Correction: this is what happens when poor Cherokee receive a stipend, but let's not pretend that the Cherokee are the ones we're worried about here. There are differences between the subcultures, and those differences almost certainly extend to how they treat money.

Furthermore, the psychological and social difference between receiving money from a source which a population would consider to be 'theirs' cannot be overstated. If you're a poor black person (or latino, or Cherokee, or whatever), and you're living in a land that's dominated by a group that's not like you, you are less likely to respect that money than if a) that money came from a source that was yours, and b) you knew that if that source believed that you were disrespecting that money, they would cut it off.

Both stipulations apply here. Giving a small band of Cherokee profits from one of their own casinos =/= giving poor blacks and latinos federal assistance. They aren't even close.

Successfully repeating this experiment in poor black and latino populations a few times would go a long ways towards convincing the skeptical that free money for the majority of the poor is actually a good idea.

Anything else, as I said in another thread, is half-measures.