Sovereignty makes headlines again this month; actually it would
be more accurate to say it is the headlining story every month in Indian country.
The U. S. Supreme Court is going to be hearing an important case that will either
limit the ability of states to enforce laws on tribal land or limit the ability
of tribes to resist the legal action of the states. In either case, it will
be an important decision in the ongoing debate over sovereignty.
The U.S. Supreme Court soon will take up a California case
that could affect every American Indian tribe in the United States. At
issue is how far the reach of county and state law enforcement can extend
onto reservations. …The 9th Circuit Court of Appeals ruled that a 1953 act
of Congress giving California and other states criminal jurisdiction on Indian
lands applies to tribal members but not tribal governments. Chet Barfield, San Diego Union-Tribune, 3-5-03
Tribal sovereignty is the basis of Indian gaming. Tribes are
not subject to the limitations of state regulatory gaming law, but must negotiate
with a state for the conditions under which gaming may be operated. The tribes
see the relationship as that of equal sovereigns. That principle brings us
the reality of the negotiations in California. California needs more tax revenue
and the governor believes tribal casinos should pay ("contribute") into the
state confers. But he cannot ask the state legislature to pass the appropriate
law; instead he is forced to ask the tribes to agree. The negotiations have
officially begun.
And in Wisconsin the state legislature is still trying to find
a way to inhibit the governor's ability to negotiate compacts without the approval
of the legislature. Governor Jim Doyle does not agree and for the second time
vetoed a bill to limit his authority. Not every circumstance calls for a negotiated
compact. If a tribe operates Class II gaming only, it does not need a compact.
The question of what constitutes Class II does not have an absolute answer.
This month the answer is slightly different and includes a slot machine look
alike called Lucky Tab II.
Formal talks have begun on renegotiating California's Indian
gambling compacts, as Gov. Gray Davis pushes for a share of tribes' profits
to help with the state's budget shortfall. The governor's administration
would disclose neither which tribal representatives were at the first meeting
Monday, nor even how many attended. Don Thompson, Associated Press, San Francisco Chronicle,
3-25-03
Governor Vetoes Second Bill. Gov.
Jim Doyle on Tuesday vetoed for the second time a bill that would have
given state legislators final say over some tribal gambling contracts.
The governor now has the sole authority to negotiate compacts with tribes.
Todd Richmond Associated Press, 3-19-03
With a decision that may have changed the way tribes will
look at Class II gaming in the future, the Santee Sioux Tribe can legally
operate its casino. The 8th Circuit Court of Appeals upheld a District Court
Decision that said the Lucky Tab II is indeed a Class II gaming device. This
decision may change the way people interpret the Johnson Act. David Melmer, Indian Country Today,
3-31-03
In Oregon, the governor is in the driver's seat. It is a tribe,
Grand Ronde, that has a wish. The Grand Ronde tribe would like to open a casino
in Portland and is willing to pay for a baseball stadium to get it. The governor
is not ready to agree, yet.
Gov. Ted Kulongoski on Wednesday rejected a baseball stadium-for-casino
proposal from the Conferederated Tribes of the Grand Ronde. …Kulongoski was
not ready to make a decision on off-reservation gambling, so he was
in no position to accept the offer. "He wants to separate out the issue
of reservation gambling and baseball," she said. Associated Press, kgw.com, 3-12-03
A baseball stadium is only one of several Indian business ventures
that made the news this month. In Okalahoma a tribe is selling shares in a
project; in Minnesota a tribe has purchased a conventional resort, and in Washington
D. C., four tribes broke ground on a joint-venture hotel project.
A band of the Shawnee Indian Tribe based in Oklahoma is behind
the proposal to build a $550 million gaming operation near Botkins, according
to Botkins contractor and casino supporter Tom Schnippel. He also confirmed
that shares in the project have been sold to interested companies and individuals
and said that if it doesn't happen near Botkins, there are other sites in
west central Ohio being considered. Sidney
Daily News, Casino City Times, 3-6-03
The Grand Traverse Band of Ottawa and Chippewa Indians today
announced the purchase of the Grand Traverse Resort & Spa from KSL Recreation,
Inc. …Already among the largest employers in northern Michigan, this transaction
is expected to catapult the Grand Traverse Band into a leadership position
among Indian gaming operations nationally, as well as among Michigan tourist
destinations. PRNewswire, Yahoo Business, 3-5-03
The significance of the drama of compact negotiations is easily
understood when one looks at the results of operating a successful Indian casino.
Tribal casinos in Connecticut are beginning to feel the same economic trends
as other jurisdictions. Still, the level of slot play is high enough to excite
any government official looking for money. The expansion of Indian casinos
is somewhat in doubt, as the governor's authority to sign a compact is in question.
While the case works its way through the court system, the Seneca tribe opened
a casino in Niagara Falls. The first official statement forecasts that it will
be a very successful casino; and finally from Arizona, initial reports suggests
that blackjack will add significantly to the success of most casinos in Arizona.
Performance of the state's slot machine industry dipped in
February, declining slightly over a year ago, according to figures released
by the state Division of Special Revenue Friday. The $1.43 billion "handle"
for slots at Foxwoods Resort and Mohegan Sun casinos was down from last February's
$1.47 billion. …The Indian casinos kept a combined $115.7 million of that
gambling money after paying out winnings, a 4 percent decline from last February.
Hartford Courant, 3-17-03
In the first public statement of the Seneca casino's moneymaking
power, local leaders were told that the community could expect about $9 million
for its share of 2003 casino slot profits. …That suggests an estimated
slots profit of $200 million for the year, or an average daily profit per
machine of about $210. Andrew Z. Galarneau, Buffalo News, 3-25-03
Lawyers challenging the legality of casino gambling in New
York argued to the state's highest court Wednesday that Gov. George Pataki's
ability to make casino deals with American Indian tribes should be constrained.
…The case, …probably won't be decided for at least a month…gambling in
New York, … has grown to an $8 billion-a-year industry. Erika Rosenberg, Gannett News Service,
Rochester Democrat and Chronicle, 3-27-03
Nevada-style blackjack is proving to be an ace attraction,
operators are reporting after the game's first month in play. …"I could
have run 80 tables," Lentz said, noting the casino will add 26 tables
in July. John Stearns, Arizona Republic, 3-10-03
California is the biggest story in Indian gaming, with a potential
to be even bigger. Tribes in California lead the state in job growth and have
for three years. Tribal employment has doubled since January 2000. The Agua
Caliente Band, a significant employer, now has decided to continue to pay employees
who have gone into the military in the Iraq conflict.
Tribal government economies have for three years led the state
in job growth, with employment doubling since January 2000… The explosion
of employment on Indian lands has largely been generated by the expansion
of tribal government gaming… Tribal governments employ 36,300 workers,
according to state figures, more than twice the 17,200 workers on tribal
payrolls in January 2000, three months after 58 tribes agreed to compacts
with Gov. Gray Davis… PRNewswire, Yahoo Finance, 3-31-02
The Agua Caliente Band of Cahuilla Indians affirmed today
the Tribe will supplement the salaries of its team members who are called
to active military duty. …"As the war in Iraq enters its second week,
we felt it was important for our team members and this community to know that
we stand by our team members who are called to serve in the United States
military." PRNewswire, Yahoo Finance, 3-31-03
The impact of the war on Indian gaming, the gaming industry,
the general economy, indeed on our daily lives, is still uncertain. It is certain,
however, that there will be an impact. It is also certain that the longer the
war lasts the greater the impact will be on the gaming industry, the economy
and on our daily lives. Just as war dominates television, radio and the print
media, war will dominate the economy and make itself felt in the gaming industry
and our lives. The biggest and strongest of private and public companies, Indian
casinos and public jurisdictions will be the least impacted; the smaller and
weaker ones will be severely challenged.
