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Pawlenty's gambling proposal gets little support in Northland
INDIAN GAMBLING
Northland lawmakers are leery about infringing on American Indian gambling in Minnesota, either by allowing slot machines at horse racing tracks or the establishment of a full-blown private casino operated by Las Vegas-based managers.
Gov. Tim Pawlenty wants Minnesota's 11 tribes to give the state a greater cut of their profits -- $350 million a year, according to one proposal -- in exchange for laws that guarantee them a monopoly on gambling. Without that payment, the governor and some lawmakers are threatening to enact legislation allowing competition with the tribes.
"There's not a real ground-swell of public support for this kind of extortive behavior," said Rep. Bill Hilty, DFL-Finlayson.
American Indian casinos at Hinckley and Carlton sit within Hilty's House District 8A, and he supports what tribes have done with their gambling revenue, although he generally opposes an expansion of games.
Facing another huge state budget deficit, Pawlenty and state Republicans are desperate for cash, Hilty said. He believes it's no coincidence that the sum Pawlenty seeks from the tribes is exactly half of the state's projected $700 million budget shortfall, minus inflation.
"This whole thing was offered cynically in the first place," Hilty said. "It's so they can say this would have solved half the problem right there without any regard to whether its realistic or not."
Even if a deal is struck with the tribes or an alternative gambling operation is authorized, revenue wouldn't start flowing into state coffers for a few years, Hilty said.
Sen. Tom Bakk, DFL-Cook, believes the gambling proposal is one way for Pawlenty to collect the money he needs to create a lasting legacy. Bakk suspects the revenue, whether from American Indian tribes or casinos operated by other entities, will be earmarked for education finance -- which Pawlenty and other lawmakers, both Democratic and Republican, have promised to increase.
Gambling proposals from the governor's office continue to evolve. In recent weeks, Pawlenty has backed away from insisting the tribes pay $350 million, suggesting the figure could be $100 million or less. But he says it should be similar, on a percentage basis, to what tribes pay in other states.
The governor has also said he's not asking to get something for nothing. Beyond legislating a gambling monopoly into state law for the tribes, Pawlenty is offering them control of an additional off-reservation casino and the possibility to add different betting games such as roulette. Pawlenty said his proposal creates positive results for the tribes and the state.
"I think it would be a win for them and a win for us," he said. "It takes the issue off the table for the indefinite future, they don't have to spend gobs of money on lobbyists and public relation firms and campaign contributions. Everybody's life would be easier and better."
The governor also said the agreement would have to be mutually agreed upon and beneficial to the tribes to be legal.
"It can't be a tax. Don't let people tell you, quote-unquote, all we are going to do is tax the Indians. That's a reflection of ignorance of the federal law. Federal law prohibits people from taxing tribal communities for these purposes."
Without a gambling agreement, Pawlenty will ask lawmakers to open Minnesota's doors to other gambling possibilities.
"If they say 'Forget it, we can't reach resolution,' or they don't want to talk to us, then we've got to consider other options," Pawlenty said.
INSUFFICIENT SUPPORT
Still, it remains uncertain whether those options can gain the political support proponents need in St. Paul. Numerous lawmakers on both sides of the aisle said they won't support an expansion of casino gambling.
Bakk has said he may support the proposed "Racino," which would allow slot machines at the Canterbury Park horse track near Shakopee, but only if the state runs the operation.
Meanwhile, Sen. David Tomassoni, DFL-Chisholm, has proposed legislation that would allow taverns to install a limited number of slot machines. Earnings would be split between bar owners, the state, charities and American Indians.
But other lawmakers say that benefits generated by Indian gambling extend far beyond tribal members. In the Northland, casino jobs also are filled by nontribal members, and in Duluth, a portion of Fond-du-Luth Casino revenue is routed into a special fund that is used for city projects.
"I wouldn't be opposed if the tribes wanted to share some of their revenue," said Sen. Yvonne Prettner Solon, DFL-Duluth. A member of the Senate's Agricultural, Veterans Affairs and Gaming Committee, which has oversight over gambling proposals, Prettner Solon says she would support expanding gambling, although she believes more attention must be paid to problems that gambling creates for some people.
Tribes provide jobs, educational benefits and health care for their members and others, Prettner Solon stressed.
"While there are problems, I think the tribes here have done a wonderful job with the industry," she said. For the state to edge in on them now just doesn't seem right, she added.
"The system is working for the tribes, and what's working for the tribes works for Minnesota," Prettner Solon said.
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Scott Thistle
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Monday, 3 January 2005 |
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Thursday, July 29 2010 
