Gambling Changes Lives of Cherokee Indians
The Harrah’s Cherokee Casino in the Smoky Mountains of North Carolina
opened in 1994 to mixed feelings on the part of the residents of the small
mountain city, but has since proved to be a winner. The casino is situated on the
Eastern Band of Cherokee Indian Reservation one mile from the downtown area.
At a cost of $93 million it contains 175,000 square feet of video gaming,
restaurants, and entertainment areas. Dazzling lights and glitzy finishes line the
interior where visitors play some 3,500 video slots, poker, blackjack, and other
games that pay out as much as $159 million annually. Now the state’s largest
tourist destination, the alcohol-free casino attracts 3.3 million visitors each year
and continues to grow. Due to the popularity of the casino, Harrah’s has
constructed an adjacent fifteen-story hotel and conference center and plans to
mirror it with another tower soon.
In August of 1994 Governor Jim Hunt signed a seven-year contract with
former Indian Chief Jonathan Ed Taylor that permitted gambling on the
reservation. Hunt, who was opposed to gambling, signed the compact because
of the economic difficulties of the depressed reservation. At that time, the
Cherokee area had one of the highest unemployment rates in the state,
sometimes as high as 50 percent, and a very grim economic outlook.
The casino is owned by the Cherokee Indians who pay Las Vegas-based
Harrah’s Entertainment to run it. In addition to gaming, the facility also hosts topname entertainment such as Wynonna, the Spinners, Jeff Foxworthy, and Vince
Gill in the 1,500-seat Cherokee Pavilion Theater.
Indians Benefit Directly From Revenue
Harrah’s provides employment for approximately 1,800 individuals with the
average salary being $37,000. Each of 12,500 enrolled tribal members, children
and adults alike, receives biannual checks averaging $3,500 that are drawn from
the 50 percent of casino revenue that is distributed to the Indians. Benefits for
children are placed in a trust fund that they can access when they turn 18 if they
have graduated from high school. If they do not graduate, they do not receive
the money until they are 21. A Cherokee born today would stand to receive at
least $168,000 when he or she turns 18. The tribe pays for financial training
classes for both high school students and adults. It is not a requirement that
tribal members drawing checks live on the reservation, though approximately
10,000 do.
Because of the influx of money into the economy, the tribal government is
also able to pay better wages to its employees and has increased its staff from
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300 to 900. The tribal budget has grown from about $10 million a year to over
$120 million. The tribe is developing a home ownership program that will help
people buy mid-range priced homes in an attempt to get rid of the trailers. Tribal
leaders have agreed to pave every driveway on the reservation.
Reservation Benefits from Revenue
Changes can be seen throughout the reservation in the form of better
housing, attractive landscaping, upgraded water and sewer systems, and
improved schools. Gambling dollars have funded a diabetes clinic, an urgent
care clinic, a wellness center, a youth center, a recreational park, a visitor center,
a community center, a nursery, a fire substation, and land purchases. Portions of
earnings are earmarked for a higher education fund providing college
scholarships for tribal members. Charitable causes in Western North Carolina
also benefit from the profits. The tribe uses funds for the local hospital and also
operates a senior citizens’ home.
Historically the Cherokee Indian Reservation businesses closed their
doors for the winter months. But in the years since the opening of the casino
business has remained steady with tourists visiting every month of the year,
providing year-round employment for many. The casino is open 24 hours a day
seven days a week. Crime has decreased because the reservation can now
afford advanced training for their officers and they have been able to expand
their police force.
Nearby Towns Also Feel the Effects
Cherokee isn’t the only town that is benefiting from the profits.
Surrounding counties also see increased revenue with totals of more than $15
million in the past year. New restaurants, hotels, and other businesses have
sprung up in nearby communities.
Responsible Gambling
Because compulsive gambling can be a serious problem, a pro-active
program is maintained by Harrah’s to promote responsible gambling. Also, a
local chapter of Gamblers Anonymous holds weekly meetings to help those with
a problem.
A Bright Outlook For The Future
Because of the tremendous success of the casino and hotel, a second
$62 million hotel is in the works for the near future. Additional parking garages
are also planned. Harrah’s has given Cherokee the revitalization it needs and a
bright outlook on the future by injecting hundreds of millions of dollars into the
economy. With their newfound success, the Cherokee will continue to balance
promoting their history and gambling on their future. A minimum of $5 million a
year goes to the Cherokee Preservation Foundation that helps keep the region
from losing its culture. Formerly one of the poorest communities in the region,
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the reservation could soon become one of the wealthiest. Current Principal Chief
Leon Jones knows a lot of people were against the casino in the beginning, but
he doubts they would oppose it now.
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Credit: Backgrounder written by Carol Alexander.