A Vision of Development

Gaming Background: Pursuing Economic Development

• to fund tribal government operations or programs;
• to provide for the general welfare of the Indian nation and its members;
• to promote tribal economic development;
• to donate to charitable organizations; or
• to help fund operations of local government agencies."

The Act does not require expenditure for each category; it only allows expenditures for the listed categories. A further policy limitation is that a significant portion of the revenues must be spent to fund tribal government operations and programs. A formal expenditure plan for gaming revenues is only required if the nation decides to make per capita payments to its members from these revenues. Once such a plan is adopted, its terms must be complied with until modified or cancelled. Available funds, not spent in a particular category in accordance with the plan, must be carried over to the next year until completely used.

Gaming Enterprise

Gaming Background
As stated in the previous paragraph, the Indian Gaming Regulatory Act allows tribes to develop casinos as means of promoting economic development, self-sufficiency and strong tribal government. However, IGRA requires the tribes to work with state governments to create a compact allowing the tribes to operate casinos within the state. In 1993, the four Kansas tribes (The Potawatomi, Kickapoo, Sac and Fox and Iowa) presented the State of Kansas with a proposed agreement. The State legislature failed to act on the proposal in 1993 and early 1994, which forced the tribes to sue the State for failing to negotiate in good faith. In early 1995, the Potawatomi Nation and the State of Kansas reached an agreement for the needed compact.

In January 1997, the Nation entered into management and development agreements with Harrah's Kansas Casino Corporation to assist the Nation in obtaining financing for the permanent gaming facility, and furnishing technical expertise related to the operation of the facility. In addition, under the terms of the agreements, Harrah's provided expertise for the development, design and contracting for the construction, furnishing and equipping of the facility. Harrah's has been granted the exclusive right to manage, operate and maintain the permanent facility for the term of those agreements and is obligated to train tribal members and others in the operation and maintenance of the facility. The ownership and operation of casino gaming is subject to extensive state oversight and tribal regulation. As a condition of obtaining and maintaining a gaming license, the Casino must comply with the terms of the 1995 compact. The new facility has created over a thousand jobs, generating millions in wages and revenue. The Nation is the largest employer in Jackson County, through its casino. (PBPN may also be considered the largest county employer, through tribal government.)

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Harrah's Prairie Band Casino/At-a-Glance Numbers

The current $37 million casino entertainment complex encompasses 63,000 square feet, featuring more than 962 slot machines, 35 table games (blackjack, poker, roulette, craps, Let-It-Ride and Caribbean Stud), Fresh Market Square, Prairie Pub and gift shop. Adjoining the facility, is a 100-room hotel. Since the casino's opening, it has become a first-rate entertainment destination for customers from South Dakota, Texas, Oklahoma, Nebraska, Iowa and other states, and the Nation has used its profits to improve the quality of life, safety and health care for tribal members. The casino has attracted more than six million visitors since its opening.

The casino is located in the southeastern quadrant of the Potawatomi Reservation, near the junction of Highway 75 and Road 150. The casino is approximately 15 miles north of Topeka, KS.

Gaming Chart
Chart to come.

On August 21, 2002 the Nation and Harrah's announced a $55 million expansion plan creating 100 new jobs, pushing the casino's job force to more than 1,000 and its annual payroll to more than $25 million.

The expansion plans include:

• The addition of 198 hotel rooms -- tripling the current facility's capacity
• A 12,000-square foot visitors and convention center, accommodating up to 1,000 visitors (for concerts, conventions, receptions and business meetings)
• A new steak house restaurant with seating for 120

The construction project is expected to employ 500 to 600 workers. The addition will be connected to the current hotel. Also, with additional beds, the casino has the opportunity to improve upon the 70 bus tours visiting monthly. Relocating the gift shop will make way for 40 new slot machines. The gaming floor is not slated for expansion. Currently, the floor supports 1,600 players at peak times, with a capacity for up to 2,500 players.

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Building on Success

To put the impact of the Nation's casino operations in perspective, Jonathan Wimer, executive director of the Jackson County Development Corporation, said if an outside company came to the area with 100 jobs, it would become the second or third-largest employer in the county.

Harrah's impact, however, isn't felt only in Jackson County. Shawnee County has also received benefit -- not only from people traveling through the city on their way to the casino, but because many casino employees are also Shawnee County residents. The local governments and businesses benefit significantly, as the wages paid casino employees are spent in the area, creating business income and government tax revenues.

Doug Kinsinger, president and CEO of the Greater Topeka Chamber and Go Topeka, points to the casino as one of this area's "economic engines."

"This will only bring more attention and travelers to our region and also more jobs to our region," he said. The improvements Harrah's is making should enhance its image as a destination spot. The convention center -- with its business center equipped with computers and fax machines -- should bring more business travel to the area. It's big business, and it's expected to get even bigger.

Technology Infrastructure Introduction

1995 Economic Base Analysis
A 1995 analysis of the reservation economy, using economic base theory, provides a good explanation of the poor conditions of the Potawatomi reservation. The report stated:

There are very few basic sector entities exporting from the reservation. The basic sector entity most common to other similar economies is the local farmers. Crops, cattle and hay are exported by local farmers to provide income and employment.

Labor services are also provided from the reservation by residents working in Topeka, Mayetta, Hoyt, Holton and other places off the reservation. Many farmers work full-time at other jobs and part-time in farming. The Bingo Hall, Cokely Farms hunting club and the Thunderhill Racetrack provide exports of entertainment services to patrons. The two gas stations along U.S. Highway also provide exports of services and products to non-resident customers.

One of the most significant basic sector factors in the local economy, is the federal government. Nearly a million dollars in grants, and aid of various kinds, comes to the reservation from the Bureau of Indian Affairs, Housing and Urban Development, the Environmental Protection Agency and other federal agencies. However, much of this money goes to outside contractors, who perform the work.

The non-basic sector of the economy is even less developed than the basic sector. There are very few non-basic sector entities providing services to local residents of the reservation.

An analysis depicting the location of the non-farming business entities on the reservation indicates that there are too few basic sector businesses and that they are almost exclusively owned by non-Indians. There is no multiplication effect from the non-basic sector. For example, clothing, groceries and other personal needs are all purchased off the reservation.

2002 Updates on Economic Conditions

One of the immediate benefits of gaming revenues for the Prairie Band Potawatomi Nation is the opportunity for new development and improvements to the reservation infrastructure.

A recent study divided technology infrastructure into two main categories: basic and advanced. Basic technology infrastructure includes those services that are considered essential for everyday economic activities and to maintain an average standard of living. This includes telephones, roads, water and sewer systems, basic educational facilities and the like, required to maintain population levels. These services have to be improved for growth to occur on the reservation. This includes more affordable housing and improved water and sewer lines. In addition, the Nation will provide improved recreational services in the form of renovated parks and proposed youth building upgrades. In the Potawatomi case, the early years of casino revenues will focus on creating a solid foundation for future business opportunities and on the basic technology infrastructure needs. For years, the Potawatomi had poor roads, telephone service, water and electric service. The financial benefits provided by the casino have enabled the Nation to address many of these basic needs

Some of the basic technology infrastructure projects include services that might be considered optional or unnecessary for conducting business and living comfortably by a significant segment of the population. Future projects could include a cellular phone system, pagers, Internet access and distance-learning programs. In the Indian community these are considered luxuries, but in the future they will become a central requirement for conducting business.

In 2002, plans were laid for the installation of a cellular tower to expand cellular service on the reservation. This will help emergency services along with individual needs. Also a distance-learning program agreement with Haskell Indian Nations University was signed and will offer classes in the future.

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