Ahead of his appearance at the SBC Summit in Lisbon, Jamie Hummingbird, Chair for the National Tribal Gaming Commissioners & Regulators, speaks on what he believes is the key information for operators looking to collaborate with the tribal gaming sector.
How important is it that operators educate themselves on the tribal sector and the heritage of the sector before entering new North American markets?
The two best pieces of advice I could give any person or company wishing to engage with a tribe is to do their research. First – learn about the history of the tribe and its relationships with the federal and state governments, both in the past and recently. This will give you an idea of why a tribe has a particular outlook.
Second – remember that all tribes are not the same. We all have individual histories that were impacted by different circumstances and an approach that may work with one tribe may not work for another.
Recent figures from the National Indian Gaming Commission revealed a record year for gross gaming revenue for tribal gaming. How much of a testament is this to the sector?
Last year, the 527 gaming facilities operated by 245 tribes across the country generated $41.9bn in revenue, accounting for nearly half of all gaming dollars in the US. This remarkable success is the result of the individual, but complementary efforts of tribal operators and regulators is where sharp business acumen is paired with effective regulation.
By implementing practical safeguards, tribal gaming regulators have established a solid foundation, enabling operators to build and sustain robust gaming enterprises. The driving force behind this success is the shared commitment to generating essential revenue for tribal governments, which in turn benefits tribal citizens.
Do you believe the continued growth of the sector speaks to the importance of the strong regulatory framework and diversity of tribal gaming?
Over the past three-and-a-half decades, the growth of tribal gaming has been a testament to the strategic foresight and resilience of tribal nations. Many tribes initially ventured into the gaming industry with modest operations, such as small-scale bingo halls serving local or regional communities.
As these operations established a reputation for trustworthiness and reliability, tribes faced a pivotal decision: either to expand their existing facilities or to launch additional venues.
Throughout this journey, tribes continually innovated, finding new ways to enhance the gaming experience for their patrons. They leveraged emerging technologies and adeptly navigated the complex regulatory landscapes governing their operations. By staying attuned to industry trends, tribes were able to craft regulatory frameworks that empowered their gaming facilities to swiftly capitalize on the latest advancements, ensuring their continued growth and success.
How crucial has the ability of Tribal Gaming to adapt to new technologies been, when it comes to ensuring their growth and enabling them to continue to thrive?
When looking back on the history of Indian gaming, tribes have either led the way or have been early adopters of many innovations that have left a lasting mark on the gaming landscape as a whole, such as ticket-in / ticket-out (TITO), digital surveillance, and server-based gaming.
For instance, as tribal gaming operators began to recognise the efficiencies and cost savings associated with TITO technology, they began speaking with regulators seeking the ability to introduce TITO into tribal gaming facilities. This led tribal regulators to re-design regulatory frameworks that provided for the use of the new technology as it fit within the scope of the law.
Server-based gaming was another major development that has had an undeniable impact on the gaming landscape as a whole. Server-based gaming allowed tribes to take the traditionally manual game of bingo and place it into an electronic environment, greatly enhancing the patron’s gaming experience that has translated into increased revenues for the tribe.
These games have afforded tribes additional gaming opportunities through the negotiation of tribal-state compacts, having played a vital role in tribes’ ability to keep pace with – if not outrun – commercial gaming at times.
The future of gaming, whether it be in the form of sports wagering or mobile / online gaming, will be a continuation of tribe’s adopting and implementing technologies that will help ensure the growth of Indian gaming.
As consumer preferences have evolved, what have tribal gaming operators done to accommodate the new landscape?
Tribal gaming operators have consistently demonstrated a keen ability to act as barometers, accurately forecasting the “climate” of their respective areas. This success stems from their skill in assessing the needs and preferences of both local and statewide communities. By carefully evaluating these factors, operators have strategically integrated the right amenities into their business models, effectively meeting the desires of the citizenry.
As responsible corporate citizens, tribes understand the profound impact their gaming facilities have on the surrounding communities. This influence is most evident through job creation for both tribal and non-tribal members, partnerships with local businesses, and support for local governments and emergency services. The economic ripple effect of tribal gaming is felt across the state, contributing to the overall well-being of the broader community.
Are there any states that you believe have really got it right when it comes to the relationships between tribes and operators?
I believe the relationship between the State of Mississippi and the Mississippi Band of Choctaw Indians that led to the nation’s earliest adoption of sports wagering legislation is a good example of two sovereigns showing their willingness to work together in pursuit of a common goal.
This partnership began even before the legal framework was in place as the two approached the introduction of sports wagering into the state, setting the stage for the day when the opportunity became a legal reality. In doing so, the Mississippi Choctaw became the first tribe in the US to offer sports wagering and has become the model by which a number of other tribes have followed when sports wagering became legal in their jurisdiction.
What specifically would you like to see from regulators moving forward in order to continue to enable tribes to thrive in the market?
Ideally, in short, I would like to see further investment in tribal regulatory agencies. By providing the resources needed to attract, properly equip, and train tribal regulators, I believe tribes will benefit from stronger oversight, increased operational efficiency, and enhanced credibility. Well-resourced regulatory bodies can ensure that gaming operations adhere to the highest standards of fairness and integrity, fostering trust among patrons and the broader community.
Tribal regulators should also focus on establishing practical and relevant standards that not only ensure compliance with federal, state, and tribal laws, but also support the financial success of their gaming facilities. By balancing rigorous oversight with the flexibility needed for revenue generation, these standards can help maintain the integrity of operations while fostering sustainable growth.
This, in turn, will help sustain the long-term growth and success of tribal gaming enterprises, reinforcing their role as vital economic drivers and stewards of their communities’ future.
How challenging has it been for tribes to overcome the increasingly competitive markets for gaming and igaming?
Tribes have built an impressive reputation for making their gaming facilities just as desirable as their commercial counterparts. Achieving parity in entertainment value and delivering an experience on par with iconic destinations like the Las Vegas Strip didn’t happen overnight, but it has become a reality for many tribal venues.
This success reflects years of dedication to creating high-quality experiences that rival those offered by well-established commercial properties.
How crucial is it that conversations continue to be had around the Tribal gaming sector and what it can do to continue to thrive?
Tribes make up nearly half of the gaming dollars spent in the US. Beyond that, the economic impact tribes have on our individual states, and especially on our local communities, makes it extremely important that all interested parties continue to have an open and on-going dialogue with one another so that any potential opportunities aren’t missed – and that any potential pitfalls are avoided.
Can you tell us more about the importance of the SBC Summit in Lisbon and why you are excited to attend?
As I attend the SBC Summit for the third time, I am eager to once again explore the potential that sports wagering holds for tribal communities. This event offers a unique opportunity to stay at the forefront of industry developments and to connect with the key players driving these innovations.
By immersing myself in the latest trends and technology, I can gain valuable insights into the pulse of the industry. Additionally, I hope to offer guidance to anyone interested in doing business in Indian Country by sharing my knowledge and perspectives on tribal gaming.
To find out more about the agenda and to secure your place at the SBC Summit in Lisbon, click on the link.