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Bits and Pieces from Indian Country - November 2005
4 January 2006
By Ken Adams
September was a good month for the states that were hoping to get more from Indian
gaming but not necessarily a good month for the tribes. Individual states seem
to be gaining more control over Indian gaming, and if not the ability to tax casino
revenues, something very much like it. The Oneida Nation of New York, after losing
a dispute in the Supreme Court has started to pay local taxes. The Potawatomi
of Wisconsin paid the State of Wisconsin and agreed to a new payment schedule
in exchange for a new and longer compact. And In Washington State, the Spokanes
agreed to revenue sharing in exchange for expanding opportunities.
The Oneida Indian Nation says its tax deal with the city of Sherrill could
be a model to settle similar pending disputes with other local governments.
But while reaction to the agreement included praise, it also drew criticism
and ambivalence. In an agreement announced Thursday, the Oneidas said they
would pay nearly $60,000 in back taxes to Sherrill and continue to pay future
taxes on time - at least for the five-year term of the pact. The tribe also
said it would obey all city codes and allow city inspectors onto nation property.
The agreement ended an 8-year long dispute that wound its way to the U.S.
Supreme Court. Nation Representative Ray Halbritter said he hoped the agreement
could serve as a blueprint for the tribe's tax battles with Madison and Oneida
counties, and the Town of Verona, which say they are owed millions of dollars
in unpaid taxes, interest and penalties. State Sen. Ray Meier said the Oneidas
had little choice but to reach an agreement because the issue was decided
by the U.S. Supreme Court in April, when it ruled that too many years passed
for the tribe to claim that its reacquired former reservation lands were again
sovereign. The ruling also said the tribe must pay property taxes on them
and obey local laws. Newsday, 10-7-05
In addition to paying the $43.6 million the Potawatomi owed the state for
its fiscal year that ended in August, the same payment schedule with annual
payments of 6% to 8% of casino net revenue is included in the new compact
revisions. Steve Schultze, Milwaukee Journal-Sentinel, 10-4-05
Spokanes agree to share revenue with state in compact with far-reaching implications...agreement
was publicly released Friday and still needs approval from the state and federal
governments…It marks the first time a Washington state tribe has agreed
to share gambling revenue with the state. If it's approved, other large tribes
here could seek similar deals, which could pump tens of millions in revenue
into the state budget. But the state had to make major concessions to get
the Spokanes to buy in. The state agreed to remove betting limits at some
of the tribe's card tables and cleared it to offer more than twice as many
pseudo-slot machines and casinos as other tribes. It also allowed the tribe
to offer 24-hour, seven-day-a-week gambling, credit to high rollers and an
off-reservation casino…Tribal gambling revenues in Washington have skyrocketed
from $50 million in 1996 to $900 million last year. Kenneth P. Vogel; Tacoma
News Tribune, 10-8-05
The Washington agreement may lead to new agreements with the other tribes and,
of course. expanded gaming in the state. The first tribe to step up, the Skokomish
Tribe, wants to put a casino at a NASCAR track. Like everything else, it is
a process, but this is the first step.
The Skokomish Tribe wants to build a new casino on or near a proposed NASCAR
raceway in Kitsap County, according to a letter sent this week to Gov. Christine
Gregoire. Tribal council leaders want to offer gaming at several off-reservation
sites, including the proposed 81,500-seat racetrack south of the Bremerton
National Airport, according to the letter dated Thursday. The tribe already
operates the Lucky Dog Casino on its reservation near Shelton. It's also pursuing
increased betting limits, longer operating hours and more gambling activities.
Associated Press, Seattle Post-Intelligencer, 10-22-05
Across the border in Oregon, the process is a couple of steps further along.
The Confederate Tribes of Warm Springs is trying to move its casino to a better
location. Actually, a beautiful location and that is part of problem, some people
just don't think that is the right place for a casino (not unlike the discussion
currently taking place in Gettysburg, Pennsylvania). The federal government
has to agree and approve of the move. In Oregon they are gathering data to assess
the impact on the environment and society.
The Confederated Tribes of Warm Springs want to build an off-reservation
resort and casino in Cascade Locks, roughly 40 miles east of Portland in the
Columbia River Gorge. Environmentalists, lottery retailers and others oppose
the plan; Gov. Ted Kulongoski and most city and county officials support it.
As required by law, the Bureau of Indian Affairs launched an environmental
impact statement review "to document the environmental, social and economic
consequences" of the casino resort and list alternatives, including a
no-build option. The tribe must get the bureau's boss, Interior Secretary
Gale Norton, to approve the transfer of 25 acres into trust to build the casino…The
draft environmental impact review should be ready for public comment this
winter, with a final statement expected next summer. Oregonian, 10-24-05
One state further south in California, the process is in another phase: debate.
In California, as in most states now, the creation of an Indian casino sparks
a great deal of local interest and heated debate. Not always part of the formal
process as described by the national Indian Gaming Regulatory Act (again like
Pennsylvania where the cities are trying to assume a role that the legislation
did not create), local communities are interjecting themselves into the process.
They hold public meetings to review the plans, city councils vote for and against,
and they put "advisory" measures on the ballot, all in an attempt
to be a part of the process.
Now officials in Yuba County and Marysville, along with an Indian tribe from
neighboring Butte County and developers from Chicago, are asking voters to
endorse a new prize attraction for the site: a $150 million casino, hotel
and convention center.
Yuba County's Measure G is one of two regional ballot measures to be decided
Nov. 8 asking citizens to vote "yes" or "no" on whether
they want major Indian gambling developments to come to town. The other is
Measure I in Amador County, where one tribe is trying to develop a casino
near the town of Plymouth and another has a state compact to develop a casino
near Ione. The advisory measures could provide important tests of California
communities' clout to accept or reject casinos by landless Indians trying
to acquire local properties or by other tribes wanting to build outside their
reservations. Peter Hecht, Sacramento Bee, 10-17-05
The citizens of California and nearly every other state that has Indian tribes
would like to be a part of the process. Very few are willing to leave the process
up to the governor or the state legislature and the federal government. The
issue is more and more complicated by the fact that the intended casino is not
located on tribal land. Land must be acquired and placed into "trust";
that is a much longer and more complicated process than simply coming to an
agreement and signing a compact to open a casino on tribal land. It hasn't happened
often, but it has become the center of the debate. Senator John McCain has promised
to revisit the act and tighten the controls. He promised that a while ago, but
he is becoming more emphatic.
"It must be revisited, and we will," McCain told leaders of the
nine main tribes in Oregon during a meeting at Portland State University…"Once
you open those doors, anything can happen," said Delores Pigsley, chairwoman
of the Confederated Tribes of the Siletz on the Oregon coast. But McCain was
firm in his response. "We have a difference of opinion," McCain
said. "This is an industry with a long history of corruption, so we'll
just have to respectfully disagree…"I can't go back and change history,"
McCain said. "I'd like to go back and right all those wrongs. But all
I can do is try to right the wrongs that are before us now." Seattle
Times, 10-25-05
On another front, the tribes had a setback also. The National Labor Relations
Board ruled that it has jurisdiction over an Indian casino, a battle the unions
and the tribes have been fighting for years.
Federal labor board rules in favor of tribal casino employees
The National Labor Relations Board has confirmed that federal labor laws apply
to employees at tribal casinos. In May of last year, the board declined to
dismiss a union's complaint against the San Manuel Indian Bingo and Casino
in California, despite arguments that the federal government lacked jurisdiction
because the casino is on an Indian reservation. The NLRB issued a final ruling
in that case last week, dismissing another argument by the California casino
that the board had no jurisdiction. The board ordered the casino to allow
the Hotel Employees and Restaurant Employees International Union equal access
to its property. Cara Rubinsky, Associated Press, Newsday, 10-6-05
While it appears from reading the stories in the press this month that Indian
gaming is losing ground, I don't think it really is. However, it is becoming
more complicated and expensive for the tribes. As the industry matures it faces
the same pressures that conventional industries face, and one of those is the
pressure from government for more control and more revenue. Congress, driven
by the current set of investigations in lobbying practices and the recognition
process and pressures from the states for more controls, will certainly make
some changes to the Act. The question is: what changes? We will have to just
wait and see, unless you are one of the interested parties, and in that case
you had best pack your bags and go to Washington to lobby for your cause. P.S.:
Be prepared to meet many others on the same mission with a different agenda.
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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