Homework required to deal with tribal casinos

Phil Levine

Monday, Sept. 20, 1999 | 10:56 a.m.

The basic tenets of the business world -- including mutual respect and professional courtesy -- are the ingredients required to successfully do business with Indian casinos.

Experts offered that consensus during a seminar titled "Non-Indians Doing Business In Indian Country," part of last week's World Gaming Conference at the Las Vegas Convention Center. Despite the unique aspects of conducting business with Indian casinos, panelists agreed that most pitfalls could be avoided by simply doing the necessary advanced research.

"If I had one message to non-Indian businesses (hoping to conduct business with Indian casinos) it would be 'do your homework,' " said Sheila Morago, public relations director for the National Indian Gaming Association. "Perform the needed due diligence. Learn how to address tribal leaders, understanding that each tribe is different and conducts their businesses differently."

As with any business transaction, making a positive first impression will also help close the deal, said Morago.

"First impressions are important," she said. "And once you've reached the tribal council, you have to understand you're dealing with government officials. Understand that economic development is a relatively new idea for many tribes, but Indians put great stock in those who are committed to succeed (in business) over the long haul. They want to know if you'll be with them through both bad and good times."

Waltona Manion, whose Monrovia, Calif.-based consulting and public relations firm Waltona Manion & Associates specializes in Indian gaming, said recognizing the duality of Indian casino management is also key to success.

"Non-Indians have to remember there are two types of management at Indian casinos," said Manion. "There's both tribal management as well as casino management. As with any government, tribal officials are elected and those wanting to do business with the casinos should take the time to get to know the people involved, learn the tribe's business and political structures. Understand the chain of command, and remember that lack of communication is the number one reason for failure (by non-Indians) in conducting business with the tribes."

In the wake of recent negotiations to expand Indian gaming in California, one of that state's most vocal Indian leaders told his audience that now was a "great time for entrepreneurial partnerships" with Indian casinos.

However, Anthony Pico cautioned potential non-Indian business partners not to fall into the trap of stereotyping Indian casino operations.

"Business is business," said Pico, chairman of the Viejas Band of Kumeyaay Indians. "All Indian casinos share the same profit motive, and should be seen as government operations. Don't make any false assumptions that Indian businesses can be easily ripped off, and be sensitive to those false stereotypes. The fact is that many of these businesses are very sophisticated these days."

Pico said that, as with any government body, Indian tribal councils were immune to potential lawsuits. And he added that tribal elections -- and subsequent changes in leadership and laws -- meant that non-Indian businesses need to be aware of ongoing changes in each tribe.

However, Pico cautioned non-Indian business people against attempting to influence tribal politics for their own gain.

"I would strongly advise (non-Indian) businesses to stay out of tribal affairs," he said. "Many tribes hold the selection of their leaders as something sacred. They (tribal councils) don't take political donations."

Still, Pico reassured listeners that -- with the correct approach -- conducting business with Indian casinos can produce a mutually beneficial relationship for both Indians and non-Indians.

"(For Indian tribal councils) relationships count for a lot," he said. "But in the end you must remember that -- although Indian casinos are a unique type of business -- they are still run as a business."