Influence of casinos Reservation poverty

indian gaming casinos considered potential solution reservation poverty. because reservations exempt many federal , state regulations, including prohibiting gambling, tribes able operate commercial casinos on reservations. these casinos can provide jobs on reservation, attract tourists, , bring in money tribes fund education, health, , social service programs. ojibwe of minnesota have built 2 schools, choctaw of oklahoma have built new hospital, , pueblo of new mexico have rebuilt water system, using casino profits. other tribes fund child , elder care programs, health services, fire , police protection, , housing development gambling earnings.

casinos provide much-needed job opportunities on reservations. in 1989, average levels of unemployment on reservations above 30 percent. in next decade, rate dropped 13 percent on reservations casinos, while remaining stagnant on reservations without casinos.

casinos impact on overall economic conditions, however, limited. through 1990s, number of reservation residents eligible public assistance programs increased across on reservations. although rate of increase less on reservations had casinos, casinos unable reverse trends of worsening poverty. there number of factors explaining why casinos have done little change living conditions on many reservations, despite income bring in. first, relatively small number of casinos bring in majority of casino income. in 1990s, ten casinos brought in more half earned money, , 20 percent of casinos brought in more 80 percent of earnings.

those financially successful tend small reservations relatively few inhabitants located near metropolitan areas not have high poverty rates larger, more rural reservations, hold greater portion of nations reservation inhabitants. many of reservations facing dire poverty geographically isolated, meaning outside tourists travel casinos. instead, visited reservation residents. depending on profit distribution plan of tribe, can result in redistribution of income many few, , factionalization of reservation population between spend @ casinos , earn them.

when reservation residents spend portions of sparse incomes gambling, casinos can serve exacerbate rather relieve conditions of poverty. true when casino s income sent off reservation, case when tribal governments must rely on outside investors build casinos. these non-native investors take substantial portions of profits years following construction repay initial contributions. beyond initial investments, casinos rely on outside management companies day-to-day operations. currently, fifteen percent of casino revenues go such management firms.

beyond limited economic efficacy, casinos have faced criticism on cultural grounds. tribal leaders have raised concerns gambling goes against cultural beliefs , values, , not solid cultural foundation native economic development. without culturally sensitive investment in education , job creation, assert, conditions of poverty not change.