Election 2008: Indian gaming and the candidates

While some presidential candidates embrace the growth of the casino industry, others are concerned about the social implications.

By TEDDYE SNELL

TAHLEQUAH DAILY PRESS — The tribal gaming industry has grown exponentially in the past few years, but not all 2008 presidential candidates are supportive.

According to a recent article in the Los Angeles Times, Sen. Barack Obama, D-Ill., has concerns about the "moral and social cost" gaming has on smaller communities. As a state senator in his home state, Obama sometimes opposed plans to expand gambling, worrying that it could be harmful to residents of low-income communities.

On the other hand, Sen. Hillary Clinton, D-N.Y., embraces the gaming industry, and has supported her state's efforts to lure new casinos to economically struggling communities outside New York City.

The Cherokee Nation Enterprises operates a number of both gaming and non-gaming entities, providing slightly more than $100 million annually to tribe's economy. While Obama may have concerns, Cherokee Nation Communications Director Mike Miller indicated the tribe's experience to date has been positive.

"We have seen that legal gaming is a positive economic force in local communities," said Miller. "For instance, in Catoosa [location of one CN casino, hotel and resort], sales tax collections for the entire city have doubled since before our expansion in 2004. Since all profits at Cherokee Nation-owned businesses stay in our communities, either through job creation or providing services to Cherokees, we know that gaming has been beneficial to the communities where we have invested."

Dianne Barker-Harrold, attorney and former legal counsel for the United Keetoowah Band of Cherokee Indians in Oklahoma, indicated gaming has taken center stage of a variety of controversies over the past few years, for as many reasons.

"The federal Indian Gaming Regulatory Act was passed in 1988, which was designed to 'protect' tribes from predatory gaming businesses and vendors and dishonest individuals, along with providing guidelines for how gaming proceeds are used by the tribes," said Barker-Harrold. "The act created the National Indian Gaming Commission to provide oversight."

Barker-Harrold said as the proceeds in Indian gaming grows to "astonishing levels," the federal fight to regulate has become intense.

"The U.S. Department of Justice, the NIGC, and the Indian gaming arm of the Bureau of Indian Affairs are all involved in a 'discussion' about whose responsibility it is to determine trust land issues, whose job it is to regulate gaming, whose job it is to create, draft and impose regulations, and who creates the definitions for the regulations to impose," she said. "It has become very complicated."

As complicated as it may seem, Miller indicated there is no current legislation pending, federal or otherwise, that could endanger the tribe's gaming industry; therefore, candidates' stance on the issue would have relatively little effect, if any.

"Cherokee Nation has a gaming compact with the state that has met with federal approval," said Miller.

Barker-Harrold agreed, saying presidents rarely interfered with the day-to-day operations of tribal governments.

"But a president does make decisions that have a huge impact, from who heads up the National Indian Gaming Commission, who the Secretary of Interior is, and who they name as the U.S. attorney general, not to mention selecting Supreme Court justices, who could potentially rule on cases affecting the sovereignty of Indian tribes. In addition, a president can shape and influence policy created in Congress that affects every Native American and Alaskan Native in this country. Therefore it is important that presidential candidates, Republican and Democrat, clearly understand the issues facing Native Americans."

While some might believe the revenue generated by tribal gaming only aids in creating wealthy tribal members, Barker-Harrold, who works as a consulting almost exclusively in Indian Country, said many tribes still depend on the federal government for many services.

"I have traveled to large tribes and small tribes," she said. "I have seen flourishing tribes and tribes who are barely making it. A good number of tribes have casinos, but many do not. There is not a tribe that I am aware of that would rather not have to be dependent on the federal government for money for certain services. However the reality of the situation is that, while gaming provides revenue, it is not a cure-all for financial woes. Just like any other business, the gross proceeds include the amount taken in on gaming machines and table games. However a huge percentage is required to be returned to the player in payouts, sometimes in huge sums, but most are paid out in small sums throughout a 24-hour day, and a certain percentage of those same proceeds are paid back to the gaming vendor who leases the machines to the casino."

Barker-Harrold also indicated building upkeep, utilities, payroll and fringe benefits, as well as all other overhead costs must be paid from gross receipts. Tribes use the net proceeds to support the various programs they provide for tribal members.

Overall, Barker-Harrold believes tribal gaming is a positive.

"While gaming receives mixed reviews for many reasons - hurts lower-income families, religious groups do not support gambling, etc. - the positive attitudes of a tribal casino are that, in an area such as ours, the casino provides jobs. Increased revenue for the area means more dollars spent locally for gas, groceries, clothing and recreation," she said. "Casinos bring travelers and tourists to the area, and provide a draw to complement our other area tourist attractions, such as the lakes and the river. Tribes are involved in the Tahlequah Tourism Council, and support the Chamber of Commerce, and provide assistance to local charities. While tribes receive road money from the BIA, they also use their own money to enhance those funds, and those road projects benefit everyone."

While gaming may be a hot-button, emotional issue with candidates, Barker-Harrold would like to see them focus more on the overall issues facing tribal nations. She indicated none of the current Democratic front-runners attended a debate hosted at a California tribal reservation last summer, the "Prez on the Rez" debates, for democratic presidential candidates.

"So, being for or against Indian gaming is not really the issue for presidential candidates, as much as being informed about all the issues in Indian Country, which include strengthening tribal sovereignty, bolstering business in Indian Country, housing healthcare, poverty levels, children, education, elders and crime," she said. "The real question for me is what is their stance on all of these issues, and are they informed about the real issues facing Indian Country?"

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