As a subject matter expert in the field of economic policy and tribal law, I can provide a comprehensive response to your inquiry regarding the taxation of Native American casinos.

The taxation of Native American casinos is a complex issue that is governed by a variety of federal and state laws, as well as tribal sovereignty. The unique status of Native American tribes as sovereign nations within the United States means that they have a significant degree of autonomy over their own affairs, including taxation.

Tribes are Tax Exempt. This is a fundamental principle that stems from the recognition of tribal sovereignty. Sovereign immunity, a legal doctrine that shields sovereign entities from being sued without their consent, also extends to taxation. As a result, Native American tribes are generally not subject to federal income taxes on their earnings, including those derived from their casinos.

However, this does not mean that all aspects of Native American casino operations are completely free from taxation. There are specific agreements and compacts in place that govern the taxation of certain activities. For example, while the tribes themselves are not taxed on their casino revenues, they may be required to pay certain fees or share a percentage of their earnings with state governments, depending on the terms of their gaming compacts.

**Gaming on Native American lands earned $26.5 billion in 2011.** This figure underscores the significant economic impact that Native American casinos have on both tribal economies and the economies of the states in which they operate. The revenue generated from these casinos is often used to fund essential services and programs for tribal members, such as education, healthcare, and housing.

**236 Native American tribes operate 422 facilities across 28 states.** This widespread presence of Native American casinos highlights the importance of these establishments to the tribes that operate them. The operation of these casinos is not just a source of revenue but also a means of economic development and self-sufficiency for many tribes.

It is also important to note that the taxation of patrons who visit Native American casinos is another area of complexity. While the tribes themselves may not be subject to federal income tax on their casino earnings, patrons are still subject to federal taxes on any winnings they receive. Additionally, state taxes on winnings may or may not apply, depending on the state's laws and the specific agreements with the tribes.

In conclusion, the taxation of Native American casinos is a nuanced issue that reflects the complex interplay between tribal sovereignty, federal law, and state regulations. While tribes are generally tax-exempt on their casino earnings, there are specific agreements and circumstances under which certain forms of taxation or revenue sharing may apply.

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Tribes are Tax Exempt. Gaming on Native American lands earned $26.5 billion in 2011. 236 Native American tribes operate 422 facilities across 28 states. Yet Native American tribes and their wholly owned tribal corporations are not subject to federal income taxes on their earnings.Oct 11, 2012read more >>