Today, Las Vegas is home to the largest casino hotels in america, along with over 100 satellite gaming casinos throughout america. Indian gaming has a wide assortment of industry operations, from complete casino operations with complete casino facilities and state-of-the-art slot machines to much smaller operations offering simpler games such as bingo, easy blackjack, and video poker. This diversity within the industry allows for a much wider assortment of gambling experiences for many visitors to this world’s biggest casino hotel.
The Pai Gowdy government approved the creation of the Indian Gaming Commission (IGC) in reaction to the U.S. Congress authorizing the creation of a fully operational U.S. casino in Indian gambling facilities located on tribal lands. Due to the Pai Gowdy administration, each tribe had total authority over its gaming facilities, including licensing and policy issues, management and oversight of gambling revenues, and operation of the center. However, despite having complete control over their casino jurisdiction, many tribes still have long been frustrated with the way the IGC has handled policy, licensing, and supervision issues. The lack of longstanding and binding regulations has caused a vacuum that has allowed for rampant corruption among gaming commission members, officials, as well as amongst third-party builders working on casino website facilities.
Most gambling industry observers agree that the lack of IGC regulation is the leading cause of the higher corruption within the gambling industry, but corruption in the political system extends beyond the gambling sector. Although the Gaming Control Act does not specifically mention any cases of corruption by gambling license holders, most gambling officials and experts assert that corruption runs rife in all facets of the Indian gaming industry, from tribal gaming to online gambling to hotel gaming. In the gaming business, corruption has become a norm rather than an exception. There are numerous examples of politicians and other public officials who have accepted kickbacks from several casino permit holders, gaming facilities, or individuals involved in the gaming industry to be able to secure gaming funding or favors. Although there’s presently no evidence linking any politician to the scandals that have tarnished the gaming industry in the last two decades, politicians have been susceptible to pressure from special interest groups.
Gaming revenue accounts for approximately twenty percent of the Indian gaming revenues, but the absence of direct regulation have allowed corruption to become endemic. Gaming businesses pay heavy commissions for their licensed dealers for every single person, they recruit, including their wives and children. Without the presence of a gambling commission, gaming companies have no way of ensuring that they don’t bribe their workers with access to gaming licenses for the sole purpose of recruiting more dealers and increasing their profits. This method has led to thousands of casino jobs being provided to individuals with ties to gambling commission officials, including children and even relatives of former and current politicians. The lack of direct regulation has enabled political patronage to become the most lucrative industry in India.
Not only is direct patronage of the most lucrative industry, in addition, it presents the most direct conflicts of interest in Indian politics. When elected officials rely on contributions from a single source, it becomes extremely hard to regulate any given sector of the market. By way of example, there are no limitations on how much cash an MLA can get from a single political campaign fund. Further, nobody is ever held accountable for the billions of dollars in subsidies that the gaming industry receives annually. In the case of the Atlantic city casinos, these funds are funneled through the gaming commission, where they are utilised to cover the luxurious lifestyle of politicians and other officials while Indian citizens are left to fend for themselves.
Even if politicians do get campaign contributions, they seldom disclose the origin of the funds. If the donors are corporations, there is no need to publicly release information about their donations since they will finally be used for the political campaign expenses. However, if the contributions come from people, the gambling commissions will need to make public statements about who’s funding specific projects. As an example, if a politician receives a five hundred million dollar campaign contribution, that donation could be categorized as a wagering tax. If that politician then uses the funds to remodel his home or to purchase a yacht, then he would be violating the law.
So, why is there so much political interference in Indiana gaming regulation? First, the majority of the politicians that are responsible for the nation’s gaming policy are themselves members of the gaming market. Additionally, a number of the state agents have received campaign contributions from casino builders and gaming affiliates. The result is that there is an immense quantity of interplay among all the stakeholders. For example, a number of the legislature’s decisions are being held hostage by the legislature’s liberal wing, which is demanding more liberalization of the gambling laws in order to allow more casino gambling in the state.
Fortunately, however, there are some officials in the state of New Jersey that have a vision for the gambling market. Two of the state representatives are attempting to use their party connections to help pass a bill that will eliminate some of the burdensome regulations that now apply to the Atlantic city. If the bill were to pass, there will be increased funding for the state’s Gaming Commission, which is designed to increase both gambling and tax revenues. Unfortunately, however, this type of legislation usually does not make it out of committee, so expect increases in New Jersey casino revenue in 2021.
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