Native American land and reservations play an important role in the Indian gaming industry. The federal government has recognized the inherent sovereignty of tribal governments and the importance of tribal governments having their own land.

The Importance of Reservations

Although tribal governments on reservations are considered sovereign entities from state and local governments, they are still required to obey federal law. Thus, tribal members still pay federal income, FICA, and social security taxes. Only a very small percentage of tribal members who live and work on their own federally recognized reservation are considered exempt from paying state income and property taxes. These members are still required to pay sales taxes and special taxes, including excise taxes.

There are also regulations in place regarding Native American Reservations and the gaming industry. In regards to land, the Indian Gaming Regulations Act, or IGRA, states that land that is to be taken into trust status must benefit the entire tribe. This land must also not be detrimental to the surrounding environment or communities, and it must be approved by the state government. This does place some limit on the availability of reservation land to support of the gaming industry. Just 23 total land-into-trust acquisitions have been approved since 1988 for gaming purposes, and only three off-reservation land-into-trust acquisitions have been approved since then.

Reservations are important because they are vital to Native American culture and thus, the gaming industry. Reservations have changed somewhat since their development, but they remain some of the only pieces of sovereignty Native American tribes have remaining. Since they are home to many Native American events as well as casino and gambling attractions, they play a vital part in the Indian gaming industry. Reservations are the only remaining parcels of land Native American tribes have to squeeze onto as compared with the amounts of land they used to own, so they are especially valuable to the Indian culture. Although regulations remain in place in regards to the acquisition of land, reservations remain a key player in the Indian gaming industry by providing locations for the industry to flourish.