8
18 Indian Gaming December 2017 ASK THE EXPERTS Dike Bacon, Principal/Planning and Business Development Leader HBG Design The NIGA Convention will be held in Las Vegas in 2018, an excit- ing decision by NIGA leadership. Their selection indicates a signifi- cant level of creative thinking and response to a very healthy Indian gaming industry. It also suggests an encouraging willingness to step out and do something fresh and different with the tradeshow location. If early bookings are any indication, the convention next year should be a huge success. The decision to move the show to the epicenter of the entertainment universe was multi-fold, but one resultant opportunity stands out. As the Indian gam- ing industry continues to reach new heights, it must also reach a wider geographic, financial, and demographic audience. Las Vegas has been successfully doing this for years and is a great place for the Indian gaming industry to continue to benchmark. The commercial gaming industry is in a constant state of reinvention and experimentation, and Las Vegas regularly reinvents itself more than any other place on the planet. There is sometimes a misconception about Vegas, however. The town is not about gimmicks or fads like the old days. Commercial gaming companies invest heavily in new trend directions. These decisions are often grounded in significant levels of data research and study that can directly inform new offerings like games, casino floor design, guestroom design, and food and beverage offerings. New restaurant and food concepts continue to dominate the Vegas landscape. The town was one of the first markets to evolve away from the contrived white tablecloth dining experience and migrate to more communal, less stuffy spaces. New restaurant concepts often start with a chef-driven menu that evolves into authentic presentations and unique interior design experiences. Hotel guestrooms in Las Vegas are constantly renovated. The current design trend is toward a lighter, softer style and understated levels of luxury that make guests feel more comfortable. A stay in a Vegas hotel is often less about the brand and more about the tailored experience that the facility itself evokes. Large hotels, like the Cosmopolitan, have the opportunity to create multiple types of room designs and packages, providing guests with a different experience every time they visit; while smaller hotels like the Cromwell offer a decidedly boutique design direction. Of course, just because a concept works in Vegas doesn’t mean it will work in a regional market, but inspired ideas can be tailored to work in different markets and appeal to various demographics. If next year’s NIGA Convention in Las Vegas is as successful as many expect, the Indian gaming industry should have a blast, but it should also use this as an opportunity to find inspiration and capture insights from the latest, most innovative ideas the town has to offer. Tracy Burris, Gaming Commissioner Viejas Band of Kumeyaay Indians Member of the Chickasaw Nation We are approaching the start of a new year for Indian gaming. It was thirty years ago that Congress passed the Indian Gaming Regulatory Act (P.L. 100-497 Oct. 17, 1988). At that time, tribal leadership was planning to expand their paper bingo to electronic games under the title of Class II gaming and negoti- ations for tribal-state compacts called Class III gaming were taking place. It’s been a wild ride in the last thirty years. What does the year 2018 bring for Indian gaming and what do we watch for? The Supreme Court will hear the Professional and Amateur Sports Protect Act (PASPA) of 1992. As of this writing, the court is about to hear oral augments in the case, but we do not yet have an idea what the court is thinking in this matter or what its impact will be on tribal gaming. It will be interesting to watch this Administration without top leader- ship at the Bureau of Indian Affairs (BIA) with the issue of land-in-trust for gaming purposes, and we will get new leader- ship at the National Indian Gaming Commission (NIGC) with the term of Chairman Jonodev Osceola Chaudhuri up in April. I am excited to see who will fill that role and what their legacy to Indian gaming will be. What issues will they take on? Will it be to readdress the Minimum Internal Control Standards (MICS) or take on “gamesmanship”? Perhaps they will look to revise the technical standards for the ever changing We asked members of our Editorial Advisory Board to share their insights and predictions for 2018. Here is what they had to say… Spotlight on 2018 and Beyond Dike Bacon Tracy Burris

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Page 1: Spotlight on 2018 and Beyond - Indian Gaming · reinvents itself more than any other place on the planet. There is sometimes a misconception about Vegas, however. The town is not

18 Indian Gaming December 2017

ASK THE EXPERTS

Dike Bacon, Principal/Planning and Business Development LeaderHBG Design

The NIGA Convention will beheld in Las Vegas in 2018, an excit-ing decision by NIGA leadership.Their selection indicates a signifi-cant level of creative thinking andresponse to a very healthy Indiangaming industry. It also suggests anencouraging willingness to step out and do something fresh and different with the tradeshow location. If early bookings are anyindication, the convention next yearshould be a huge success.

The decision to move the showto the epicenter of the entertainment universe was multi-fold,but one resultant opportunity stands out. As the Indian gam-ing industry continues to reach new heights, it must also reacha wider geographic, financial, and demographic audience. Las Vegas has been successfully doing this for years and is a greatplace for the Indian gaming industry to continue to benchmark.

The commercial gaming industry is in a constant state ofreinvention and experimentation, and Las Vegas regularlyreinvents itself more than any other place on the planet. There is sometimes a misconception about Vegas, however. The town is not about gimmicks or fads like the old days. Commercial gaming companies invest heavily in new trenddirections. These decisions are often grounded in significantlevels of data research and study that can directly inform newofferings like games, casino floor design, guestroom design, andfood and beverage offerings.

New restaurant and food concepts continue to dominate theVegas landscape. The town was one of the first markets to evolveaway from the contrived white tablecloth dining experience andmigrate to more communal, less stuffy spaces. New restaurantconcepts often start with a chef-driven menu that evolves into authentic presentations and unique interior design experiences.

Hotel guestrooms in Las Vegas are constantly renovated. The current design trend is toward a lighter, softer style andunderstated levels of luxury that make guests feel more comfortable. A stay in a Vegas hotel is often less about the brandand more about the tailored experience that the facility itself evokes. Large hotels, like the Cosmopolitan, have the

opportunity to create multiple types of room designs andpackages, providing guests with a different experience every time they visit; while smaller hotels like the Cromwell offer adecidedly boutique design direction. Of course, just because aconcept works in Vegas doesn’t mean it will work in a regionalmarket, but inspired ideas can be tailored to work in differentmarkets and appeal to various demographics.

If next year’s NIGA Convention in Las Vegas is as successfulas many expect, the Indian gaming industry should have a blast,but it should also use this as an opportunity to find inspirationand capture insights from the latest, most innovative ideas thetown has to offer.

Tracy Burris, Gaming CommissionerViejas Band of Kumeyaay IndiansMember of the Chickasaw Nation

We are approaching the start of a new year for Indian gaming. It was thirty years ago that Congresspassed the Indian Gaming RegulatoryAct (P.L. 100-497 Oct. 17, 1988). At that time, tribal leadership wasplanning to expand their paperbingo to electronic games under thetitle of Class II gaming and negoti-ations for tribal-state compactscalled Class III gaming were takingplace. It’s been a wild ride in the lastthirty years.

What does the year 2018 bring for Indian gaming and whatdo we watch for? The Supreme Court will hear the Professionaland Amateur Sports Protect Act (PASPA) of 1992. As of thiswriting, the court is about to hear oral augments in the case,but we do not yet have an idea what the court is thinking inthis matter or what its impact will be on tribal gaming. It willbe interesting to watch this Administration without top leader-ship at the Bureau of Indian Affairs (BIA) with the issue of land-in-trust for gaming purposes, and we will get new leader-ship at the National Indian Gaming Commission (NIGC)with the term of Chairman Jonodev Osceola Chaudhuri up inApril. I am excited to see who will fill that role and what theirlegacy to Indian gaming will be. What issues will they take on? Will it be to readdress the Minimum Internal Control Standards (MICS) or take on “gamesmanship”? Perhaps theywill look to revise the technical standards for the ever changing

We asked members of our Editorial Advisory Board to share their insights and predictions for 2018. Here is what they had to say…

Spotlight on 2018 and Beyond

Dike Bacon

Tracy Burris

Page 2: Spotlight on 2018 and Beyond - Indian Gaming · reinvents itself more than any other place on the planet. There is sometimes a misconception about Vegas, however. The town is not

technological aspect of gaming machines on the floor and theback of the house accounting systems and player tracking systems. Also, we still have a case pending the adjudicationprocess of the courts in the State of California/Untied States v.Iipay Nation of Santa Ysabel (9th Cir. No. 17-55150). What will its’ impact to Class II gaming be and how will it impactonline tribal gaming? There are also compacts coming up forpreliminary review for the Oklahoma tribes. What directionwill those revisions take?

Christie Eickelman, Vice President of MarketingGaming Laboratories International

In a little over 30 years, Indiangaming has responsibly grown intoa $31 billion industry and has someof the best-run gaming operationsin the world today, as evident bytheir success and the positive impacton their communities. New technol-ogy has had a tremendous impact onthis growth as well as the investmentmade by tribes to educate and traintheir gaming regulators.

In 2018, I see Indian gamingcontinuing to expand both on tribal

lands and beyond as they purchase commercial casinos both inthe U.S. and abroad. The tribes are some of the first to embracenew technology and are at the leading edge when it comes toutilizing this technology to enhance the gaming experience oftheir patrons.

The U.S. Supreme Court is just now hearing oral argumentsin a case that could legalize sports betting across the country.An opinion on this case should be released by the summer of2018. Depending on the outcome of this decision, the tribesmay have to decide if they want offer this form of gaming andhow to move forward. The good news is, the tribes are well positioned to offer this new form of gaming and other newtechnology as it becomes available.

Grant Eve, PartnerWipfli/Joseph Eve

The rapid changes in casino technology, combined with theever-changing regulatory requirements, are forcing the gaming industry to take a closer look at their financial processmanagement and overall accounting processes. With oversightfrom tribal councils and regulators, and in navigating a casinos dynamic environment, it only makes sense to leveragemodern technology.

Casinos have moved to cloud-based accounting systems at arapid rate in 2017 and I expect this to only increase in 2018.

Most casino accounting software wasdeveloped pre-Internet, which makesit very challenging to use for best-in-class accounting and financialmanagement reporting. Though themarket is replete with accountingsolutions, features such as instanta-neous scalability, mobile and tabletaccess, multi property consolidatedfinancials, full process automation,and a 100% true cloud platform arecoming to market now and will beeven more prevalent in 2018.

Not only are finance departments using technology toenhance their operations, Training and HR departments areutilizing automated training to enhance their departments toadhere to regulatory requirements while capturing a positivereturn on investment. Manual training is time intensive, difficult to track and takes a lot of resources to ensure you havethe proper content included. As such, many casinos are moving to an automated online training solution whether it beTitle 31/AML compliance, responsible gaming, harassment

December 2017 Indian Gaming 19

Christie Eickelman

Grant Eve

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20 Indian Gaming December 2017

ASK THE EXPERTS

or a host of other options that are available to the gaming industry.

Lastly, I expect Title 31/Anti-Money Laundering examina-tions to continue at full force at tribal casinos in 2018. Therehave been several penalties at card clubs in 2017 and I expectthat FinCEN will continue with examinations at all casinos,which will include commercial casinos, tribal casinos and cardclubs. Some thought when Director Jennifer Calvery andAssociate Director of Enforcement Stephanie Booker left FinCEN in 2016, enforcement actions would slow down. That hasn’t been the case – FinCEN, Acting Director JamalEl-Hindi and Associate Director of Enforcement Thomas Ott have been very active in enforcement actions for all sectors,including casinos. Prior to FinCEN, Thomas Ott was a prosecutor for the Tax and Criminal Division for the UnitedStates Department of Justice. With the leadership team in place,we should expect increased Title 31/AML scrutiny at the federal level.

Christopher Foster, Vice President of Sales & MarketingCOST of Wisconsin

As a specialty fabricator, we haveseen significant changes in casinodesign and development. While the gaming industry as a whole seeks new and innovative ways totarget four generations (Silent,Boomers, Gen X/Y, and Millennials)with varying interests, the brick-and-mortar casino experience must alsofollow suit.

We are witnessing a slight pendulum shift that has startedwithin the casino space, shifting

from standard architectural finishes to include traditional orcultural theme work. Heavy themeing, typical a decade ago, hasgiven way to more architectural finishes utilizing unique light-ing and traditional building processes. Recently, a handful ofprojects have included more of the cultural theme work thatdefined the earlier Native American casinos, but presented inabstract and contemporary ways. I believe this trend will continue as casinos provide new and exclusive branding opportunities and further seek ways to differentiate from thecompetition.

Theme eateries that offer ethnic foods and unique diningexperiences are better aligned with varied consumer prefer-ences. Steak houses and buffets, while still the norm, are beingcomplimented by Asian, Italian, Mexican cuisine, craft brewpubs, branded chains, and even health conscious diningoptions. The food offerings are being paired with new andexciting theme spaces that distinguish the venues and enhance

the customer experience. Likewise, casino coffee shops arebeing uprooted by national and international brands such asStarbucks and Caribou Coffee. The larger and more diversedining experiences cater to a wider generational base and can be fine-tuned even more specifically to local demo-graphics.

A final trend that will continue through 2018 is propertydiversification. Casinos have been and will continue to becomemore destination oriented, offering amenities that cater todifferent generations and demographics. The additions ofresorts, spas, RV/camp grounds, water parks, golf courses,and even family entertainment centers cannot be overlookedas top offerings for casino patrons. Adding these amenities will contribute significantly to a casino’s future revenue stream.

Gabriel S. Galanda, Attorney at LawGalanda Broadman

In 2017, the National IndianGaming Commission took theunprecedented step of interveningin a tribal disenrollment dispute when it shuttered the NooksackNorthwood Casino for the summer.

The NIGC had previously shutdown gaming facilities amidst so-called “internal tribal disputes” –at Elem, Sac and Fox and Picayune,to name a few – but never where disenrollment was at the heart of a

tribe’s implosion. As explained by Dentons – the lawyers who appeared before the NIGC on behalf of the NooksackIndian Tribe – the Commission’s closure of Northwood was“unprecedented.”

Only time will tell if the NIGC’s intercession at Nooksackis a bellwether. In May 2017, the NIGC hosted Indian legal historian Professor Robert Williams for a lecture on disenrollment and the deconstruction of federal Indian law atthe agency’s headquarters in Washington, D.C. The NIGCclosed Northwood the next month. Although, NIGC Chairman Jonodev Chaudhuri generally toes the conventional line that theTrustee should play no role in disenrollment disputes. He alsorejects the premise that the NIGC should at all regulate gaming per capita payments to tribal members – even when illegally paid or otherwise misappropriated in the disenrollment context. While illegal gaming per capita checkswere issued at both Picayune and Nooksack, the NIGC lookedaway from that malfeasance, closing each tribe’s casinos onother grounds.

There are, however, countervailing winds emanating fromWashington, D.C. and Indian Country.

Christopher Foster

Gabriel S. Galanda

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December 2017 Indian Gaming 21

Past U.S. Department of the Interior Assistant Secretary ofIndian Affairs, Professor Kevin Washburn, opined this year thatone federal solution to the “vexing problem” of disenrollmentis “to assert diplomatic consequences, which could be fiscal innature, equivalent to international economic sanctions, orpolitical in nature, such as loss of federal recognition.” TheNIGC’s temporary closure of Northwood last summer does fallwithin that paradigm.

In the same vein, former NIGC Chairman Harold Monteauproclaimed this year that the Interior Department, includingits NIGC, owes a tribe and its members a trust responsibility“to not let an illegitimate organization take, spend and distrib-ute tribal gaming revenues, unless they are a bona fide tribalgovernment”– especially in the disenrollment context. To remedy such federal illegality, he recommends NIGC facilityclosure (or Inspector General inquiry), and FBI criminal investigation and prosecution.

Meanwhile, the chairpersons of several gaming tribes –like Yakama, Spokane, Graton, Coyote Valley, Robinson,Ramona and Ft. McDowell – have either lent their power tothe #StopDisenrollment visual advocacy movement; or publicly expressed that disenrollment is not their tribe’s way. The Spokane and Graton tribes have gone so far as to outlawdisenrollment. Other tribal leaders are privately denouncingdisenrollment, most notably the Nooksack, to each other andto Interior and NIGC officials.

As 2018 approaches, hopefully the NIGC will hear and heedthese policy proclamations.

John Hinton, Director of Native American ProjectsBergman, Walls & Associates

The Indian gaming industry has had seven years of consec-utive revenue growth and that should continue into 2018.Tribal gaming is now a $31 billion dollar a year industry, andthe continual rise in revenue will be due to casino expansionsand economic growth. Expansions will be from updating orreplacing older facilities into destination-type resorts, landacquisitions by tribes and the purchase of commercial gamingentities. Some tribes are even exploring the possibility ofdeveloping additional casinos beyond their borders, includingoverseas options. As this development continues, so will the evolution of design and below are some of the trends that I anticipate will carry into 2018.

The design of casino floors will continue to evolve as theyhave in the past couple of years, becoming less structured asprevious designs and instead more open, blended and freeflowing. This will allow guests to have easier access to a mixof gaming, entertainment, restaurants, bars and other services.These spaces will be designed to be comfortable, inviting andfocused on having fun. As casino amenities perform well, properties will continue to add and improve these offerings.

Having the right mix of amenities is dependent on the property loca-tion, market area demographic andsurrounding competition. For thosethat want to add or update any oftheir current amenities, the key tosuccess is to have a market studycompleted to determine what ameni-ties will have the best performanceand most impact at the property.Once any new amenity is in place, itis up to operations to make sure theservice to guests is top notch. With

social media, word spreads fast if a guest has a bad experience.Two other items that have gained momentum the past

couple of years and will continue to progress are sports betting and eSports. The American Gaming Association isseeking repeal of the Professional and Amateur Sports Protection Act, which, if approved, will have a major impacton gaming in the U.S. and tribal gaming. The NationalIndian Gaming Association joined to monitor the group tomake sure Indian gaming is represented in the discussions.Sports betting could become another amenity for tribes thathave compacts with states guaranteeing them exclusivity tooperate casinos, and could be of benefit, but for others it mayrequire them to re-negotiate compacts, or form a differenttype of entity to offer this amenity. The compacts with the tribes and states are all different and complicated, so legislation will need to take that into account when develop-ing any new requirements for sports betting. We will see moremovement on this legislation next year and how this willimpact tribal gaming in the future.

eSports has gained a lot of interest and will continue to doso as several tribes are reviewing opportunities for adding andhosting esports tournaments at their facilities. To host this typeof tournament, space will need to be re-allocated or added tothe facility. Additionally, space will be needed for practicegaming lounges, back of house support, staff and spectators.Facilities will need to provide fast internet access and IT support to make sure the games are operational. Furthermore,operators will need to tailor food and beverage options for theseaudiences as they could consist of new patrons.

Currently, material costs are rising, leading to increased construction costs at a faster pace, and this will continue into 2018. A typical project from inception to the start of construction can take up to a year and those that are planningprojects need to make sure they are carrying a line item for escalation costs in their project budgets. Otherwise, they couldfind that their projects are over budget when constructionstarts. Good planning and budgeting practices will need to bepart of the process for anyone working on new projects in 2018.

Tribal casinos are the most visited entertainment venues intheir communities and are well positioned in the market place

John Hinton

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to roll out any new amenities and entertainment options. This will keep the industry as the top choice for entertainmentfor years to come. I see another successful year ahead forIndian Country and their facilities.

Kell Houston, PresidentHouston Productions

In 2018, we are going to seetribal casinos get more involvedwith diversity in their entertain-ment presentations. The casinobrand is so influenced by the typeand quality of the entertainmentthey bring to their property, thatthey will be putting more focus onthat part of their brand. It’s not justabout putting on a concert, it’s aboutputting on exciting and differenttypes of events. Tribal casinos arebecoming more and more the

centers for all things entertainment in their regions, so it willbecome more and more important to stand out. Entertainmentis that part of the casino business that can make a differencein building and supporting your brand.

On the legal side, as far as entertainment goes, tribal casinos will be much more attentive to the “terms and conditions” that are expressed in every agency contract. Theemphasis will be on finding a more equal ground. Tribal casinos will continue to develop their own addendums and riders to protect their positions. This has been an ongoingprocess the last couple of years. Hopefully we will see more clarification in 2018.

Jamie Hummingbird, DirectorCherokee Nation Gaming Commission

The Class II segment of the Indian gaming industry will see a much anticipated stabilization in 2018, while theClass III segment could be in for a bit of a shake-up. The neteffect of these activities could lead to an increase in tribal gaming revenues.

Before the end of this year, the National Indian GamingCommission (NIGC) is expected to finalize changes to 25C.F.R. Section 547, the Minimum Technical Standards forClass II Gaming Systems and Equipment. These changes willremove the “sunset clause” of November 2018 – the date bywhich all formerly approved Class II games would havebeen required to comply fully with the technical standardsor risk deactivation – in favor of new monitoring and report-ing requirements to which tribal gaming regulators mustadhere. While not ideal, the changes represent, overall, a positive step for the Class II industry.

This is not to say that tribaloperations, tribal regulators, andClass II game manufacturers arenot moving towards having Class IIgames that incorporate all of theClass II technical standards; itmerely allows the life-cycle of thecurrent game technology to continue in a more natural waywithout an artificial deadline hanging over its head. This allowstribal gaming operations to con-tinue offering the same games that

have operated for over a decade under the technical standards’grandfather clause without a single instance of loss ofintegrity, alleviating the need for costly conversions andloss of revenue.

The Class III side of Indian gaming has the probabilityof the spread of new technology on one hand and the possibility of a venture into new gaming territory on the other.

Skill-based games have somewhat been sitting in theshadows for the past few years, with not a lot of developmentor deployment of this type of game. At G2E in 2016, the number of vendors and games were few. This year, more vendors and more games could not only be seen at the show,but on the floors of the casinos as well.

Part of the challenge faced by skill-based gaming, from thetribal perspective, was in knowing how to treat it under theterms of a tribal-state compact. Does the compact cover thistype of game? How much does skill affect the game? What technical standards are to be used for testing the games? Thelatter question was partially answered by the Nevada GamingCommission when they promulgated their regulations onskill-based games in 2015. More recently, the Forest CountyPotawatomi partnered with BMM test labs to develop a set oftechnical standards for tribes to use as the basis for developingstandards for use in their respective jurisdictions.

By having a head-start from which the introduction ofskill-based games into tribal jurisdictions can be made soonerand more efficiently, skill-based games may be poised forwider dissemination across Indian Country.

Finally, tribes, and the gaming industry as a whole, couldsee the possibility of sports wagering become a reality shouldthe United States Supreme Court overturn the Professionaland Amateur Sports Protection Act’s (PASPA) restrictions onthe ability of all states – and tribes – to elect to offer sportswagering in its jurisdiction. Some states have already enactedlaws that would allow them to introduce sports wageringalmost as soon as a favorable ruling is handed down. Twentystates have been interested in the subject that also happento have compacts with its resident tribes. The move towardsaccepting sports wagers must begin by establishing a dialoguewith tribes as there are many questions to be answered;

Kell Houston

Jamie Hummingbird

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December 2017 Indian Gaming 23

questions that may or may not be easily answered. If the stateenacts sports wagering laws, does that violate any exclusivityprovision in the compact? Could the activity be coveredunder existing compact language (e.g. could it be considered agame of skill, which a number of compacts currently authorize)?What ripple effects could be felt in revenue sharing, licensing,and compliance?

It is in the best interests of tribes to prepare for this possibility becoming a reality. With a hearing set this monthbefore the Supreme Court, the fate of PASPA, and as a result,the fate of commercial and Indian gaming, could be greatlyimpacted in early 2018.

Knute Knudson, VP of Business Development and Tribal RelationsIGT

Tribal government gamingoperations have achieved substan-tial growth of late. Last year (FY2016) tribal operators generatedrecord revenues of $31.2 billion, a4.4% increase over FY 2015. Thatgrowth follows the previous year’s5% year-over-year growth in tribalGGR. Looking to 2018, I believetribal gaming operators will seecontinued growth in line with theirrecent successes.

Tribal gaming success is no accident. Tribal casino operators excel in entertaining andengaging their core players. They understand these players,their motivations, and play preferences. Tribal gaming successis a testament to tribes' skill in meeting player demand.

Looking forward, while there will always be a market fortried-and-true casino games and products, the path to engag-ing future generations of players is not so clearly defined.There is a belief among many in the industry that classic products will not be enough to attract and hold the next generation of players. Tribal gaming operators have well-earned reputations as early adopters of technology. I anticipatethis trend will continue into 2018 as tribes focus on expand-ing the demographic of players who enjoy casino entertain-ment. That is, tribal operators will leverage meaningfultechnology and innovation to engage younger players.

For example, consumers rely on their smart phones innearly all facets of their daily lives. Consequently, tribalcasino operators who offer mobile solutions that enhance theirland-based environment will also enhance their casinos’ relevancein the minds of existing and future players. Examples includeoffering mobile alternatives to plastic player cards – mobileapps that allow players to “card-in” to gaming terminalswithout a physical card make play that much easier for all

players and offer a more current experience to tech-savvy players. Taking mobile integration into brick and mortar environments a step further, we’re seeing tribal operators usemobile apps to offer their slot and table games as well as sportsbetting to their players who are located on-premise. Tech-savvytribes are taking their games to their players’ phones on-site.

Meanwhile, the slot machine experience itself is evolving.Skill-based games, ultra-HD hardware and now 4D gamesare attracting players on tribal casino floors.

Tribes are also paying close attention to broader changeson the gaming landscape. The U.S. Supreme Court is considering the issue of online sports betting and legislationis being drafted at the federal and state levels that mayexpand online sports wagering. Tribes hold varied opinionson whether and how online gaming expansion may impacttheir industry. Tribal leaders are actively working to ensuretribal sovereignty and tribal interests are protected in thedesign of these new gaming laws.

In 2018, I believe tribes will build on their success to datethrough a combination of attention to their core customers,meaningful innovation, and involvement in the develop-ment of new gaming law.

Michael E. Newell, ConsultantIndian gaming is an industry

with thirty billion plus dollars ingross receipts and additional billionsmore in economic impact in commu-nities across the U.S. That's a ton ofcash flow and thousands of jobs withpeople paying their bills, buying groceries, and obtaining consumergoods. Indian gaming is, has been,and will continue to be a power-house vital to the American economy.That's the short story.

The long view is considering the impact of the casinoindustries favorite and most reliable clientele; baby boomersand those in the 55 - 65 age group. Many are at retirementage but also show signs of not going quietly into that goodnightby clinging to their opportunities to contribute to society andearn a little extra cash. In the end, the Gen Xer’s will get it all.And then what happens?

The Gen Xer's have been slow to adapt to a casino environ-ment for entertainment and the millennial generation seemsless likely to visit brick and mortar venues. However, neitherof these age groups seems adverse to using technology, especially mobile technology, for gaming purposes. Is there a possible match here? Over the last several years, many industry experts have predicted that iGaming will bud out, blossom, and proliferate into every nook and cranny across themarketplace, foreign and domestic.

Knute Knudson

Michael E. Newell

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Sports betting is the most likely candidate to create serious interest for U.S. gamers. It also comes with a lot oflegal baggage and hurdles that will have to be overcome.That's being worked out now, certainly behind the scenes(because it has a life of its own), but how soon is anyone'sguess. Various poker games are also likely candidates, but cashflow from those games is much less significant. Slots and someother table games can also be winners.

If/when the public gaming industry does adopt iGamingplatforms in the U.S., Indian gaming will be at the forefront –that's a certainty.

So, what about 2018? Casino marketers and slot vendorsare busy trying various entrainment options to draw youngerplayers, especially Gen Xer's to their venues, so expect to seenew game innovations, and perhaps variations of arcadegames, showing up at the larger properties. Also, expect tosee another banner year of growth and record revenues.

Matt Reback, Executive Vice PresidentAGS

2018 should be a watershed yearfor the Indian gaming industry. I have watched and supported anindustry that has grown in bothsize and sophistication every yearsince tribal casinos began emerg-ing during the current growthphase that started way back in theearly 1990s. In the upcoming year,I suspect that new records for revenue, visitation, and customerloyalty will be set based upon myobservations that the caliber of

operational leadership keeps taking steps forward on theproverbial journey from good to great.

The quality of the overall product offered by tribal casinooperators across the U.S. continues to improve, as evidencedby the new hotels, entertainment venues, restaurants, andcasino expansion projects that are announced every day. Thedays of temporary tent structures housing a limited number of slot machines are so far in our rearview mirrorsin most markets now that I regularly meet people whonever even experienced those facilities. The Indian gamingvenue of 2018 is a world-class facility dedicated to deliver-ing the highest quality entertainment experiences possibleto its patrons, while creating jobs, revenues, and opportu-nity for its community. One only needs to look at the recentinvestments and expansions at properties like Pechanga(CA), Sandia (NM), Choctaw Durant (OK), Graton (CA),Pearl River (MS), or San Manuel (CA) to understand thematuration and potential of this vibrant industry. Innovativenew slot products, social online casinos, interactive table

games and robust casino marketing systems are being installedevery day to enhance the guest experience. As a result, the full spectrum casino resort is now the norm instead of theexception, so much so that it would be impossible to list allof the resort-style tribally operated properties today, whereasone could probably count them on one hand just 20 shortyears ago.

Tribal casino operators have been reinvesting in the products that their patrons want to play, the facilities in whichthey operate, and the marketing to attract customers and buildbrands with growing brand equity. Tribal operators continueto get funding to expand their product offerings to the pointwhere the “next big thing” in casino gaming is just as likelyto gestate at a tribal casino resort as a Las Vegas Strip megaresort. Reinvestment, sophistication and innovation willmake 2018 a watershed year for the flourishing Indian gaming industry.

Victor Rocha, Owner/EditorPechanga.net

My two issues to watch in 2018are sports betting and land-in-trust. If PASPA is overturned bythe Supreme Court in 2018, everycasino in the country will want toget into sports betting. One issueof concern for the tribes will be thelegality of mobile gambling viayour phone or computer. Thelock-box of IGRA shudders againas gambling technology rushes forward.

Another issue of concern is theTrump Administration’s refusal to move forward with land-in-trust cases. Watching the BIA succumb to lobbying pressurefrom MGM is unsettling to say the least. Refusing to confirma state-sanctioned commercial casino sets a new precedent forobstruction. I wouldn’t expect to see any land approved for off-reservation casinos during this Administration.

Linda J. Roe, VP Client DevelopmentTBE Architects

As a professional within the architectural industry, andworking primarily in Indian Country, any predictions I see tendto relate in some fashion to the design and construction of gaming properties. Owners continue to ask, “how do we keepour properties competitive, current and relevant to the times?”

Because the unthinkable has become problematic with therecent tragedy in Las Vegas, heightened security is the new andvery necessary focus. Creating a sense of security in an

Matt Reback Victor Rocha

Page 8: Spotlight on 2018 and Beyond - Indian Gaming · reinvents itself more than any other place on the planet. There is sometimes a misconception about Vegas, however. The town is not

December 2017 Indian Gaming 25

insecure world asks professionals toemploy preventative measures tocreate a presence of safety. Takinga deliberate, intentional, focused,and serious look at ways to combinesafety along with aesthetics will continue to force advances into significant challenges in the way wedesign and build these properties.This is no longer an optional costconsideration; it has become manda-tory to protect the guest to the fullpotential possible.

Casino amenities will continue to make a strong comeback.Now that the economy has recovered and continues tostrengthen, guests are increasingly savvy and expect a complete assortment of entertainment options. Their initialvisit may revolve around gaming, but they have come todemand other amenities; i.e., movies, bowling, spas, a varietyof dining options, convention space, luxury (but economical)guest rooms, convenience of parking garages, etc. We willsee owners looking at these components both in terms ofadded gaming revenue (guests stay longer), as well as ROIon these amenities as independent units.

Another trend I see that is somewhat concerning is theincrease in utilizing the “design-build” construction methodwhich lumps the architect under the contractor’s contract withthe owner. While there are certainly some situations where thismethodology is not only appropriate, but desirable, buildinga complex resort gaming property is not one of them. Theowner can be initially swayed toward this approach, believingit is cost effective and efficient. However, it has the potentialto create a division in communication by not always allowingthe architect to have the necessary direct and honest discus-sions (or even access) to the owner. The trend may need to resultin providing more education to the owners on this topic, andbefore a project is even proposed.

And, of course, let us not forget that protecting tribal sovereignty is always in the forefront of the entire industry.Because gaming is the engine that drives the success of theprosperity of the tribal nation, it is the responsibility of allof us, owners, professionals, and vendors alike, to continueto define ways to enhance the profitability, as well as protectthe safety and security of the guest, which in turn helpssecure tribal sovereignty.

Ernest L. Stevens, Jr., ChairmanNational Indian Gaming Association

The Indian gaming industry had much to celebrate and be thankful for in 2017. Indian Country lauded the 30th anniversary of the U.S. Supreme Court’s decision in

California v. Cabazon Band of Mission Indians, which affirmedthe inherent sovereign authority ofIndian tribal governments to conduct gaming on their lands freeof interference from state govern-ments. We also welcomed theannouncement that our industrygrew to $31.2 billion in direct revenues – a 4.4% increase over theprevious year. Without questionIndian gaming has been and continues to be the most successful

tool for economic development for many Indian tribes in overtwo centuries.

To ensure that this success continues in 2018, NIGAand our Member Tribes will maintain a steady presence onCapitol Hill in what is expected to be an active year for ourindustry.

One of the year’s highly anticipated gaming-related debatesis the potential expansion of sports betting in the UnitedStates. The U.S. Supreme Court heard oral arguments inChristie v. NCAA on December 4th. A decision in the case isexpected by the spring of 2018.

Regardless of the outcome of the Christie case, NIGAwill continue to work with Congress to ensure that Indiantribes have equal access – as governments – to any new formof gambling in the United States, and that existing tribalgovernment rights under compacts and IGRA are protected,among other requirements.

NIGA’s work in 2018 will build on our decade-longeffort to bring parity and respect for Indian tribes as governments for purposes of federal labor laws. In 2004, theNational Labor Relations Board equated Indian gamingoperations to commercial gaming operations, ignoring thegovernmental status of Indian tribes and governmentalpurpose of our gaming operations and revenues.

Unlike commercial gaming enterprises, which are corporate run purely for-profit operations, tribal governmentlaws require – and federal law mandates – that revenues generated from Indian gaming be used entirely for governmentpurposes.

In 2018, we’ll continue to seek out opportunities andknow that a number of challenges lie ahead. NIGA will getto work early in the New Year to get our message out toCapitol Hill and the Administration.

We will set the tone for the year at NIGA’s Winter Legislative Summit in January of 2018, and we plan to carrythat message through and beyond the important November2018 Midterm Elections. These are important times, and wewill not rest on our past success. ®

Ernest L. Stevens, Jr.Linda J. Roe