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Gambling on Native American lands, also called Indian gambling, is a multi billion dollar business. Through a Supreme Court decision handed down in the 1970s, states did not have the right to regulate activities that take place on Indian reservations. While the original lawsuit dealt with a tax issue, the Supreme Court ruling effectively denied states any power over Native American activities on Native American lands.

Indian gambling amassed profits of nearly 18.5 billion dollars in fiscal year 2002. More than 400 gambling establishments were run by at least 220 federally recognized Native American tribes. These Indian casinos offer Class I, Class II and Class III gambling opportunities. Class I and Class II gambling is limited to bingo halls, lotteries and poker halls. These require no license. Class III gambling include big money jackpot casinos, race tracks and jai alai betting. These activities require a license.

Most of the successful Native American gambling facilities are located either on the west coast or on the east coast. In addition, those located near a large metro area tend to be more successful as well. Those facilities that are in the midwestern United States or located in the Great Plains have seen less success.

For this reason, the economic benefit to the Native Americans overall has been inconsistent. Those tribes whose gambling facilities have done well, have enjoyed greater benefits such as paved roads, new school and better public services. The economic benefits for some other tribes has not been as noticeable.