Posted on 08/22/2004 9:42:03 AM PDT by NormsRevenge
The law of unintended consequences has produced a stampede of Indian casinos across California. And the collateral damage caused by this profitable business is causing many proponents of Indian gaming to have second thoughts.
When Gov. Gray Davis urged voter approval of a ballot proposition on Indian gaming four years ago, he spoke of a "modest expansion." The explosion of casinos since then has been incredible. And the revised compacts between Gov. Arnold Schwarzenegger and five more tribes – including San Diego County's tiny Ewiiaapaayp band, with its seven members – promises to raise the gaming stakes even higher.
Should an unprecedented joint venture materialize between the Ewiiaapaayp and the Viejas bands, it could become one of the nation's most profitable gambling centers. Plans are for a new casino, with as many as 2,500 slot machines, to operate in conjunction with a similar number of slots on the Viejas reservation. Viejas just got the green light from the federal government to add to its 2,000 slots, which are very much in demand on weekends.
Union-Tribune reporter Chet Barfield reports that nobody knows for sure how many slots eventually will be in play there, because neither band has a limit on the number of machines. But Ewiiaapaayp Vice Chairman Michael Garcia came straight to the point when he said: "The state wants a lot of money."
Dollar signs are clearly the driving force when it comes to the profusion of gaming casinos.
Davis cut generous deals with the tribes, in return for which he was showered with large contributions from them. Lawmakers are no less eager to do the tribes' bidding, because casino-owning tribes have become the state's top political contributor. Even though the tribes spent mightily to try to defeat Schwarzenegger during last October's recall election, both sides now have reached an accommodation.
The governor is pressing them to pay their "fair share" of taxes. In June, he persuaded five tribes to pay at least 10 percent of their profits to the state, in exchange for an unlimited number of slots. That deal was projected to raise about $200 million per year for the state. The new pacts, which Schwarz-enegger is expected to sign tomorrow, are estimated to generate another $200 million.
Sacramento now runs the risk of getting hooked on gaming revenues, particularly when state government shows no signs of embracing the fiscal discipline to live within its means. Schwarzenegger says he is making the most of a difficult fiscal situation that he inherited by maximizing revenues wherever possible. If that means tapping into gaming revenues, then so be it, in his view.
Daniel Kolkey, who negotiated the compacts on behalf of Schwarzenegger, contends that while the proposed Ewiiaapaayp-Viejas gaming complex could become a mega moneymaker, the tribes will proceed cautiously in ramping up their casino operations. Then again, the law of unintended consequences has a way of rendering such predictions meaningless.
I just got back from a trip to Montana where legallized gambling is quite widespread. California ought to do the same and see how the natives like it.
Could you please clarify your statement? Are you saying California should legalize all gambling, and let the Indians compete with other interests?
Yep. Legalize gambling, tax it and no special favors for anyone, native American or Native American.
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