Comparative Analysis of Revenue Sharing Compacts Between States and Indian Tribes

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Authors

Kaur, Manpreet

Issue Date

2012

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en_US

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Abstract

A compact is required between a State and a Tribe if a Tribe wishes to operate a Class III, Nevada style, casino. Class III gaming has proven to be the most profitable type of gaming. As a result, the numbers of compacts between States and Tribes have increased over the years to allow Tribes to profit from Class III gaming. In negotiating compacts, the Tribes cede revenues to the State in return for gaming exclusively. In addition, the use of terms such as the definition of “ net win” on which revenue sharing is commonly based defers across compacts. The main purpose of this study is to assess revenue sharing in State-Tribe compacts. It attempts to identify differences in revenue sharing in compacts negotiated between the States and the Tribes. To achieve this objective, aggregate data from twentyfour different States are used, because those are the only States with compacts. The examination of the compacts showed that the revenue sharing agreements differ in the negotiated compacts is each State.

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