Tribal Casinos Boost Living Standards on Reservations, New Study Reveals
Tribal Casinos and Rising Living Standards for American Indians
A recent study led by UCLA Luskin professor Randall Akee highlights the positive impact of tribal casino operations on American Indian communities. The research shows that wages have increased for American Indians, and the distribution of casino profits to individuals has played a role in enhancing the living conditions for those residing on reservations.
Significant Economic Improvements Linked to Tribal Casinos
American Indians living on reservations experienced a remarkable 46.5% growth in real per capita income, far exceeding the 7.8% growth seen across the United States overall. These gains were observed regardless of whether the tribe operated a casino or provided cash transfers. The influx of revenue from casinos has allowed tribal nations to invest in infrastructure and create more job opportunities. Some tribes also use casino profits to distribute unconditional cash payments to their members, fostering greater financial security and community development.
When tribal governments established programs providing unconditional cash transfers, every tribal member became eligible for these payments, irrespective of their residence. These initiatives are among the earliest and longest-running examples of universal basic income efforts within the U.S.
The Role of the Indian Gaming Regulatory Act in Economic Growth
Historically, tribal lands faced profound economic hardships. Before 1988, tribal gaming was limited mostly to small bingo halls and card games in a few states, while larger casinos were confined to Nevada and New Jersey. The passage of the Indian Gaming Regulatory Act (IGRA) in 1988 marked a turning point, leading to the rapid expansion of tribal casino operations—from virtually none in 1989 to nearly 600 census tracts by 2019.
IGRA mandates that casinos use their revenues to support tribal economic development and community welfare, including charitable contributions. In the two decades after IGRA’s enactment, childhood poverty on reservations dropped by about 11%, and female workforce participation among American Indian women increased by 7%, compared to a 3% rise nationally.
Furthermore, overall unemployment within Indian communities fell by around 4%, contrasting with minimal change across the country. Today, tribal casinos represent a thriving industry, generating over $40 billion annually. Despite these advances, American Indian poverty remains high at 19.6% as of 2024, significantly above the national average of 12.1%, indicating ongoing challenges that need to be addressed.
