Gambling on Decentralization: How Sub-National Regulatory Interests Condition the Impact of Federal Policy

Abstract

Intergovernmental relations scholars note a decentralizing trend transferring authority from national to state and local government in the American federalist system. Theory suggests that a misalignment of the interests of national and regional actors may lead to variation in sub-national regulatory environments. We investigate how different sub-national regulatory environments condition the impact of Tribal gaming. Using tribal-state gaming compacts and amendments from 1990–2010, we examine how restrictions in sub-national regulatory agreements condition intended impacts of the 1988 Indian Gaming Regulatory Act. We find that revenue sharing and market restrictions differentially influence the impact of gaming on tribal per capita income but not levels of unemployment. Through the case of Tribal gaming, we determine how sub-national agreements condition the relative accomplishment of policy goals important to Native nations.