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Building an effective marketing model for Native American casinos

Abstract

In 1987 the U.S. Supreme Court recognized that, as sovereign political entities, federally recognized Native American tribal entities could operate gaming facilities free of state regulation. Soon after, Congress introduced the 1988 Indian Gaming Regulatory Act (IGRA), which maps out the conditions under which Native American tribal entities are permitted to operate casinos and bingo parlors (Kilby, Fox, & Lucas, 2005). These terms and conditions for Native American casinos under IGRA regulation are Class II gaming methods. Class II gaming is defined as the game of chance commonly known as bingo (regardless of electronic, computer, or other technological aid) (Kilby et al., 2005). Class II gaming also includes non-banked card games; that is, games that are played exclusively against other players rather than against the house or a player acting as a bank. The most common form of non-banked card games are poker games (Kilby et al., 2005). The IGRA specifically excludes slot machines or electronic facsimiles of any game of chance from the definition of Class II games (Kilby et al, 2005). Tribes retain their authority to conduct, license, and regulate Class II gaming so long as the state in which the tribe is located permits such gaming for any purpose and the tribal government adopts a gaming ordinance approved by the Commission. Tribal governments are responsible for regulating Class II gaming with commission oversight. Native American casinos have the option to create a state compact to allow Class III games such as roulette, black jack, and craps (Kilby et. al., 2005). This allows the state in which the tribe operates to collect a percentage of the revenues generated by the compacted games. With the addition of new gaming options, it is important to implement a marketing model that will satisfy the new gaming market that is being tapped into with the addition of Class III games

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