Tribes discuss Online Gaming at NIGA conference

Business | 25th September, 2012 | Florida, US | Indian Gaming ? Video

Online gaming in the US could completely re-shape the nation?s gaming industry and many Native American tribes want to be at the forefront. The National Indian Gaming Association (NIGA) hosted a conference in Florida last week to discuss operating internet gambling activities should it become legal.

While Indian Gaming is a $27bn business in the US, just a little behind commercial casinos, internet gambling would severely impact land-based operations and provide vast obstacles for tribes to get in on the action.

Many of NIGA?s 184 associated tribes met at the Seminole Hard Rock in Hollywood at the association?s mid-year membership meeting last Thursday and Friday. A key topic on the agenda was the implications of online gaming to ensure tribes are not left behind if federal or state governments approve legislation in the United States.

A main concern is tax. Indian tribes act as government entities and are legally exempt from gambling taxes. If an online gaming bill were to imply taxes not associated with the Indian Gaming Regulatory Act, it would be difficult for tribes to compete. Indian casinos do, however, restrict their gambling offerings to match state regulations.

Another concern is competing in the mainstream-driven online world, where big-brand operators own public recognition. In time, this could drive players out of Indian casinos and into the commercial sector, where branded casinos integrate their online and offline offerings.

?We all realise the future of gambling is the younger generation, with online gambling and mobile apps,? expressed Jason Giles, Executive Director of NIGA, ?And we don?t want a state-run to get out in front of us.?

Although most experts believe there won?t be any legislative action at federal level until after the November elections, at least 17 states have considered some form of internet gambling.

Indian tribes have now stopped their vigorous efforts to stop any bills passing in the country and instead turned their attention to getting in on the game.

As Indian casinos have made a huge impression throughout the country?s land-based gaming industry, so too can they with online brand extensions. But not all tribes run thriving gaming enterprises, informed Giles who predicted that ?only five or six tribes? could be in the position to enter the online gambling market.

Giles said in Canada the Kahnawake Mohawk Tribe has been successfully processing internet bets for others? online gambling sites. ?That?s something that our bottom three-quarters could do,? he said. Giles also suggested that other tribes could collaborate to develop a greater mass of players, making bigger poker tournaments and increase jackpots.

The Seminole Tribe operates six profitability Florida casinos and although it hosted the conference, decided not to comment on any internet gambling plans. The Seminoles are currently in the process of negotiating a new compact with the state. For the current 20-year agreement that included a 5-year exclusivity of blackjack and other table games in Florida, and tribes pays $1bn to the state.

More Information
National Indian Gaming Association ? Website: IndianGaming.org
National Indian Gaming Commission ? Website: NIGC.gov

Contact reporter Michael Robinson at mrobinson@innovategaming.com
or +44 (0) 208 144 2578. Follow @innovate_gaming on Twitter.

Source: http://www.innovategaming.com/native-americans-discuss-online-gaming?utm_source=rss&utm_medium=rss&utm_campaign=tribes-discuss-online-gaming-niga-conference

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