California
Seventeen thousand new slot machines are on their way to California after voters ratified new compacts for the Agua Caliente Band of Cahuilla Indians, Morongo Band of Mission Indians, Pechanga Band of Luiseño Indians and the Sycuan Band of the Kumeyaay Nation. With the majority in all but 16 counties supporting the tribes in the early February vote, the matter is closed; the No on Unfair Gaming Deals coalition that spearheaded the efforts to overturn the deals does not plan to appeal the results. As of CEM’s press time, the Agua Caliente and Morongo had plans to install 800 new slot machines by the end of February, while the Pechanga plan to re-configure as many as 1,400 Class II machines into Class III.
The Buena Vista Rancheria of Me-Wuk Indians has reached an agreement with Amador County officials regarding a package of mitigations for off-reservation impacts of a proposed gaming facility on tribal lands near Ione, Calif.
The Buena Vista Tribe had released its final Tribal Environmental Impact Report in May 2007, seeking to address county residents’ concerns over off-reservation impacts of the proposed gaming facility. “The agreement presented before tribal and county leaders is the result of months of hard work by both sides. The people of Amador County will have an opportunity to see that we have listened to their concerns and have made every effort to address them,” said John Tang, CEO of the Buena Vista Rancheria. “It has been a long and productive process between tribe and county staff, and it is our hope that this agreement is viewed as a reflection of goodwill from the tribe.”
Nationwide
The National Indian Gaming Commission (NIGC) recently released an economic impact study in connection with its proposed Class II gaming regulations, which aim to more clearly distinguish the “electronic and technological aids” tribes may use to offer Class II Bingo and similar games from Class III casino gaming equipment, such as slot machines or “electronic facsimiles of games of chance.” The study was prepared by Dr. Alan Meister of the Analysis Group.
The economic impact study finds that the proposal will cause a total nationwide loss of approximately $1.2 billion in gaming revenue, the mid-point in a range of $575.9 million to $1.8 billion. Discounting revenue generated by equipment that may actually qualify as Class III gaming cuts the loss by more than half, to $481.9 million, the mid-point in a range from $235.5 million to $728.6 million. The study notes as well that the $347.9 million in compliance costs is spread over a five-year grandfather period.
“Even though the Indian Gaming industry generates over $26 billion annually,” NIGC Chair Phil Hogen observed, “these are significant impacts, and of course not all gaming tribes will be impacted evenly.”
The commission is concerned that much of the equipment now used to electronically connect Bingo players may actually qualify as Class III gaming and be unlawful.
“If we adopt these proposed regulations or something similar,” Hogen said, “a lot of the equipment some tribes have placed on their Class II gaming floors today won’t meet the new requirements, and compliant replacement equipment will likely be somewhat less lucrative. Thus, there will be some considerable short-run cost associated with these regulatory steps. However in the long run, stability will be brought to this important area, and the industry will be better served by our clearly informing tribes what they can legally invest in and operate, what banks will be willing to finance, and what the designers and manufacturers of these games can provide.”
Hogen went on to explain that in the commission’s proposal, it has recognized these challenges and provides for a five-year grandfather provision that would permit the continued use of non-conforming equipment during that period. In addition, grandfathered equipment is freely transferable to other Tribal Gaming operations.
The comment period for the proposed regulations was recently extended to March 9. As of CEM’s press time, the NIGC’s Tribal Advisory Committees were scheduled to meet with the commission again on Feb. 29 to review comments and further advise the commission.
To view a copy of the economic impact study, visit www.nigc.gov.
Oklahoma
The Shawnee Tribe has filed formal papers with the Bureau of Indian Affairs, beginning the process of putting 104 acres of land in northeast Oklahoma City into federal trust for the development of a high-quality destination entertainment resort.
Initial analyses by experts including Applied Economics, a national economic consulting firm that works closely with the Greater Oklahoma City Chamber of Commerce, show the project would have a $354 million annual positive economic impact on Oklahoma City. It would draw approximately 2.4 million visitors per year and create nearly 1,900 permanent jobs with an annual payroll, including benefits, of more than $58 million. The resort will also have a major impact on Oklahoma City-area businesses, with millions of dollars in purchases of local goods and services annually.