A lot of Indians have been living third-world lives in my own lifetime. My family came from South Dakota, and I know. Somehow, the ghettos out in the boondocks never seemed to get the same attention as the ghettos in the cities did.

As a libertarian, I agree with you about the irrational rules on gambling. In this case, it certainly is about money. The states like Nevada get a big piece of the action on regular licensed gambling facilities, and have no interest in supporting "informal" gambling places. And even though they can't tax Indian casinos directly, states can collect "fees" in return for a guarantee of the Indian casino monopoly. This is less a tax than it is protection money.

Interestingly, official reservation members don't have to pay state taxes on income they earn working at such places, either.