Californian Indians

onion_imagearticle1808 There was an interesting article that I read in the Economist a while back. On how the government is negotiating with Indian casinos in California.

"The casino has three floors with 2,300 jangling slot machines, a few card tables and a 1,250-seat bingo hall. That is not quite enough to meet demand, which is why the Sycuan tribe wants to expand. Whether it is allowed to depends on how California’s voters feel about enormous casinos…"

I am personally all for gambling and have enjoyed the Indians starting up casinos. They are allowed to run casinos because technically they are their own nation and are not bound to state laws.

When you think about the Economics of why Indian casinos have succeeded it feels like a big slap in the fact to our government, that I like.

Like I said these Indian casinos are not bound by any U.S. laws, therefore they can do whatever with their land. Even though they are a separate nation their largest consumers are going to be Americans.

Now Americans can travel to the Indian nations and gambling without even needing a passport. This also creates a state regulated monopoly. They have banned gambling in other areas, which make the Indians more successful by giving them exclusive rights to gambling.

This is restricting competition for these casinos. The Indians could have put houses or even a water park on their land.

What they realized is that since the U.S. states ban gambling in most areas that they could get in a market that hardly exists and make it legal.

I love it…

Published in: on February 15, 2008 at 6:42 pm  Leave a Comment  

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