A history of the casino wager

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A history of the casino wager

This week, a federal appeals court ruled in favor of a casino bid by the Aquinnah Wampanoag, a major victory for the tribe. Here is a quick history of Indian casinos.

Why are Indian tribes allowed to run casinos?

Native American tribes governed themselves for centuries before Europeans arrived. The newly created United States made treaties with some of those tribes. Ever since, the US has accorded tribes a special status, something like a government-to-government relationship.

Why is that important?

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It allows tribes to govern themselves, largely free from the laws of the states that surround them. For example, the Aquinnah Wampanoag’s 500-acre reservation on Martha’s Vineyard exists outside the Commonwealth of Massachusetts. Legally, the tribe is an independent nation, not just a state. How is that connected to gambling and casinos? The federal government basically takes no position on gambling and casinos, leaving the matter to the states. For many years, states took a dim view of casinos. In the 1930s, Nevada became the first state to allow them, and New Jersey followed suit in the 1970s. Today, casinos operate in at least 30 states. How did tribes get involved? Get Fast Forward in your inbox: Forget yesterday's news. Get what you need today in this early-morning email.

In the 1970s, the Seminole tribe of Florida opened a high-stakes bingo game on its reservation. The state shut it down, and to this day does not permit non-tribal casino gambling. But tribes in other states, including the Mashantucket Pequot in Connecticut, followed the Seminoles’ lead.

How was the standoff between tribes and the states resolved?

In 1987, the US Supreme Court ruled that tribes can operate casinos on their reservations, free of state interference. Among those backing the tribes was the Reagan administration, which considered casinos a way for tribes to achieve economic self-sufficiency.

What about the tribes in New England?

Foxwoods Resort Casino opened in the 1980s and quickly became the most successful casino in the world. Tribes are not subject to state taxation, but the Mashantucket struck a bargain with the state of Connecticut to share 25 percent of slots revenue with the state. In exchange, the state agreed not to license competing casinos.

What happens next for Massachusetts tribes?

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The Aquinnah is using its special status to sidestep the Massachusetts casino law. The Mashpee Wampanoag, meanwhile, reached a deal with the state to accept its jurisdiction in exchange for a share of casino revenue. But the tribe’s casino, planned for Taunton, is now mired in a legal battle. Sean P. Murphy can be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it . Follow him on Twitter @spmurphyboston.

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