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Internet Gambling Among Challenges for Indian Gaming

The growth of Internet gambling is the “most immediate challenge” facing American Indian tribes that rely on brick-and-mortar casinos to fund their governments.

An aging customer base, a computer-savvy generation with tastes different from previous generations and new forms of gaming (think daily fantasy sports) mean that casino operators will have to change.

That is according to Steve Stallings, the newly elected chairman of the state alliance of gaming tribes, the California Nations Indian Gaming Association (CNIGA).

The group mobilized 20 years ago to convince voters to make Las Vegas-style gambling legal on California Indian reservations. The association held its annual conference last month in San Diego County, at Harrah’s Resort Southern California.

Steve Stallings

Casino gaming is an $8 billion industry in California. Eight of California’s 72

Adam Gray

casinos are in San Diego County. “The only way we can protect our businesses is to anticipate the future and what gaming will look like 10 to 20 years from now,” Stallings said. Young people are “not content to sit and pull the arm on the slot machine. They want to challenge the machine.” They also prefer games of skill.

Politics and Poker

The state Legislature is again mulling bills to legalize and regulate Internet poker, daily fantasy sports and other sports wagering. California lawmakers have been trying to decide what to do with Internet poker for nine years.

The Indian gaming association recently threw its support behind Assembly Bill 2863, an Internet poker bill introduced in the legislature by Assemblyman Adam Gray, D-Merced.

The group supports Gray’s efforts to allow tribes “the option to adapt to the changing technology,” Stallings said. A CNIGA statement said the Gray bill addresses concerns such as protecting children, offering consumer safeguards and preserving tribal sovereignty, or rights.

Revenue Rising

California gaming revenue grew between 2010 and 2014, advancing more than 4 percent to $7.3 billion between 2013 and 2014, according to Casino City’s Indian Gaming Industry Report for 2016. The growth followed three years of decline, according to the nationwide report issued this month.

Though the Internet is the wolf at the door, San Diego tribes are still investing in brick and mortar.

Casino Opening

The Jamul Indian Village and business partner Penn National Gaming Inc. (Nasdaq: PENN) plan to open their $400 million Hollywood Casino Jamul-San Diego in the middle of the year. The venue is on state Route 94.

In addition to the planned 1,700 slot machines and 43 gaming tables, attractions will include Tony Gwynn’s Sports Pub (with memorabilia from the San Diego Padres slugger) as well as food service from Emerald Chinese Cuisine, Pizza Port and Ruby’s Diner.

The La Jolla Band of Luiseño Indians still has plans to build a casino and hotel on its reservation near Palomar Mountain, according to the Casino City report.

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