A new study out of UCLA shows that tribal casinos have significantly improved wages and reduced unemployment for people of all races living near them.
According to the study, since the 1990s, after the Indian Gaming Regulatory Act (IGRA) was passed, tribal casinos have greatly improved the economic conditions for American Indians faster than the whole U.S. population.
Additionally, the sharing of casino profits has enhanced living standards for tribal members on reservations.
UCLA Luskin professor Randall Akee, an expert in public policy and American Indian studies, co-authored the study, which is featured in a U.S. Census Bureau report.
The findings are making headlines on the heels of attempts by tribal casino operators to improve cybersecurity efforts. It also comes at a time when they're trying to get ahead of the challenges online casinos might pose.
UCLA Study Uncovers Key Benefits of Tribal Casinos
According to the study, tribal casinos are doing what they can for their communities.
Here are a few key benefits the research uncovered:
Less Childhood Poverty: Thanks to casino operations, childhood poverty among American Indians has dropped by about 11%. This means more children have better access to the things they need to succeed.
More Jobs for Women: There has been a 7% increase in American Indian women joining the workforce. This not only helps families earn more money but also boosts the community's economy.
Lower Unemployment: Overall unemployment on reservations has gone down by 4%. When more people have jobs, everyone in the community benefits.
Increased Income: After casinos started up, American Indians on reservations saw their income per person rise by 46.5%. Compared to the rest of the U.S., which only saw a 7.8% increase, this is a huge difference.
Some tribes even share the profits from casinos with their members, similar to universal basic income, which helps improve living standards.
Examining the Wider Economic Impact of Tribal Casinos
To find out how casinos affect wages and jobs, researchers used data from the U.S. Census Bureau and other sources. They compared areas with casinos to similar areas without them. This method allowed them to see changes in employment rates and wages before and after casinos were built.
Tribal casinos also help generate more than $40 billion each year.
This money supports local economies by creating jobs, investing in infrastructure, and funding welfare programs. The casinos don't just help American Indians; they also provide jobs for people of all races in nearby areas, especially in hotels, restaurants, and entertainment sectors.
Poverty Rate Still Higher for American Indians
Despite these gains, the poverty rate for American Indians is still higher than the national average.
In 2024, the poverty rate was 19.6% for American Indians, compared to 12.1% nationally. There are also challenges, like managing outside investments and ensuring gambling doesn't overshadow other economic opportunities.
Overall, tribal casino operations have played a major role in improving the lives of American Indians and their neighbors.
They have had lasting positive effects on wages, employment, and living standards. According to the study, this shows how powerful economic policies targeted at specific areas can be, giving tribes the chance to strengthen their economies and embrace new opportunities.
