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Bits and Pieces from Indian Country - June 2004
17 August 2004
By Ken Adams
The big stories make the headlines. The big casinos steal the spotlight, and while
there are lots of big casinos getting bigger, such as Cache Creek, there are dozens
of smaller ones struggling along. Here are some stories from the smaller, almost
invisible Indian casinos growing a little bit at a time. Even the Cache Creek
expansion isn't about two or three thousand rooms, but rather 200 rooms, barely
more than a motel in Nevada.
Cache Creek Casino Resort opened a 200-room hotel Thursday,
a project that adjoins the Rumsey Band of Wintun Indian's recently expanded
casino. Representatives of the Rumsey Indians tout the project as Northern
California's first casino resort. The hotel features conference rooms as well
as a full-service spa that will open June 14. A swimming pool will open next
month. Pamela Martineau, Sacramento Bee, 6-4-04
The Ute Mountain Casino Hotel & Resort opened in Towaoc
on Friday, May 28. The project, built by tribal-owned Weeminuche Construction,
cost $14 million and took 18 months to complete. The lobby of the Ute Mountain
Casino Hotel & Resort in Towaoc connects the hotel to the casino. The
pots were designed and made by Ute Mountain Pottery. The new hotel has
90 rooms. The $14 million, 18-month project is finally complete. The Ute
Mountain Casino in Towaoc is now the Ute Mountain Casino Hotel & Resort.
John R. Crane, Cortez Journal, 6-4-04
The Ho-Chunk Nation's new Whitetail Crossing Casino opened
Monday morning near Tomah, after a ribbon-cutting ceremony where some Ho-Chunk
officials called it the fulfillment of a dream. The $1.8 million expansion
added nearly 7,800 square feet to the nation's Whitetail Crossing convenience
store. …The site's 100 slot machines are in a nearly 2,000-square-foot
area. Steve Cahalan, La Crosse Tribune, 6-29-04
It has been a long wait, but the Three Rivers Casino in Florence
is now ready for wheeling and dealing. The casino opened this past weekend
and hundreds of people piled in to play the 265 slot machines and half-dozen
black jack tables. The casino is owned by the Confederated Tribes of the
Coos, Lower Umpqua and Siuslaw Indians.
KTAU TV, 6-29-04
"We've been in the community there for 24 seasons. It's
unfortunate that it's taken so long to do the things we can do to help each
other," said Viad Corporation's Joe Fassler, director of Viad's Glacier
Park Inc. operation. "Now this is an opportunity to bring guest services
to our guests at the East Glacier Lodge." Fassler said while guests have
all the opportunities Glacier Park affords the daytime visitor, at night "they
mostly listen to speakers like Curly Bear Wagner. This gives them, the ones
who want to take part, the opportunity to have some fun and earn some money
for the Tribe at the same time." …We already have Class II gaming
at Glacier Peaks [Bingo]. …Siyeh Development Corp.'s Dennis Fitzpatrick
is set to manage the new venture, which will see the Park Lodge Casino opening
for business Friday, June 4, and running through the tourist season. Fitzpatrick
estimated the Tribe will have about 3,000 square feet of space in the Feather
Room, filled with 30 Rocket Bingo and other Vegas-style machines for
the use of anyone at the East Glacier Park Lodge. The new casino will be
open seven days a week through September, from 10 a.m. to midnight every day.
John McGill, Cut Bank Golden Triangle Glacier Reporter, 6-3-04
When Lake Side Trading Co. opened its Class II gaming facility
on Route 89 Wednesday, about a dozen people were waiting at the door. A steady
stream of customers dropped in throughout the next 12 hours to play electronic
bingo games. …The Cayuga Indian Nation-owned gaming center, which is
a separate business from the attached gas station/convenience store that opened
last fall, offers 33 electronic games with about a dozen different
displays tied to a national bingo network. Denise M. Champagne. Lake Finger
Times (New York), 7-1-04
California's new compacts have captured the majority of media attention, but
there are other issues if not as important, are very important. The NLRB has
ruled that tribes are not exempt from federal labor law. The Supreme Court of
California refused to stop the cardroom and racetrack initiative from appearing
on the ballot. The NLRB ruling challenges tribal sovereignty and the Supreme
Court action puts all Indian casinos in California at risk. Tribes that today
are celebrating unlimited slots, could be facing closure in a year from the
competition of conventional casinos located closer to the market.
Overruling 30 years of precedent, the National Labor Relations
Board has concluded that tribal governments and their enterprises are subject
to federal labor law. In a 3-1 decision made public yesterday, the board asserted
jurisdiction in a dispute between a California tribe and a labor union. By
doing so, the majority reversed long-standing precedent that tribes, as sovereign
governments, are outside the scope of the federal National Labor Relations
Act. …"As tribal businesses prosper, they become significant employers
of non-Indians and serious competitors with non-Indian owned businesses,"
the decision dated May 28 stated. "When Indian tribes participate in
the national economy in commercial enterprises, when they employ substantial
numbers of non-Indians, and when their businesses cater to non-Indian clients
and customers, the tribes affect interstate commerce in a significant way."
"When the Indian tribes act in this manner, the special attributes of
their sovereignty are not implicated," the majority concluded. The decision
has widespread implications because it reverses a 28-year-old holding that
on-reservation tribal enterprises are exempt from the law. Indianz News, 6-4-04
The California Supreme Court has refused for a second time
to hear a lawsuit that seeks to remove a gambling initiative backed by cardrooms
and racetracks from the November ballot. The decision means it is doubtful
that the issues raised in a pair of legal challenges to the measure will be
heard before voters pass judgment on it this fall. The lawsuits were filed
separately by the Agua Caliente band of Palm Springs and another group of
big gambling tribes. A state appellate court earlier refused to hear either
challenge. Agua Caliente appealed to the state's high court. "We have
to figure out what the tribe wants to do at this point," Agua Caliente
attorney Fred Woocher said Thursday. "I know they feel very strongly
that it's a waste of everybody's resources and would be very deceptive to
the voters." Supporters of the measure that could give 16 cardrooms and
tracks 30,000 slot machines applauded the court's move. "It's not a great
surprise," said Greg Larsen, a spokesman for the campaign. "We believed
all along that the initiative would pass legal scrutiny." San Diego Union-Tribune,
6-3-04.
For all of the excitement of new Compacts, new casinos and increased Indian
gaming revenues, there is always the threat of federal intervention, in the
form of new legislation, court decisions or federal enforcement. Congress could
unilaterally pass a law against Indian gaming as easily as it passed the National
Indian Gaming Regulatory Act. The attorney general of Connecticut, for example,
has been relentless in his pursuit of changes to the federal recognition process
and federal Indian gaming legislation, and Connecticut's congressional delegation
has joined him in those efforts. And in June the FBI joined those who would
"help" regulate Indian gaming. The FBI is making some very strange
noises this month. It is difficult to predict what the noises mean, but I doubt
that anyone in Indian country is feeling warm and fussy about it.
Defying the odds and the federal Department of Justice, Sherrill
on Monday was granted the chance by the U.S. Supreme Court to show why the
Oneida Indian Nation should pay property taxes to the city. The court, which
hears only about one in every 100 appeals brought before it, announced Monday
it would hear arguments in the case. The Sherrill case was among eight the
court Monday agreed to hear. Justices rejected 133 cases. …The Sherrill
case begin in 2000 when the city tried to foreclose on land the nation had
bought in the city. The Oneidas sued, saying the land was part of their reservation
carved out in 1794 and could not be taxed. A federal district court judge
and the 2nd U.S. Circuit Court of Appeals agreed with the Oneidas, ruling
that the nation's land was "Indian country" and thus free from taxes.
… The Supreme Court ruled for the nation in 1985 in the nation's land
claim case, saying the Oneidas had a valid claim to 250,000 acres in Madison
and Oneida counties. The court ordered the case back to federal district court
to be settled, but it never was. Monday's decision may postpone plans by the
Oneida Tribe of Indians of Wisconsin to build "a world-class entertainment
facility" on 250 acres in Vernon. Tribal General Manager Bill Gollnick
said the high court's final decision would clarify whether the tribe has to
pay taxes or negotiate agreements with local governments, as the tribe does
in Wisconsin. Glenn Coin, Syracuse Post Standard, 6-10-04
The Federal Bureau of Investigation is somewhat downplaying
a press conference tomorrow in the nation's capitol involving the issue of
Indian gaming. According to a news release, the event is to "address
Indian Country Crime prevention and the establishment of the Indian Gaming
Working Group and the proactive measures in place to investigate this $15
billion gaming problem." An FBI official who did not wish to be identified
described it this way: " The revenues from Indian gaming have increased
from $100 million in 1989 to $15 billion in 2004. That outpaces gaming operations
in both Las Vegas and Atlantic City. We want to get ahead of this before any
problems surface." Sam Lewin, Native Times, 6-29-04
Saying the increase in Indian gaming has led to the "potential
for organized crime groups to become a corrupting influence and to profit
from illegal schemes such as embezzlement, illegal betting, and other gaming
scams," the Federal Bureau of Investigation has formed an Indian Gaming
Work Group to oversee tribal casinos. They are also asking that anyone
with knowledge of wrongdoing on reservations contact them. Sam Lewin,
Native Times, 6-30-04
Saying the increase in Indian gaming has led to the "potential
for organized crime groups to become a corrupting influence and to profit
from illegal schemes such as embezzlement, illegal betting, and other gaming
scams," the Federal Bureau of Investigation has formed an Indian
Gaming Work Group to oversee tribal casinos. …a host of organizations,
including the Department of Interior-Office of the Inspector General, National
Indian Gaming Commission, Internal Revenue Services-Tribal Government Section,
Department of Treasury Financial Crimes Enforcement Center, the U.S. Department
of Justice, and the Bureau of Indian Affairs Office of Law Enforcement Services.
"The tribes themselves provide the primary day-to-day due diligence to
keep the facilities honest and fair for both players and operators. However,
the threat posed by organized crime calls for the involvement of federal agencies
to assist tribes in keeping Indian casinos crime free," Sam Lewin, Native
Times, 6-30-04
Even existing compacts are not safe. In California the state legislature is
approving the latest compacts, while in New York and Wisconsin courts have ruled
the compacts invalid because the governors signed without the consent of the
legislature. The tribes in Wisconsin are making a good faith payment, even though
the compacts, the payments and new games are now hanging in a legal limbo. In
New Mexico the final tribe signed the new compact agreeing to the payments,
though it violated the tribal sense of sovereignty when one sovereign state
can impose a tax on another sovereign state.
The agreement that allowed Turning Stone Casino Resort to
open 11 years ago is invalid, state Supreme Court Justice James W. McCarthy
has ruled. While Oneida Nation leaders downplayed the ruling's impact, Nation
foes and local political leaders rejoiced in what they saw as a significant
step toward resolving issues including the land claim and taxation of products
sold by American Indian businesses. …McCarthy ruled from Oswego that
then-Gov. Mario Cuomo "exceeded his authority" by entering into
the 1993 compact with the Oneida nation without legislative approval. What
effect, if any, the court decision has on the sprawling casino resort that
attracts 4.2 million visitors a year is uncertain. Turning Stone has grown
to include a massive casino, three championship golf courses, three luxury
hotels, a European spa, a convention center, a cabaret-style showroom and
an events arena. "The Nation's compact is valid under federal law,"
Nation spokesman Jerry Reed said Monday. He said the state Supreme Court had
previously declared invalid a similar state compact with the Mohawk Indians
for a Northern New York casino, but last week the state Legislature approved
the Mohawk deal retroactively. R. Patrick Corbett and Meghan Rubado, Utica
Observer-Dispatch, 6-29-04
The Forest County Potawatomi has paid the state $40.5 million
under its gaming compact, allowing the tribe to continue offering Las Vegas-style
games such as craps, poker and roulette. All the state's 11 tribes thus met
their obligations on compact payments to the state by Wednesday's deadline
except the Ho-Chunk Nation, which owes $30 million, Wisconsin Administration
Secretary Marc Marotta said. Carrie Antlfinger, Associated Press, Duluth Superior
News, 7-1-04
Officials from both the state of New Mexico and the Mescalero
Apache tribe met this afternoon in Santa Fe sign a new gaming compact agreement.
The Mescaleros settled a lengthy gaming compact feud with the state in April
when they agreed to pay the state $25 million, and also agreed to sign a gaming
compact calling for the tribe to pay to the state 8 percent of the revenue
it generates from the casino…A previous Mescalero administration had
been at odds with the state over the gaming compacts for a number of years,
but that all changed in January when Mark Chino took office as tribal president.
Albuquerque Business Journal, 5-31-03
Indian gaming has entered into a new era. Compacts today are intended to expand
gaming operations and increase revenues to the states. And while tribes are
still responsible for primary regulation, state and federal agencies are trying
to take a larger role. In a somewhat poetic ending, Tony Hope, called Son of
Hope, died. Hope was the first chairman of the National Indian Gaming Regulatory
Commission. He wasn't always popular in Indian country, often times because
he took his time organizing the Commission and drafting the original regulations.
There are those who would like to see things move a little more slowly today.
Anthony "Tony" Hope, son of the late American entertainer
Bob Hope and former head of the US National Indian Gaming Commission, died
today, his sister said. He was 63. …His death comes nearly a year after
the death of his father, Bob Hope, who was 100 when he died of pneumonia last
year….Tony Hope served on two US presidential commissions under Presidents
Ronald Reagan and Gerald Ford. …The first President George Bush appointed
him chairman of the National Indian Gaming Commission, which regulates casinos
run by Native Americans. Queensland Courier Mail, 7-1-04
Merging and expanding, new compacts and new legislation, the first half of
2004 has been dynamic for the industry. And while most of news is of growth
and expansion, the story in Indian country is often of struggle. This month
alone produced four major cases that either went against the tribes involved
or may lead to a higher court decision against the tribal interest. Indian gaming
is often called unfair by competition, but it also suffers from unfair court
and legislative scrutiny. In conventional gaming jurisdictions, once the enabling
legislation is passed, the structure is pretty much set except, of course, those
states that radically alter the tax rates. But in Indian country, nothing seems
totally secure. That makes celebration of the opening of small casinos even
more important and meaningful. Of course, I reserve the right to change my mind
when Thunder Valley and the other major California Indian casinos have 10 or
20 thousand slot machines and are making more money than Mohegan Sun, Foxwoods,
Atlantic City or Las Vegas.
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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