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Oregon Uses New Tactic to Win Casino

OREGON – As reported by the Oregonian: "Federal law is clear: States cannot tax tribal casino gambling.

"Yet as part of Oregon's approval of the Confederated Tribes of Warm Springs' plan for a Cascade Locks casino, the state is requiring the tribes to set aside as much as 17 percent of the gross gambling revenue mainly for tuition assistance to Oregonians.

"But instead of going to the government like a tax, the money would funnel through an independent nonprofit fund.

"The nonprofit setup has never been tried in a tribal casino deal, so there is no guarantee it will pass muster with the U.S. Department of the Interior, which has the final say. If the department approves the plan, Gov. Ted Kulongoski will hit a jackpot worth as much as $30 million a year for the state.

"…Experts say Oregon's nonprofit proposal is one of many new attempts by states trying to get a slice of tribal gambling profits while staying within federal law. They've seen varying degrees of success, although only three off-reservation casinos have been approved since the Indian Gaming Regulatory Act was passed in 1988…"

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