Changes to Native American Tribal Laws Could Mean More Casino Applications

The American land-based casino market looks close to saturated, but recent legal changes could mean more applications for tribal casino licenses.

Recent legislative changes proposed by the Obama administration don’t directly concern American gambling laws but will have a major effect on the casino market.

The proposed “federal acknowledgement reform” would ease the conditions which must be met for a Native American group to obtain legal recognition as a tribe.

Officials from the Bureau of Indian Affairs stated that the changes are “long overdue” and would ensure fairness and equal recognition for Native American tribes not currently recognized. It also does not appear that the federal government is concerned about the implications it could have on the gambling industry.

Could more tribes mean more casinos?

In most states only Native American tribes can legally operate casinos and American poker rooms. An increase in the amount of federally-recognized tribes would mean that more groups would be eligible to apply for state gaming licenses.

There is no guarantee that state governments would grant additional licenses, but it’s likely they would face pressure and lobbying to do so. There is also speculation that some gaming investors plan to finance bids for tribal recognition.