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.  

Mississippi and Louisiana First Quarter 2015 Revenues

Gaming revenues for the two states increased in Q1 2014 by 3.9% , with Louisiana up 8.3% and Mississippi down by 1.1%.  

	Mississippi	Louisiana	2 State Total
Q12015	$   544,232,069	$   681,082,643	$1,225,314,712
Q12014	$   550,025,920	$   629,189,825	$1,179,215,745
Q12013	$   562,807,004	$   562,807,004	$1,125,614,008

Source:  Mississippi Gaming Commission Revenue Reports, Louisiana Gaming Control   

MISSISSIPPI  

	Gulf Counties		River Counties
	Revenues	YoY	Revenues	YoY
Q12015	$     289,874,834	5.2%	$     254,357,225	-7.3%
Q12014	$     275,651,446	0.6%	$     274,374,475	-5.0%
Q12013	$     274,006,484		$     288,801,619

Source: Mississippi Gaming Commission Revenue Reports.

Gulf Coast Counties – Positive growth in revenues with continued expansion of facilities.  The Golden Nugget $200 million upgrade was completed in 2014. The Island View in Gulfport will open its new Beach Tower hotel and restaurant facility in a few weeks and the new hotel at the Silver Slipper in Bay St. Louis will open in 2015. The new Scarlet Pearl Casino and Hotel in D’iberville is well into construction, due to open late this year.

Mississippi River Counties – Still slumping – I continue to predict at least one facilities closure in 2015.

LOUISIANA

Lake Charles

	Revenues	YoY
Q12015	$     226,332,814	36.0%
Q12014	$     166,451,804	-0.3%
Q12013	$     166,978,965

Source: Louisiana Gaming Control

Lake Charles – Our previous post “Holy Golden Nugget, Batman” says it all. The Golden Nugget posted gaming revenues of $65 million in the first quarter of 2015 after opening in mid-December 2014, which boosted the region by 36% percent.  

Shreveport/Bossier City

	Revenues	YoY
Q12015	$     188,661,144	0.7%
Q12014	$     187,406,155	3.1%
Q12013	$     181,735,587

Source: Louisiana Gaming Control

Shreveport/Bossier City -  Margaritaville continued to have gains in market share and monthly revenues while Diamond Jacks and Harrah’s Louisiana Downs continued to decline. The greatest decline was at Louisiana Downs, with a 22.9% decline from Q12014 to Q12015. Our visit to Louisiana Downs in February provided evidence of decline in the activity and the facility.

New Orleans

	Revenues	YoY
Q12015	$     165,415,912	-4.0%
Q12014	$     172,345,513	-2.4%
Q12013	$     176,581,088

Source: Louisiana Gaming Control

New Orleans – A continued decline led by Harrah’s New Orleans, the largest revenue generator, down 10.2% year-over-year.

Baton Rouge

	Revenues	YoY
Q12015	$       97,612,774	2.0%
Q12014	$       95,665,651	-3.1%
Q12013	$       98,695,646

Source: Louisiana Gaming Control

Baton Rouge – Held steady.