The SE States – 9 States, 21% of the US Population… But Only 2% of US Indian Tribes?

The Indian Removal Act of 1830 promoted by President Andrew Jackson ordered all of the Indians living east of the Mississippi River to move west of the Mississippi River and prompted the infamous Trail of Tears. One of the strongest motivators of the Indian Removal Act was the discovery of significant amounts of gold in the Dahlonega, Georgia, an area in the foothills of the smoky mountains. Nearly 200 years later, the United States still clearly reflects this tragedy in the population patterns of the Southeastern states.

Today, while almost 21% of the US population resides in the 9 southeastern states, there are only 10 Federally Recognized Indian Tribes, or less than 2% of the 566 Federally Recognized Indian Tribes in the United States. The chart below illustrates the imbalance. A number of tribes in the southeast have sought Federal recognition and faced numerous hurdles in proving their continued existence – a daunting task for a group that was forced out of their homeland at gunpoint.

This is the beginning of a monthly series that will feature a story of the plight of one of the 10 southeastern Tribes and an introduction to Tribes currently seeking Federal Recognition.  The posts are a tribute to the perseverance and tenacity of each of the Tribes.

State	Population (in millions)	Fed Rec Tribes
Alabama	4.8	1
Arkansas	3.0	0
Florida	19.9	2
Georgia	10.1m	0
Louisiana	4.6	4
Mississippi	3.0	1
North Carolina	9.9	1
South Carolina	4.8	0
Tennessee	6.5	0
Total Southeast US	66.8/20.9%	10/1.8%
Total U. S.	318.8	566

Source: U.S. Department of Agriculture, Economic Research Division, May 8, 2015.  

ONLINE GAMING: Adelson uses Republicans to step on states’ rights

The Restore America's Wire Act (RAWA) would impose a federal ban on all Internet gambling, including online state lotteries and poker. Currently, online gaming is alive and well -- and regulated -- in New Jersey and Nevada, while online lottery tickets are available in a handful of states.

RAWA is based on the original 1961 Wire Act, “originally intended and long understood as a narrow and targeted weapon to assist the states in preventing organized crime from taking bets on sports.” The Department of Justice’s current position on the original Wire Act as it applies to online gambling is that it only applies to online sports betting; a 2011 decision effectively allowed individual states to decide whether to allow online gambling.

RAWA was introduced by Republican lawmakers in the House and Senate in 2014, in the House (HR 707) in 2015. The only proponents of the Act appear to be Sheldon Adelson and his Las Vegas Sands group, and the Republican lawmakers hoping for campaign funding. The Act was by some reports actually written by Adelson’s lobbying group. Senator Lindsey Graham (R-SC) has not hidden the fact that his support of the bill is tied to Adelson’s support of his Presidential run. He introduced the Act in 2014 and his people say he intends to introduce it “soon” this year.

Opponents include casino groups including Caesars and MGM, conservative and Republicans and libertarians, who see the Act as an infringement on states’ rights, a number of Democratic representatives, and Native American groups who point out that the Act would infringe on their Tribal Sovereignty (more on this to come). 

Are Skills-Based Slots Coming to the Southeast?

Nevada governor Brian Sandoval recently signed a bill enabling regulators to adopt rules allowing slot machines to add a skill-based element. The bill was proposed by the Association of Gaming Equipment Manufacturers following a study examining the effect of technology on gaming. Sandoval believes the games could appeal to a new generation of visitors.  

Attracting Millennial gamblers was a very hot topic at the Southern Gaming Summit earlier this month. At a panel on Millennials, panelists agreed that adding a skills-based element to slot machines could attract those who are more familiar with video games or, more importantly, social gaming such as Candy Crush. With Millennials spending an estimated 12 hours per week on average on social gaming, it is widely expected that introducing aspects of social gaming to slots would be highly attractive to the newest generation of gamblers.

Earlier this year, the Borgata in New Jersey offered a free throw-shooting competition. It was the first skills-based game to pass under the New Jersey First law, which encourages the development of casino games featuring social and skills-based elements. It was seen as highly successful, bringing unique visitors to the Borgata from across the US.

Will we see skills-based games in our region anytime soon? Not likely. Basically, each state determines whether to allow skills-based competitions for cash prizes, and determines whether a game is based on skills or chance with one of several tests. Of the 40 states that allow gambling, only 3 states allow games of chance – Nevada, Delaware, and New Jersey. 

In southeastern states, where the demographic skews more conservative, politicians are unlikely to risk supporting, much less introducing, a bill to expand gambling. The southeastern region will not lead the way -- however, if skills-based gaming becomes more widely accepted across the US, look for the southeast to follow suit.