casinos business and education?

Kevin Nephew (cunyvm.cuny.edu!budget!bdneph1)
Fri, 30 Jul 1993 12:12:41 EDT


I would like to take some time to respond to your questions regarding casino
business (gaming) and education. I'll give you a little background on myself
before answering your questions.

As an enrolled member of the Seneca Nation of Indians living on the
Cattaraugus Indian Reservation I worked for their Education Department from
1985-87. During this time I worked with their Adult Education, Title IV, and
Curriculum Development programs. My work usually involved targeting
educational needs, pursuing funding (grantswriting), and program development.

After 1987 I entered Columbia University where I earned my MBA in 1989. Upon
graduation I returned to the Seneca Nation where I assumed the position of
Director of Business Enterprises (two bingo halls, three convenience stores,
one campground). It was during this time that I began to explore the gaming
industry and economic development among the Seneca Nation of Indians and other
Indian Nations.

Many of the questions you have forwarded have not been borne from the movement
of the gaming industry into Indian country. Instead these concerns have
manifested from the difficulties Indian Nations are having dealing with
economic development.

To answer your questions specifically on gaming the organizational structure
used by Indian nations to deal with casinos usually they implement one of the
following three structures:

1. Introduction of an outside management group who usually oversees the
operations of the gaming venture. Usually the tribe must interact with the
group in order to first agree on the groups management contract (including
such concerns as debt repayment, duration of agreement, financial share
etc...) These concerns are also brought forth during the discussion of hiring
such a group. These groups will be usually be audited and will report to the
tribal council, or accordingly representative tribal organization (i.e.
business council)

2. A second structure involves the Indian nation overseeing and operating the
business for itself. Usually this organizational structure includes the
development of a management structure which is overseen by the tribal council,
or business council which is implemented by the tribal council to provide
indepenfe and autonomy for this apolitical council. If you are familiar with
the politics in Indian country you will not be surprised to know that the
apolitical structure works much more effectively.

3. An extension of the business council is a organizational structure which I
will call the basic corporate structure. In this structure each tribal member
is a shareholder and has a share in the decisions of the business council.
Unlike the business council in #2, the business council will now make
decisions based on the concerns of the shareholders (tribal members) totally
bypassing the elected council. It appear that this is where the more
progressive and successful tribes are moving towards.

To answer your question regarding contractors being the best way to go. This
is a loaded question, which does not a simplistic answer. Usually such a
decision will be determined by a tribal council, therefore having the decision
makingprocess being affected by the usual political concerns.

Finally as for training for casino workers there usually is extensive training
of casino workers by management groups to insure internal controls, and
increased accountability. As for retention I would argue that once trained
employees are actively retained since there is a considerable investment in
training these employees. Additionally employees are usually motivated in
order to complete training (and in the case of many agreements State and
Federal mandated background checks).

I hope this is some help, and if you need more I would enjoy going into more
detail. Another good reference regarding economic development is article in
the University of Buffalo Law Journal written by John Mohawk (I believe two
years ago). If I can track this down I'll contact you later. Good luck.