In 1988, the U.S. federal government introduced the Indian Gaming and Regulatory Act, a law that regulates gaming on native reservations. In Kansas, gaming was first allowed in 1996. Since then, several native tribes have opened casinos as a means of bringing in revenue. The profits are used to finance a wide array of public services like fire and police departments, scholarship programs, and services for the elderly.

The Sauk and Fox Nation of Kansas is one of many tribes that have come to rely on the lucrativeness of the gaming industry. They opened a casino in February 1997 and have been successfully running it ever since. Their revenue in 1998 was estimated at between 10 and 25 million dollars. These figures do not take into account the numerous ancillary products and services provided at the casinos. The Sauk and Fox Nation of Kansas, however, were not the first tribe of the Nation to open a casino. The Mesquakie Bingo and Casino Hotel near Tama, Iowa first opened in 1995.

The economic development stimulated by casinos is far-reaching. The Sauk and Fox Casino, for instance, employs 356 people, many of whom are tribal members. Furthermore, when employees spend a portion of their earnings on the reservation, the economy improves, and community members are more inclined to remain close to home.

While there are many benefits to the native gaming industry, there is a growing concern about the impact gambling may be having on native communities. Native bands are divided on the issue of gambling. Many oppose gambling on reservations, claiming that it erodes traditional values. Some studies indicate that the incidence of problem gambling among tribal members has increased since the 1988 Indian Gaming and Regulatory Act.