Stephen Goode

Casinos run by Indian tribal governments on reservations became a major force behind the spread of casino gambling throughout the United States in the 1990s. In 1988, Congress passed the Indian Gaming Regulatory Act, which set the terms under which Indian tribes could broker agreements with states to run casinos on their lands, a right established by a 1987 Supreme Court ruling. Since many tribes are beset with high unemployment and widespread poverty, casinos were embraced as a way to address longstanding social problems. The result of these changes is that more than one—third of the five hundred recognized tribal governments in the United States now run casinos in twenty—nine states.

While not all Indian casinos have been profitable, some tribes, like the Mohegans and the Pequots in Connecticut, have turned casinos into successful, multibillion&mdash...