Page 17 - February 2004 • Southern California Gaming Guide

Tribal Gaming Builds Strong Nations by Rob Schmidt
To California’s Indians, tribal gaming means many things. It means building sovereign governments to control their own destiny. It means relying on their own e orts without outside interference. It means preserving their languages and cultures so their way of life continues.
has the maximum 2,000 slot machines. Only those 12 tribes do enough business to warrant discussing an increase in the number of machines allowed. e rest see no point in renegotiating.
e governor’s o ce has oated the idea of gaming tribes paying an additional $500 million to the state. Several leaders at the conference said that gure is a good starting point, something they can work with. If the most successful tribes could operate another 20,000 slots, said Lombardi, they might generate enough revenue to pay what Schwarzenegger wants.
In return, the tribes might seek compact extensions, hinted Lombardi—either through negotiations or a ballot initiative. For planning purposes, an agreement that ends in 20 years isn’t su cient, he said. Tribes are
“very interested in not having the clock running.” Schwarzenegger has appointed Daniel Kolkey to negotiate with the Indians. Kolkey, who originally worked for Gov. Pete Wilson, negotiated the infamous Pala compact in 1998. Nevertheless, the tribes are
looking forward to working with Kolkey, said Miranda, who emphasized the need for a respectful dialog.
Slot Machines Everywhere?
e other danger is the proposed gaming initiative, which would expand slot machines throughout California unless the tribes gave 25% of their income to the state. Noting that it would bene t exactly 11 card clubs and ve racetracks, Miranda said the initiative should be labeled the“Gambling Deception Act of 2004.” Some law enforcement agencies have already come out against the proposed initiative because of the troubles it would spark.
If the card clubs and racetracks take on the tribes, said Richard Milanovich, chairman of the Agua Caliente Band of Cahuilla Indians, they’ll experience
“frustration levels at stage orange.” Lombardi said the initiative could face legal challenges if it passes because it covers several subjects. Also, it could nullify the concessions the tribes have made to the state, freeing the Indians to do whatever they want.
But Milanovich and Lombardi admitted the initiative could hurt their business. ey’re eager to avoid it, they indicated. If Schwarzenegger can help them squelch it, they sound as if they’re ready to deal.
Lombardi said he hasn’t seen the tribes so united since the days of Propositions 5 and 1A. ey’re beginning to develop strategies for renegotiating the compacts and opposing the initiative. ey may establish an all-tribes coalition for these tasks.
Some tribes have drifted away from the cause and even quit the gaming association, thinking it no longer necessary. Miranda asked the conference attendees to recommit themselves to their previous level of unity.
“Together,” he said,“we can ensure a bright and secure future for coming generations.”
At the ninth annual conference of the California Nations Indian Gaming Association (cniga), held January 13-15 in Palm Springs, cniga chairman
Anthony Miranda a rmed that gaming is working.“ e state of our tribal nations is strong,” he said in his keynote speech. “We stride the land with renewed con dence, knowing that our future is in our hands.”
But tribal sovereignty and gaming are under attack — by pandering politicians, uninformed citizens’ groups, and the rightward-leaning media.“We’re in modern warfare,” said Anthony Pico, chairman of the Viejas Band of Kumeyaay Indians, at the conference.“Make no mistake about it.”
In his speech, Miranda, a member of the Pechanga Band of Luiseño Indians, outlined three “inalienable truths” for his people. One, that tribal nations are sovereign entities. Two, that Indian gaming is an expression of tribal sovereignty. ree, that tribal and other governments can engage only in government-to-government relations.
Tribal casinos aren’t business enterprises like card clubs or racetracks, noted Miranda. ey’re government programs akin to state lotteries. When Congress passed the Indian Gaming Regulatory Act in 1988, it intended tribal gaming to be a tool: A means to help the poorest
Americans join the economic mainstream.
at’s why proponents use the phrase“tribal government
gaming” to describe Indian gaming to distinguish it from commercial forms of gaming.
Unprecedented Economic Growth
Miranda extolled the bene ts of California’s tribal gaming, which he called a $4 billion industry. If Arnold Schwarzenegger’s goal is “jobs, jobs, jobs,” he suggested, the governor should be the tribes’ biggest backer. In July 2003, tribal governments employed more than 41,200, up 17.8% from a year earlier. at compares to a statewide job growth of 0.7% during that period, reports the California Employment Development Dept.
Tribal governments are the fastest growing employment sector in the state, the only one producing a double-digit increase in jobs. And non-Indians hold more than 90% of these jobs. Moreover, Indian casinos boost employment in the surrounding communities.“It is estimated that for every job created directly by Indian gaming,” said Miranda, “three more are created by local businesses providing goods and services” for these casinos.
California tribal gaming generates more than $400 million in federal, state, and local taxes. Gaming tribes contribute $120 million to aid the state’s non-gaming tribes, mitigate their casinos’ infrastructure impacts, and combat problem gambling. ey donate tens of millions of dollars to local services and programs —“an
expression of the traditional compassion of Native Americans,”asMirandaputit.
“ e people of California understand that this is really about people,” said Miranda of Indian gaming. But he called for a public education program to dispel “untruths, h a l f - t r u t h s , a n d u n i n f o r m e d o p i n i o n .” M i c h a e l L o m b a r d i , a consultant and spokesman for the Augustine Band of Mission Indians, seconded the notion, saying tribes have a good story to tell.
SOUTHERN CALIFORNIA GAMING GUIDE
BREAKING NEWS
JANUARY 22: Led by Chairman Richard Milanovich, the Agua Caliente Band of Cahuilla Indians proposed a new ballot initiative. It would permit tribes to offer all casino games, such as craps and roulette, and an unlimited number of slot machines for a term of 99 years. In exchange, the tribes would pay 8.84%—the California corporate tax rate—of their gaming profits to the state as long as they retained their monopoly on Vegas-style gaming.
JANUARY 23: Seven California gaming tribes were the first to begin formal discussions with Gov. Schwarzenegger’s negotiator, Daniel Kolkey. The tribes include the Pala Band of Mission Indians, the Viejas Band of the Kumeyaay Nation, and the Pauma Band of Mission Indians of San Diego County, the Morongo Band of Mission Indians near Palm Springs, the Lytton Band of Pomo Indians in the Bay Area, the Rumsey Band of Wintun Indians in Yolo County, and the United Auburn Indian Community near Sacramento.
The “Fair Share” Fallacy
If California’s tribal casinos are doing so well, then what’s the problem? Miranda identi ed two dangers: Gov. Schwarzenegger’s bid for a “fair share” of Indian gaming revenue, and a proposed initiative to permit slot machines in card clubs and racetracks.
When Schwarzenegger ran for governor, he misled the public with his“fair share” arguments. e real arguments are simple. Governments don’t tax other governments. Under federal law, states can’t tax tribes for the right to conduct gaming. California hasn’t helped balance tribal budgets, so why should tribes help balance California’s budget?
So far, some 60 of the state’s tribes have signed 20-year gaming compacts. No more than a dozen of these tribes
February 2004 Page 17
Southern California Tribes in the News