Not all casinos are created equal. Commercial casinos exist to generate a profit for shareholders and owners. Tribal casinos exist for an entirely different purpose – to promote tribal self-determination and fuel economic development to provide government revenues for the tribal community.
In 1988, the U.S. Congress enacted the Indian Gaming Regulatory Act (IGRA), which established a legal framework to encourage tribal economic self-sufficiency in light of declining federal support for tribes and to regulate the conduct of gaming on Indian lands. The purpose of IGRA is to provide a statutory basis for the operation of gaming by Indian Tribes as a means of promoting tribal economic development, self-sufficiency, and strong tribal governments.
Within this highly regulated federal framework, the Confederated Tribes of Indians (Siletz Tribe) has proposed the Salem casino project.
The net revenue from a tribal casino authorized under IGRA are restricted in use to five specific purposes:
To fund tribal government operations and programs;
To support the general welfare of the Indian Tribe and its members;
To promote tribal economic development;
To donate to charitable organizations; and
To help fund the operations of local government agencies.
The Siletz Tribe provides services to tribal members within an 11-county service area in Oregon because federal termination of the Tribe in the 1950s disposed of all tribal lands and scattered tribal members and families throughout western Oregon.
These include educational services, social services, health care, employment services, childcare, tribal language and cultural services, and many others. Unfortunately, the demand for these critical services regularly exceeds available tribal government funding. As a result, the Siletz Tribe is often forced to implement program priorities, establish waitlists, and in some cases, enforce geographic restrictions on services.
According to the 2022 Chronic Social and Economic Needs of the Confederated Tribes of Siletz Indians, the total unmet need across tribal programs is almost $250 million. The Siletz Casino Project is expected to generate $231 million in annual gross revenue in its first year, from which operating costs must first be deducted. With the net revenue from the Salem casino project, the Tribe will be able to address many of its unmet needs. This revenue will also reduce the Siletz Tribe's reliance on future federal funding, which is always under congressional pressure to be reduced.
The Siletz Casino Project includes a unique revenue-sharing proposal. The Siletz Tribe plans to share a percentage of the net revenue with eligible participating Oregon tribes, many of whom are located in rural areas. The State of Oregon and local governments like the City of Salem will also receive a percentage of the net revenue, which will be reinvested into community improvements and programs.
In addition to benefitting Oregon’s tribal communities, project plans include significant infrastructure modernizations to the roads, public transportation, services, and water systems surrounding the North Salem property, as well as construction of workforce housing units in the area. Serving as an anchor development, the property will also drive additional economic investment in North Salem.
The project is a unique opportunity to invest in the local Salem community, and local small businesses will play a significant role. During the two-year construction phase, the project will generate about 2,300 jobs and $141 million in wages, stimulate $492 million in economic impact and produce $54 million in indirect purchases or spending through supply chains in the local economy.
The Siletz Casino Project is more than a casino. It’s an opportunity to promote self-determination, increase access to critical services and uplift tribal communities across Oregon.