Funnily enough a similar situation was envisioned by Frank Miller in his not-brilliant graphic novel 'Give Me Liberty' but I think it was the Sioux instead of the Lakota. This was also before casinos and tax-free fun were on the agenda of course. If there's economic opportunities there, you could see a 'Free-State' working ok within the US but it would still be completely dependent that which surrounds it.
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Aw....Snicket
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