There are numerous traditional cultures around the world where casinos had been introduced, however for the purpose of this article the focus will be on the Native American Indian casinos which are commonly regarded as the most profitable in the Western Hemisphere.

The Indian Gaming Regulation Act was passed in 1988 and depending on who one speaks to with regards to the benefits and disadvantages derived from the introduction of casinos within the traditional cultures of the USA, opinions vary. In 2003 the National Indian Gaming Association (NIGA) with the help of one hundred tribes, twenty four of which included those where casinos had been introduced, took an in-depth look at the impact casinos had on local tribes and found that whilst the advantages loomed large, there were also some significant disadvantages.

They found that gaming amongst the Native Americans were popular and generated wealth to the tune of $18 billion per year, was responsible for the generation of around 500,000 jobs, paid annually around $5 billion to tribal governmental employees and contributed an enormous amount to the economic development of their areas. As a result, many new Native American businesses were established from the newly found wealth which was at its peak during the 1990’s. Furthermore, the tribes that were not issued gaming licenses, the Indian gaming industry was able to establish special gaming funds which in turn served to strengthened and increased the purchasing power of those communities. Substantial donations were also made to charitable and non-profit organizations, schools and their local police forces.  They also helped to improve and maintain sewage systems, repaired and built new roads and helped to fund the fire fighting service. Researchers also noticed that their were additional benefits whereby community leaders had developed leadership skills and gained confidence both personally and corporately and as a result were able to take better care of the social and economic needs of their community.

As previously mentioned there are also some negative aspects which must also be addressed if a well-balanced view of the whole situation is to be established. Four years after the first casinos were introduced an increase in the crime rates such as auto theft, larceny, violent crime and bankruptcies increased by 10%. Critics of the Indian casinos accused them of competing unfairly against the hotels with casinos, they say that it affected lottery ticket sales and saw an increase in gambling addiction, which in turn placed increased pressure on the health care system. Further, in 2002 an article appeared in the ‘Wall Street Journal’ which accused the Indian casinos of being under-regulated as compared to the non-tribal casinos, making money laundering and infiltration by criminal organization not an uncommon occurrence. They were also accused of being rife with political scandal citing as proof the relatively low budget of $8 million under which the National Indian Gaming Commission operates.

To further substantiate this claim the article stated that over 100 tribal casinos are regulated by less then thirty full-time inspectors and auditors, whilst in stark contrast, casinos in New Jersey for example have over 200 officials regulating just 12 casinos. Indian casinos in Florida, Minnesota and California have also been said to be linked to the Mafia, whilst politicians were accused of accepting dubious tribal linkage so that licenses can be issued at a price to open new tribal casinos. These allegations have been strenuously denied by an article in ‘Indian Country Today’ who dismissed the article as ‘generalized fiction’. Needless to say these allegations have all served to impact negatively on the stability and culture of the North American tribes.

The local state government responded to the allegations by saying that it was isolated incidents of wrongdoers and once identified, they were weeded out.  Further, they strongly refuted allegations that this happens on a regular and systematic basis saying that they have a propensity to focus on the overall benefits derived from the introduction of the casinos to the tribal community as a whole.