This page was created by .
Casinos Quiz
1) Indian casinos made / did not make Indians rich.
Sorry, Try again.
Correct!
The median household income of American Indians on reservations is about one-third that of the U.S. average. The unemployment rate on most reservations in Minnesota, Wisconsin, and Michigan is about 46%. The high school graduation rate is on the average 54%; for the U.S., 75%. In 1995, Congressional testimony revealed that Indian families live below the poverty line at rates three times the national average. Indian families earned less than two-thirds the income of non-Indian ones. Health statistics for Indians are far worse than the national average. The casinos did give tribes a measure of economic self-determination and improved socioeconomic conditions in reservation communities, but the vast majority of these casinos did not make individual tribal members "rich."
Sorry, Try again.
Correct!
Out of 557 federally recognized tribes, 124 operate gaming facilities.
3) Indian casinos crowded / did not crowd out private and state-run gaming operations.
Sorry, Try again.
Correct!
In 1995, revenues from Indian casino facilities (including the sale of food, hotel rooms, and entertainment) represented 10 percent of the total revenues estimated to have come from gaming in the U. S. New Jersey and Las Vegas casinos earned 40 percent, and state lotteries, 34 percent.
4) Indian casinos pay / do not pay taxes.
Sorry, Try again.
Correct!
Tribes are obligated to report patrons' gaming winnings to the IRS and withhold federal income taxes of statutorily defined gaming winnings. They pay federal employment taxes and the employers' share of FICA. Non-Indian and nonresident Indian employees pay federal and state income tax and FICA.
Sorry, Try again.
Correct!
Indian casinos are regulated as comprehensively as others and, according to the National Gaming Impact Study Commission (whose study included the Ho-Chunk, Oneida, and Sault Ste. Marie facilities), there is little data to show that Indian gaming significantly increases crime on or outside the reservations.
6) Gaming crowded / did not crowd out other efforts at economic development on reservations.
Sorry, Try again.
Correct!
Tribes have used some of their profits to provide credit to individual tribal members to start small businesses, and tribes also have been able to establish many different kinds of tribally-owned businesses that employ members and provide consumer goods for reservation residents. Businesses in surrounding non-Indian communities also have benefited from the influx of people visiting casinos and from the employment of non-Indians. Tribes also make purchases from local non-Indian vendors.
7) Criticism that Indian casino income is unearned, and therefore immoral, is / is not well founded.
Sorry, Try again.
Correct!
Indian casinos are community-owned enterprises, much like family-owned businesses. In these businesses, tribal members are shareholders, who may receive a dividend or "per capita payment," but most of the casino profits are spent on infrastructure, health, and education projects that benefit not only tribal members but non-members and non-Indians as well.