Economic Impact

Tribal governments raise revenues through a variety of means including tribal gaming, similar to how the State of Minnesota raises revenue through the lottery or cities through property taxes. The SMSC tribal government is constantly seeking ways to direct portions of the gaming operations proceeds back into the reservation and surrounding communities. The Shakopee Mdewakanton Sioux Community significantly impacts the county and state and employs over 4,300 employees in both gaming and non-gaming enterprises.

The SMSC is the largest employer in Scott County, providing one in eight jobs for 12.1% of all Scott County jobs. The SMSC not only is the largest employer in Scott County, but also employs more than three times as many employees as the next largest employer in the county.


Scott County receives these direct benefits from the SMSC:

  • Employing 1,800 Scott County residents
  • Annual payroll of $58.5 million in Scott County
  • Spending over $12.9 million in Scott County annually for goods and services
  • Doing business with over 160 Scott County vendors
  • Having an overall positive impact of $189.7 million annually on Scott County
  • Federal taxes paid by Scott County residents who are employed by the SMSC was more than $5.6 million
  • State taxes paid by Scott County residents who are employed by the SMSC was more than $2.3 million
  • Spending $1.5 million in fiscal year 2001 in construction expenditures

In the 21st century the SMSC is a powerful economic influence:

  • Annual direct wages and earnings of $117.6 million at tribal enterprises
  • An additional $24.7 million in annual benefits for enterprise employees
  • $77.5 million in annual purchases of goods and services
  • $271.9 million total annual earnings in Minnesota
  • $12.2 million in fiscal year 2001 in annual construction expenditures
  • Spending over $225 million on the construction of numerous tribal governmental facilities and infrastructures from 1990-2000
  • Spending $134.5 million on construction projects from 2002-2005

The SMSC has a

  • $196.4 million indirect and induced annual output in Scott County
  • $396.3 million indirect and induced annual output in Minnesota
  • 2,411 indirect and induced jobs in Scott County
  • 4,465 indirect and induced jobs in Minnesota
  • $154.2 million indirect and induced annual earnings in Minnesota

Indirect and induced earnings include increases in earnings and employment at area businesses due to the increased demand generated by the tribal enterprises of the SMSC, as well as at businesses impacted by the providers of goods and services to the tribal enterprises.


Total employment benefits attributed to the SMSC:

  • An estimated 6,888 total jobs in Scott County
  • An estimated 8,942 total jobs in Minnesota

SMSC tribal members pay federal income taxes and state sales taxes, the same as all Minnesotans. The State of Minnesota annually receives over $1.3 million in sales and excise taxes from SMSC enterprises. For example, in 2002 the State of Minnesota and the Federal Government received $34.8 million in payroll taxes from SMSC enterprises. Community employees and tribal government operations paid approximately:

  • $9 million in Minnesota taxes
  • $11.8 million in federal income taxes
  • $9.0 million in Social Security and Medicare taxes
  • $9.0 million in Social Security and Medicare taxes matched by the Community
  • A total of $85.8 million in income related taxes
  • $70,000 in property taxes
  • $375,000 in unemployment insurance


Federal law stipulates that state and local governments must provide certain services to Indian tribes in their areas. Even so, the Shakopee Mdewakanton Sioux Community makes voluntary annual payments to city and county governments to cover the cost of services provided by those local jurisdictions to the tribe. The SMSC has paid Scott County and other jurisdictions $14.4 million over the last ten years for services even though this is not required by law. Some of the SMSC payments have funded road projects, park improvements, wastewater and sewer fees, property taxes, transit and SCALE studies, emergency sirens, and police and fire protection.



 
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