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Bits and Pieces from Indian Country – February 2006
12 April 2006
By Ken Adams
Jack Abramoff is still the major story, inside Indian country and outside, too
- not that there is much change in the actual case, but the fallout from it continues
to spread. The fallout has hit nearly every state as politicians accuse each other
of corruption and false deeds. Democrats accuse republicans of accepting his favors
and fulfilling his nefarious wishes, and republicans accuse democrats of the same.
The accusations are platforms for political campaigns and more significantly platforms
for new legislation at both the state and federal levels.
At the federal level, new legislation is being introduced to limit lobbyists'
activities, and at both the state and federal level, legislation is being introduced
to limit and control Indian gaming. What you might ask did the tribes do to
deserve the direct attacks on gaming? Not much would be my answer; most were
simply victims of a corrupt, unscrupulous individual. Senator Tim Johnson, a
Democrat from South Dakota, has said as much. This isn't, according to Johnson,
a tribal scandal - it is a lobbying scandal.
As both vice chairman of the Senate Ethics Committee and a member of the
Senate Committee on Indian Affairs, I have been absolutely appalled at the
scope and the depth of the villainy associated with the Abramoff lobbying
scandal. Inasmuch as Washington recently has become consumed and distracted
by the utterly shameful actions of disgraced lobbyist, I believe that it is
essential to understand just how far removed from this scandal Indian tribes
are. While a small handful of tribes represented by Abramoff were victimized
by his incredibly shady and cynical manipulation of their funds, the vast
majority of our nation's 562 tribes and Alaska Native villages had nothing
to do with him or his practices.
While a few tribes were associated
with Abramoff, the fees they paid were far beyond what most tribes could possibly
afford - and, in the end, their hired lobbyist abused both their money and
their trust. Clearly, this scandal was a lobbying scandal, not a tribal scandal.
Sen. Tim Johnson, Democrat - South Dakota, Indian Country Today, 1-27-06
However, there are those who have been watching for an opportunity to press
their cause - limiting and controlling Indian gaming. And those people have
not wasted the opportunity that Abramoff provided. Many states, California,
Wisconsin and Washington among them, have state legislators using the Abramoff
scandal to push for new legislation limiting Indian gaming. The opponents of
Indian gaming leap easily from a corrupt lobbyist to a corrupt industry. This
editorial from the Lansing State Journal makes the case much better than I could
and demonstrates the intensity of the emotions on their side of the issue.
Federal Indian gaming laws are broken, outdated, and being manipulated by
special interests to the extent that our federal government is embroiled in
the biggest scandal in recent history. Lansing State Journal, 1-29-06
Proliferation of tribal gaming is running roughshod over states' rights,
local control and voter mandate. This virtually unregulated industry is leeching
jobs and jeopardizing the future of our already battered state economy. Congressman
Mike Rogers, R-Brighton, has recognized this and called for a two-year moratorium
on all new tribal gaming until investigations are complete and federal laws
are reformed to protect the integrity of our government and public interests.
Lansing State Journal, 1-29-06
Whether Washington lobbyist Jack Abramoff thwarted or promoted tribal casinos
is not the issue. His actions show that our federal laws have been exploited
and corrupted. Abramoff was not the only hired gun in Washington manipulating
Congress on behalf of tribal gaming interests, just the first to get caught.
With this $19 billion industry spending millions on political donations and
teams of lobbyists and lawyers, it certainly raises the question: How widespread
is the corruption? Lansing State Journal, 1-29-06
Washington's American Indian tribes would need the Legislature's blessing
before seeking off-reservation casinos under an influential state senator's
proposal. Sen. Margarita Prentice, D-Renton, sought the measure after an aborted
compact with the Spokane Tribe of Indians called for a casino on tribal trust
land about 25 miles from its reservation. Curt Woodward, Associated Press,
Seattle Post-Intelligencer, 1-26-06
Congress is going to rewrite the Indian gaming act; that is a foregone conclusion.
Again, it is a difficult leap of logic to follow; why the corruptness of a lobbyist
or two should require such an extreme measure. Actually, before the full furry
of the scandal hit, there were hearings already taking place and a great deal
of pressure on Congress to limit off-reservation casinos and limit the types
of games tribes could offer without state approval. Wesley Edmo of the Shoshone-Bannock
Tribes of Idaho articulated the tribal view of this process very well.
"Every time, heaven forbid, some type of economic freedom and democracy
might break out in Indian Country, the playing field gets a little bit, you
know, slanted back towards the Indians and all of a sudden the rug gets jerked
out from under us," said Wesley Edmo, a council member for the Shoshone-Bannock
Tribes of Idaho. Indianz News, 1-16-06
The Bush administration is moving forward with its controversial gaming legislation
despite overwhelming opposition from Indian Country. After just three meetings,
the Department of Justice is closing the comment period on the proposal to
amend the Johnson Act at the end of this month. Officials will then review
the comments, make changes and search for a Capitol Hill sponsor to introduce
the bill by March or April
The swift action, coming three months after
the legislation was unveiled to the public and four months after it was announced
in Las Vegas, brought criticism from tribal leaders and their representatives.
At the conference, they repeatedly blasted the administration, saying the
proposal would dramatically hurt the $19 billion Indian gaming industry and
the jobs, revenues and other benefits casinos have generated. Indianz News,
1-16-06
There are other federal law changes that most certain are a direct result of
the scandal. The most resent to surface has to do with election contributions
by tribes - that too was an issue simmering just waiting for a catalyst to bring
it to a boil. When the tribes were poor and had no political influence, no one
paid much attention to their political contributions. But in the last few years
the contributions have grown dramatically as has the influence of tribes in
both national and local elections. There are those that resent that influence
and would stop it.
From total giving of $676,450 for the 1994 elections, tribal contributions
grew to $8.6 million for 2004 races, according to the non-partisan Center
for Responsive Politics. A little-known quirk in campaign-finance law that
has helped Indian tribes increase their political clout is under scrutiny
amid a scandal involving a high-profile lobbyist and his tribal clients. House
Republicans plan this week to propose closing a loophole that has allowed
tribes with casinos to give substantial amounts to members of Congress. The
change is part of a bill being drafted by Rules Committee Chairman David Dreier,
R-Calif., to restrict lobbyist influence in the wake of the Jack Abramoff
lobbying scandal
The growth in tribal political giving has been helped
by the status tribes enjoy under federal-campaign finance law. Tribes are
"persons" under the law, a category that also includes partnerships,
corporations and associations. But tribes can give unlimited total amounts
because they are not "individuals," whose legal definition excludes
organized groups. Jim Drinkard, USA Today, 1-31-06
Even in Indian country, the scandal is having its effects. Some tribes and
some tribal leaders are acting much like the republicans and democrats and trying
to distance themselves from Abramoff and his activities. The chairman of Agua
Caliente Band of Cahuilla Indians apologized to all of Indian country for the
damage the scandal may cause. The apology was noble, but it won't help and the
tribe didn't do anything except hire a lobbyist - a perfectly normal way to
do business in Washington. Any business, industry, individual or indeed state
that wishes to influence federal legislation does exactly the same. It is the
normal and legitimate way business is done in the nation's capital. Tony Miranda
suggests now that tribes should do their own lobbying, directly.
The chairman of a Southern California Indian tribe that gave $10 million
to indicted Washington lobbyist Jack Abramoff apologized to other tribal leaders
for the ensuing scandal that has tainted many tribes. Richard Milanovich,
chairman of the Agua Caliente Band of Cahuilla Indians, said Wednesday that
tribal officials had only good intentions when they hired Abramoff. He told
delegates at the Western Indian Gaming Conference that fallout from the scandal
already is hurting the image of tribes
"It really pains me. It hurts
me to know that the fallout from that (scandal) is affecting all of us in
Indian Country, not just our tribe," Milanovich said. "I apologize
to each and every one of you and to all of your people for it happening, and
I know that other tribes also regret that it took place."
California
Nations Indian Gaming Association Chairman Anthony Miranda told delegates
they must fight to maintain their hard-won sovereignty. He said the Abramoff
scandal reminds tribes that they should push their own agenda, rather than
hire high-paid lawyers to do it for them. "Now it is vital that tribal
members themselves be the ones to walk the halls of Congress themselves and
not send representatives," Miranda said, to loud applause. Juliet Williams,
Associated Press, 1-12-06
To further that cause the National Congress of American Indians is trying to
establish an embassy for the tribes: Embassy of Tribal Nations. That could be
a very positive outcome of this entire mess - it would provide a formal setting
and process for tribes to interact with the federal government, the only one
to which they are subservient.
If all U.S. tribal nation flags were to fly on Embassy Row in Washington,
D.C., they would easily eclipse the flags of foreign nations. The United States
recognizes more than 560 indigenous tribes, whereas 170 flags represent foreign
nation embassies on and near Massachusetts Avenue. Now, plans are under way
to remedy the absence of tribal nation flags in the nation's capital. The
National Congress of American Indians recently resurrected a plan to search
for an Embassy Row building - and to establish diplomatic accreditation with
the U.S. State Department. A $12 million capital campaign is now under way
to purchase property for an Embassy of Tribal Nations. There have never been
formal diplomatic relations - a formal agreement between two countries, which
in turn opens the door for embassy establishment - between U.S. tribes and
the State Department. "This facility will not only create a presence
of our sovereignty collectively, as well as individually, but it also provides
a station from which they can conduct business," said Ron Allen, NCAI
treasurer. "Most of Indian Country comes into town for a few days, maybe
a week, and most often don't have a place to operate out of. We hope we might
provide work stations." Jodi Rave, Lee Enterprises, Bismarck Tribune,
1-2-06
In California the troubled state of affairs - with or without considering the
national situation - has caused some of the tribes to consider working together
on compact issues and not to negotiate as individual tribes but as a collective
entity. That is just an idea at this point and one with its share of opposition,
but it is a place to start in combating the threats to Indian gaming both in
California and nationally.
California's oldest and largest tribal alliance is quietly pondering a controversial
move that could give the organization a prominent role in shaping the future
of Indian gambling in the state. The California Nations Indian Gaming Association
has been developing guidelines for gambling agreements negotiated between
individual tribes and the state. Until now, the powerful organization has
stayed out of that debate, maintaining that the agreements, or compacts, are
the sole province of each tribe at the negotiating table. But, with an approved
set of criteria, the organization would be able to weigh in during the Legislature's
consideration of new compacts. Five agreements, including two for separate
San Diego and Imperial county tribes, have been stalled in the Legislature
for months. "Compacting has been a major issue for a long, long time,
and it's up to the membership to decide on the direction they want to go or
not go," said Anthony Miranda, chairman of the California Indian gaming
association. "Right now our position is we don't get involved in compacting
for or against." Miranda said a series of draft compact principles have
been circulated within the 63-member organization. He described the drafts
as discussion documents and said the diverse group of tribes ultimately may
not reach agreement on the proposal. James P. Sweeney, Copley News Service,
San Diego Tribune, 1-16-06
2006 is going to be a year of change in Indian gaming. There is going to legislation
limiting the location of gaming facilities, legislation more carefully defining
the difference between Class II and Class III games, and legislation concerning
political contributions and lobbying by tribes. The year does not promise many
new compacts or major expansions in Indian gaming. Having said that, 2006 will
be a year in which Indian gaming revenues continue to grow, and the tribes will
continue to use those revenues to improve their lives, participate in the electoral
process and influence legislation at the federal and local level. It is a necessity.
The real challenge to Indian gaming is going to be the same challenge that
conventional casinos will face - the spread of gaming on both the Internet and
slots run by the state lotteries.
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.
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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.
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