Red Lake Indian Reservation - Economy

Economy

Some in the community have expressed hope that interest may be renewed in the tribe's traditions, and that this form of "traditional values" may improve life on the reservation. However, others have a more pragmatic view and believe that the community needs to focus on education and finding ways to get people to work and paid adequately. The majority of professions on the reservation have pay in the vicinity of $7 per hour as of 2005.

The tribe operates three casino operations, which are struggling to generate revenue. A small operation is located in the village of Red Lake, the 13,000 ft². River Road Casino is located seven miles south of Thief River Falls, and the Lake of the Woods Bingo and Casino is in Warroad. Seven Clans Casino Red Lake is located in Red Lake, Minnesota. The three casinos combined are known as Seven Clans Casinos.

Industry on the reservation has consisted primarily of logging and commercial fishing of walleye in the lakes. Walleye production dropped significantly in the 1990s, adding to the reservation's financial problems. The community receives $50 to $60 million each year in US federal subsidies, such as Social Security and welfare, but little money is exchanged on the reservation as it has few retail businesses.

The poverty level of the tribe, coupled with financial difficulties in state government, led Minnesota Governor Tim Pawlenty in 2004–2005 to propose a joint casino operation to be co-owned by the White Earth, Leech Lake, and Red Lake bands, and the state government. the state was willing to designated a site in the populous Twin Cities area, where some of the most successful Indian gaming facilities in the country are located. Many state residents turned against the plan, and it was ruled to be illegal by the state Attorney General Mike Hatch. The Red Lake Band pulled out of negotiations.