In this edition of the “How It’s Done” series, we take a deep dive into outsourcing with interviews with Bob Dimmick, CEO, Kiowa Casinos, and Steve Neely, CMO at Quechan Casino Resort and Paradise Casino.
Outsourcing is a common operational strategy with a built-in debate.
While outsourcing is a bedrock strategy for tribal enterprises to create operational efficiency, acquire specialized skills, cost savings, and technology, outsourced projects often raise concerns about sovereignty, employment, and cultural issues.
Common outsourced services and support functions in management and operations are food and beverage, finance and accounting, information technology, construction, and development.
On the pro side
Positives about outsourcing include efficiency and flexibility, the ability to focus on the core mission, access to expertise and technology, and the ability to spread operational risk.
The ability to outsource the routine allows tribal management to focus on the tribes’ cultural priorities. That varies by tribe, knowing that most tribal culture is hard-wired to the long game of maximizing bottom line and revenue allocation that funds tribal members and life-sustaining programs like education and healthcare.
Contracting outside providers can help reduce overhead expenses and allow for flexibility for seasonal operations and markets that ebb and flow.
Access to technology and professional expertise can improve operational performance, allowing tribes to stretch their skill levels above what can be achieved independently.
The negative
Concerns about outsourcing center around loss of control and potential sovereignty issues. There is a debate within the tribal gaming world around the loss of data and regulatory compliance.
Since the dawn of tribal gaming, one of the central goals of tribes has been to create jobs for tribal members. Hiring opportunities may be reduced if projects or functions are outsourced. Building core knowledge about the various functions for operating a gaming and hospitality business can be limited.
Vendors may not have the sensitivity to understand tribal culture and create a disconnect. Outsourced companies may not approach guest experiences in a way consistent with tribal values. The tribe’s identity may not transfer when external vendors are at the helm.
Creating equilibrium
Outsourcing can be a powerful tool for operational efficiency when combined with the tribes’ vision, self-sufficiency, economic goals, and cultural norms.
When dealing with outsourced vendors, tribes should exercise contractual oversight and establish reporting protocols and accountability that ensure a bottom-line focus while retaining cultural norms.
Skills and technologies
Bob Dimmick is CEO of Kiowa Casinos and was CEO of the Pawnee Development Corporation for five years. Dimmick also has extensive experience in casino marketing for tribal and corporate companies.
Dimmick has outsourced finance and accounting at both Kiowa and Pawnee. His experience in outsourcing stems from a need to supplement skills and technologies at both tribal enterprises.
He explained his decision to outsource CFO functions for Kiowa Casinos in May of 2025 as a way to enhance credibility and modernize accounting systems.
Dimmick emphasized the benefits of outsourcing, such as access to expertise, compliance with changing laws and tax codes, and improved financial reporting.
When Dimmick arrived at Kiowa, there were issues at the board and tribal levels with credibility and accuracy in the finance department.
“We did not have a modern accounting system at the casino,” Dimmick said. “We were transitioning to Sage Intacct, and we didn’t have many modern systems. As we modernized the systems, we also lacked the personnel who fully embraced the idea of transitioning to new and more modern accounting systems.”
“We engaged REDW to come in and take on our CFO services to help us give more credibility to our numbers and to help us get acclimated to new accounting systems at all of our properties,” he continued.
“At Pawnee, we outsourced finance, and we were a much smaller tribe, and for essentially the same reasons. We encountered a situation when I arrived in Pawnee, where the Tribal Development Corporation had defaulted on its loans. As part of the loan covenants, until the loans were satisfied, there could be no distribution to the tribe.”
“The tribe was always questioning the P&L, and so we outsourced to a third party to give more credibility to the numbers and to satisfy the tribe and the Gaming Commission about what they were getting, and what they should be getting,” Dimmick related.
A Stronger organization
Dimmick stated that some of the advantages of outsourcing have to do with the ability to bring in new technologies and help to assimilate tribes into changing laws and tax processes.
“I think the advantages are, depending on the market, that you can bring resources and talent levels that aren’t readily available,” he said. “You are able to bring resources that are more on the cutting edge of changing technologies, emerging technologies, and emerging laws. Particularly on the accounting side, laws and regulations, new things that are coming through from the NIGC, and all of our tax laws. You can bring in people who are more in tune with what’s going on in a larger marketplace.”
“So, you can bring a lot more tools to the table by outsourcing. I just find that it’s a very good way to not only bring the knowledge, but to create a more collaborative environment. You’re getting a little more global in your thinking, and the resources that are brought in seem to make the entire organization stronger,” Dimmick said.
Some magic to it
“There are two main justifications for casinos and casino operations at tribes,” Dimmick continued. “The first priority is to generate more revenue to go to the tribe, to fund the government, and to find funding for government programs. The second is to create more jobs, primarily for tribal citizens.”
“The Kiowa tribe is very limited in its revenue sources right now, primarily to monies that come in from the casino. So, as tribes do budgets and tribes are responsible for tribal citizens, they want to be able to report accurate numbers, accurate revenue, and accurate distributions to the tribe to fund the activities of the government.”
“So, by using an outside source, I don’t know why, there’s some magic to it, but the numbers become more credible. When you do them internally, they seem to get questioned more. But if you go to an outside third party with a good reputation in the industry, the reports immediately gain more credibility within the tribe,” Dimmick declared.
Legal and tax risk reduction
Outsourcing can help with risk reduction by bringing expertise into increasingly complex changes in laws and tax regulations.
“As far as legal goes, outsourcing makes sure that we’re tax compliant, code compliant, and makes sure that we’re regulatory compliant. It makes sure that all of our fees are paid to the state and NIGC, and the federal government on time. It helps us interpret changes to tax laws. There’s a lot of changes going on in casinos right now, as far as taxes and what is a taxable jackpot, for example, that our outside accounting firm is helping us work our way through. Even down to tipping employees and new regulations, they flow much more easily through the outside consultant than us relying on our in-house people to interpret them,” Dimmick said.
Stronger with collaboration
Outsourcing sometimes presents a potential loss of control when tribes are not completely on top of vendor management.
“You know, I actually think it gives me more control,” Dimmick said. “I’ve got some checks and balances going on. I think with the collaborative nature of the way we do our accounting, we’re actually a lot stronger than we were. We ask a lot of questions, and I get to see more numbers, and I’m more exposed to this. So, what I’m reporting to my board, and what I’m reporting to the tribe, it’s just a lot more credible.”
Working them out of a job
I asked Dimmick what advice he would give to tribes considering outsourcing, particularly with finance.
“My advice is, if you need outsourcing, don’t be afraid of it, because it does bring so much to the table, and it does strengthen your organization more than you could, more than you ever realized. If you can get your in-house people working as a partner with your outsourced agency, it does a lot of things for the strength of the organization.
“I would tell anyone that outsourcing is a great tool if you don’t have the labor pool or the talent readily available to you. I always enter into an outsourcing agreement with the idea that the outsourced agency is going to be teaching and training my in-house people so that eventually I work them out of a job.
“It’s like on their first day on the job, they’re working towards not having a job with me. I want to train my people. I want to strengthen my system. I want to add more credibility to the case of finance, to our numbers, and end up with a stronger organization. I don’t know how long that will take, but I think that everyone I enter into an outsourcing agreement, I make sure that they know that their job is done when we’re able to take on these functions ourselves,” Dimmick said.
Steve Neely, vendor and operator
Steve Neely is a leader in Native American casinos who has seen outsourcing from both sides as a vendor working for a marketing organization and through his years of experience leading Native American casinos.
Neely is currently CMO at Quechan Casino Resort and Paradise Casino in Yuma, Arizona.
Steve Neely has been a casino general manager for the better part of a decade. Following his tenure as COO at Casino Del Sol, where he oversaw the company’s operational and marketing divisions, Neely joined Rolling Hills Casino in April of 2018 and was only the second general manager in the company’s nearly 16-year history when he joined them.
Neely has also been in leadership roles for several Native American casinos, along with commercial casinos. He has also worked with Acres Gaming.
Specialization
“The primary area on the marketing side is database,” Neely said. “Typically, the expertise level that was required to be able to put a strong database together is a specialization that may or may not be available in a smaller market. During one point of my career, for about four years, I was on that side where our firm collaborated with clients all over the country, providing that service.
“I literally would go to the property, and I would be full-time. I was acting as a VP of marketing while they were going through the process of hiring someone, and the firm that I worked with also had the ability to do the database management.
“And it allowed the property and the tribe to take a little bit more time to seek out the person who was ideal for them without having to give up any revenue opportunities because of the database program. In the time that I was on site, I got to know the property better, know the customer better, and know what programs would work best for that particular organization,” Neely said.
Scope creep
Neely believes the best method to set expectations for an outsourced vendor is to design a solid scope of duties. Neely’s warning about scope creep is news you can definitely use.
“What I have seen happen from time to time is you see a need that the company has for other things that your firm does, and then you hope to accomplish it. But it also could be perceived as scope creep, and if someone doesn’t have integrity, if you’re in a position of influence at a property and you’re hired to do this specific thing, but while you’re there, you’re also seeing all the other opportunities that are there for your firm. So, you have to be careful.
“The next thing you know, you’re bound by this single vendor so that it’s almost impossible to not utilize them anymore because they’re entwined into your operation. Now, if they are providing the benefit that outweighs the cost, then great, you have a partner that you can work with,” Neely stated.
Dependance
“A lot of times, what happens is these operations get so entwined in the organization that the accountability piece is replaced by dependence. So that’s why I say you have to have a clear scope for the project. You’ve got to have defined geographical protection, so that once they learn about you, they can’t just take that knowledge across the street and begin using it against you.
“I would be cautious of where you replace assistance with dependence, and I’ve seen it happen. I’ve been on the vendor side, where the properties really could not operate effectively without the vendor. I don’t think that’s the long-term solution for any property,” Neely said.
Don’t sacrifice opportunity
“A lot of Native American properties are in remote areas where we don’t have the talent pool that you would in a major market. It’s not like Las Vegas or Black Hawk or Reno, where there’s another casino just down the street when I post a position. I’m going to have 20 people apply for it.
“It’s always been my philosophy not having to sacrifice opportunity because of a lack of talent. You identify what the opportunity is, identify the best stakeholders who are the best partners in that space, and then utilize them, but also utilize them as a bridge until you’re able to take care of it yourself,” Neely related.
Performance standards
Neely described some of the best practices for setting standards when bringing on outsourced entities to aid your casino.
“First of all, define the scope. What exactly is it that you want to get from this group, and why? Why are you doing it outside? What do I want them to do for me? If they are customer-facing, do they adhere to your uniform standards, your grooming standards?
“And then command and control. Who is in charge of that group? If it’s an outsourced company, what’s their structure look like? Who is my point of contact? If I need something done right away, who do I reach out to?
“What are the performance standards? What are the things that they could do that would allow me to terminate the agreement? A lot of times, we miss the auto-renewal clause in our contracts. What does the renewal look like? Make sure that there is not something in there that triggers a continuance.
“Have very specific time periods built into your agreement where you review performance. Great relationships are exactly that, and I’ve had a number of them in my career, outside groups that really got us to another level. Even with those groups, from time to time, you have to air some frustrations. The best functioning teams at some point move into a stormy situation but work through them together becoming a better team ultimately,” Neely cautioned.
Create tools
Training tribal members is a vital role for outsourced companies, but in some cases, the knowledge is so specific that outsourcing may be the only solution. I asked Neely what he sees for the future of knowledge-heavy roles that need to be filled.
“One of the best things about this country is when companies see an opportunity, they tend to create tools that they can sell to meet that need. And, right now, the expertise is so specific on, let’s say, cyber security, that tools will be created to make it an off-the-shelf product that you plug in with AI that automatically fixes itself, expands, and takes over.
“But in the meantime, we still have to be able to protect ourselves and operate. Over time, these things tend to become commodity items,” Neely stated.
Positives and negatives
Neely related what he thought would be the biggest positives and negatives of outsourcing.
“The biggest positive is being able to do something you would not do by yourself, would not be able to do by yourself. You can certainly elevate the performance of your property and of your team by utilizing experts that you do not have on your payroll.
“On the negative side is you can also create dependence on a resource. So, when the contract runs its course, we go to renewal. If you cannot operate without this group, you’re at a very weak point from a negotiation standpoint. That fee could very easily go up considerably down the road, and you create dependence on that group and find yourself in a very difficult situation,” Neely said.
Specialized expertise
Outsourcing’s benefits, such as accessing specialized expertise in areas like database management and cybersecurity, are balanced by the caution against creating dependence on outsourced services. Clearly defining project scopes, ensuring compliance with standards, and including performance clauses in contracts are vital considerations as tribes go forward into the future using outsourcing as a tool.
