By various accounts, Indian Gaming enterprise proceeds now exceed Las Vegas revenues or are trailing close behind. Furthermore, the rate of growth of Native Americans casinos versus Las Vegas is significantly better and likely to remain so. After all, the Native Americans are spread out across the country and own land and have a protected gaming model in the majority of possible locations. For the most part, the tribes now know how to operate the businesses too and are able to make educated and better decisions without the help of outside consultants. In other words, they make more and more profit too from operations. I’m sure that they are among the state of the art in casino management worldwide now, witness the Seminole tribe purchasing the Hard Rock operation. Talk about Private Equity, the Native Americans have not only got their own money but their own sovereignty too. Now I read that a tribe is ready to build a huge casino at the California/Nevada border which will interdict California gaming traffic before the border is reached. In addition, a tribe owns thousands of acres (I remember over 25,000) surrounded by California’s Mojave County which is adjacent to the Colorado and working to get into the future competitive mix. The tribes each have a unique culture too which allows variety in the presentation to customers, turns out that that advantage has worked nicely for the casinos.
Reno has suffered mightily from the interdiction of traffic on all sides along the arterials leading into town. The mass of Reno does not and will not approach Las Vegas, but the result here may be a precursor of things to come in Clark County/Las Vegas. When Kirk Kerkorian proposes to isolate Bellagio from MGM and join Wynn’s and The Venetian in a big three high rollers concentration, he may be telling us something. He doesn’t tell us all, but his exclusion of the MGM development interests may also be telling. I think that he will be in a position to stretch MGM then worldwide aka Marriott and Hilton in a new generation/regeneration of the upper-end hotel business. Franchises, licensing and management fees will be key there. Sands (The Venetian) and Wynn are big time in Macau and Sands has won in Singapore. It is after all the age of Asia with China and India which provide 40% of the world’s population as the prime movers. It will be interesting to see what happens to Harrah’s once the acquisition is done say year end. My guess is that Apollo will do a Blackstone/EOP property disposition program and Las Vegas will have a wider ownership with many international property-specific players.
But returning to the Native Americans, it is clear that the Native Americans are successful business people now that they are entitled as they deserve. The tribes have diversified and their enterprises are also among the leaders in oil and gas, natural resources and industrial development as logical first steps. I think it will be harder to compete in gaming for other domestic operators unless there is a Wall Street component to those operations. The entrepreneurs of the gaming industry’s future in the united States will be the Indians both from a permitted basis and from the strength of their management ability.
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4 users commented in " Native American Gaming Blows Out Vegas – WHAT ??? "
Follow-up comment rss or Leave a TrackbackI sincerely hope your prophecy does not come true. If you haven’t noticed, Indians are buying politicians right and left. If the trend remains unchecked, you will soon see laws passed that benefit only the smallest minority in this Country. As it is, they pretty much get to pick and choose what laws they obey now, and they don’t pay any taxes to speak of. The entire concept of Native American gaming is discriminatory and is detrimental to every other race and ethnic group in the United States.
If you think Native Americans are our friends, take a look at what they will do to the price of natural gas in the lease renewal of the pipeline across their land. If they own so much of this nation’s natural resources, why do they also need gaming and still receive government subsidies?
Alternative views always appreciated. Especially when they show the short sightedness and ignorance reflected by comments such as yours. Yes, the Native American community is the smallest minority. And they have always been subject to laws passed to “benefit” them. Ever heard of the government policy of assimilation? How about termination? Do your homework.
Those tribes that have successful gaming operations are clearly in the minority. Those that have had success were blessed with ideal commercial locations. Most of the tribes were located to regions that were designated for their remoteness, as well as their lack of resources. Most of those tribes that were fortunate enough to have resources, were robbed of the rights to develop those resources. As for “buying politicians”, tribes that have the resources to become involved with the political process are excercising a protected right that belongs to, and has been excercised by every single interest group ever created. Not only is it a right that they can excercise, it is one that they should excercise. Most important inaccuracy– tribes do pay taxes. On the Federal level for certain, and on the state level, they pay as well. The difference is that at the state level it is not called a tax, but a “contribution”, which is calculated as a percentage of gross revenues– which smells of a tax. If it looks and walks like a duck, it’s a duck.
Isn’t there something more constructive both of you can do with your time than spread clearly uneducated opinions about a group of people that have suffered horrors and tragedies worse than anything either of you could ever imagine? You should be cheering them on for their ability to hold onto their identities against all odds, and finally find a way to overcome.
Brian does a good summary. Who really benefits from Indian gaming operations, anyway? Most of the big gaming operations are located near metropolitan areas where the majority of employees are non-Indian; most of the big gaming operations have compacts with the state they are located in and agree to sharing of revenues; most of the big gaming operations have become the largest employer and payer of employment taxes in their counties; most non-Indians can’t stand to see “any” minority prosper; most of the supplies and services that are needed to run a successful gaming operations aren’t available on an Indian reservation, so who gets to earn millions from Indian gaming operations? Non-Indian entities, of course! Blowing out Vegas, I don’t think so! We still like to go to Vegas because what goes on in Vegas stays in Vegas and we don’t want to change that. Please, this is 2007 so let’s end the war on American Indians.
Wrong Numbers!
While I agree with Brian’s premise that many Indian gaming installations are well run, most do not approach the level of sophistication required by commercial casinos that operate in highly competitive markets - but they’re getting there with the assistance of the growing availability of consulting services. Moreover, according to the NIGC, Indian gaming generated about $25 billion in net win in 2006, and is growing at a faster pace then commercial casinos nationwide; however, Las Vegas casinos (Strip, Downtown, Boulder & North) generated about $8.5 billion, and the state about $12.6 billion. Nationally, total gaming revenues for commercial casinos and racinos in 2006 were roundly $35 billion in 2006.
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