In recent years, Native Americans have come a long way. In 2006, Indian Gaming increased by 12.5 percent, growing from $22.6 billion to $25.4 billion in gross revenues. Jobs created by Indian Gaming grew from 600,000 to 650,000. As a direct result of Indian Gaming, Federal taxes and tax savings grew to $8.2 billion in 2006.
Today, Indian Gaming alone generates more dollars for the Federal Treasury than the government spends on the primary Federal Indian agencies, the Bureau of Indian Affairs, and Indian Health Service. No one could have foreseen that result 25 years ago.
In the 1960s, my father, Ernest Stevens, Sr., was one of the founding members of the National Center for American Indian Enterprise Development, and he recalls there were just a handful of native-owned businesses then. The change has been dramatic.
With Indian Gaming serving as a catalyst for American Indian businesses and tribal economic diversification, last June, the U.S. Census Bureau found that 201,387 businesses owned and operated by American Indians grossed almost $27 billion—in addition to tribal government enterprises. That means that Indian Country is now putting to work over $50 billion of purchasing power.
The results have been dramatic. For example, the Mashantucket Pequot Tribe recently announced a strategic alliance with MGM MIRAGE, who will consult with MPTN in the development of a $700 million destination hotel/casino resort adjacent to Foxwoods. The new resort will utilize one of the most well-known brands in the hotel/casino resort industry—MGM Grand—under a long-term license arrangement, and will contain the kind of meeting and convention, fine dining, entertainment, night clubs, spa, and retail amenities for which Foxwoods and MGM MIRAGE are famous. The new resort will open in 2008.
In November, the Agua Caliente Band of Cahuilla Indians announced the sale of $230 million in private placement bonds to 20 institutional investors across the United States. The bond issuance will be used to fund the construction of a new luxury hotel at its Agua Caliente Casino located near Rancho Mirage, Calif. The Tribe plans to open the new hotel facility in the first quarter of 2008 and the 15-story structure will include 322 guestrooms, 20 executive suites, and two presidential suites, as well as a full service spa, fitness center, pool, and additional meeting space.
Indian tribes are also diversifying into commercial gaming. The Mohegan Sun Corporation just opened the Mohegan Sun at Pocono Downs, a harness track with 2,000 slot machines in Pennsylvania. The Mohegans will soon be joined in Pennsylvania by their sister tribe. The Mashantucket Pequot Tribe recently won a license for gaming development in Philadelphia. The Choctaws, Cherokees, and other tribes are also developing horse tracks or commercial gaming venues.
Perhaps the most outstanding example of the synergy between Indian Gaming and tribal economic diversification came with the Seminole Tribe’s recent $965 million purchase of Hard Rock International last month—marking the first time an American Indian tribe had ever purchased a major international corporation. The Seminole-Hard Rock deal includes 124 Hard Rock Cafes, four hotels, two casino hotels, two concert venues and stakes in three unbranded hotels. The Hard Rock International purchase was financed based on the strength of the Tribe’s gaming operation.
The acquisition of the historic U.S. Grant Hotel in the heart of San Diego by the Sycuan Band of Kumeyaay is another great example of the dynamic nature of tribal economic development. The U.S. Grant Hotel was built by the son of President, Ulysses S. Grant, as a tribute to his father in 1910. Sycuan purchased the 11-story, 270-room hotel at 326 Broadway for $45 million. It spent $52 million on the 20-month renovation, and held a grand re-opening in November 2006. The Grant Hotel is the only five star hotel in downtown San Diego, and Mayor Jerry Sanders hailed Sycuan’s achievement, which “returned the Grant Hotel to everyone in San Diego.”
Working together with corporations including Bank of America, Wells Fargo, Comerica, IGT, GLI, Multimedia, Bally’s, Harrah’s, Coca-Cola, and IBM, NIGA will showcase the newest developments in tribal financing and resort development. From Connecticut to California, the trend of Indian Gaming from casinos to destination resorts has been one of the most important in the gaming industry.
Phoenix is a great showcase for Indian Gaming because Arizona has seen some of Indian Gaming’s greatest success stories. NIGA ’07 will showcase some of the most successful new Arizona resort developments, including the Gila River Wild Horse Pass Resort.
Architects designed the Sheraton Wild Horse Pass Resort & Spa, a 500-room resort, to be an authentic representation of the Gila River Indian Community’s heritage and culture. The AAA Four Diamond Resort offers its guests recreational, educational, and inspirational experiences never before available in a resort setting. The architecture, design, art, and legends celebrate the Pima (Akimel O’otham) and Maricopa (Pee Posh) tribes in every detail imaginable, indoors and out.
The resort is located on the Gila River Reservation, just south of Phoenix in the Sonoran Desert on an expanse of rugged Arizona landscape where the ancient vistas, mountains, and roaming wild horses remain untouched. A unique blend of two cultures, the resort offers the quiet serenity created by Native American tribes who found haven here. The resort includes two 18-hole Troon-managed golf courses, the Aji Spa, a 17,500 square foot spa with 17 treatment rooms, the Koli Equestrian Center for riding lessons, trail rides, and outdoor events, and the resort is also equipped with tennis courts and jogging trails. Wild Horse Pass also offers four pools with cascading waterfalls and a 111-foot waterslide modeling the ancient Casa Grande Ruins.
NIGA will also showcase the Radisson Fort McDowell Resort & Casino, which is operated by the Fort McDowell Yavapai Apache Nation. The Radison is a four-diamond deluxe property on the eastern edge of Scottsdale and Fountain Hills, adjacent to Fort McDowell Casino and We-Ko-Pa Golf Course.
This Radisson Scottsdale Resort offers championship golf, magnificent mountain views, luxurious amenities, warm hospitality, and inviting atmosphere. With 248 spacious guest rooms and suites, all beautifully decorated according to Native American traditions, the Radisson Fort McDowell includes a health club and spa, heated outdoor swimming pool, two whirlpools, and 15 meeting rooms. Native culture is one of the tribe’s top priorities and the chef at this Scottsdale Resort creates a variety of dishes showcasing local Native American fare and authentic Mesquite grilled cuisine. Many of the signature dishes showcase citrus, pecans, herbs, and mesquite grown locally at the Fort McDowell Yavapai Farm.
Over the years, NIGA’s Trade Show has been one the biggest shows in the industry and this year will be even bigger, with anticipated attendance of more than 6,000 tribal and industry leaders. In addition to industry finance, the trade show will focus on best practices for casino, slot, and hotel management, procurement, security, entertainment, and the best new vendor products. A tribal leader track will focus on key congressional and regulatory developments and the challenges that face Indian Gaming.
Come and join us! When Indian Country meets with the top leaders in gaming and hospitality at NIGA ‘07, the results will be phenomenal. In sum, Indian gaming ’07 is the best place to network with colleagues and this year highlight will include top name artists, including the Doobie Brothers. Attendees can polish up their resumes with training certificates in the areas most important to them from IT to marketing, food and beverage, and table games. The NIGA show will include top chef “cook-offs,” wine and cheese tastings, and drawings for Harley-Davidson Motorcycles. Visit us at www.indiangaming.org for more information.
Ernie Stevens Jr. is the Chair of the National Indian Gaming Association and a member of the Oneida Tribe of Indians of Wisconsin. He can be reached at (202) 546-7711.
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