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- Time Magazine Editorial Staff
- Via Facsimile: (212) 522-8949
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- December 13, 2002
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- To The Editors:
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- As President of the National Congress
of American Indians, the oldest and largest organization of tribal
governments in the country, and Chairman of the Mandan, Arikara, &
Hidatsa Nation, a large tribe in northwestern North Dakota, I was deeply
concerned by Time Magazine’s misleading feature on Indian Casinos. Your
article on tribal government gaming fueled a number of incorrect
stereotypes about the nature of tribal governments, and failed to look
at the larger picture that makes Indian gaming a critical source of
economic development in Indian country. My tribe’s casino, very modest
by Las Vegas standards, provides jobs to our people that are
extraordinarily important to our economy, and revenue that our tribal
government uses to provide services to the 10,000 members of our tribe.
This is the case for the majority of tribes with gaming ventures.
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- Tribal government gaming is certainly
not a failed federal program as your article suggests. Tribal
government sponsored gaming enterprises are tribal economic ventures
undertaken to support critical governmental functions, closely
comparable to state lotteries—which also are not taxed. Tribes use
their gaming revenues to fund essential governmental functions, such as
law enforcement, education, and health care, and any revenues
distributed to individual members are taxed at the regular federal
rates. Tribes also provide approximately $600 million annually to
states through tribal-state agreements—much more than would be generated
by state taxation of tribal gaming.
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- It is true that the success a small
handful of tribes have experienced does not translate to economic
success for all Indian people—just as the New York State Lottery has no
impact on the economic status of families in Mississippi. Those tribes
with successful gaming ventures benefit from their investments, and
while most are extremely generous in their philanthropy throughout
Indian Country as well as in their neighboring communities, they
certainly cannot be expected to solve the deep economic problems borne
of hundreds of years of failure by the U.S. government to meet its
treaty and trust commitments to tribes.
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- A small handful of early investors in
Indian gaming who put up a great deal of capital in the face of major
risks are now reaping significant rewards. Time Magazine’s criticism
of the success of these investors is puzzling—should all investors in
start-up ventures be chastised when their investments pay off? Outside
investment was virtually the only way to fund tribal gaming
development in the early 1990’s. These investors reaped the benefits of
stepping into that niche. Today, more tribes are able to access
financing in traditional capital markets and are taking over direct
management of their gaming operations—enabling them to keep more of the
revenues in their communities.
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- Indian gaming has provided one very
important mechanism for providing jobs and economic activity in a number
of tribal communities where no other option has been available to
address the extreme conditions of poverty and unemployment that exist.
Your short article on the Prairie Band of Potawatomi and their success
is much more representative of the norm in Indian country than the
atypical cases your main story highlights. There are many important
stories ripe to be told about challenges faced by tribes in the U.S.
today—it is disappointing that Time would instead choose to make news of
such a misleading and sensationalized attack on one of the rare
successes tribal economies have experienced over the past 250 years.
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- Sincerely,
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- Tex G. Hall
- President, National Congress of
American Indians
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