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Gambling commission clears way for more tribal gaming

Saturday, February 10, 2007 12:08 AM PST

By Associated Press

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OLYMPIA -- The state Gambling Commission on Friday endorsed a casino compact with the Spokane Indian tribe, a deal that will clear the way for expansion of tribal gambling across Washington.

Gov. Chris Gregoire and the federal government are expected to approve the pact, which will allow the Spokanes to operate up to five casinos, with up to 4,700 video gambling machines and higher wagers allowed at some tables.

In the name of equity, the state will allow similar expansion for other tribes, commission members and the governor's office said after the 6-3 vote on the Spokane compact.

"Within a month, we will move to amend the other tribes' compacts, providing largely the same features as the Spokane agreement," said Tom Fitzsimmons, the governor's chief of staff and an expert on tribal relations.

Statewide, the number of gambling machines at tribal casinos could rise from 18,225 to about 25,000, including the Spokane machines and modest increases at the other locations, he said. Most tribes will be held to their current two-casino maximum, he said.

The deal will be ready for the commission's March 9 meeting, he said. Ratification of the Spokane pact by the U.S. Interior Department could take a year, he said.

The statewide approach "harmonizes" the compacts and sets fairly uniform treatment of tribal gambling, including the number of machines and casinos and the bet limits, Fitzsimmons said.

Critics complained about expansion of gambling, addiction to gambling and other social problems, and the lack of revenue-sharing with the state.

The Spokanes are the last tribe in Washington operating without a compact with the state. Twenty tribes operate 25 casinos, generating $1.2 billion a year in revenue.

The tribe operates two casinos, one at Chewelah and the other at the confluence of the Columbia and Spokane rivers. The tribe wants to build a $67 million casino-hotel near Spokane.

Several GOP lawmakers urged Gregoire to reject the compact, but she indicated she'll sign it.

"It is no secret that I don't like gambling," the governor said. "Federal law requires states to negotiate with tribes in good faith or face a lawsuit that would risk further expansion by placing the decision with the federal courts.

"I have made my priorities clear to the Gambling Commission: We should limit the number of additional machines, not increase the number of casinos, not introduce new terms of play, and not allow for off-reservation casinos."

Sen. Margarita Prentice, D-Renton, a frequent critic of overall gambling, said an "explosion" of gambling already is under way in the state and can't be halted, because tribes are merely asserting their legal rights to operate casinos to keep their tribes afloat, she said.

Prentice, who represents Senate Democrats on the Gambling Commission, voted in favor of the Spokane pact, saying it represents progress in the long and rocky history between the state and tribe.

The Spokanes have operated casinos without a compact, in defiance of the law, with disputes sometimes spilling over into court. The state and tribe have been in talks for nearly two decades, a bit of history noted by a long line of tribal elders who spoke in favor of the deal Friday.

The courts have ruled against both the state and the tribe, which has operated slot machines in defiance of state regulations. The 9th U.S. Circuit Court of Appeals ruled in 1998 that the state hadn't bargained in good faith with the tribe and talks resumed. Last year, Gregoire rejected a plan to allow 7,500 gambling machines, in exchange for a cut of the revenue.

The new pact rolls that back to no more than 4,700 machines, with a cap of 1,500 in the first three years of the deal.

The deal doesn't allow video slot machines and does not require revenue-sharing, other than local impact contributions and support for anti-smoking programs.

The 136-page compact was approved after commissioners heard a strong endorsement from the staff and from the tribe and its supporters.

Commission Executive Director Rick Day called it "hopefully the end of a long journey and the start of a new history."

The Spokane tribe in northeast Washington has 2,441 members and increasingly relies on casino income to provide jobs, health care, education and social services, said tribal Chairman Richard Sherwood, 31.

Tribal leaders embraced the pact, but indicated they weren't happy with some of their concessions.

"It has been disappointing and frustrating to have gone through so much negotiation to get here, but we believe we have heard the concerns of the state in developing the compact before you," said Gerald Nicodemus, tribal secretary.

"It's a step forward," Sherwood said after the vote. "We've been waiting a long time for this. It's a good day for the Spokane tribe and a good day for the state."

The only audience member opposed was worried about the spread of gambling and whether the tribe is adequately offsetting the social costs of gambling.

Commissioner Janice Niemi, a former lawmaker and judge, said she was happy the Spokanes get their compact and will be operating legally and profitably, but voted against the plan because it doesn't provide revenue-sharing. Washington is the only state with tribal gambling that doesn't share in profits, she said.


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On the Net:


Commission: http://www.wsgc.wa.gov


Tribe: http://www.spokanetribe.com

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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