People Against a Casino Town
Special Report - Indian Casinos

Special Investigation by Donald L. Barlett and James B. Steele
Time Magazine, December 2002
PART - 4
FACTS
Part 1 - Look Who's Cashing In At Indian Casinos - Hint: It's not the people who are supposed to benefit
Wheel of Misfortune
Who Gets the Money 
The Moneymen 
The Great Land Rush 
Whose Tribe Is It, Anyway?

Part 2 - Playing the Political Slots
How Indian casino interests have learned the art of buying influence in Washington 
Money Talks
Tax Dollars at Work
California Scheming
Nightmare Neighbors
A Tale of Two Tribes

Short Articles
        Amid Scandal, Texas Tribe Asks, Where's Our Money?
        George Bush vs. the Tigua

Facts
        A Lucky Few Reap the Rewards
        . . . And Spread Their Influence
        Money Machines
        When is a Slot Machine Not a Slot?



A LUCKY FEW REAP THE REWARDS

Total federal aid for Native American programs hit $9.4 billion in 2001, but often more money per member is going to tribes earning millions of dollars from casinos than to the poorest Indians.

Tribe
Population
Casino Revenue Per Member
Federal Aid Per Member
Navajo Nation
260,010
$0
$912
Hopi Tribe
11,267
$0
$2,006
Mississippi Choctaw
8,823
$25,048
$5,717
Seminole Tribe
2,817
$87,682
$8,540
Mashantucket Pequot
677
$1,624,815
$2,304
Miccosukee Tribe
400
$250,000
$20,560
Santa Ynez
159
$1,257,862
$8,360

Sources: Bureau of Indian Affairs, Office of Management and Budget, Securities and Exchange Commission, Center for Responsive Politicos, California Secretary of State, Time estimates.  Casino revenue per member based on annual casino revenue divided by the number of tribal members.

... AND SPREAD THEIR INFLUENCE

Since gaming came to reservations a decade ago, federal political donations by Indian tribes have soared.  In key states like California, tribes have spent tens of millions of dollars on ballot initiatives.

Money to Washington - Tribal contributions to federal campaigns:

1992:  $129,571 (soft money: $114,171; Individuals $15,400)
2000: $2.9 million (Soft money: $2.2 million; Individuals: $670,409; PACsa: $61,565)
California Cash - Top four tribes' spending on two state pro-gaming propositions
Tribe Adult Population Spending per Member Total Spending
San Manuel Band 67 $519,403 $34.8 million
Viejas Band 208 $75,000 $15.6 million
Pechanga Band 448 $29,911 $13.4 million
Morongo Band 897 $19,175 $17.2 million

MONEY MACHINES

Return on revenue by some Indian casinos make the performance of top-notch corporations look unimpressive .
2001 profit margin:
Seminole Tribe
85%
Mississippi Choctaw
41%
Melon Financial
32%
Microsoft
29%
Amgen
28%
Bristol-Myers Squibb
24%
Pfizer
24%

Sources: Corporate figures based on Fortune 500 rank of most profitable companies in 2001.

WHEN IS A SLOT MACHINE NOT A SLOT?

The Seminoles are installing 2,000 video gaming devices in a new casino near Miami.  Florida says the terminals are illegal slot machines.  The feds admit the law doesn't draw a clear distinction.

Slot Machines Pseudo Slots
Spinning Reels - Invented in 1877, the classic slot spins mechanical reels and, if the gambler is lucky, spits out a pile of coins. Kid Stuff - Machines look like slots but act like video games.  Players spin virtual reels or mark bingo cards onscreen, sometimes competing against one another.  Winners trade receipts for cash.
Big Money - Fast-paced and sometimes addictive, slots can account for up to 80% of a casino's revenue, far more than roulette or card games. High-Tech Bingo?  The tribes regard the machines as legal technological aids that help customers play Class II games
Class III Gaming - Indian casinos don't need state permission for bingo or other Class Ii games.  But if a tribe wants slots, it needs to make an agreement with the state. A Slot Is A Slot - Most states think the terminals are electronic facsimiles of Class III slots - a no-no.

Time Magazine,Special Investigation by Donald L. Barlett and James B. Steele, December 16, 2002

Also See: 
12/00/02 - Tribes of Gamblers, by William Saffire
12/16/02 - Fresh Air Interview with Barlett and Steele
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