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Tribes Gain Ground in OTB Debate

LEXINGTON, Kentucky – As reported by the Indian Country Times: "On the eve of horse racing's biggest weekend, tribal casinos appear to be pulling ahead in a long-running contest over their off-track betting operations.

"Churchill Downs Inc. (CDI), owner of the host track for the storied Kentucky Derby May 7, relented on its earlier denial of broadcasting and betting links to the Tonkawa tribal casino in Oklahoma. The reversal eases a threat to other tribal casinos that run 'rebate shops' for high-volume off-track gamblers.

"'We're elated that Churchill Downs has been reasonable,' said Chip Rogers, director of Native American Customer Support for Las Vegas Dissemination Corp., a leading provider of satellite simulcast signals, which serves the Tonkawa Casino.

"The Tonkawas and the Coeur d'Alene tribal casino in Worley, Idaho had been denied simulcast signals by the New York Racing Association (NYRA) at the end of January. Although the cut-off followed a dramatic organized crime illegal gambling indictment mid-January in New York federal court, in which the Tonkawas were mentioned but not charged, neither tribal casino has been accused of illegal activity.

"Several racetracks followed New York's lead in shutting down the Tonkawas, but Bob Bostwick, director of public relations for the Coeur d'Alene Casino, said its other connections remained normal.

"…The signal cutoff also reflects a business struggle over high-volume betting rebates, which several tribal casinos have found to be a profitable sideline. The Churchill Downs reversal shows that tribes, and other rebaters, have substantial economic leverage in the dispute.

"…The current shut-off arose after charges that a gambling group, alleged to have Gambino crime family affiliations, was laundering money and disguising identities for patrons of the 'rebate shops.' But the high-volume off-track betting sites were already controversial in the industry. Several tracks had cut off signals to some sites, including the Coeur d'Alene, in earlier years, charging they helped gamblers with sophisticated computer links gain an edge on ordinary bettors.

"Off-track betting at simulcasting sites now provides the bulk of the handle for horse racing, and the impact of the signal shutdown shows how important rebate shops have become…"

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