Native American Press / Ojibwe News

November 8, 2002
Indian gambling interests play growing role in off-reservation politics

by Clara NiiSka

Indian-owned casinos are an important source of income for Indian tribes, and they are also a path to political power, according to Bill Eadington, an economics professor at the Institute for the Study of Gambling and Commercial Gaming at the University of Nevada.

“Economic power buys access, which means your issue is at the front,” Eadington said at a national aboriginal problem gambling conference in Prince Albert, Saskatchewan, according to a November 6th article in the Calgary Herald.

Eadington told conference participants that Indian gambling enterprises have helped some U.S. Indian tribes become important political contributors.  “I’m more familiar with the U.S. than Canada, but I think the same holds true for both -- when tribes have no money, no one heard what they said.”  There have been several recent articles in Press/ON about the political contributions made by Indian political leaders and PACs.

Eadington also acknowledged that more research is still needed into strategies to deal with problem gambling.  “Research is still fairly sparse,” he said. “We don’t know if we have a good sense or not. There is too much noise in the picture. There isn’t a good base of knowledge.”

Indian PACs, Indian lobbyists, and Indian gambling interests clearly had a vested interest in the outcome of a number of gambling proposals before the voters in the U.S. general elections on November 5th.

The full impact of gambling-fueled Indian ‘access’ to U.S. politics will probably not be apparent for months.

As Press/ON goes to press, there election results still coming in, as well as reports from across the country about ‘Indian gaming issues’ before the voters:


Arizona:
     2 Indian gambling measures defeated; third clings to lead


Arizona Republic

Voters soundly defeated two of three ballot initiatives intended to continue and expand on tribal gambling operations in Arizona. The other, backed by 17 American Indian tribes, clung to a narrow lead.

Falling Tuesday were Proposition 200, which would have allowed Las Vegas-style table games at Indian casinos, and Proposition 201, which would have cleared the way for slot machines at dog and horse tracks.

With all precincts reporting results of ballots cast Tuesday, Proposition 202 had 509,319 “yes” votes, or 52 percent, and 476,276 “no” votes, or 48 percent.

Counties still had to count tens of thousands of early ballots that were cast days or weeks in advance and other ballots needing to be hand-checked. Many of those were in Maricopa County, where “no” votes on Proposition 202 outnumbered “yes” votes.

“But win or lose, we’ll come out of it with 17 tribes united,” said David LaSarte, spokesman for the backers of Proposition 202.

Backers of the three rival measures poured at least $37 million into their collective campaigns, making them the three most expensive campaigns in Arizona history.

Propositions 200, 201 and 202 all proposed expanding gambling in Arizona, increasing the number of slot machines and allowing tribal casinos to offer additional games. They all also would have offered some money to state programs, but the sponsors bitterly disagreed on other issues ranging from regulation to the location of casinos.

Proposition 200, sponsored by the Colorado River Indian Tribes, would have offered the largest expansion of tribal gambling and the smallest amount of money to the state.

Proposition 201, sponsored by dog and horse track owners, would have given the most money to the state but also would have allowed racetracks to offer slot machines.

The other initiative, 202, was the result of a deal negotiated with the governor - but never signed - to expand gambling and offer a percentage of the revenue to state programs. Currently, the state receives no money from tribal gambling operations.

The compact laid out in Proposition 202 was never signed because of a legal challenge by racetrack owners and the inability of state lawmakers to agree on a compact.

Doug Cole, a spokesman for the track owners, said Tuesday night that even if 202 passed, backers of 201 will go to court to stop it from taking effect.

Racetrack owners have argued that an expansion of Indian casinos that doesn’t allow tracks to offer slot machines could put tracks out of business.

Under federal law, tribes must negotiate compacts with the state to offer conventional slot machines and most other types of gambling. The first of the compacts signed during the 1990s by 15 Arizona tribes begin to expire in August.

Gov. Jane Hull had negotiated new compacts with 17 tribes, which backed Proposition 202, but horse and dog track owners sued in late 2000, arguing the governor didn’t have the power to sign such deals. The case remains on appeal.

Arizona currently has 22 tribal casinos run by 15 tribes.

Idaho:
     Ballot measures pass, but losing sides won’t give up


By Chuck Oxley, Associated Press Writer

Boise, Idaho (AP) -- Voters overwhelmingly approved electronic gambling machines on Indian reservations and then narrowly ratified the Legislature’s repeal of the 1994 term limits initiative.

But both issues appeared to be headed for the courts.

With all precincts reporting, unofficial returns showed voters ratifying term limits repeal by a mere 1,825 votes out of 402,000 cast. It made Idaho the first state to repeal statewide term limits since the national campaign to restrict elective service began more than a decade ago.

On the gambling proposition, the Coeur d’Alene, Nez Perce and Kootenai tribes put up nearly $4 million to claim victory in what became the most expensive issue race in Idaho history.

But opponents, mostly social conservatives and business groups, promised to press their cause in the state’s legal system. They contend that despite the vote, the slot-type lottery machines that have made reservations casinos so lucrative for a decade are specifically excluded by the state constitution.

Tribal forces, led by Coeur d’Alene Tribe casino chief executive David Matheson, said the vote gives Indians solid legal grounding in the courtroom.

“This changes the parameters of the litigation,” Matheson said. “Now we’re going to litigate what the people of Idaho said is the law of the land. We think we’re going to win that test.”
 

New York:
     Senecas elect proponents of casino gambling

Allegany Indian Reservation, N.Y. (AP) -- The Seneca Nation of Indians elected a new president and eight fellow party members who endorsed a 14-year pact signed with the state to bring Las Vegas-style casino gambling to western New York.

Led by presidential candidate Rickey Armstrong, pro-casino forces surged to victory Tuesday in tribal council elections held every two years. Armstrong, a councilor, defeated Seneca Nation Treasurer Arnold Cooper II by 1,304 votes to 865. “The people have clearly indicated what direction they want to go in,” said Armstrong, who will take office next week. “There are no losers tonight. We need to get over this divisiveness and come together as one.”

Seneca Party members negotiated a compact with the state this year authorizing the Senecas to open three casinos in Buffalo, Niagara Falls and on reservation land. The deal calls for the state to receive up to 25 percent of the profits from slot machines.

Cooper headed a slate of candidates pushing for a reduction in revenues allocated to the state. He had promised, if elected, to halt construction of the first casino, which could open as early as New Year’s Eve in Niagara Falls.

Armstrong’s predecessor, Cyrus Schindler, signed the casino pact with Gov. George Pataki on Aug. 18 and the deal was approved last month by the federal Bureau of Indian Affairs.

The president’s office switches every two years between the tribe’s Cattaraugus and Allegany reservations. Schindler lives on the Cattaraugus reservation.

The casinos could funnel as much as $3 billion to the Senecas, who have 6,700 enrolled members in western New York, their leaders say. The state expects to draw about $1 billion a year from newly approved gambling operations, including casinos to be built in the Catskills and its entry into a big-jackpot, multistate lottery game, legislators say.

Last May, the tribe narrowly voted 1,077-976 to approve an 800-page compact that would serve as a blueprint for operation of the casinos.

The Senecas still face uncertainty in the courts with a pending lawsuit by gambling opponents. Critics maintain the pact is illegal because slot machines are barred under the state Constitution.


Arizona:
     Renzi holds lead in 1st District awaiting Navajo tally


By Arthur H. Rotstein, Associated Press Writer

Phoenix -- Republican Rick Renzi hoped a nearly double-digit lead early Wednesday would let him withstand a late and likely large Indian vote for Democrat George Cordova in the vast, new 1st District.

Renzi’s edge grew several hours after polls closed, paced by his nearly 2-to-1 margin in Yavapai County. But he declined to declare victory.

His late-night surge mirrored developments in recent weeks. After starting out as a tossup, Renzi had pulled away during the race’s final weeks. But Cordova hoped to poll strongly in Navajo County - particularly among Navajo Indians. In initial returns that trickled in from the southern portion of that county shortly before midnight, however, Renzi surprisingly had more than doubled his opponent’s votes.

He still remained cautious. “His (Cordova’s) strength hasn’t come in yet,” Renzi said.

He said whether his lead would be enough to hold off the numbers Cordova expected to see from the Navajo Nation remained to be seen.

Renzi described the contest as “one of the top five races in the country. Both parties came in heavy with a lot of money, and I’m thankful for the people in Flagstaff, the people around the district who had to endure a lot of the mail-outs, a lot of phone conversations. I appreciate their support.”

Cordova said that despite negative ads hurled at him, he was grateful for the show of support he received.

Renzi was aided by strong financial support from the Republican National Committee, significant TV advertising and a stream of high-profile visitors, including President Bush.

Cordova found himself unable to match Renzi’s airtime buying power and was on the defensive late in the campaign.

Libertarian Edwin Porr was a distant third.

The 1st District, one of two new districts in Arizona, was identified as a key seat soon after it was drawn up last year. Although the district has slightly more registered Democrats than Republicans, it was the one Arizona district that was truly considered a tossup this year.

The racially and ethnically diverse district encompasses more than half the state’s area. The size of Illinois, it takes in most of the Grand Canyon, includes the cities of Flagstaff and Prescott but skirts Phoenix, extending nearly to Tucson on the south, to New Mexico on the east and Utah on the north.

Its half-dozen Indian tribes include the Arizona portion of the Navajo Nation, one of the nation’s largest Indian tribes. In all, Indians represent nearly 23 percent of the district’s population; Hispanics make up another 16 percent.

Renzi, the owner of insurance and real estate investment companies, focused his first political campaign on themes that included homeland defense, tax cuts to stimulate job creation, streamlining government, and promises to improve education and ensure affordable health care.

Cordova, a venture capital fund manager from Payson, lost a bid for the state House of Representatives in 1994.

Both men called for a guaranteed prescription drug benefit in Medicare and endorsed Second Amendment gun rights.


Maine:
     Sanford voters open door to hosting tribal casino; other York County communities oppose a gambling facility

by Grace Murphy, Maine Today

 Residents in Sanford narrowly voted Tuesday in favor of having a casino in their community, marking the first time a southern Maine municipality has signaled support for such a development.

Residents of neighboring Biddeford voted overwhelmingly Tuesday against having one in their city, even though they were also considered supportive of a casino.

Seven other York County communities also voted Tuesday on a variety of casino questions. Residents in Alfred, Kennebunk, Kennebunkport, Saco and South Berwick said no to a casino in their towns. Wells voters adopted an ordinance banning casinos. Kennebunkport and Kennebunk voted to spend up to $5,000 to fight any legislation that would permit casino gambling. North Berwick voters rejected a similar question, 780-710.

Tuesday’s votes were considered significant because leaders of the Passamaquoddy and Penobscot Indian tribes, who want to build a $650 million casino in southern Maine, have said they won’t locate in a community where they aren’t wanted.

That’s how Kittery removed itself as the tribes’ top choice when it voted earlier this year against hosting a casino.

Other York County communities that previously voted against hosting a casino are Berwick, Eliot, Kennebunk, North Berwick, Ogunquit and York and Wells.

Casino supporters now may pin their hopes on Sanford, and are likely to argue to state officials that an endorsement by residents should be heeded by the Legislature.

All four candidates for governor, including Gov.-elect John Baldacci, had said they would veto such a bill, but the tribes are working to put the question to a statewide vote.

Passamaquoddy state Rep. Fred Moore said the tribes are pleased with the outcome in Sanford, and are looking forward to gathering enough signatures to put the issue of legalizing casino gambling on the November 2003 referendum ballot.

Moore said the 540-vote margin of victory is enough to consider the town supportive of the tribes’ proposal for a casino.

“It’s no less valid than any other election issue on the ballot in Sanford. A mayor is not any less a mayor by winning by a slimmer margin,” he said.

Mark Robinson, a spokesman for the anti-casino political action committee Casinos No!, said his group was pleased by the Biddeford results and the closeness of the vote in Sanford.

He said casino proponents spent three times the amount on their campaign as opponents.

“This is an incredible victory for Casinos No!,” Robinson said. “We would’ve liked to have paid more attention to Sanford, but given the scarce resources we had, a 6-point loss is thrilling to us.” …

Tuesday’s votes followed months of fierce campaigning and lobbying by casino advocates and opponents. In Biddeford, officials including Mayor Donna Dion and City Councilor James Grattelo were criticized for joining the pro-casino PAC called Think About It.

Dion said Tuesday night that she is helping the tribes with their statewide petition drive, which she believes will succeed. Although disappointed by the outcome of Biddeford’s vote, Dion said she would respect it.

“We vowed if they said no, we wouldn’t have the power to negotiate. We’d leave the table,” she said.

Members of Casinos No!, such as former City Councilor Kyle Noble, said they would continue working against the statewide referendum question.

“Those signatures will be gathered, there will be a statewide referendum, so we need to defeat that referendum,” he said.

Sebastian Sinclair, president of the gambling consulting company Christiansen Capital Advisors, said the tribes need success on both the state and local levels if they want to meet their revenue goals.

If the change to state law goes through, the tribes will need a welcoming community as close to Boston as possible, he said.


New Mexico:
     Madrid wins attorney general race


By Deborah Baker, Associated Press Writer

Albuquerque (AP) -- In the bout for attorney general Republican Rob Perry came out of his corner swinging, but his punches never connected.

Democratic Attorney General Patricia Madrid easily won re-election to a second term.

With 99 percent of precincts reporting early Wednesday, Madrid had 59 percent of the vote to Perry’s 35 percent. Green Party nominee Ann Gleason trailed with 6 percent. “It was a hard race. I’m very gratified,” said Madrid, New Mexico’s first female attorney general.

She said voters - including Republicans - appreciated her activism over the past four years, and she promised to focus even more attention on water, consumer protection and prosecuting violent crimes against women.

Perry, the state’s former corrections chief, waged an aggressive campaign, accusing the incumbent of “selling” her office for hefty contributions.

He said Madrid’s acceptance of money from law firms that contract with the attorney general’s office, and from gambling interests, raised ethical questions.

“We ran a good campaign,” Perry said. “We were outspent three-to-one, and most of that money was dirty political money.”

As of Oct. 29 he had raised $236,000 to Madrid’s $840,000 - and he never managed to overcome the clout of the politically powerful incumbent in a state where most registered voters are Democrats.

Madrid said during the campaign that Perry concentrated on her contributions because her record was too good to criticize.

Among her other accomplishments, Madrid touted her lawsuit against Indian tribes for non-payment of gambling revenue that resulted in $91 million in back payments to the state.

Madrid, 56, was elected attorney general in 1998, becoming the nation’s first Hispanic woman in the job. She had been Gov. Bruce King’s running mate for lieutenant governor in 1994 - King lost to Republican Gary Johnson - and had run unsuccessfully for Congress in 1988.

She has taken tens of thousands of dollars in contributions from law firms she hired to handle high-profile litigation. The firms could earn millions if they win the cases. Madrid defended the donations, saying she’s committed to the lawsuits and the firms want her to remain in office.

Madrid also has taken big contributions from the gambling industry, including Ruidoso Downs owner R.D. Hubbard, who was forced to give up his gambling license in Indiana and now wants a track and casino in Hobbs.


Wisconsin:
     Wasau voters reject continuing negotiations for Ho-Chunk casino


Wausau, Wis. (AP) - Wausau voters overwhelmingly rejected an advisory referendum on whether their government leaders should continue talks aimed at bringing a Ho-Chunk Indian casino, hotel and convention center to the city.

The vote Tuesday was 8,116 against and 4,349 in favor.

Although the vote was not binding, City Council president Jim Rosenberg said, “when we put this up for a referendum, it was our intention to follow the advice of the voters.”



Iowa:
     Iowans vote to keep casino gambling

By Chuck Schoffner, Associated Press Writer

Des Moines, Iowa (AP) --Iowans found they enjoy their casinos and racetracks too much to give them up.

By wide margins, voters in 11 counties agreed Tuesday to extend legalized gambling for eight more years. Support was so strong that in some counties, the gambling extension won by a 4-to-1 margin. “It is a strong reaffirmation and reapproval by the citizens of each county where the casinos are located,” said Wes Ehrecke, executive director of the Iowa Gaming Association, a casino trade group.

Keeping the slot machines whirring and roulette wheels spinning means state government will continue to collect its yearly windfall in gambling taxes, which in these lean economic times have helped prop up the state treasury.

Local governments depend on the gambling money for everything from building arenas to repairing schools to implementing clean water programs.

Opponents pointed out the social costs of gambling, from treating addicts to the breakup of families, and voiced frustration that they could not compete with highly organized “Vote yes” campaigns backed by the gambling industry.

“For every one dollar in benefit, whether its taxes or charity giving, the costs are easily two or three to one,” said Tom Coates, vice president of Truth About Gambling.

“Those costs are not so visible when you count the bankruptcies, the embezzlements, the cost of family breakdowns and even suicides. It is a predatory industry,” he said.

Coates said it was still too early for Iowans to see the darker side of gambling.

“Given the history of gambling in this country, it takes a number of years to raise the level of human pain and suffering and public corruption high enough to where the public throws it off,” Coates said.

“I think history will show when this thing has a chance to metastasize and sink its talons into the native population, we’ll see the recriminalization of this activity.”


Idaho:
     Idaho voters pass Indian gaming measure

By Chuck Oxley, Associated Press Writer

Boise, Idaho --The more than $3 million northern Idaho Indian tribes plunked down to win voter approval for electronic gambling machines on reservation casinos paid off Tuesday, but the argument still is far from settled.

Proposition 1 was leading by 14 points early Wednesday morning, with 89 percent of the vote counted. Opponents of the referendum, who included an out-financed alliance of social conservatives and business groups, have said they still intend to take the measure to court because they believe the machines are specifically excluded by the state constitution.

But tribal forces, led by Coeur d’Alene Tribe casino chief executive David Matheson, appealed to voters’ sympathies for poverty-stricken Indians, who have found new hope and economic power through gaming.

“This changes the parameters of the litigation,” Matheson said. “Now we’re going to litigate what the people of Idaho said is the law of the land. We think we’re going to win that test.”

Matheson thanked Idaho voters for a strong showing.

“We called on their goodwill and their good hearts and they came through,” he said.


W. Virginia:
     Cabell County voters reject casino proposal

 Huntington, W.Va. (AP) -- Cabell County voters don’t want a casino in West Virginia’s second largest city.

With 100 percent of the county’s 68 precincts reporting in Tuesday’s election the unofficial vote was 62 percent against and 38 percent for.

Huntington businessman John Hankins had proposed converting several downtown buildings into a 650-room resort hotel with a 50,000-square-foot casino. “I think we’ve accomplished our mission in getting the facts out and getting people to vote,” said DeLane Ball, chairman of the Cabell County Coalition Against Gambling Expansion. “Citizens have spoken definitively that they don’t want casino gambling.”

The casino was seen as a potential moneymaker for cash-starved Huntington. The city has been forced to lay off police officers and cut other services to trim a $726,000 budget deficit.

A feasibility study conducted by a national casino company projected that a casino and hotel would attract about 400,000 guests a year, create 200 jobs and generate about $31 million a year. Another $18.8 million would be allocated to municipal, county and state governments via taxes.

Mayor David Felinton said he was disappointed by the vote.

“A casino would have been a nice complement to some of the projects in the downtown area that are beginning to take shape, but these projects are going to have a positive effect whether we have a casino or not,” he said.

The proposal cannot be placed on the ballot in Cabell County again for at least two years.


Although Canadian national elections were not held the first week in November, Indian casinos are becoming a “hot” issue on the north side of the border as well:


West-end neighbors fear casino will bring crime: Traffic congestion also a concern

by Bill Mah, Civic Affairs Writer, The Edmonton Journal

Edmonton -- Worried a casino is about to be approved for the nearby Enoch Reserve, some neighbors are considering selling their homes.

“We want to be neighbors with them, but we don’t want to be neighbors with a casino,” says Phil Doroshuk, who lives in Lewis Estates.

The Enoch Cree Nation is separated from Edmonton by 215th Street.

The band plans to build the Enoch Cree Entertainment Complex, a multi-use entertainment facility on 20 hectares hugging the southwest corner of 215th Street and 79th Avenue. The project is ambitious: a 10-storey hotel and a smaller one, conference center, two ice arenas, two soccer fields, golf course, spa, fitness center and retail outlets. If construction starts in 2003, the facility could open in 2004.

The casino proposal is making its way through the early stages of the process held by the Alberta Gaming and Liquor Commission to evaluate licensing applications for native casinos.

But some residents of Lewis Estates and The Grange are already bracing themselves.

City politicians and officials are adding up the expenses associated with the project, such as improving roads in the area and extra policing. Edmonton will be forced to pay these costs, they say, without seeing any tax revenues or benefit for city charities in return.

Residents say no other casino in the Edmonton area will sit so close to people’s homes, and they had no warning when they bought their houses years ago that a casino might locate nearby.

Curtis Treen has lived in Lewis Estates for five years. Now he’s talking to his family about moving. He’ll live about half a kilometer from the proposed complex and says 12,000 more people are projected to use the area’s existing roads if the casino goes ahead, doubling the current number using the two-lane 79th Avenue, for instance.

But more than congested roads, some residents worry openly the casino will attract crime to their peaceful streets.

“You get people coming off the site all throughout the day and night, losing their way and going off into the neighborhood, finding their way to the corner 7-Eleven and going off into the neighborhood,” Treen said.

“That’s how crime has a potential of spreading.”

Residents say they don’t mind a casino development at Enoch, but want it to be at one of two alternative sites near Highway 60, farther from the city.

There are two casinos already in the city’s west end, opponents say. At The Palace casino, at West Edmonton Mall, spokesman Howard Worrell said market demand won’t support another casino in the Edmonton area.

There are four in the city and one in St. Albert. Another one will siphon money away from the 180 charities that use his casino, Worrell said.

Coun. Karen Leibovici, who represents the west-end area, said the city expects to get stuck with the costs of increased policing and emergency services, and improving city roads to handle increased traffic.

“The reality is that we get no revenue back and we will have to provide extra services because of the huge development that’s being proposed,” she says.

Unlike developments in the city, council can do little to alleviate the anxieties of west Edmontonians through zoning controls and development limits, she says.

The onus is on the federal government and the Alberta Gaming and Liquor Commission to seriously consider the pressures a casino development will have on the environment, the city and its residents, Leibovici says.

The provincial and federal governments need to do a better job of listening to Edmontonians’ concerns, she says.

Ottawa has waffled on providing an environmental assessment of the project, she says, and the provincial gaming commission won’t even formally listen to the City of Edmonton’s concerns since Enoch is considered the casino’s host community.

Today at council’s executive committee, councilors are expected to debate sending letters detailing the city’s concerns about the development to the provincial minister of gaming, the gaming commission and the Department of Indian and Northern Affairs Canada.

Treen and Doroshuk say the city should use its bargaining chip: the ongoing discussions between Enoch and the city on developing an agreement for providing services such as water.

The Enoch project “has a lot of negative inputs to the city of Edmonton to taxes and crime, but they’re expected to enter into an agreement to provide services,” Treen said.

“We feel there should be some leverage the city has to enter into an agreement but under some of their terms.”
bmah@thejournal.southam.ca



 
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