California Gaming News

Charitable Bingo Still Under Fire – Tribes Threaten To Withhold Revenue Sharing

The ongoing dispute over charitable bingo and California’s gaming tribes may be resolved this week.

On Jan 1 of this year, a new law went into effect to ban electronic bingo games used by many charities. But due to a court injunction that stopped state and county authorities from shutting down the games, several bingo parlors in the state have continued operating the bingo machines, which according to the tribes, claim are slot machines under state law.

California tribal casino representatives warn that if the state won’t shut these bingo games down then they are at risk of losing tens of millions of dollars in tribal revenue-sharing payments.

The dispute may be resolved in two federal court hearings which begin today. The hearings will see bingo parlors and charity groups facing off against state regulators and a bingo machine manufacturer. The tribes are not involved in the litigation but are paying very close attention and say their patience is wearing thin.

The tribes say the electronic bingo games violate their exclusive rights to Nevada-style

Charity groups and bingo halls argue that the Jan 1 law violates the Americans with Disabilities Act because some people with disabilities have difficulty playing the game on paper cards.

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Yuba County Supervisors Consider Support of New Casino

Yuba County Supervisors will vote today on whether or not to send a letter to the BIA stating their support for a proposed Enterprise Rancheria casino near Olivehurst. Olivehurst is just north of Sacramento in the Yuba City / Marysville area.

The letter would indicate that the county believes that the proposed casino would not be detrimental to surrounding areas, and that the casino would bring 3,500 jobs to the region. That figure includes 1,933 permanent jobs, which would provide about $32 million annually in payroll and benefits.

The letter would meet a required response to a federal inquiry in January of what the proposed casino's effects would be on the surrounding areas and will be used to help determine whether the tribe gets the okay to move ahead.

A few Supervisors are at odds on whether the casino would be a positive or negative considering the current dismal state of our economy.

Supervisor John Nicoletti said "In the local economy, discretionary dollars are a pie that local businesses share in. In my view, the money being spent at the casino will shrink the pie that other businesses will share."

He also noted that since Indian casinos were built in Oroville and Roseville, both cities have seen less spending and economic development in their downtowns.

Another supervisor, Mary Jane Griego, said she supports the casino because it provides jobs at a time when Yuba County people strongly need them. Of unemployment she said, “I've never seen it like this. There is such a benefit to this project."

The casino wouldn't hurt area businesses, she said, because casinos cater more to busloads of people from outside the area that stop at several casinos in one trip.

She said local businesses would be building and supplying the casino, and that a memorandum of understanding between the casino and Yuba County stipulates preferential treatment in hiring locals for casino jobs.

The casino would also have facilities that could bring conventions and other events to the area, she said.

"To me, it's about jobs and economic development," she said. "People are going to gamble. I'd rather they come here and keep the dollars in our area."

The letter, if voted for, will also note that the tribe has a 2002 memorandum of understanding with Yuba County over the casino, and that the city of Marysville, whose mayor also supports the project, will receive a direct payment of $4.8 million over 15 years if the casino is built.

Supervisor Nicoletti is still concerned about the effect on local businesses. He said Yuba County will also receive a direct payment, but he'd be concerned about the county getting that money while local businesses were negatively affected by the casino.

Interestingly, an advisory vote back in November of 2005 resulted in 51 percent of Yuba County voters opposing the building of the Enterprise Rancheria casino.

Assemblyman Dan Logue, R-Linda, who was a Yuba County supervisor at the timed, worked to defeat the measure. He said that result should be honored.

"Casinos do not create wealth, they just move it around," Logue said. "It would be disingenuous to back this plan when the people of Yuba County have spoken against it."

Yuba County made note of those results in their proposed letter. Supervisor Griego said that if the measure went before voters today it would have a majority of support, given the economic climate.

Supervisor Roger Abe, whose district opposed the casino, said he feels he should follow the wishes of his constituents.

"I think when the voters expressed their opinion, they were aware of the potential jobs, and that's shown in how close it was," he said. "But I think overall, they saw more negatives than positives."

Gov. Arnold Schwarzenegger, in his office's response to the Bureau of Indian Affairs request letter, has said he's opposed to the casino.

Both he and the federal government would have to sign off on the project for it to happen.