Hard Rock deal demonstrates power of Unconquered People

Midway through the 19th century, Florida's Seminole Indians were on the brink of extinction, reduced to a few hundred guerrilla…

Midway through the 19th century, Florida's Seminole Indians were on the brink of extinction, reduced to a few hundred guerrilla fighters cornered by US federal troops in the alligator-infested Everglades.

But the Seminoles refused to surrender and, after four decades of intermittent warfare and more than 1,500 US casualties, the federal government ended its pursuit of the tribe.

Nearly 150 years later, the Seminoles, known as the "Unconquered People", demonstrated the extent of their recovery this week when the tribe agreed to buy the Hard Rock Cafe chain from Rank Group, a British casino operator, for $965 million (€730 million).

The deal, involving more than 120 restaurants, hotels and casinos in 45 countries, reflects the growing financial muscle of Native American tribes since they received the go-ahead to develop casinos on their self-governed reservations nearly two decades ago. Tribal gambling revenues have soared from $5.4 billion in 1995 to more than $20 billion, with about 360 casinos operated by 220 tribes.

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The Seminoles were the first tribe to enter the gambling industry when they opened a high-stakes bingo operation in Hollywood, Florida in 1979.

Casinos have helped transform the fortunes of tribes throughout the US, with profits used to bolster public services and fund expansion into other industries.

It would be wrong, however, to imply that all 4.3 million Native Americans are experiencing increased prosperity. While the Florida Seminoles are surrounded by a vibrant state economy and located close to large cities and tourist attractions, many of the other 560 self-governing tribes occupy remote reservations with less economic potential.

More than a quarter of Native Americans live below the poverty line, compared with 12 per cent of all Americans. Tribal unemployment is more than double the US rate and per capita income is less than half the national average.

The outlook for the Seminoles, however, is much brighter. Jim Allen, chief executive of the tribe's casinos, said profits from the Hard Rock Cafe chain - $34.8 million last year - would be reinvested in the business and used to fund public services.

Any surplus will be distributed among tribe members.