• Posts Tagged ‘tribe’

    The Problem with Tribally-Owned Casinos

    Saturday, January 15th, 2011

    For a long time now Indian tribes in California have been utilizing slots to maintain their infrastructures. Tribal leaders sorted out agreements with state legislators and are permitted to direct slots parlors as long as they give a fraction of the finances to the state. As a rule, states request anywhere from 11 to 17% of the money generated from gambling companies and use the funds to increase their own finances and close down the huge deficits they are trying to pay down right now. Tribes all over the nation have worked out similar agreements and have for years had success using the pastime to assemble their infrastructure up. It has been a time-tested way of them to direct and bring in their own methods of supervision. There are changes in the industry thought that are coming against the tribally-owned gaming centers and creating difficulties that they now have to manage.

    Right now the world of slots is expanding speedily. More and more slots software companies and parlor owners are realizing just how profitable the slots are and are trying to enter the market with their own products. This is creating a great gaming world for slots players, affording them the more potential than ever. On the other hand, tribal leaders are not as content with the changes. California is letting more gaming facilities in and slots are growing. Tribal leaders are concerned that if the state lets too many slots gaming in, their own revenue will be considerably compromised. If players have three-times as many gaming options for their play, then tribal leaders are going to see drastic falls in their own revenue streams. Plus, gambling companies have the money to expand and absorb the change. They can put billions of investment dollars into developing their own slots parlors and easily carry on themselves during the development. Tribal leaders can’t always do the same. Indian-owned casinos are maintaining themselves with gambling and depending on the dollars not only to work on their business, but to pay for their own bills. They are worried that the alteration of the market is going to put them at a serious weakness.

    Tribally-owned Slots Parlors Suffering due to Growth

    Thursday, January 13th, 2011

    Tribally owned casinos are having a particularly difficult time rallying in today’s market. Though they are fighting hard, there is a lot of competition out there for them to overcome. Consider the amount of gaming casinos being built right now. One by one states are taking on their own gambling initiatives and using slots gaming as a way to keep on building themselves up. It is no secret that slots gaming is huge business. The market of gambling as a whole is a $3-billion dollar one and that is going to more than double over the next four years. That means that casinos are ready for huge growth rates and an increase in gambling altogether. They know that the competition is going to get a lot fiercer than it is right now…and that is saying a lot. Today’s market already is cut-throat and one gaming company after another is trying to win customers proactively. They are creating bonuses and promotions that are some of the best that have ever been created. Plus software companies have already made huge strides in the market and are showing no signs of slowing down.

    So where does that leave tribally-owned slots parlors and casinos? They are in a difficult position. They have to fight all the competition that is out there and try to make some sense out of it. Part of their problem though is that to them their casinos aren’t just business. For a lot of tribes, their casino and slots parlors are the way they keep running their reservations. This is their only mean of income and it is what they rely on for food, sustenance, bills, utilities, growth and infrastructure. This is why they are having such a hard time with competition from other land based casinos. Add to that the huge growth in online gambling and it is no wonder why tribally owned casinos are so stressed right now. They know that without a good plan of attack, they are going to have a difficult time keeping up with other big-business casinos and slots parlors that enter their markets, whether online or land based. They are going to have to find new ways of marketing themselves to keep up.

    Will Navajo Nation Save Las Vegas Slots Market

    Thursday, January 13th, 2011

    Nevada legislators are in trouble and have been for a few months now. Since the recession the state has been suffering particularly hard and now it is trying to find ways of making its way out of its financial problems. For one, the state had no secondary market to fall back on when people stopped gambling. The state has long been building much of its infrastructure on gambling and when people could no longer do it, it caused a drastic decline in the state’s revenue stream. They had no supplement. It has left them in a difficult financial position. On top of that, the state also is having problem with tourism. The recession cut back on people’s discretionary funds and that is making it twice as hard for them to keep bringing people in. Consumers don’t have the funds to take vacations and are cutting back on them drastically. This too is adding to the problems that Las Vegas and the entire state of Nevada are experiencing.

    So what is the state to do? The state is trying to put that much more into reviving its market. Right now legislators approved an additional slots parlor to be built by the Navajo Reservation. They are going to build the $120-million facility and market it as one of the biggest slots parlors in the state. Legislators are hoping that it will bring gamers in. They get a huge portion of their own revenue from taxation of new casinos. Plus they get a portion of the overall returns those casinos bring in. this is a great way for legislators to keep building on wagering and making that much more cash returns. Whether or not this casino is the answer to the Nevada problem though has yet to be seen. Will it be the one thing that is needed to turn around their market? Will it be the one thing that can make sense for them? So far the plans are to have the new slots parlor erected by later this year and the opening should be a huge event. They are hoping this is the answer to bringing in the millions of dollars needed by the state to turn their market around for the good.

    Seminole Tribe in FL Gets Approval for more Slots

    Wednesday, January 12th, 2011

    Florida is another state that is working with slots gaming. Legislators have been debating the issue out in past months and there are changes coming about as a result. It is no secret that slots gaming is highly lucrative for any jurisdiction. Cities that bring the games reap the benefits via tax revenue dollars. An increase in slots gaming is already on the table and a signed deal. The Seminole tribe was allowed to increase their own gambling activity and that included bulking up their slot machines at their seven different state locations. The tribal leaders are hoping that the addition of slots will help to increase their own revenues. They have been suffering since the recession and having problems with facing their own financial obligations. It has been hard for them to keep income coming in and they are struggling to keep financially afloat. The increase in slots could bring them the dollars needed to turn themselves around.

    Governor Rick Scott has made a change on his gambling stance too. Formerly he was vocal about not wanting an increase in slots gaming. He maintained that the number of slots in the state were already enough and were bringing in adequate income to change the market. Now he’s changing his mind though. The Governor stated that he is willing to adapt to market changes and is ready to increase games as needed. He knows and acknowledges how lucrative the games are. In Florida, gambling expansion is something that all legislators are pushing for. They believe that it is the only thing that will truly turn the market around. The expansion efforts by legislators is going to make a lot of changes. Namely gambling facilities now will have the approval to offer no-limit poker tables and offer bigger numbers of slots games to the public. They also cut the tax rate for existing gaming facilities and expanded the hours of operations thanks to the new gambling laws instilled. The bill to expand further is still on the table and the heavily republican conservative state most likely is going to fight hard to keep gaming changes out. Only time will tell if it goes through or is left for future debate once again.

    Tribally-Owned Slots Parlors Facing Tough Competition

    Saturday, January 8th, 2011

    One thing that the changes in gambling are affecting is how Indian-owned casinos are operating. For a long time now Indian-owned casinos have had a hard time keeping their numbers up. In a lot of ways they are suffering the same fate as Atlantic City and Las Vegas. Both cities built their entire economies on the market of gambling. When that fell during the 2008/2009 recession, it was hard for them to maintain their budgets. They had no secondary market to fall back on. It has happened a lot in the market—just look at the entire city of Detroit. It too was hit due to its single-industry economy. It was built on automobile manufacturing and when that fell, it was too hard for the city to maintain itself. It had no other economy to take advantage of and wait out the financial storm. Tribally-owned casinos are seeing the same issue. They are mostly built on gambling and slots gaming. With the loss of that market, they are having big problems with surviving financially. They have nothing else to replace the huge dollars they were bringing in thanks to gaming.

    One of the other problems tribally-owned casinos are coming up with is competition. Now that there are other slots parlors being built in the US market, it is making them even more obsolete. Legislators are giving the approval for other companies to start their own development plans. Many of the tribal leaders don’t have exclusivity contracts with the governments – just the approval to run them. This is causing a market surge in slots gaming, but tribes are losing customers because they are no longer the only ones offering the games. Add to the problem the rise in internet gaming and the tribal leaders are in an uproar, not knowing what to do to save their markets. Many are trying to work with the states they are in to find solutions, but the move of online gambling is unstoppable. No one can predict how many people are joining online casinos but the number is startling. There is a huge market that is opting to wager from the privacy of their own homes rather than going into a land based location. Tribal leaders are scrambling for a solution to the problem, but it may be a long time in coming.

    Michigan Having Problems with Indian-owned Slots Parlor

    Friday, December 31st, 2010

    The Bay Mills Indian community is having problems with Michigan legislators. The state is trying to shut them down from operating their casino and slots parlor. A federal lawsuit was filed earlier this month accusing the casino of operating illegally due to not being situated on Indian-owned parcels. The Indian reservation belonging to the Bay Mills tribe is farther north of where their slots parlor and gaming facility is situated. The state is ordering the casino to be shut down immediately and sent a cease and desist latter. Bay Mill tribal leaders stood their ground though and refused to shut down their casino of approximately forty slot machines. They stated that the casino’s opening was carried out because they were assured their location was acceptable to state leaders. They want to know why now the state is having problems with their locale. The next step is yet to be released to the public but it is the state’s turn to respond.

    Part of the problem could be that the state is not sharing in revenue from the casino. According to the Little Traverse Bay Tribe, they are supposed to contribute revenues to the state according to a contract with Michigan officials. In exchange for operations, they have to hand over a portion of their money. Due to a breach of their contract though, the tribe is no longer obligated to contribute this money to the state. This is the reason allegedly why the state is coming down on the Bay Mills Indian Community and calling for the closing of their slots parlor. There is an investigation into the real reason why things happened and who dropped the ball in terms of allowing them to start a gaming center at the location. It will take a few weeks to formally investigate the issue and find a solution to the problems that are now arising. Until then the tribal leaders state that they will continue operations as normal and refuse to shut their doors without further legal action by the state’s officials. The state officials have yet to comment on what their next move is going to be.

    Seminole Tribe Hoping to Expand Slots in FL

    Thursday, December 30th, 2010

    Florida is another state that is on the brink of gambling changes. Right now the state is pushing for change and coming up with a lot of different options in terms of games. The Seminole Casino is the one right now that is focusing on development and evolution. Casino operators are hoping to develop their games into Vegas-style games. This means that they want to make their games even more exciting for gamers. For a long time Las Vegas has been one of those cities that offers the best games. Now Florida is pushing to replicate their former success and bring the same level of gaming for their own state’s gaming plan. The Seminole Casino owners are hoping that the move to expand their own gaming will help to contribute to their own success rate in the market. Right now a lot of Indian-owned companies are having problems with wagering revenues. They have seen diminishing numbers since the recession and beyond. It is making things difficult for gaming companies to turn things around. Right now to turn things around, the Seminole tribe is hoping to bring in Las Vegas style slots games to their casino floor. They want to take advantage of the state’s offer to hold exclusive table games on their floor.

    In the end, this could be a great move for the tribal leaders to turn the casino around. Since the recession their numbers have been down. With the rise of the internet and its own gaming, along with neighboring state’s own casinos it is being more difficult to survive. Competition in the market is fierce and that is causing the market to continue to struggle. In particular Indian-owned casinos who have made the money needed for years now are having a very difficult time turning things around. They are suffering and the owners are looking for ways to bring better gaming in. If they can bring in Las Vegas styled casinos slots, this could help them to bring in a new customer base and increase their own revenue streams. This would be the most important thing they can do for their own future survival.

    Seneca Tribe Fighting for their Slots Revenue

    Monday, October 25th, 2010

    There are some problems happening with the Seneca Tribe and their casino. In New York the tribe has had some issues with slots gambling. Tribal leaders have been going back and forth with the Gaming Board and the state’s legislators for years now. New York has tried to discuss the problem with the tribe, stating that their pact regarding Class III slot machines is in question. The Nation has been holding out in terms of paying the state. Part of the problem is that tribal leaders don’t believe that the state is listening to them. They want to hold a conference with government leaders to discuss their personal issues with gambling in the state. Because they haven’t been given that chance, the nation now is hitting the state where it hurts: their state coffers. This may not work though. By not paying the state on schedule the tribe is in violation of an agreement formed years ago. The rule is that the Seneca Tribe has to reimburse the state for all regulatory spending needed to manage gambling regulations. They also have to contribute a portion of the overall slots revenues that they bring into the tribe. The return favor is that the state agreed to allow the tribe to monopolize the slots market for New York.

    This is where the problems begin. The state was for a long time the only slots provider. Then the state decided to allow slots into various racing arenas and to private businesses for operations. The Seneca Tribe is calling the state in breach of the contract that was formed protecting their sole slots market. The issue is that if slots are offered in other locations in the state that drastically will cut down on the tribe’s income. No longer do people have to come to their casino for slots gambling, but rather have a long list of options to employ. Because the tribal leaders feel the state went back on their agreement, it is denying the state the pay owed until they can clear the issue up. It could be that losing the funds is the only thing that will speak to the state and spur it on to looking at the exclusive rights the tribe has to slots gambling.

    Tribally-Owned Slots Parlors having Problems with Revenue

    Sunday, October 24th, 2010

    For a long time now tribes throughout the US have used slot machine gaming as a means of operating. Tribes have special pacts with the government that allow them to use gambling as a means of maintaining their own budgets. Of course they pay for that privilege but it still has worked out for all parties involved over the past few decades. Tribally-owned casinos are a huge market in the US but now even they are having problems maintaining their former revenue schedules. Tribal leaders are concerned that due to the recession, their numbers are down and are showing no tangible signs of reviving now that the financial crisis is over. In fact, things are getting worse. The Arizona Department of Gaming just announced that revenues from 2005 to 2009 gone from $1.7 billion to $1.68 billion. That decline is telling of how precarious the market is right now and how many problems tribal owners may have when it comes to spurring their own market back to what it was pre-recession.
    The problems tribal leaders are having come down to two different issues. First, people just aren’t gambling like they once did. They are still conservatively returning to the market with no signs that they are going to start wagering like they once did. Though the market is better, there are no guarantees that lenders are going to start opening their doors like they once did. There are also no guarantees that prices are going to come down, or that move jobs are going to enter the market.

    Secondly, tribal leaders are seeing the increase in competition as an added thorn in their sides. Now that the door to legalizing gambling is opening, it is creating more problems for existing players in the market. They now have to contend with newer and flashier slots parlors and casinos in their areas. People have more choices and they are pickier than ever. Also, online gambling is coming into the market and this is throwing everyone into turmoil. That offers convenient gambling that land based casinos just cannot compete with. Tribal leaders are worried, but hopeful. They want to rework their deals with the government to see if they can rally that much quicker. Most are on the verge of expansion too because they believe that this is the way to turn their own markets around for the good.

    California Tribal Leaders Protective of Market

    Thursday, October 21st, 2010

    California is a state that allows slot machine gambling to the tribally-owned casinos within the state. It was a long standing pact between gaming companies and the government that allows them to do this. Indian tribes fought for the right and have over the years built up a great market for themselves in California and other states. When the recession first started, it was difficult on them, like other businesses. The slots numbers fell drastically for about eighteen-months and that was enough to put them off course in terms of budgets. Many tribally-owned casino operators are now voicing their concerns. They, like the rest of the economy, have seen better days. It is first now that slots numbers are slowly showing a revival. That revival is slow in coming though—it isn’t a 180-turnaround that most gaming operators were hoping for. First now are gamers returning to their older ways of operating, but it seems that they are only getting their feet wet in terms of wagering again. They aren’t jumping in like it was anticipated.

    California tribal leaders are also worried because of the changes coming into the market. With the rise in online gambling and the question of legalizing gambling, this could put them in a difficult position. The competition is already fierce and having an entirely new entrant of players could force their casinos to suffer financially for much longer. The gambling money that is coming in is being pushed thin enough, but with legalizing online companies and other land-based companies, that could change things considerably with the market. Indian-owned tribes are careful- they want to protect their own revenues, but understand that the market is growing and will most likely open up for more casinos to enter the market. Only time will tell what is going to happen with the issue. The problem though is that online casinos and land-based casinos offer the state huge tax revenue dollars to enjoy. California legislators know this and are faced with their own financial turmoil right now. The deficit for the state is huge and that is causing a lot of problems for legislators. They are looking to expansion of gambling to bring in the money needed to meet the budget for the coming years.