Native American Casinos Archives

Connecticut Tribes Band Together In New Push For Expanded Gambling

By Kevin Horridge, www.casino.org

Mohegan Sun and Foxwoods are teaming up in an effort to convince Connecticut to allow for expanded gambling. (Image: MoheganSun.com)

Expanded gambling in Connecticut was supposed to be dead a month ago. But the proposal seems more alive than ever, as both Mohegan Sun and Foxwoods have been lobbying hard to get the state legislature to at least consider the measure as a way to combat the new casinos that are being built in neighboring Massachusetts.

It’s unclear what the Mohegans and Mashantucket Pequots, the two tribes that operate the Native American casinos in Connecticut, would ask for or be able to get from state lawmakers.

It could be something as extensive as a brand new casino in northern part of the state that would attempt to convince state residents not to travel to Massachusetts once casinos are built there, or it could be a more modest proposal to add slot machines to off-track betting locations.

Officials, Lawmakers Speak Vaguely of Gambling Expansion

“We’re talking about ways to preserve jobs,” said Mashantucket Pequot chairman Rodney Butler, though he did not specify exactly what he or the tribe were planning. Butler and Mohegan Tribal Gaming Authority chairman Kevin Brown traveled together last Wednesday to meet with Democratic leaders in Connecticut’s Senate.

“I view them as a major employer in our state,” said Senate Majority Leader Bob Duff (D-Norwalk), who a month ago declared their efforts dead but admitted to meeting with the tribal leaders last week. Like others, Duff provided few details on exactly what anyone was proposing.

Despite the lack of concrete proposals being floated publically, there are signs that at least some officials plan to help the tribes battle against increasing competition in the region.

“The gaming industry never goes away,” said State Representative Stephen Dargan (D-West Haven), who says the Public Safety and Security Committee that he chairs is likely to approve some kind of gambling expansion bill by a March 19 deadline. “It’s always an interesting topic.”

The sudden increase in chatter around the casino industry comes after last Wednesday’s release of the Northeastern Casino Gaming Research Project’s latest update. According to the group’s most recent report, Foxwoods and Mohegan Sun has seen both their revenues and their employment rolls shrink by more than 35 percent since 2006, when the casinos were at their peaks. The combined revenue for the two casinos was just $1.9 billion last year, down from $3.2 billion in 2006.

Governor Acknowledges Issue, But Isn’t Taking Sides

Even Governor Dannel Malloy was willing to talk about the possibility of expanded gambling in his state, though he was careful not to take a position on the issue.

“This is not my proposal,” Malloy said to reporters while at the Mohegan Sun casino. “Other people are making it. I’m not saying no, I’m not saying yet.”

Malloy also acknowledged that the tribes are likely to need to do something once the MGM Springfield casino opens, which is expected to happen in 2017.

“Whether it’s nuclear or not, obviously gaming is becoming ubiquitous,” Malloy said. “And so when you have a state on your northern border that is going to have at least six establishments, that’s an issue. When Rhode Island improves their facilities, that’s an issue. I think the tribal nations have said, ‘Hey, we think this is a way to handle that.’”

Seminole Tribe Negotiating Compact with Florida Governor Rick Scott

By Steve Larson, Legal US Poker Sites

According to several news sources, the Seminole Tribe of Florida is nearing a completed deal on a new gaming compact with Florida Governor Rick Scott. A source close to the negotiations says a special session in May might be called for the legislature to consider a new compact with the tribe. A spokesman for the tribe gave a “no comment” when asked about the story.

Despite the rumors of a pending deal, several groups among Florida lawmakers might be slow to provide support for any deal the governor signs with the Seminole Tribe. Election year politics, social conservatism, and traditional gaming interests could stand in the way of a new compact. Against those considerations stand a possible billion-dollar windfall for the state.

2010 Seminole Compact Was Worth $1 Billion

The State of Florida and the Seminole Tribe signed a deal in 2010 with some parts set to expire in 2015. The 2010 compact guaranteed in excess of $1 billion for the state government, but bound the state’s hands in bringing in new casino developments. Some Florida lawmakers would like to see the current deal expire, so integrated resort casinos could be placed in Miami-Dade and Broward counties. These politicians believe the South Florida casinos would combine with established gaming to provide far larger revenues.

Early in 2014, several Florida legislators proposed a comprehensive gambling bill which would have spurred such competition with the tribe. House Speak Will Weatherford asked Rick Scott to renegoiatite the compact with the Seminole Tribe before proceeding with the bill. Speaker Weatherford wants a constitutional amendment placed before the electorate which requires any future gambling expansions to be approved by Florida voters. Many lawmakers have balked at such a plan, because in a divided state, such a move could squelch any gaming expansion and therefore could hurt competition by removing realistic options.

Will Weatherford Saying the House Cannot Be “Leveraged”

Any new legislation would come to the governor’s desk when the state’s $75 billion budget will be ready to be signed. Because Rick Scott has a line-item veto ower, he could eliminate individual spending items which legislators might add to the bill. This would give the governor bargaining power, but might not assure approval of a new Seminole gaming compact.

When addressing that issue, Will Weatherford said, “I don’t see the Florida House being leveraged into anything. We have been very good to the governor this year.”

Opposition Could Prove Stubborn

Several groups may be opposed to a new deal, at least under certain conditions. The Westport News speculates some lawmakers will not approve a new deal, if the legislature does not promise to help the state’s horse tracks and dog tracks.

Democrats have indicated they might not vote for the compact, if they are sidestepped in the negotiations. While Republicans are the majority party in Florida, the GOP voting bloc is not solid on the gambling issue. Some Republican politicians have been unwilling to vote on gaming compacts in the past, fearing they would be condoning gambling or expanding social ills.

Democrats Have “No Motivation to Ratify”

If that is the case this year, then Democrats will have a key role in whether a new compact is voted up or ndown. House Democratic Leader Perry Thurston said, “Quite frankly, we don’t have any motivation just to ratify what the governor does.”

In a mid-term election year, the minority party often is loathe to provide a sitting governor with any legislative victories to trumpet. In such conditions, the gambling compact might face stiffer-than-normal opposition.

Florida’s Tribal gaming industry is among the strongest in the nation. Florida is behind only California, Washington, and Oklahoma in gambling revenues for the Native American Tribes. The Indian casinos in Florida collected $2.2 billion in 2012 alone.

Report: South Dakota American Indian casino revenue rose 14 percent in 2012

By CARSON WALKER Associated Press

SIOUX FALLS, South Dakota — South Dakota’s Native American-owned casinos had among the fastest revenue growth nationwide in 2012, according to a report that also found spending nationally at tribal casinos slowed that year.

Revenue at the 13 Indian gambling facilities operated by nine tribes in the state rose about 14 percent in 2012, to $124 million, said Casino City’s Indian Gaming Industry Report.

The increase is likely due largely to a state law change that took effect July 1, 2012, that gave Deadwood and Indian casinos the option of raising maximum bet limits from $100 to $1,000, said Larry Eliason, executive director of the South Dakota Gaming Commission.

However, not all tribal casinos increased bet limits that much and any small increase can result in a large percentage change, he said.

“Whenever you’re dealing with percentages, we’ve got a pretty low base number, so it doesn’t take a lot to make a high percentage,” Eliason said.

Weston Quinn, chief financial officer and acting CEO of the Sisseton-Wahpeton Oyate Tribe, said the tribe’s casinos in Watertown, Sisseton and Hankinson, North Dakota, had a great year because of the mild winter. All three are in rural areas, so the nice weather allowed elderly clients to get out, he said.

The tribe opted not to increase bet limits because it would have had to add pit bosses and other staff to look closely for cheaters, Quinn said.

“You have to watch people more closely,” he said. “With larger bets, you may bring in clientele you may not necessarily want.”

The tribe has started the process of roughly doubling the size of the gambling floor at its Hankinson casino, Quinn said.

Casino City’s report found that spending by gamblers slowed at U.S. Indian casinos in 2012 and the revenue growth of 8 percent fell behind nontribal casinos for the first time in 18 years.

The 13 Indian gambling operations in South Dakota offered slot machines, electronic bingo machines, blackjack, poker, off-track betting and bingo in 2012. Revenue on the 2,629 slot machines rose about 7 percent from the year before, but revenue from the 64 table games fell by roughly the same amount, the report said.

Besides the bet limit change, the report noted the Flandreau Santee Sioux Tribe’s plans to renovate its Royal River Casino and Hotel in Flandreau and add more machines. The tribe also has proposed a casino resort in Sioux Falls.

Seth Pearman, attorney for the Santee Sioux, said in an email the tribe has also added other ways to draw people, including a pheasant hunting operation called “Rooster River.”

“Although the Royal River Casino has had substantial competition from out-of-state casinos, it has remained consistent in the past year,” Pearman wrote.