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College of Liberal Arts and Sciences Fred V. Carstensen |
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| August 26, 2003 Dear Editor: As one who has studied the economic impact of Native American gaming and related entertainment and cultural developments (see http://ccea.uconn.edu/Mashantucket Final Report.pdf), I recognize that it poses a dilemma for residents of the region. Any economic development (industrial park, shopping mall) creates new jobs, new sales and new taxes, but it also creates new municipal expenditures, and increased traffic and congestion and their related costs (pollution, accidents, wasted fuel and time). However, there is something different about Native American gaming development. First, unlike commercial gaming establishments (Atlantic City, Las Vegas), the Indian Gaming Regulatory Act (IGRA) requires Native American tribes to contribute economically to the region in which they are located before they extract earnings for themselves. This can take the form of sharing gaming revenues with the state or county. It can take the form of providing employment and job training as the facilities ramp up. Both activities offset the costs. In addition, Native American gaming and related activities provide employment and self-reliance for tribal members. Tribal children benefit from increased educational opportunities and break the cycle of poverty, some taking leadership roles in future tribal businesses. To the extent that entertainment is located on the reservation, people do not have to travel outside the region for it. Spillovers from increased economic activity on the reservation stimulate businesses off-reservation and generally increase regional economic growth. Social benefits include the preservation of Native American language and culture and providing a greater understanding of the land we love from the people who were here long before most of us arrived. Will the economic benefits outweigh the costs? It is hard to predict, but economic analysis can provide (optimistic and pessimistic) estimates. In the conversation, we should be fair and open to the diversity of voices on all sides. Stanley McMillen
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