CNIGA Chairman James Siva:
“Good morning, and welcome to the 28th annual Western Indian Gaming Conference. It is truly great to be back here at Pechanga. I want to extend our appreciation and thanks to Chairman Macarro, the Pechanga Tribal Council, and the entire Pechanga Band of Indians for hosting WIGC again this year. Additionally, I want to express my deep gratitude to you, Chairman Macarro, for your leadership and work as NCAI president over the past year. Again, thank you.
The intention of this statement is to identify key items and events that affect our industry and our tribal nations, and there is much to report. However, I want to first say that this has been a challenging year in California, as wildfires and urban brushfires in the Los Angeles area have killed dozens and displaced thousands. Through the horror and unspeakable tragedy, California tribes stood by their neighbors and rushed to help.
Several tribes sent their tribal fire departments to assist in the disaster, including CNIGA members the Pechanga Band of Indians, Rincon Band of Luiseno Indians, San Manuel Band of Mission Indians, Soboba Band of Luiseno Indians, Viejas Band of the Kumeyaay Nation. The Yocha Dehe Band of Wintun Indians and the Yurok Tribe also responded, traveling nearly the length of the state to assist in the firefighting efforts.
California Tribes also donated to relief efforts, including significant donations from the Agua Caliente Band of Cahuilla Indians and our hosts, the Pechanga Band of Indians. Your contributions are greatly appreciated. I sincerely apologize if I’ve missed any tribes that participated in firefighting or relief efforts since I know that the support effort from tribes was very wide-reaching.
California Tribes are an essential piece of the fabric of this state. From supporting emergency support needs, charitable donations, employment opportunities, and other philanthropic actions. Tribes show that we care about our communities, our neighbors, and our friends.
One key area in which tribes have an overwhelmingly positive effect is the California economy. I am extremely happy to be able to report that, through our partnership with Beacon Economics, a leading economic research firm in California, we have a new Economic Impact Study, or EIS, examining the economic and fiscal impacts of tribal government gaming on the state of California. I would like to thank all the tribes that provided data for the study. Without you, the report would not have been possible.
This EIS offers our first significant economic update since 2016. While the pandemic delayed a new study, we are very pleased that it is finally here. The new EIS found that tribal enterprises have significantly continued to build on earlier growth to the benefit of California communities.
In 2021, expenditures from tribal gaming operations in California generated approximately $17.2 billion in economic output.
As direct spending on tribal gaming operations circulated through the California economy, the indirect effect of these expenditures amounted to $7.9 billion in economic output that supported 33,649 jobs statewide.
Overall, total economic output stemming from tribal gaming operations more than doubled from 2012 to 2021, growing by a total of 114%.
The new economic statistics show a clear and continuing trend of upward economic and employment growth. In 2012, tribal operations supported 56,000 statewide jobs in California. That number grew to over 63,000 jobs in 2014, and in 2021, that number swelled to over 85,200 jobs statewide, resulting in $5.3 billion in earnings for California workers.
The growth has been incredible and is the result of the hard work and dedication of California tribes.
Tribal gaming operations also generate significant tax revenue. In 2021, tribal gaming operations across the state generated $2.2 billion in tax revenue for various levels of government.
State and local tax revenue from tribal gaming operations has grown by 106% since 2012. In 2021 it reached nearly $1.05 billion and includes contributions to California’s sales, property, and income tax bases.
In addition to our gaming operations, tribal non-gaming operations generated an estimated $7.9 billion in economic output in 2021. These non-gaming-related operations supported more than 27,460 jobs statewide and generated $2.3 billion in labor income for California workers. The indirect impacts of this spending amounted to $3.8 billion in economic output and supported 15,952 jobs statewide.
These non-gaming operations generated $832.1 million in tax revenue for California and beyond.
As demonstrated by the rapid response to the California fires, tribes are here to support our local communities through charitable donations and activities. The economic impact report revealed that tribes gave $77 million in charitable contributions that generated nearly $160 million in economic output, $54.3 million in labor income, and 535 jobs.
These impressive numbers demonstrate the positive benefits that tribes have on local communities throughout the state. When tribal gaming grows, California benefits.
This growth is underscored by multiple tribal projects throughout the state. The largest hotel to open last year in California was the 197-room Chicken Ranch Casino Hotel, operated by the Chicken Ranch Rancheria in Tuolumne County. Graton Rancheria in Sonoma County is expanding its facility as I speak and is currently just north of Madera on Highway 99. The North Fork Rancheria of Mono Indians has broken ground on a long-awaited casino and resort project. After 20 years of negotiations and litigation, the Ione Band of Miwok Indians broke ground on the Acorn Ridge Casino, which is slated to open in the Spring of 2026.
Tribal economic development is moving beyond gaming. Two CNIGA member tribes now have ownership stakes in professional soccer clubs: The Sycuan Band of the Kumeyaay Nation are co-owners of the San Diego F.C., and Wilton Rancheria are majority owners in the Sacramento Republic F.C. These are amazing developments, and I look forward to seeing the success of these new investments for those tribes.
Tribes are also moving forward with other big projects. Redding Rancheria announced that they will be building a 180,000-square-foot health and wellness center. The facility will offer tribal members and employees of the Rancheria primary and urgent care services, along with dental, behavioral, health, psychiatry, and even an in-house pharmacy. In December, the Soboba Band of Luiseno Indians celebrated the two-year anniversary of Legacy Bank, the only native-owned bank in California. In Crescent City, the Elk Valley Rancheria celebrated the successful opening of their tribal fuel plaza. Additionally, in December, the Picayune Rancheria of the Chukchansi Indians broke ground on a new tribal government center.
This is all fantastic news, and it is thrilling to see tribes expand their economic opportunities. This is all possible due to the unrelenting advocacy of Associations like CNIGA and tribal leaders like yourselves who stand up and fight for tribal sovereignty and self-determination. Tribes have proven year after year, decade after decade, that together, we can and will accomplish anything.
Over the past year, thanks to your engagement, this organization has attained a stunning level of achievement. I’ve already mentioned the Economic Impact Report, which we couldn’t have done without tribal involvement, as was the case with so many other things this past year.
We had a very active legislative year, including numerous bills impacting tribal governments as well as two priority pieces of legislation for the association.
Together, CNIGA and TASIN spearheaded AB 1935, which returned millions of dollars of overpaid regulatory fees to small, mid-sized, and large gaming tribes. This followed a 10-year effort by CNIGA to obtain an audit of the SDF, which, among other things, revealed that the SDF had accumulated an “excessive reserve” of nearly $170 million. This law reduced that surplus by $83 million and returned critical tribal revenue back to the tribes that contributed to the surplus.
AB 1935 was the second CNIGA-sponsored bill to be signed into law that addressed issues uncovered in the SDF audit. Last year, I reported on the 2023 passage of CNIGA-sponsored AB 553, which will ensure accurate timekeeping by state regulators and their staff. Taken as a pair, these two pieces of legislation have taken significant and concrete steps to address problems with the SDF.
Perhaps the biggest legislative achievement of the past year was the passage of SB 549, authored by former Sen. Josh Newman. This was CNIGA’s priority legislation for the 2023 and 2024 Legislative Sessions. SB 549 was a fair and impartial measure that sought to settle a decade-plus dispute. It simply asks for a court decision on whether certain controlled games operated by California card clubs using third-party proposition player service providers as banks constitute banking card games that violate California law and tribal gaming exclusivity.
Prior to SB 549, California’s Tribal Governments worked for over a decade to find a remedy for the illegal activities occurring at commercial cardrooms, to no avail. Proposed regulations issued by past Attorneys General failed to make any progress and were met with fierce objections and threats of litigation by the cardroom industry. Compromises were discussed but ultimately rejected by the cardrooms because preserving the status quo benefited their adopted business model. During this time, California cardroom operators racked up more than $24 million worth of fines for violating anti-money laundering laws, misleading regulators, and illegal gaming.
The era of ignoring our constitutional protections ended on August 31st when, during the final hours of the legislative session, the Senate voted 32-2 to approve SB 549. We are forever thankful to our bill author, Josh Newman, the numerous co-authors, the governor, and every member of the Assembly and Senate who stood with tribes and voted in support of tribal access to justice.
After years of exhaustive work, I am happy to report that on January 2, the day after SB 549 became law – and the first day the Court was officially open for business, seven tribal governments filed the much-anticipated lawsuit.
SB 549 is a testament to what tribes can do when we unify. This was a herculean effort – by both sides. The commercial operators spent millions of dollars on a well-coordinated disinformation campaign, one that continued into the November elections – months after SB 549 was signed into law by the governor. The passage of this bill was challenging and in doubt until the last moments of the legislative session. But because of Indian Country’s focus and dedication to the truth, we prevailed.
This would not have been possible without the historic coalition of tribes that came together to ensure its passage. I would like to thank each and every tribal government that supported SB 549, whether by sending letters of support, paying for advertising, or dedicating hundreds of hours of staff and lobbyist time to ensure that legislators received the facts and understood what was at stake for California’s Indian people. I would be remiss if I didn’t directly thank Chairman John Christman of Viejas, the Viejas Tribal Council, and Viejas Attorney General Tuari Bigknife, who conceptualized and drafted SB 549 and brought it to CNIGA for unified support. Your vision and leadership are appreciated and celebrated.
I would also like to give a special thank you to Senator Josh Newman, who not only authored SB 549 but also stood with us and fought with us every step of the way. Unfortunately, Senator Newman fell victim to unfair and scurrilous attacks as well as redistricting challenges and lost his bid for reelection in November. However, he has earned our eternal gratitude and always has a friend in Indian Country.
We at CNIGA are unified in the belief that protecting tribal sovereignty and tribal exclusive rights is paramount. This is why the passage of SB 549 was critical.
But this is not the only encroachment from commercial gaming that tribes have been faced with. Everybody remembers the failed attempt by Fan Duel and Draft Kings to legalize commercial online sports wagering in California just two years ago. Despite their crushing defeat, commercial operators continue to look for ways to divide Indian Country and infiltrate the California gaming market. We must stay vigilant and united in the protection of tribal gaming rights and remain focused on moving all tribes forward. There is nobody better to protect tribal gaming rights than tribes themselves. Don’t be fooled; these commercial operators don’t care about the long-term success of our governments; they care about their out-of-state balance sheets.
Tribal governments are working diligently and thoughtfully, and we will move forward with a sports wagering initiative when the time is right.
Our intent is to build consensus, one meeting, one conversation at a time. Our central guiding principle is that this effort must be led by tribes. Any legalization of sports wagering needs tribes not just as partners but in the driver’s seat.
The encroachment of commercial gaming does not stop in cardrooms or sports wagering. We are seeing an increase in commercial gaming relating to Daily Fantasy Sports, Sweepstakes, Peer-to-Peer Wagering, Crypto Casinos, and more. As tribal governments know, the threats we face don’t go away; they just change form. We must stay alert and be ready. I invite all of you to join us for the general session, where we will do a deep dive into the wide web of commercial gaming threatening tribal governments.
Protecting sovereignty also means strengthening our governments. One significant way of doing that is ensuring that tribes throughout the state have the financial resources to protect themselves and choose their own destiny. Now, taking a step back in 1999, California tribes included a commitment in their compacts to share gaming revenue with non-gaming and limited gaming tribes in the form of the Indian Gaming Revenue Sharing Trust Fund, or RSTF. This fund has, over its life, paid out more than 1.8 billion dollars to eligible tribes. While the RSTF has been a very successful fund, the original $1.1 million annual payout to eligible tribes has lost value over time due to inflation. Leaders were determined to find a solution that worked for both the eligible tribes and the payees into the fund.
Toward that end, AB 221 by Assemblymember James Ramos was introduced last month. I am particularly pleased with the way this legislation arose. It stemmed from conversations that began organically between tribal leaders attending CNIGA meetings over the past few years.
Conversations continued, and ideas were developed during numerous CNIGA and TASIN meetings. Understanding that not all federally recognized tribes are members of an organized association, CNIGA and TASIN built a partnership to co-host additional All Tribes meetings to enable all tribes an opportunity to participate, share ideas, and provide feedback on proposed bill language. Through it all, we listened and synthesized various ideas that we distilled into a single piece of legislation.
Sponsored by CNIGA and TASIN, AB 221 seeks to require the Tribal Nation Grant Fund Panel to provide equal annual grants, paid quarterly, to all eligible federally recognized nongaming and limited gaming tribes that apply. Under AB 221, eligible tribes who apply would receive annual equal grants of $600,000, or at least 85% of the available monies in the fund – a nearly 55% increase in revenue-sharing payments to eligible tribal governments. This funding would support vital tribal programs, including effective self-governance, economic development, housing, vocational training, tribal education, public health and safety, renewable energy, water conservation, cultural preservation, and scholarships. The remaining 15 percent will be used for specific distribution grants as specified in the language.
This legislation reflects meaningful and open discussion that can only be forged through time and consensus. While we all know that building consensus can be difficult and takes time – this is time well spent.
This is the way we, as tribes, have been successful.
It is remarkable how much tribes have achieved in the last quarter century. We have nurtured an industry that is now a significant part of the California economy, an economy that is the 5th largest in the world. I am proud of the contributions made by our tribes. We have done this with sheer will and determination that allowed us to nurture the talents that we have always had but whose energies were put toward other means, including survival.
Now, our industry is thriving. We did that. You did that. And through all the battles, hard work, and struggles of our ancestors, we have collectively grown in competence and confidence. We must never forget what we have accomplished. We must remain diligent and focused so that when outsiders attempt to take control of what we have built, we are poised to stop it. We must let them know that we belong here. We, like our ancestors, are strong and determined. We are confident and in command of our industry and our future. That is who we are, and we must run it on our terms and our terms alone.
Our work is cut out for us as we move forward from the challenges already identified to massive uncertainty and chaos being created by the new presidential administration. With these threats and challenges facing us, it is so important that we remain unified as tribal nations and stay in control of our collective destinies. Let’s go forth with a sense of accomplishment, openness, and vision. Let us take our already great industry to new heights.
Thank you.
