Sovereignty or Casino? – Tribes Will Have To Choose

The state of Massachusetts has for years been looking at allowing Indian casinos to operate in the state. Last year Mass. residents crossed the state line into Connecticut and spent upward of $800 million at the Foxwoods and Mohegan Sun casinos according to the Center for Policy Analysis at the University of Massachusetts at Dartmouth. Over $100 million of that amount went directly into the Connecticut treasury.

Back in Sept,Gov. Deval Patrick announced a proposal to allow three resort-style casinos in Massachusetts. The revenues, he said, would help the commonwealth pay for road and bridge repair, and provide property tax relief to homeowners. If the Legislature approves the plan, the casinos would be built in the metropolitan Boston region and in western and southeastern Massachusetts. Officials said they were expected to generate $400 million in annual revenue for the state and create 20,000 permanent jobs by 2012.

“Casino gambling is neither a cure-all or the end of civilization,” Mr. Patrick said at a news conference. “On balance, however, and under certain conditions, I believe resort casinos can and will work well in and for the commonwealth.”

Note that the Governor used the word “resort” instead of “Indian”. This is why.

Patrick yesterday unveiled his legislation, which would auction licenses to open three resort casinos in different parts of the state.

The title of the proposed bill is "AN ACT ESTABLISHING AND REGULATING RESORT CASINOS IN MASSACHUSETTS."

On page 45 the bill says, "No casino license shall issue to an applicant who is a federally recognized Native American tribe located in the Commonwealth or an applicant who is partnered with a federally recognized Native American tribe located in the Commonwealth unless the Native American tribe has entered into a contractual agreement with the Commonwealth in which the Native American tribe agrees to waive any and all of its rights under the Indian Gaming Regulatory Act, 25 U.S.C sections 2701 et seq., and be subject to the civil and criminal laws, statutes, ordinances, and jurisdiction of the Commonwealth with respect to all activities relating to the development and operation of the resort casino and the applicable rules and regulations prescribed by the authority."

This language basically strips away any sovereignty a tribe has if they wish to compete and win the right to open a casino in Mass.

The final paragraph of the governor's letter introducing his bill to the "honorable Senate and House of Representatives" summarizes the promise he sees in the bill:

"Addressing the needs of the regional economies throughout the Commonwealth, this bill takes a critical step toward expanding economic development and job creation. Along with the Life Science Initiative, the Readiness Project and the Administration's five year capital plan, the construction and operation of up to three casinos will help create more than 100,000 new jobs by 2010 and secure the Commonwealth's position as a leader in the global economy. Accordingly, I urge your early and favorable consideration of this bill."

Here are a few other highlights of the bill:
A bidder for a casino license will pay a non-refundable fee of $350,000 to cover the cost of reviewing the application.

Successful bidders will be required to "invest" at least $1 billion in to the resort casino. This figure will not include the cost of land acquisition, which must be completed within 60 days of the license being granted.

20% of this investment must be cash.
A one-time license fee of "at least" $200 million will be paid by successful bidders $100 million or 27% of "all gross gaming revenues" (whichever is greater) per year of the license.

The licensee shall obtain the approval of the proposed host community by means of a binding referendum.

The proposed casino projects may not be located in "any area of critical environmental concern pursuant to section 2 of chapter 21A."

Each casino resort must demonstrate its ability to provide 5,000 permanent jobs within the first five years of operation.

Casino operators will pay 2.5% of all gross gaming revenues to the Commonwealth to combat addictive gambling.

Each casino will be required to host state lottery and Keno games .

So, adding it all up means that a bidder for a casino resort license in Massachusetts will need at least $435 million in cash plus access to at least another $800 million in investment or loan money, a large piece of dry ground somewhere outside a city, the approval of the voters of the host town(s) and the blessing of the Commonwealth of Massachusetts. Each license will be renewable every ten years.

Overseeing the casinos will be two new bodies. The Massachusetts Gaming Control Authority will have five members appointed by the governor plus the state Treasurer and the state Auditor. A twelve-member advisory committee will be made up of the state secretaries of Human Services, Administration and Finance, Housing and Economic Development, Public Safety and Security or their designees; three appointees of the governor, one representing organized labor, one who will be expert in gaming addiction and one police chief; two appointees selected by the Senate and two by the House of representatives.

Source:
http://www.capecodtoday.com/blogs/index.php/report/2007/10/11/tribe_must_choose_casino_pr_sovereignty