Newsletter Signup
Stay informed with the NEW Casino City Times newsletter!
Recent Articles
Best of Ken Adams
|
Bits and Pieces from Indian Country - February 2004
15 June 2004
By Ken Adams
Minnesota and Wisconsin were among the first states to have Indian gaming, early
in the 1990s. Indian gaming continues to be important in both states, important
to the economy and important in politics. Minnesota like many states is using
non-Indian expansion to attempt to get more money from the tribes, much like California,
only with the initiatives competing for ballot position. Minnesota is conflicted
over gaming anyway; it somehow doesn't match the states conservative religious
image, but it's very popular and successful. Every year for the last few years,
someone proposes a casino close to Minneapolis-St. Paul to support a sports franchise
or some other worthy cause. It hasn't worked yet, but it may work to force the
tribes to reconsider their position on contributions to the state coffers.
Gov. Tim Pawlenty's strong signal Thursday that Minnesota's
Indian tribes may lose their exclusive hold on casino-style gambling unless
they are willing to explore "a better deal for Minnesotans"
could be the opening shot in an intense battle. Pawlenty's remarks in his
State of the State address came on the heels of a private, high-level meeting
Jan. 26 with chiefs of nine of the state's 11 Indian tribes. During that meeting,
Pawlenty reportedly told the tribes that public sentiment on gambling had
changed and that he wanted a reply within a week on whether they would agree
to further talks on the future of gaming in the state. Patricia Lopez, Minneapolis
Star Tribune, 2-6-04
In Wisconsin, Ho-Chunk, in a trend that is becoming common in California and
other states, took their case to the voters and lost. The million dollars spent
on the campaign was a lot considering the size of the electorate but not enough.
It would be difficult to try and draw too many lessons for Ho-Chunk's results,
as every community will be different. But even if there is no lesson to be learned
from the results, there is a lesson in the process. Participating in the decision
over a casino is what most communities say that they want; the cynic in me thinks
they want a vote only if they win. Ho-Chunk seems to have felt the same and
promises to continue to look for a site.
For the Ho-Chunk Nation, $1 million spent trying to convince
Dane County voters to approve turning its Madison bingo hall into a full-blown
Las Vegas-style casino couldn't buy a win. Residents rejected the proposal
by a 2-to-1 margin Tuesday
Only the governor has the power to authorize
casinos in Wisconsin. Gov. Jim Doyle told The Associated Press Tuesday night
that he would abide by the result of the nonbinding referendum. Associated
Press, Minneapolis Star Tribune, 2-18-04
Indian gaming at some levels is just like casino gaming in any other jurisdiction.
The problems tribes and their casinos face are usually the same ones casino
operators face in other jurisdictions. There is one very large and significant
difference: casinos are simply businesses, governed by the laws of the state;
Tribes are sovereign governments, subject to their own laws, the laws of the
federal government and some very specific state laws, as defined by federal
legislation. To be recognized as a tribe requires formal federal recognition;
recognition conveys to tribe sovereignty. Recognition and sovereignty are the
keys to operating a casino on tribal land and are magnets for opposition. Wherever
there is local opposition, sovereignty is one of the targets. That is not to
say the opposition lacks the usual moral objections or objectors; in fact, you
can anticipate Tom Grey's presence as part of every campaign. But even Tom-gambling-is-destroying-the-country-Grey
is using federal recognition and the resulting sovereignty as a point of attack.
A national antigambling coalition is calling for a moratorium
on Indian casinos in a bid to derail plans by the Bay State's Nipmuc Nation
and dozens of other American Indian tribes to roll out giant gambling resorts.
The Washington-based National Coalition Against Gambling Expansion wants President
Bush to halt granting tribal recognition and casino venture permits, including
a pending decision by the Bureau of Indian Affairs on whether to officially
recognize the Sutton-based Nipmucs. Tom Grey, director of the anti- gambling
coalition, said the freeze on American Indian gaming is needed to prevent
an explosion of tribal casinos, in New England and across the country. - Scott
Van Voorhis, Boston Globe Herald, 2-19-04
February had a couple of legal issues that brought unwelcome attention to Indian
country. The FBI is investigating the lobbying efforts of some tribes, the U.S.
Interior Department's inspector general and Congress' General Accounting Office
are investigating the BIA and one tribe's enrollment and casino initiative,
and the National Indian Gaming Commission has stepped into the Seminole of Florida's
way of operating and distributing funds. All three are dangerous precedents
and will play poorly in the debate over the recognition process and the relationship
betweens tribes and states. Besides Tom Grey, the tribes have serious opposition
from legislatures in Connecticut, Wisconsin and other states. The argument over
enrollment in California is one of more than ten such in California alone; when
tribes purge membership, the disenfranchised all claim that gaming profits are
involved. It is a perfect script for the opponents of Indian gaming; look for
the debate to get uglier, like an electoral contest in October.
A powerful Washington lobbyist and a former aide to House
Majority Leader Tom DeLay, R-Tex., have persuaded four newly wealthy Indian
tribes, including the Agua Caliente of California, to pay their firms more
than $45 million over the past three years for lobbying and public affairs
work, a sum that rivals spending to influence public policy by some of the
nation's biggest corporate interests. Susan Schmidt, Washington Post, 2-23-04
The FBI is investigating the relationship between the Saginaw
Chippewa Indian tribe and two Washington lobbyists after tribal leaders questioned
the $14 million they paid for lobbying services, members of the tribe said
Thursday. Associated Press, Las Vegas Sun, 2-27-04
A once-tiny, nearly destitute American Indian tribe is pushing
hard to build a $100 million casino - but it's not traditional tribal members
gunning for riches. Hundreds of people have been newly added to the Ione Band
of Miwok Indians' membership rolls, which were opened up by regional Bureau
of Indian Affairs officials. Among the new members are several BIA employees
and dozens of their relatives. Don Thompson, Associated Press, San Diego Union-Tribune,
2-23-04
The U.S. Interior Department's inspector general and Congress'
General Accounting Office said Tuesday they are launching probes into alleged
conflicts of interest involving officials of the Sacramento-based regional
office of the Bureau of Indian Affairs. Don Thompson, Associated Press, Las
Vegas Sun, 2-25-04
The U.S. government has warned the Seminole Tribe of Florida
it will shut down its casinos unless the tribe stops using illegal gaming
devices and ceases a free-wheeling spending program that pumped millions into
luxury cars and gifts for council members' cronies. National Indian Gaming
Commission chairman Philip N. Hogen issued the dire warning earlier this month
in a private meeting with the Seminole Tribe's elected council members in
Washington, D.C. Jeff Testerman, St. Petersburg Times, 2-26-04
For every negative story from Indian country, there is also a positive story.
Nearly every month, there is a positive story involving a different tribe's
efforts at diversification; tribes that have become successful in gaming look
to other industries for diversification and toward a time when gaming may not
be the cash cow it is in 2004. The Tulalip Tribes of Washington are typical.
A mixture of several different tribes placed on a small reservation north of
Seattle in the 1850s, the tribe has existed on fishing, lumber leasing and later
bingo. Tulalip Tribes negotiated a compact in Washington in 1992 and opened
the first casino in 1993. It wasn't always as profitable as some would like,
and at times it was rocked by controversy and scandal. But, the tribe stayed
the course and tribal leadership never lost sight of the seventh generation,
regardless of the problems. So the tribe and the casino moved forward, and so
did the plans to create a self-supporting village. The Oneida of New York is
another tribe that has constantly looked for ways to diversify and strengthen
the tribal economy. Casinos, retail, cigarettes and power plants -- that certainly
sounds like a diverse economy to me; the Middle East would be much more stable
with such diversity.
Snohomish County will get a major new outlet mall in 2005,
and the Tulalip Tribes will get increased economic security under an agreement
approved Tuesday with a New Jersey firm that operates 60 such shopping meccas.
The mall, to be developed and operated by the Chelsea Property Group of
New Jersey, will have 100 to 120 designer and name-brand stores on 47 acres
north of the new tribal casino at Quil Ceda Village, tribal officials said.
"This is the synergy we have wanted to create to make our casino a success
and to make our tribe a success for generations to come," said Herman
Williams Jr., tribal chairman, as he and other board members signed the agreement.
"This is very important to the tribe." Tribal officials hope that
people going to the new casino will be attracted to the outlet mall, and vice
versa, ensuring the success of both. The lease agreement, which extends for
75 years, should initially bring the tribal government $1.2 million annually,
Williams said. Mike Benbow, Everett Herald, 2-4-04
The Oneida Indian Nation says it has found natural gas in
Madison County that will help power the Turning Stone Resort and Casino.
The nation is building a $13 million energy plant that could provide most
of the electricity and heat for the resort. Nation spokesman Mark Emery
said the nation eventually hopes to provide all the energy needed to run Turning
Stone [casino], which is undergoing a $300 million expansion that includes
three hotels. "Ultimately the goal is to attempt to take the nation
off the (power) grid," Emery said. "That would leave a lot of available
power for a lot of other people." Glenn Coin, Syracuse Post Standard,
2-4-04
Class II gaming got some good news; first the Oklahoma Legislature passed a
gaming bill, which allows tribes and race tracks to use the same games that
the tribes are currently using; and then the Untied States Supreme Court let
stand U. S. appeals court rulings on certain Class II electronic games. The
cases cover two tribes in Oklahoma and one in Wyoming. As one might guess, the
stock of slot manufacturers went up on each instance.
Shares of gambling-machine makers rose Friday after the Oklahoma
Legislature passed a measure to allow three horse-racing tracks to operate
the same electronic betting games being played at the state's Indian casinos,
and assured the legality of the tribal-operated games.
The measure has
the support of Oklahoma Gov. Brad Henry and the state's horse industry and
Indian tribes. Shares of Austin, Texas-based Multimedia Games Inc
rose
$1.66, or 4.1 percent, to $42
Alliance
was up 41 cents, or 1.7 percent
IGT
rose
$1.84, or 4.9 percent. Gambling Magazine, 3-1-04
The U.S. Supreme Court today rejected a Bush administration
effort to limit the types of gambling offered by Indian tribes that aren't
authorized to operate casino-style games such as slot machines.
The
high court eliminated "significant legal uncertainty" surrounding
the company's ability to sell its products to the tribes, Multimedia Games
said
Laurie Asseo, Bloomberg News, Las Vegas Sun, 3-1-04
Asensio & Company, Inc., a leading equity research firm,
announced that it has published a report on Multimedia Games
The report
gives background to the Supreme Court's decision and a detailed factual analysis
of the consequences of the decision on Multimedia's market share and operating
margins. The
decision allows industry leaders such as IGT and Alliance
to offer Oklahoma casinos Class II games. Business Wire, 3-1-04
As is the case whenever a state passes new gaming legislation, the developments
in Oklahoma bode well for the major slot manufacturers. A few casino operators
may profit with each expansion, but the major manufacturers always profit from
it. Tribes all around the United States should also benefit from the Supreme
Court decision; but that news is somewhat offset by the growing opposition that
may lead to new and more limiting federal Indian legislation. The American legal
system is one of opposing forces, legislative and judicative. After legislatures
pass legislation, courts review it, after courts limit legislation, legislatures
pass new legislation: round and round we go, where we stop, nobody knows. We
only know the legislatures are in session, and the courts are constantly sitting
in judgment of their laws.
But now, that is simply my opinion, isn't it?
Ken
Recent Articles
Best of Ken Adams

Ken Adams is the principal in the gaming consulting firm, Ken Adams and Associates. Formed in 1990, Ken Adams and Associates specializes in information, analysis, and strategic planning for Indian tribes, casino operations and gaming manufacturers. Ken spent over 20 years in the hotel-casino industry, prior to founding Ken Adams and Associates. He held the positions of: Director of Casino Operations, Casino Manager, and Keno Department Manager. During this time, he developed numerous innovative marketing and customer development programs and systems for evaluating casino performance. Some of those programs, such as slot clubs and tournaments, have become industry standards. Ken is also actively involved in gathering and disseminating information that is important to the gaming industry. He is editor and publisher of and the Adams' Report, a monthly newsletter specializing in identifying trends in casino gaming, regulation and manufacturing, the Adams Daily Report, an electronic newsletter that provides electronic links to the key gaming stories of the day, and the Adams Review, a special report distributed by Compton Dancer Consulting that provides editorial commentary on gaming trends.
|
Ken Adams is the principal in the gaming consulting firm, Ken Adams and Associates. Formed in 1990, Ken Adams and Associates specializes in information, analysis, and strategic planning for Indian tribes, casino operations and gaming manufacturers.
Ken spent over 20 years in the hotel-casino industry, prior to founding Ken Adams and Associates. He held the positions of: Director of Casino Operations, Casino Manager, and Keno Department Manager. During this time, he developed numerous innovative marketing and customer development programs and systems for evaluating casino performance. Some of those programs, such as slot clubs and tournaments, have become industry standards.
Ken is also actively involved in gathering and disseminating information that is important to the gaming industry. He is editor and publisher of and the Adams' Report, a monthly newsletter specializing in identifying trends in casino gaming, regulation and manufacturing, the Adams Daily Report, an electronic newsletter that provides electronic links to the key gaming stories of the day, and the Adams Review, a special report distributed by Compton Dancer Consulting that provides editorial commentary on gaming trends.
|