New Mexico Tribes Open Up

Most American’s know that many American Indian tribes across the United State possess the legal right to build casinos on their reservation lands.  Its certainly no secret, that the tribes make a fist loads of cash from casino revenues.  However most still question what the tribes do with all of that money. 

The American Indian tribes of New Mexico answer a few of those questions.  An answer, in brief, is that the tribal leaders use the casino money to provide virtually everything the tribal members need to maintain their economic self-sufficiency, including: community centers, computers in homes, luxurious resorts, protection of sacred lands, and health care. 

History of Indian Gaming

It all started back in 1987 with the U.S. Supreme Court decision in favor of tribal sovereignty in California v. Cabazon.  One year later the U.S. Congress passed the Indian Gaming Regulatory Act, aimed at helping states regulate Indian gaming on their own land. 

Tribes all over the nations, including those in New Mexico, now possessed the right to conduct gaming on their own lands, providing that the state in which their territories lay currently offer similar gaming options. 

After the ruling, Indian tribes had to settle on agreements with their states.  The agreements are called compacts.  It took the New Mexico tribes a good eight years before they and the state had finally settled on an agreement in 1995. 

The Act laid out five general purposes for the use of net revenue:  Funding government services, promoting tribal economic development, promoting tribal general welfare, making charitable donations, and funding local government agencies. 

Economic Independence

A discussion with Ron Lavato of Ohkay Owingeh, CEO of the tribal-owned Tsay Corp, gave a first hand account of how tribes are using casino revenue to facilitate their independence.  Speaking with tribal leaders like Lavato makes it clear that casino revenues are indeed being used for governmental purposes, as Congress intended.  “Because of gaming revenue, we are able to plan our future the way a well-run government should,” says Lavato.  “We are partnering with a school to implement a language program. And we have acquired another convenience store in Española.  We have moved into the construction business on a national level with Tsay Construction Services LLC.”

Casino revenues are used to improve the quality of living amongst members of the tribe.  The funds sponsor: educational programs, public safety, scholarships, water and waste management, and land preservation.  Tribal government can also tend to environmental needs such as: fighting drug and alcohol abuse, health and health education, care for the elderly, housing repair, and cultural and language preservation. 

New Mexico’s Share

The state also benefits hugely from casino proceeds.  In 2001, most of the New Mexico tribes agreed to a compact that grants the state government 3 to 8 percent of slot machine revenues.  Most of these compacts will expire in 2015.

Casino City’s “Indian Gaming Industry Report” reveals just how much the tribes of New Mexico contribute to local and state governments.  In 2004, the state and local government received a total of $39.5 million in revenue sharing.  The statistics also show that government benefits are on the rise as the state and local governments only received $36.9 million dollars in 2003.   

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