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Textbook Assignment Chapter 5: Gaming Industry

Free «Textbook Assignment Chapter 5: Gaming Industry» Essay Sample

First of all, the not-so-obvious problem to an individual casino employee for not complying with gaming regulations is that one’s operating licenses can be withdrawn; therefore, he or she is sacked from the gaming industry indefinitely. The person will not have any legal rights to operate in any gaming activity such as running a casino in America. The most obvious is that the government can instill a disciplinary action such as fines or a temporary ban from the casinos.

There are two main reasons why the gaming industry (casinos) was allowed in the other states just like it was in Nevada. One of the most important reasons why the Congress permitted other states to start casinos and other gaming activities was to generate revenue. The revenue obtained from this niche would significantly enhance the economy of the United States. The gaming industry was becoming popular each day, and most of the people were involved in it (Durham 68). The Indian casinos operated the highest number of casinos in the gaming industry; therefore, they were the primary source of revenue (Hashimoto 95). During a seating in 1988, the Congress enacted the Indian Gaming Regulatory Act (IGRA). The act gave the Indians a room to run, manage and develop casinos and parlors to viable economic blocks.

 

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According to Harmon, The Foxwoods casino, which is located in Connecticut, was the world’s leading revenue generator in the gaming industry with about 800 million dollars per year (77). This amount of revenue surpassed the money got from lottery business. Thus, there appeared the need to protect the gaming industry in the United States.

In addition, the progress and development of the gaming industry outside Nevada were propelled by the need for entertainment since it is a critical part of every person’s life. According to Durham, the Congress allowed the spread of the gaming industry since it wanted people to have a way of having fun (102). The Congress removed all restrictions and permitted gaming in other areas. Moreover, if people, especially the youth, engage themselves in the gaming industry as a form of entertainment, they have no time to involve themselves in criminal activities such as robbery and drug smuggling. It will, therefore, reduce the rate of crimes where gaming occurs (Hashimoto 99).

The Federal Regulations Governing the Gaming Industry

Gambling Devices Act

This act outlines the steps to be followed during manufacturing, maintenance and the transporting (shipping) of gaming materials among two or more states. In the case where the gaming devices and machines are not permitted by the law, the act stops the transportation. Furthermore, the act requires that all manufacturers and distributors have an updated record of purchases and sales or any other services that they offer. Doing so will assist the State to track of the dynamic gaming industry.

The Bank Secrecy Act

The Bank Secrecy Act was enacted in 1970. It majorly focuses on the banking sector of the United States and aims to stop or prevent money laundering. In the year 1985, the Congress amended this act to include the commercial casinos. The amendment continued, and in 1996, the Native American Casinos were also covered. The Bank Secrecy Act gives guidance and provides regulations to these banks and casinos on the modes of operation. It also helps to conduct surveys and directs the states on the actions to take to ensure that the national banks and federal savings organizations comply with the law. Finally, the act provides prior information that is important in detecting and stopping money laundering or mismanagement of resources at the financial agencies in the United States. It acts as the Financial Intelligence Unit of the United States.

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The United States Patriotic Act

Through this act, the financial organizations and institutions are allowed to share necessary information with one another. Law enforcement agents, Federal Bureau of Investigation agents, prosecuting attorneys, and intelligence officials are also mandated to work together.  According to the Reauthorization of the Patriot Act 56, the government is permitted to undertake investigations in cases involving terrorism, for example, terrorism financing and chemical weapons crimes, as well as money laundering abroad (Reauthorization of the Patriot Act 56).

Indian Gaming Regulatory Act (IGRA)

Indian Gaming Regulatory Act (IGRA) was passed in 1988 by the Congress so as to handle the disputes over tribal sovereignty and the interests of the states. The Act started the National Indian Gaming Commission (NIGC) that assists in administering the requirements of Indian Gaming Regulatory Act (IGRA).

Also, it has a legal framework on how the Indian communities (tribes) should undertake their gaming activities to grow and develop economically, as well as construct firm tribal administrations. The act provides a platform for the Indian tribes to reap maximum benefits through a just process (Indian Gaming Regulatory Act Amendments of 2006 17).

The act classifies the Indian gaming industry into three classes:

  • Class one: it includes social games such as the traditional Indian gambling.
  • Class two: it includes bingo, card games, and pulls tabs.
  • Class three: it includes casino games and is allowed only at the preference of the states.

Common Models of Casino Markets

The two most common models of casino markets are the free markets and the limited licenses. A casino free market is a market structure where there is no or very little government control. The forces of demand and supply regulate the market. The buyers and sellers interact and carry on with their activities freely after making an agreement on the prices. However, limited licenses are casino markets that are controlled and regulated by the federal or local government. The administration gives out licenses on the yearly basis which should be renewed. The people applying for the licenses must be involved in the gaming industry. The states have boards that issue the licenses after conducting an assessment on the integrity of the applicant. The applicant’s background is evaluated through documents available at different agencies such as law enforcement offices.

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The State Gaming Control Board

The State Gaming Control Board is the unit that controls the gaming industry in America. It is mandated by the Constitution to manage the operations of the different aspects and players within the gaming industry. They conduct investigations when there is a suspicion that the policies guiding the sector have been violated. They also give licenses to gambling manufacturers. According to Indian Gaming Regulatory Act Amendments of 2006, they can inspect and carry on tests on gaming devices to ensure they are fit for use as well as impose fines or revoke licenses where necessary (77).

The National Indian Gaming Commission

The National Indian Gaming Commission controls gaming in Indian casinos to ensure that their tribes benefit from those activities. It ensures that the activities are done in a fair and just way by both the players and the casino owners. The commission makes the tribes aware of the natural environment and directs them to protect it and maintain a good public health status (Indian Gaming Regulatory Act Amendments of 2006 85). Finally, it implements the steps in debt collection within the industry.

 

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