broker their own deals. Tribes have gained their own management expertise, and through gaming have their own capital to invest and diversity their economies to other forms of business. TIME title this section "The White Man Wins Again". TIME purports to be watching out for Indian interests, but the days of such paternalism are past. If TIME had taken the time to investigate and ask even one tribal leader about this issue, they would realize the circumstances have changed, and that Tribes are capable of making business deals without their help. |
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