Effect On Native American Gaming
The Cabazon decision of 1987 coincided with a period of rapid growth in the reservation gambling industry. What just years before had been a modest and relatively isolated phenomenon of reservation bingo and card games saw steady growth following the Supreme Court decision. Congress responded by passing the Indian Gaming Regulatory Act (IGRA) in 1988, which expanded the kinds of games that tribal casinos could offer, and provided a framework for regulating the industry. As part of the act, the National Indian Gaming Commission (NIGC) was formed and Indian gaming was divided into 3 classes: Class I, Class II, and Class III. Class I encompasses charitable and social gaming with nominal prizes; Class II includes bingo and other punch-board/pull-tab style games; and Class III includes high-stakes bingo, casinos, slot machines, and other commercial gaming.
As of 1996-year end, there were 184 tribes operating 281 gaming facilities. These facilities were spread across a total of 24 states, 14 of which have physical casinos on Indian reservations. In 1995, Class III gaming revenues totaled over $4.5 billion, with an additional $300 million in revenues from food sales, hotel accommodations and other services. After expenses this amounted to $1.9 billion in net income, $1.6 billion of which went straight to the tribes on which the casinos were operating. As of 2007, the tribal gaming industry had become a $25 billion industry generated by over 350 tribal casinos in 28 states. This level of growth was made possible beginning with the U.S. Supreme Court ruling in favor of the Cabazon Band of Mission Indians.
Read more about this topic: California V. Cabazon Band Of Mission Indians
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