Indian Gaming: Per Capita Payments
In the context of the Indian Gaming Regulatory Act (IGRA) and Native American tribes, a per capita payment refers to a distribution of money or other valuable items to individual tribal members, derived from the net revenues of tribal gaming activities.
Here's a breakdown of key aspects:
Source of Funds: These payments come from the profits of tribal casinos or other gaming operations.
Purpose: Per capita payments are intended to benefit tribal members and can be used for various purposes, such as covering living expenses, education, or investments.
Legal Framework: The IGRA allows tribes to make per capita payments, but it requires them to have a Revenue Allocation Plan (RAP) approved by the Secretary of the Interior. This plan outlines how the tribe will allocate its gaming revenues, including the portion designated for per capita payments.
Not Mandatory: Tribes are not obligated to make per capita payments. Many tribes choose to reinvest their gaming revenues into tribal government programs, infrastructure, or economic development projects.
Eligibility: Typically, all enrolled members of a tribe are eligible to receive per capita payments. However, some tribes may have specific criteria or different payment levels for certain groups of members such as elders and minors.
Tax Implications: Per capita payments are generally considered taxable income for tribal members. In contrast, non-gaming per capita payments held in trust by the Department of the Interior for individual tribal members are not subject to federal income tax.
Important Considerations:
Tribal Sovereignty: The decision to make per capita payments is a matter of tribal sovereignty. Each tribe has the right to determine how it will use its gaming revenues.
Economic Impact: Per capita payments can have a significant economic impact on tribal members, providing financial support and boosting local economies.
Social Impact: The distribution of per capita payments can also have social implications, potentially affecting individual behavior, community dynamics, and tribal governance.
Controversy: Per capita payments can be a controversial topic, with some arguing that they can create dependency or undermine tribal self-governance, while others see them as a way to share the benefits of tribal gaming with all members.