Native American Press/Ojibwe News

Sunshine comes to the Indian gambling industry in Minnesota

It was gratifying to receive a favorable opinion from the Commissioner of Administration last week to my Data Practices Act request for copies of financial statements of the gambling operations of the Red Lake Band of Chippewa Indians. That opinion was necessary because the Alcohol & Gambling Enforcement Division of the Department of Public Safety (A&GED), as the state’s custodian of all state/tribal gambling compacts financial information, had summarily denied my request dated February 26. It was especially gratifying to prevail on this issue because I have long considered A&GED’s position that all tribal gambling financial information is “trade secrets” and therefore exempt from the Data Practices Act, to be ridiculous and doubtful to withstand any serious challenge. In addition, it is hard to imagine an agency of state government, or in this case because the AG’s office advised A&GED on this matter two agencies of state government, willing to defend the dumbest compacts in the country. If you don’t believe me, try and find any other state tribal/state gambling compact that has no mechanism for monitoring or enforcement, no sharing of profits, and no expiration date. Finally, it is a little hard to understand that agencies that are supposed to be concerned with our safety and well being trying to preserve the secrecy of a monopolistic $3 plus billion industry in the state of Minnesota. Indian gambling operations are an industry that is accountable to no one, and one that doesn’t have to honor the basic civil rights of Minnesota citizens.

Perhaps the most disturbing thing I have learned so far in my quest for tribal financial information is the lack of any systematic monitoring and enforcement under the provisions of the tribal/state compacts by the state of Minnesota. According to the auditing and audit procedures detailed in the compacts, the State may request financial statements of Indian gambling operations from each Indian band on an annual basis. The Bands are required to submit the financial statements to the National Indian Gaming Commission every year, so the financial statements are available. The Commission publishes annual reports listing the tribes that are in compliance. However, the State of Minnesota does not appear to have requested these statements. An A&GED staff informed Press/ON that he is not aware of any State policy of formally requesting the audited financial statements. I think that the State’s negligence in this matter is a disservice to the State. It is unfortunate that the Governor—the responsible authority named in the compacts—has not requested the audited financial statements every year. I do not know how the State can effectively monitor gambling in the State of Minnesota without examining the annual audits.

            Not only should the State request the financial statements, but there should an auditor who understands financial statements and who provides detailed reports to the Governor, to the legislature, and to the people. The audited financial statements have been determined to be public information, and could be used as a lever to ensure that there is more equitable distribution of gambling profits in the State of Minnesota. Over 90% of Indian people do not receive any benefits from the Indian casinos in Minnesota.