Native American casino gambling in Arizona: A case study of the Fort McDowell reservation

Since Congress passed the American Indian Gambling Regulatory Act (IGRA) in 1988, there has been an explosion in the number of gambling casinos located on Native American reservations. It is estimated that in 1994 the total net revenue from 81 Native American casinos exceeded $2.3 billion dollars. As the number of Native American casinos grows along with the volume of gambling activity, opposition increases from states, the established gambling industry hurt by lost revenues, and groups with moral objections to gambling. This article reports on an effort to measure the economic impact of the Fort McDowell casino located near Phoenix, Arizona. The article discusses the casino's history and current operations. Next, it explains the use of an input-output model to compute the impact of casino's income and employment effects on the economy of Maricopa County. It is estimated that the casino is responsible for 2,483 new jobs, and an increase of approximately $80.35 million in regional output. Additional information is necessary to more accurately assess both the benefits and costs of the casino. Unfortunately, subsequent efforts to collect additional data have been unsuccessful. The conclusion discusses why, and raises questions regarding Native American gaming.An earlier version of this paper was presented at the 9th International Conference on Gambling and Risk Taking, May 31–June 3, 1994, Las Vegas, Nevada. This research was funded by a FGIA grant from Arizona State University. The author expresses his appreciation to the referees who provided substantial guidance in improving the original paper. Any remaining errors are mine.