Tribal Governments and Gaming Revenues

Revenues from tribal governmental gaming must be used in five specific areas as mandated by IGRA. Net revenues from any tribal gaming can be used for only:

• Tribal government operations or programs
  
• The general welfare of the Indian tribe and its members
  
• Promoting tribal economic development
  
• Donations to charitable organizations
  
• Helping fund operations of local government agencies

Three-fourths of gaming tribes across the country devote all of their revenue to tribal governmental services, economic and community development, to neighboring communities and to charitable purposes and do not give out per capita payments.

Tribal government services, economic and community development, general tribal welfare, charitable donations and any requirements for aid to local governments must be provided for before a tribe can file for a "Revenue Allocation Plan." The Secretary of the Interior must approve any per capita payments as part of a "Revenue Allocation Plan."

Only about one-fourth of tribes engaged in gaming nationwide distribute per capita payments to tribal members. Tribal members living on reservations receiving per capita payments pay federal income taxes on these payments. Tribal members living off-reservation receiving these payments pay federal and state income taxes.