Froma Harrop: Casinos Take Money From States

Odds are that voter-approved casinos in Ohio will be a drain — not a plug — on the local economy

By | Published on 11.15.2009

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In Las Vegas, home prices have dropped 55 percent since peaking in August 2006, and the foreclosure rate is seven times the national average. Gigantic new condo towers sit nearly empty (real-estate pros call them “see-through buildings”), and unemployment tops 13 percent. The recession has sent casino revenues plunging 20 percent from two years ago.

Froma Harrop
Froma Harrop

“Up until the ‘90s, we never suffered with the downturn of the economy,” said William Thompson, a University of Nevada-Las Vegas professor and an expert on the casino business.

The sad plight of Sin City is a morality tale for other municipalities seeking economic salvation through gambling. And it is against this dark vision that Ohio voters just approved casinos in their state.

Thompson thinks that the money will again roll into Las Vegas as the economy improves. But the prospects are not as bright for nonresort cities without a large tourism infrastructure — and never were.

“Half the gamblers have to be from outside the state for it to work” as economic development, Thompson says. The only people who will definitely make money are the casino operators.

Ohio’s decision to put casinos in Cincinnati, Cleveland, Columbus and Toledo is largely a response to the gaming palaces in Michigan to the north, Indiana to the west and Pennsylvania to the east. (Kentucky to the south still doesn’t have casinos.)

What’s going to happen, Thompson predicts, is that about 10 percent of Ohio’s casino revenues will reflect gamblers returning home from the surrounding states. But the presence of casinos near population centers will simply mint new gamblers, and that will be a drain on the economy.

Compulsive gamblers steal, lose jobs, have debts and go on welfare. The economic rule of thumb on problem gamblers is as follows: A casino within 50 miles of a community doubles the rate of compulsive gambling, and those troubled individuals exact a social cost of about $10,000 each.

About 90 percent of Ohio’s population soon will be within 50 miles of a casino. If Ohio follows the expected pattern, the four gaming halls will create 80,000 more compulsive gamblers, siphoning about $800 million a year from the economy.

For gambling to become an economic engine, you have to bring money from elsewhere. In Las Vegas, out-of-state tourists account for nearly 90 percent of the gamblers. The visitors come for the big-time entertainment, shopping and mild winter weather, as well as for the games.

Oddly, casino expansion in other states can help the Nevada economy. The slot machines, for example, are made in Las Vegas and Reno. Ohio casinos will probably buy 20,000 slot machines at $15,000 each. That comes to $300 million being sent to Nevada.

After riverboat casinos opened in Joliet, Ill., local businesses were asked how they were affected. Half said they lost revenues. Only two gained, and one was a travel agency that found itself booking many more trips to Las Vegas for the new gamblers. The other business bought used cars for cash.

Thompson predicts that as Ohio builds its gambling establishments, casinos in neighboring states will prepare themselves for the increased competition. They may improve customer service and up the payout rate on their slot machines. (Outside of Nevada, the slots give back 92 cents to 94 cents on the dollar. Vegas is the most liberal, at 97 cents.)

In all, the odds of casinos in wanna-be “sin cities” filling state budget holes are not great. The desperation in recession-racked regions is understandable, but the reality is this: If large numbers of high rollers aren’t jetting in, casinos tend to take more from local economies than they give.

Froma Harrop is an independent voice on politics, economics and culture, and blogs on RealClearPolitics.com. She is also a member of the editorial board at The Providence (R.I.) Journal. Click here to contact her at Creators.com.

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» wrote on 11.16.09 @ 08:48 AM

The writer neglects to point out that the vast majority of new gambling casinos being built and operated all over the country are by Indian “tribes” many of which are not real Indian tribes at all, some so called “tribes” with as few as one or two members. (California now has 60 casinos with another 20 or so being proposed, so far!)

These “Indian” casinos are the product of an ill concieved federal law giving “Indian tribes” the exclusive right to own an operate gambling casinos in states that do not allow casino gambling, like California. Wealthy non-Indian gambling investors find ersatz “Indian” bands or tribes most often comprised of a handful of people with some claim (maybe) to a fractional descent from a real Indian decades ago (if there is any ancestry at all).

These so called “tribes” obtain land near large urban markets, which land, until recently, could be easily trasferred into federal Indian trust status in order to build a casino. Fee to trust transfers are made by the Bureau of Indian Affairs and the Department of Interior.  (both these federal agencies are dominated by “Indians”, or most often part Indians and wanna-be Indians all because of a federal mandatory hiring law)

These casino ventures are then pitched to local communities as a done deal under federal law, and unless the local community gives it’s approval the developers threaten to give them nothing from the anticip[ated and lucrative spoils of the gambling casino when it is built.

They make these threats because Indian casinos and any related “Indian” business venture cannot be taxed by state and local authorities. Therefor states and local economies will get no properety tax, sales tax, bed tax, state and local income taxes, corporate tax, personal property taxes and other revenues needed to pay for the added public services and infrastructure they must provide to these “Indian” casinos and businesses.

To add to this ironic foolishness, these “Indian” casinos and businesses can operate without complying with the hundreds of state and local laws enacted to protect customers who are injured, cheated, harassed, discriminated against, etc.  Also all the laws that were enacted to protect workers from injury, discrimination, exploitation, wrongful termination, etc. Even the laws enacted to protect the environment and quality of life in every community.

Besides being immune from most laws no federal or state agency effectively polices these “Indian” casinos so they are essentially a lawless no-man’s land where there are no legal rights at all. A court created (common law) doctrine gives “Indian” casinos and other businesses immunity from all lawsuits, so they, their employees, agents and officers cannot be sued for damages no matter how outrageous their conduct is.

Lastly gambling casinos create a host of social problems like increased crime, bankruptcy and credit problems, divorce and family neglect, gambling addictions, increased drug and alcohol abuse, traffic, polution, even suicides.

The writer is correct that these casinos do nothing but suck money from the local economy and from people living within an hour or two drive of the casino.  The relatively few low paying jobs created after the construction is completed, do not generate anywhere near enough money to cover the added costs to the community in demands for services and infrastructure that governments are required to provide to them without the ability to impose taxes to pay for them.

Agreements made with “Indian” tribes to pay something to defer these costs are notoriously ineffective because the tribes cannot be sued, and waivers of immunity are like a sieve with a million ways to evade them. Then there is overarching fact that local governments must use tax monies to sue “tribes” and their businesses to enforce such agreements while the tribe has a fat war chest filled with the millions of dollars amassed from the losses of gamblers, most of whom cannot afford to lose that money in the first place!

In addition these “tribes” refuse to allow any inspectioin of the books or other means to verify any income based payments to be made in lieu of the taxes they don’t pay or to verify any so called expenses incurred before calculating net revenue. Similarly they refuse to allow inspections of the gambling devices and games, even the kitchen and food processing to insure sanitary conditions exist.

So beyond the valid points this writer makes in her article, that is, that gambling casinos do virtually nothing to help state and particularly local economies, “Indian” casinos create a lawless, untaxable legal and social cancer in every community in which they are located.  So before turning to any form of gambling to solve budget problems, state and local governments better understrand the differences between the kind of highly regulated casinos, like those found in Las Vegas and lawless, unpoliced and legally immune “Indian” casinos!

» wrote on 11.16.09 @ 11:16 AM

JAX, you have put a lot of time into learning about the way our casinos work in California, and clearly describe the ways they negatively impact our economy, and I totally agree with you about the social impacts gambling brings. Along with you I finished reading Harrop’s article wondering where were the references to Native American casinos. I’m curious, however. You claim or imply that some casinos are operated by phony tribes or ones with only one or two members. Can you cite your evidence for these claims? Also, where can we find evidence of Native American casinos reneging on the agreements they make with the local community?
Locally I know that many people are upset with the traffic created by the Chumash casino, but overall my impression is they have been decent neighbors to the Santa Ynez community, notwithstanding the negative social effects of gambling in general. Maybe I’m wrong about that because I don’t live over there.

» wrote on 11.16.09 @ 03:27 PM

One good starting point would be to read the two Time Magazine stories published in December 2002 concerning Indian casinos. In the article the writer describes MaryAnn Martin, a woman of mixed ancestry, who was the only member of the Augustine Band of Cahuilla Indians.  There were two others, her brothers, who were both shot and killed in a drive by shooting in an apparent drug deal gone bad.

As THE tribe she recieved 0ver 480,000 in federal grant and welfare funds over a two year period for “tribal housing”, “tribal economic development”, “tribal government” and until she partnered with a Las Vegas Corporation to build a casino near Palm Springs, she also recieved 1.1 million dollars a year from the state held, revenue sharing trust fund, paid into by other casino gambling tribes and distributed annually to tribes without any casino or operating one with less than 300 slot machines.

Another California example would be the so called Buena Vista Band of Me-Wuk Indians, a “tribe” carved out of whole cloth so to speak, by DonnaMarie Potts, an enrolled member of the Maidu tribe of Indians who was never a Me-Wuk or a resident of the former Rancheria known as Buena Vista. She is trying to build a casino on ineligible fee lands at Buena Vista California just outside of Sacramento with the backing of a New York based Shopping center magnate named Wilmot.

Then there is the Valley Miwoks, a tribe of three until recently when the two enrolled female members kicked the male member (Yakima Charlie) out of the tribe.  The three were dividing up the 1.1 million a year from the revenue sharing trust fund for non-casino tribes along with about $400,000 in federal grant and welfare monies each year. I guess the two “ladies” weren’t satisfied with the split so they disenrolled Yakima Charlie.  They too are seeking a gambling casino.

Then there is the Ione Band of Miwok Indians.  A splinter group (Franklin group) that broke away from the 40 person main tribal entity ( the historic Villa group) to form another group and began enrolling lots of new “members”, many who were employees of the Sacramento (Pacific Region) offices of the BIA. 

This was done because the splinter group wanted to build a casino at Plymouth, California and the historic tribe did not. Once the splinter group packed the enrollment they seized power and have been trying to build a gambling casino at Plymouth, California ever since.

There are many more of these former Rancheria Indian descendants (or “Indian claimants”) seeking to build casinos mostly on lands that are not eligible for casinos but their non-Indian investors and lobbyists have been paying off politicians and bureaucrats to “grease the wheels” and pave the way given the lucrative profits to be had from a gambling casino.

Probably the grandaddy of all the scams, if you are really interested in what a corrupt morass this “Indian” gambling is, you should read Jeff Benedict’s book “Without Reservation”. It chronicles how Chip Hayward, an afro-American man parlayed a claim to be a 1/34th descendant of a Pequote woman (who turned out to actually be a Naragansette Indian) into the Billion dollar a year Foxwood casino, one of the largest in the world, located at Ledyard, Connecticut, and being operated by the now greatly expanded “tribe” called the Mashantucket Pequotes.

The Chumash in Santa Ynez are a hodge podge of different ethnicities some of whom do have a fractional connection to real Chumash Indians, many who don’t.  They were given the land on which they now have the casino by the Catholic Church in 1934 and those who considered themselves descendants of the Indians who lived near the Mission well prior to that time, migrated there to live. There are no living members of the original five families who were the “Mission Indians” of Santa Ynez.

The land is not a reservation and is not in held in federal Indian trust and is therefor inelligible for the class III gambling being offered there now.

This group actually began operating an illegal casino in 1995 when they moved in 800 slot machines and began operating them along with blackjack and other class III gambling games.  They successfuly operated this illegal casino until 1998 when state and federal authorities finally and seriously threatened to arrest them, seize all the equipment and monies etc. This illegal casino was being operated along with the several other illegal casinos around California who were also illegally offering class III gambling games.

Having exhausted a number of frivolous law suits delaying closure, they (all the gambling and wanna-be gambling “Indians”) circulated an initiative called proposition 5 which was placed on the November 1998 ballot.

Gray Davis was also on that ballot as a candidate for Governor.  The illegal casino tribes gave him over $8,000,000 million dollars for his campaign and spent many more millions promoting prop. 5 depicting poor barefoot Indians standing by ramshackle sheds and hovels who needed casinos for jobs. When that initiative passed these casino and wanna-be casino tribes (59 in all) secretly negotiated the current tribal-state compacts with governor Davis in order to open and operate Las Vegas style casinos without paying taxes and without obeying state laws or other requirements that could have and should have been imposed by the compact terms.

In August 1999 the California Supreme Court ruled Prop. 5 was unconstitutional because it only amended the State’s Government Code and the prohibition against casino gambling was in Art. 4 section 19 of the State Constitution.  Undaunted, governor Davis executed the 59 compacts without any Constitutional authority and had the democratically controlled Legislature approve them. Members and politicians who had been taking, (and still take) huge political contributions from these “Indian” casino tribes were only too happpy to go along with this scandalous deal!

To solve the illegality of these 1999 compacts the Legislature placed a Legislative initiative on the March 2000 ballot called prop. 1A which amended the Constitution to authorize the governor to negotiate tribal-state class III gambling cmpacts with Indian tribes in the future. Prop. 1A never informed the voters that they were, in effect, ratifying the give-away sweetheart compacts already signed by the governor back in October 1999 and approved by the Legislature.

Through this political manuevering all of the main power forces in the state and the will of the people were subverted.  Local governments, law enforcement agencies, womens groups, the Sierra Club and other environmental groups, the consumer protection groups, unions, workers’ compenasation attorneys, taxpayer organizations, etc. etc. were all excluded from the tribal compact process and had no input regarding the terms.
That is why we have the ridiculous give-away, sweetheart compacts in place today.

Ironically very few of these “Indians” work in the casinos that were supposed to provide “jobs for tribal members” and stop welfare dependancy. I think in the case of the 152 member Santa Ynez Chumash there are only two (2) members who work there.  The rest of the enrolled members simply cash their $45,000 a month per capita profit checks (i.e. $500,000 dollars a year) payed for by the losses of the casino gamblers, most of whom cannot afford to lose that money!

In addition the tribe still recieves over $2,000,000 a year in federal welfare and grant monies, EVERY YEAR. They pays no state income taxes, sales taxes, property taxes, corporate taxes, bed taxes personal property taxes or any other taxes that are needed to pay for the huge demands they and their casino and businesses place on public services and infrastrucure which they use regularly and which are payed for by the non-Indian taxpayers of this community.

The list is endless but I will leave you with the Oneida tribe of New York who bought some land and tried to declare it to be “sovereign Indian lands”. They then built the Turning Stone casino offering class III gambling (slot machines, Craps, blackjack, roulette, etc.) In order to have class III gambling under the Indian Gaming and Regulatory Act the tribal casino must be on Indian lands as defined in the IGRA.

The City of Sherrill New York, being cheated out of tax monies for the services and infrastructure costs by the Oneidas, took the case to the U.S. Supreme Court. That court held the land WAS NOT Indian lands and thus was not elligible for any class III gambling activities.  In addition the New York Supreme Court declared the purported tribal-state compact was illegal because it was never approved by the legislature as required by state law state and which legality is required by the IGRA, 25 USC 2710 d (3).

The bottom line is, that no one has done anything about this illegal casino at Turning Stone because no state or federal agency has the guts to enforce the laws and tribes, such as the Oneida routinely thumb there collective noses at the applicable laws.  Picking up on this void, the Florida Seminoles have recently begun operating illegal class III gambling games figuring that if the New York Oneida can get away with running illegal games, they can do it too.

Space constrains me from giving you much more information as you requested here concerning the numerous negative impacts of Indian casinos on host communities and the rampant corruption in “Indian” gambling casinos! The most recent case of breach of an agreement is the Oregon town of Florence suing the Three Rivers Casino for failing to pay for sewer and other services provded under the existing MOU.  There are many other breaches of agreements by tribal governments such as the Nebraska case of Vision Church Builders versus The Omaha tribe of Nebraska or the recent Washington case of the Marshal Bank of Minn. versus the Nooksack tribe of Demming Wa.

» wrote on 11.16.09 @ 06:02 PM

JAX, Thank you for the meticulous research and easily understood presentation of your considerably well-informed opinion.  Your grasp of the subject is awesome!  Guess this is the worm turning.  Too bad these modern day bandits reached the lucrative top by standing on the bodies of their ancestors who, I would imagine, be more than happy to give the raspberry to the descendants of their “oppressors.”  There is a collective guilt syndrome in our politically correct civilization that annoys me to no end, but, then, I’m in the minority on this one.

» wrote on 11.16.09 @ 06:32 PM

I thought the rules say no discriminatory language? How did the moderator approve the racist post of “JAX”?

» wrote on 11.16.09 @ 08:28 PM

... where’s the racism?

» wrote on 11.17.09 @ 08:01 AM

In our small community in eastern San Diego County, we have 3 large tribal casinos. All have been very good neighbors. They’ve provided thousands and thousands of well-paying jobs with benefits. I know many business owners who thrive by being being vendors for at least one of the casinos. We wouldn’t even have Little League at all if not for the support from one of the tribes. We wouldn’t have some of the excellent restaurants and shopping in our area if not for their developments. Overall, I have to say they’ve been great for our economy and area in general. We go there from time to time to play the slots a bit…but also for concerts and dinner. And shopping (my wife loves the shops). And there doesn’t seem to be the anti-Indian bias or resentment that I read in this article and, especially, the online posts. I was one of the voters who voted for the propositions legalizing indian casinos. Voters approved it and, no, they were not stupid or ill-informed. In exchange for billions to the state, the tribes have created economic engines for themselves, local communities and the state overall. Seems like its been working OK ... at least from our perspective in this area, where we have the 3 local indian casinos. There are several more in our county, but I haven’t been to them.

» wrote on 11.17.09 @ 09:10 AM

Steve;

  There have been no billions paid to the state not even millions.  The Gray Davis 1999 compacts gave NOTHING to the state while increasing the costs of public services and infrastructure greatly particualrly to the local communities that suffer the many negative impacts and costs. Not just the direct monetary costs but also the “social costs” of increased crime, family neglect and divorce, gambling addictions, substance abuses and financial problems, traffic, polution and even increases in suicides.

It is common knowledge amongst law enforcement in this county that the Chumash casino is a haven for drug users and dealers called “tweakers”. On deputy Sheriff made 36 arrests in and around the Chumash casino in only 6 weeks time, for numerous drug violations, mostly “meth”!

The little league field you speak of was paid for mostly by the losses of gamblers, many of whom are likely gambling addicts or cannot afford to lose that money. Eighty five percent [85 %] of casino revenue is from slot machine play. In the case of Indian casinos, unlike Nevada, those slot machines are uninspected and unregulated. Of that 85 percent of slot machine revenue, 15 % or more is from gambling addicts. If it wasn’t from those losses it could easily be from the welfare and grant money these gambling tribes still collect from the federal government even though they are making millions in profits via gambling losses.  They still collect this welfare and grant money even though there are thousands of real Indians living on remote reservations living in abject poverty.

Most recently governor Schwarzenegger granted 4 tribes increased numbers of slot machines in exchange for real payments of MONEY to the state that he professed would help the budget. (remeber the state and local government get NoOTHING under the 1999 Gray Davis give-away compacts and these tribal casinos and businesses pay NO TAXES). These tribes have since reneged on those deals and either refused to take on the extra machines, thus avboiding paying the promised money to the state or simply “cancelled the deal”.

Where did you get the idea that these casino tribes pay anything significant to the state? Even the small amount of money they pay into a fund for local communities to offset or miotigate some public costs because of the casinos, is being reduced and eliminated. One of the foolish terms of these 4 new ( 1999 amended) compacts is that the governor agreed to the elimination of even this token amount of needed monies in the mitigation fund.

That mitigation fund was put under the control of casino tribes in local communities to dole out small amounts as discretionary “grants” requiring the local government to come hat in hand for grant money for the public services and infrastructure the taxpaying public provides like police, fire, EMT’s, schools, hospitals, roads, public works, social services, hospitals etc. etc. which are funded by the many taxes non-Indians pay and which Indian tribes and their businesses rfefuse to pay.

Good neighbors, you say?  The biggest contributor to the corruption in Sacramento today are the Indian gambling casinos who just happen to be the biggest contributors to politicians’ campaign funds.

Jim Battin, the state senator from the area you were near was a major pipeline to Sacramento politicians funneling casino money through PAC’s like “The Friends of Jim Battin fund”. Even when he got into trouble with the California Fair Political Practices Commission over juggling these campaign funds he set up a fund called The Defense of Jim Batting Fund to defend himself. Guess who contributed to that fund? Indian casinos, who else! This despite the fact that paying off politicians is not one of the legal ways any Indian tribe can spend revenue from gambling. See 25 U.S.C. 2710 (b) (2) (B)

Also not far from the area you mentioned is the frequent gun battles between the Riverside County Sheriffs and the Soboba tribe and resulting homocides.  Or a little further away at the San Manuel casino where drug trafficking and money laundering is rampant and ties to the Mexican Mafia are evident. One prominent tribal official was convicted last year in a murder for hire plot. The Soboba tribal chairman was just recently indicted for embezzlement and theft of casino and tribal funds.

Lastly those well paying jobs you mention are non-existant except for the tribal higharchy.  The amount of money that trickles into the local community from casino jobs is not nearly enough to even cover the added costs to public services and infrastructure used, let alone make up for the millions drained from the local economy by gambling losses.

I am curious to know how you define a “good neighbor”?

» wrote on 11.17.09 @ 03:32 PM

In 2004-2005 Seminole Tribe billed FEMA for 2.5 million for hurricane expenses. 2.5 million so their tribal members could stay at the Hard Rock and drink alcohol and eat expensive steak dinners while the hurricane passed. They even billed FEMA for valet services! When Hurrican Frances hit Florida, the tribe billed FEMA for $12,000.00, the cost of moving their helicopters and airplane. They made 1.1 BILLION in revenue that year so it’s not like they couldnt afford to pay for their own alcohol, pay per view movies, and valet parking. This took money away from the tax paying citizens that were homeless and living in shelters after losing everything they had to a hurricane.

» wrote on 11.17.09 @ 04:49 PM

and——  Marcy

That same Seminole tribe purchased the Hardrock Cafe and casino chain for over 900 million dollars last year. Pity these poor Indians who, by the way, live in gated mansions in Florida with gardeners, chauffers and servants.  Don’t you think they should still be entitled to collect even more millions in federal welfare and grant money too? If anyone dares say anything about it they are accused of being anti-Indian and racist, or at the least insensitive to events that occurred two or three hundred years ago! If they are politicians they certainly won’t recieve those mega buck contributions and the many perks offered up to those who play ball with the tribal government!

This same Florida Seminole tribe just decided to start offering “black jack” and other games illegal under Florida law in defiance of that state’s laws. (Just like the Oneida have been doing for the last four or five years at Turning Stone casino).  The tribe claimed they could offer these illegal games because they were immune from state law, were “sovereign” governements and were exclusively controlled by federal law. ( Isn’t that some kind of non-sequiture to be dependent upon the United States on the one hand but a completely sovereign entity
separqate from the United Sates)

In a glaring example of the proverbial “catch 22” phenomena, George Skibine, director of Indian gaming at BIA and recently retired Chairman Phillip Hogen of the National Indian Gaming Commission (NIGC) both offered up this gem of an analysis concerning these issues arising when there is illegal Indian casinos.

“All class III Indian gambling is only authorized for Indian tribes by and under the auspices of the National Indian Gaming and Regulatory Act (IGRA) 25 USC 2710 d.  “Our” (NIGC and BIA) authority to take any action against Indian tribes and casinos stems from the IGRA.
  If an Indian tribe is operating an illegal casino or offering illegal or uncompacted games not under, or sanctioned by the Act, then we have no authority or jurisdiction to take any action at all.  That is because our power and authority to take any action stems from the Act itself and if they are operating outside of the Act we have no enfocement powers to do anything at all”.

(Believe me, you could’nt make these kinds of absurd and inane things up) They go on to say:

Therefor, if any Indian tribe is operating a gambling casino or illegall forms of class III gambling not under the authority of the IGRA, then it is up to the state to take action under the anti-gambling laws in place in that particular state”!

The states of course, duck and dodge and pass the buck to the same federal agencies (BIA/DOI/NIGC) and the result is, as I said before, NO ONE does anything about these blatantly illegal acts and illegal gambling operations. The lame excuses offered up by many of the corrupt New York politicians for example, were that “it could cost people jobs if we shut down the illegal casino at Turning Stone”.  Now that’s fine reasoning isn’t it!!

For the same kind of reasons the New York tribes, like the Akwasasne & Mohawk illegaly sell millions of dollars worth of black market cigarettes, cheating the state out of millions in needed tax monies. Whenever the state threatens to crack down the tribes threaten violence and play the “race card”

These tribes even smuggle cigarettes and other contraband into the United States through the common reservation border with Canada along and across the St. Lawrence River, usually by night, to distribute it throughout New York and other states thus evading their state taxes and regulations and often violating their drug laws! Despite years of this blatantly illegal activity, the State has done virtually nothing to put a stop to it!

» wrote on 11.17.09 @ 08:47 PM

The racism is obvious in his use of quotes around the work Indian implying somehow that they are not Native Americans. Ditto with his comments about “Chip Hayward” (I think he means Skip Hayward). I like how he makes up numbers out of thin air and posts them as fact with nothing to back it up. A lot of it sounds like the garbage Steve Wynn and Donald Trump were peddling back when they wanted the State of Conn. to let them open casinos in Hartford. “They don’t look like Indians to me.” Maybe JAX is The Donald or Steve Wynn.

» wrote on 11.17.09 @ 11:59 PM

Danny K, Since when has facts mattered to native americans? They make it up as they go along. They have no recorded history and rely on story telling. That’s exactly what it is too….nothing but stories.

» wrote on 11.18.09 @ 08:23 AM

DannyK;

You immediately choose to play the race card when confronted with ugly facts you and your biased outlook do not want to hear.

The use of the quotes around the word “Indian” is because there is no definition of what an Indian is.  In many cases, particularly in California, these so called “Indians” are persons of various ethnic backrounds who then claim to have an ancestor that makes them a fractional descendant, like the 1/34th Indian heritage of Skip Hayward and his “Mashantucket Pequote tribe” in Connecticut.

The use of some other fractional connection to an “Indian” or tribal entity has become a major scam. [You should put down your “racist rant” and read Jeff Benedict’s book “Without Reservation” for some insight as to how this game is played for gambling profits)

Let me ask you this DannyK, if you are 1/2 German, 1/4 Quarter Irish, 1/8th Mexican and 1/8th Commanche, are you an “Indian” ???

You are likely one of those people that do not want to ask questions like that for fear of being “politically incorrect” and offending someone even when that person or group is using “Indian” to scam their way into a gambling casino or to evade the laws of the land, or pay the taxes everyone else has to pay.

Despite what you may have heard in some college class or from some pro-“Indian” activist, the fact is, under current federal Indian policy, an “Indian” is whoever the tribe or band says is an “Indian” and a tribe is whoever the Bureaucrats at the “Indian” dominated Bureau of Indian Affairs, say is tribe, a band or community of “Indians” in a process they call “acknowledgement” or recognition.  That is why we have “tribes” of one or two people who’s descendancy, (if there is any at all) from any real Indian is some kind of minute fraction or a product of mistake or even blatant corruption. (You should read the scathing 2006 U. S. Solicitor General’s investigative report concerning the Bureau of Indian Affairs and the Department of Interior!

Moreover, if you ever saw the kind of “record keeping” and census taking of Native American Indians undertaken by the federal government a hundred or so years ago, you would understand just how ridiculous these issue are. 

But then for decades these matters were never deemed very important to anyone because, other than federal welfare and grant money payments being made to Indians and Indian tribes, most people knew nothing about these issues or flatly did not care. It was only the advent of Indian casino gambling and the activities of non-Indian investors seeking to spread casino gambling far beyond Nevada and Atlantic City into every market in America, that have brought these kind of issues to the forefront.

I am sorry that you don’t want to hear the facts and want to dismiss them with either naive’ or calculated cries of “racism” in order to hide the truth or to be “politically correct”, but facts are facts !!!

» wrote on 11.18.09 @ 11:16 AM

Your percentages on Vegas slot machine payback of 97% are in error. The true number is closer to 90%. Your statement is off by such a large amount it brings into question your motives.

» wrote on 11.18.09 @ 11:24 AM

I wonder if Jax would be complaining if he was 1/8 Indian or if he would just be quietly collecting his checks.

» wrote on 11.18.09 @ 02:40 PM

Wayne;
I assume your comment concerning “payback” and suspected motives is aimed at the author of the article Ms. Harrop.  The fact is Indian casinos refuse to disclose their payback and refuse any unbiased inspection (or regulation of their slot machines) to determine the true random payback of any of their machines. 

At one point the Chumash casino had replaced their random operating chips with some having only a 60% payback setting. Nevada, which has stringent conditions on all gambling has a rule (14044) which mandates no slot machine can payback less than 75%. This is described as a fair rate of return. If you understand the psychology of slot machines however, all such “payback” numbers (usually expressed in percentage rather than cents as Ms. Harrop does in her article) are, never the less very misleading.

The psychology of slot machines is to pay back small sums of money (jackpots) fairly regularly to entice the player to keep playing, because these small “jackpots” stimulate sensory parts of the brain aroused or gratified by the feeling or sensation of “winning”. It is like the feeling one gets when they find a $20.00 bill on th3e ground.

This psychological principle is the same theory behind the widely touted “players club cards” offered by most casinos under a variety of names. Using these cards the gambling player is accruing points (wining something) even though they may be losing money badly.

The profits the casino makes are made over TIME, and through subtle deceptions. For example describing a machine as a quarter or $.25 cent machine when to win any significant “jackpot” you must almost always have to play 3 quarters, or at least two. In reality then it is a $.75 cent or $.50 cent machine, NOT a quarter machine.

To speed up play (remember time is money to the casino in slot play) most casinos employ machines that no longer take coins but rather one inserts bills into a slot which immediately racks up equivalent “credits”.  From the time one play occurs by pushing a play button, (a maximum three credit play for example by pushing the maximum credit button costing $.75 cents) until the time the three or more wheeels (or characters on the video screen) stop is about 6 seconds. Depending on the speed of play by the player a normal rate of loss at $.75 cents a play is about $6.00 dollars to $7.50 dollars a minute or what amounts to losses of $360.00 to $450.00 dollars an hour.

A machine with a chip that is randomly set to return (and this is RANDOM on an honest machine) say at a 95 percent return level, would, on average, return or pay the player back in this context, 94% of the $360.00 to $750.00 dollars an hour being lost so that at the end of a hour of play the player has lost on average of between $21.60 to $27.00 that hour.  Because this is a random process a player could win more and very often loses much more, depending upon the fall of the wheels or the fall of video characters.

The point to be made is that over more and more time the more likelyhood is that a player will lose more and more money not win, even at machines with higher pay outs in the 94% to 97 % range.  That is why these machines return on average, in a resonably busy casino, a profit or net drop of $180.00 to $300.00 dollars a day. (i.e. on the so called “quarter machine”)

I don’t know what Ms. Harrop’s motives could be in citing her statistics but it is quite clear what the the motives of every gambling casino is.  In the case of these secretive, lawless Indian casinos and their uninspected, unregulated slot machines, the opportunity to take advantage of slot machine players, particularly those addicts who play for hours and days every week, then it is easy to see how and why these gamblers go broke as they often do!

» wrote on 11.18.09 @ 03:59 PM

JAX is just upset that the US attempts at totally wiping Native Americans off the face of the earth weren’t successful. Fortunately, some with part Indian ancestry kept their tribes alive. That they are allowed to determine who is and isn’t an Indian upsets JAX as he would like white folks to be able to say who is and isn’t. As far as the Seminole casino being illegal, I suggest you look at the signed compact they negotiated with the governor and got approved. Federal law requires the state to negotiate in good faith. If they want to declare the Seminole casino illegal, it sounds like the State of Florida was not negotiating in good faith.

» wrote on 11.18.09 @ 08:10 PM

DannyK - every time you try to destroy JAX’s arguments he ends up destroying you! Dude, whatever your angle is (are you a “recipient” gambling profits?) you couldn’t debate your way out of a bucket.

To JAX: Thank you!!!!! Great stuff—and high time “someone” talked about it honestly. Just got back from a conference in Las Vegas and what a PIT. We certainly should NOT emulate that craven, depressing, desperate place in any way, shape or form—regulated or not. House payments, college educations and relationships were being gambled away… sad, sick, smoky and super depressing. Couldn’t wait to get home!

» wrote on 11.19.09 @ 05:29 AM

Danny,

    Don’t be late for your shift at Hard Rock! Quit hiding behind that invalid compact. We both know that is bs. Just because the tribe doesn’t get exactly what they want doesn’t mean that the state didn’t negotiate in god faith.

» wrote on 11.19.09 @ 08:34 AM

DannyK;

  I only get upset when people try to scam the system and thumb there nose at the law.  It is particularly agravating when the government and most people today are bending way over backwared to help Native Americans even though modern day Americans never did a bad thing to any real Native American Indian and all of those Native American Indians that were the victims of bad things a couple of centuries ago, or more, have long since left this earth.

More than 80 percent of Americans today have either migrated here or been born here since 1920 and never had anything to do with any injustices that may have been suffered by some real Native Indians in North America in centuries past!

  Even your wild assertions of the United States trying to wipe out all Indians is falacious and a popular propaganda spewed by those who continuosly seek to bash America.

The vast majority of Indians who have died since 1400 were not victims of the “genocide” people like you claim occurred, apparently in order to evoke feelings of guilt and sympathy by modern day Americans.  These native peoples were victims of deseases that were unknowingly brought to North America by explorers and traders, deseased which the Native peoples had no immunities from. These Native Indians were also and often the victims of crimes committed against them by OTHER INDIANS!

The most recent evidence is that the epidemics and pandemics that felled so many Native American Indians in the 15th, 16th and 17th centuries were actually introduced in North America long before the Pilgrims began ariving in the 17th century. Your inflamatory definition of “genocide” reflects your inability to discuss anything rationaly without resorting to childish name calling, inuendo and a rant that amounts to your own biased agenda.

In case you didn’t notice we were talking about “Indian” gambling casinos and why this lame attempt by Congress to help real Indians through the use of casino gambling has failed.

Reservation Indians have long ago isolated themselves from the mainstream American economic system, from having a modern and fair legal system and having a sensible form of government. It is this isolation that continues to relagate them to economic dependancy upon the United States Government. This perpetuation of the reservation system has been done under the guise of perpetuating a historic culture and ancient customs, unfortunately this ostensible purpose has been at the expemnse and detriment of the individuals who have often suffered the negative effects of such isolation.

Sustaining the “reservation system”, in this modern world has resulted in widespread poverty, unemployment, substance abuse, poor health care and the many evils that beset reservation Indians today.

The vast majority of real Indians have gained very little from the advent of Indian gambling because most of these Indian reservations are so far from any viable market of gamblers that they could not benefit much even if they built a casino.

That is the reason for the advent of what is now called called “reservation shopping” with tribes trying to make claims for land and build mega-casinos as near to lucrative, urban non-Indian gambling markets as possible.
This includes attempts by these tiny and often phony tribes, like we have in California, trying to reach out to bring casino gambling, sponsored by non-Indian investors, to so many communities all over California.

The point, which you choose not to see, is that the Indian Gaming and Regulatory Act of 1988 simply became a tool of non-Indian gambling investors, exploiting and even fostering willing and phony tribes made up of fractional and wanna-be “Indians”, to spread casino gambling all over America when it had been previously confined to Nevada, Atlantic City and off shore venues.

In as much as there is little benefit to any community to have a gambling casino stuck in it’s midst it is even worse when it comes with the exemption from most laws enacted for the public protection, an exemption from all the taxes needed to pay for the public services and infrastructure all casinos use regularly and then be cloaked with an absolute legal immunity from lawsuits for any misconduct no matter how outrageous it is. Any sensible person can see that is a recipe for inevitable disaster.

Such an Indian casino is a cancer that not only sucks millions from the local economies and from foolish gamblers losing money they cannot afford to lose in the name of “entertainment”, but such an Indian casino and businesses provide no legal protections to customers, workers and the community environmment and quality of life!

As far as the Seminole “tribal-compact” you referenced it was declared to be illegal by the Supreme Court of Florida in a law suit brought by the State Legislature because the governor did not have the legislative approval and authority as required by Florida law. Laws which the Seminole flaunt based on false claims of “sovereignty” and, like you, attempts to play the race card to silence any criticism of their illegal conduct!

» wrote on 11.19.09 @ 09:29 AM

I don’t understand why people don’t see this! Wake up, people!!It’s only going to get worse. Obama is already bending over for them

» wrote on 11.19.09 @ 10:23 AM

Members of the Miccosukee Tribe (with prior DUI’s) have killed several people while driving drunk and were never charged! The tribe won’t cooperate with any investigation, they refuse to turn over evidence. Several people have been murdered on Hard Rock properties and they refuse to release any details to the victim’s families. In fact, one family had to fight just to get their sons body back! Even when they are charged with a crime, they are given a slap on the wrist and released only to turn around and do it again!!

» wrote on 11.19.09 @ 12:40 PM

JAX,

Your statement about the Chumash Casino Resort’s slot hold is not true. It never happened, not once, not ever. I am curious to know what your excuse will be for your inabillity to provide any proof to validate your statement. Just tell the truth and let people come to their own conclusion. If you can’t prove your statement about slot hold at the Chumash Casino Resort than you are willfully misrepresenting the truth to support your own agenda. Anybody who has any knowledge of the slot business would recogize your statement as false.You obviously have far less knowledge than you claim. In fact you just sound jealous and bitter. What was it you said about facts again? After reading your statements, that statement is particularly amusing at this point.

Thank you

» wrote on 11.19.09 @ 12:48 PM

The funny truth that none of you know is that JAX was an employee of an Indian Casino in California but was terminated for poor performance. He has been slandering them ever since.  Sorry JAX, you aren’t hard to recognize although you are still just as boring.

» wrote on 11.19.09 @ 03:30 PM

Wayne,

    Where is YOUR proof to prove Jax wrong? We could say the same to you.

» wrote on 11.19.09 @ 03:58 PM

JAX,

Still waiting for you proof JAX?

» wrote on 11.19.09 @ 05:11 PM

and waiting…..

» wrote on 11.20.09 @ 08:05 AM

Wayne;

  I don’t make statements without the proof.  I have copies of the tribal meeting minutes where members discussed installing the 60% random chips when foot traffic was down and they wanted to keep the revenue up so as not to reduce the per capita profit payments to tribal members!

» wrote on 11.20.09 @ 08:24 AM

So Wayne;

  To estblish what the Chumash slot hold is, invite an independent inspection of the machines like they do in Las Vegas.  The Gambling Control Comission in Nevada has portable computer devices they bring to casinos, unannounced, that can probe the random chips and give a readout in less than a minute.

  In as much as you obviously have a connection to the Chumash casino (or maybe the Hardrock casinos) we would all welcome your disproving anything I have said.  I have given you numerous items of factual information easily obtainable from public sources and I haven’t seen you disprove anything. Do you deny, for example that one Deputy Sheriff working in and around the Chumash casino made 36 arrests, mostly felonies, for illegal drug use possession and sale over a 6 week period?  The news story was in the Valley newspaper a year or so ago although the tribe tried to hush it up!

  Why don’t you use your connections to Indian gambling to have a press conference and invite the public to examine the tribal books and check the slot machines randomly throughout the year without advance announcement!!

  The public who may frequent Indian casinos would welcome such open and transparent policies so even though they are losing there money there, they at least would know they are not being cheated in the process!

In fact, while your at it, invite the County Health Department in to inspect all the food facilities to see if they are in compliance with the law and the ABC to check id’s to make sure the 18 year olds allowed into your “sovereign” “Indian” casino to gamble away their money are really 18 and that they are not drinking alcohol!

» wrote on 11.20.09 @ 01:57 PM

Once again JAX makes claims without providing evidence, which is why he was fired by the way. Little late on the response though JAX looks like 3 person fan club has moved on.

» wrote on 11.21.09 @ 12:46 PM

Wayne;

  Sorry, Iv’e never been fired by any Indian or other casino.

Not looking for fans either. Just discussing all of things that are wrong with lawless and tax evading Indian casinos and businesses all over the country.

Perhaps the other posters like Mom and Nadine are tired of waiting for your response to the points they made. Nadine is right on point with her post about the Miccosukee tribe. They have sent “tribal police” out to rescue drunk driving tribal officials one of whom killed a non-Indian driver in a collision on the state highway going to and from the Miccosukee land.  They covered up the wreck, concealed and disposed of evidence and transported the guilty party back to the “res” claiming they had a “sovereign enclave” and refused to turn him over to police and refused to cooperate with the state police investigation when they arrived at the scene even though the state police had juridiction over the incident.

Then there is your claim about the Seminoles having a compact with the governor of Florida that the Florida Supreme Court ruled was void and illegal because it required Legislative approval and there was NONE.  According to the court, it was VOID AB INITIO, which means it never lawfully existed ever. 

The other posters also probably got tired of waiting for you to disprove the Mashantucket Pequote scam perpetrated by Skip Hayward and the creation of Foxwoods casino, or all the many wrongful things going on here in California by these ersatz “Indian” bands or “tribes”.

Or perhaps you can explain or excuse the recent fraud and scandal in the Mashpee Wampanoag tribe who’s deposed leader was just sentenced to prison for misappropriating the money a Chicago developer was funneling into the tribes “Fisherman’s Fund” account established to pay off politicians and lobbyists in order, first to acquire federal acknowlegememt as a “tribe” and then secondly, to build a gambling casino in Middleboro, Massachusettes. I guess he figured he was entitled to dip into these funds if the rest of the crooked crowd involved were getting a piece of the monetary action.

Anytime you want to post up some kind of relevant explanation for this massive corruption called “Indian Gaming” jump right up!!

» wrote on 11.21.09 @ 04:32 PM

Sorry JAX,

This was fun for a while but now I’m starting to feel sorry for you. I Thought you would get over your dismissal and use it as incentive to make a valuable contribution to the valley. Looks like I was wrong though.

Best of luck to you anyway.

Wayne

» wrote on 11.23.09 @ 03:46 PM

If you have the so-called proof, post it somewhere like Flickr. Otherwise, STFU. To the JAX defender, you can’t prove a negative.

» wrote on 11.23.09 @ 04:10 PM

The FL Supreme Court never declared the compact illegal. They simply ruled that Crist didn’t have the authority, they never ruled on the compact itself.
“IV. CONCLUSION
We conclude that the Governor‘s execution of a compact authorizing types of gaming that are prohibited under Florida law violates the separation of powers. The Governor has no authority to change or amend state law. Such power falls exclusively to the Legislature. Therefore, we hold that the Governor lacked authority to bind the State to a compact that violates Florida law as this compact does. We need not resolve the broader issue of whether the Governor ever has the authority to execute compacts without either the Legislature‘s prior authorization or, at least, its subsequent ratification. Because we believe the parties will fully comply with the dictates of this opinion, we grant the petition but withhold issuance of the writ.”

The Seminoles have upheld their end of the bargain. There is now $200 million dollars deposited in escrow. If these lying politicians really want to limit gambling in Florida, just approve the Seminole compact and gambling will immediately be limited for 20 years to only 7 locations.
http://en.wikipedia.org/wiki/Indian_Removal_Act
That act would be considered genocide by today’s standards.

» wrote on 11.23.09 @ 08:00 PM

What’s wrong, Danny? The truth hurt??

» wrote on 11.23.09 @ 09:38 PM

The Department of Interior stated in a brief in a court proceeding “If the governor of FL is determined by the Florida Supreme Court not to have authority, the compact is NOT entered into and the publication does NOT authorize class III games.” The tribe also relied on this conclusion in a court proceeding, stating that “If the Florida Supreme Court were to rule that the governor lacked authority to sign it on behalf of the state, the compact would be void ab initio.”

» wrote on 11.24.09 @ 01:21 PM

Nadine;

  DannyK has his own interpretation of what is or isn’t illegal.  The Seminoles tried to claim they had a compact for class III gambling in Florida, the Florida Supreme Court said the governor had no authority to execute it.  DannyK does’nt understand that a compact signed with no authority MEANS IT IS ILLEGAL and in this case was a nullity from the start. i.e. VOID AB INITIO!

The more important point he didn’t address, was that the Seminoles think they are above the law and started offering the CLASS III gambling games anyway, knowing the Supreme Court found them to be illegal.  They are clearly illegal games because, any Indian tribe offering such CLASS III gambling games without a valid tribal state compact, existing and in effect UNDER STATE LAW, is operating illegally. See 25 USC 2710 (d) (3).

This is the problem with so called “Indian gaming”, it is out of control and being operated by tiny tribes, often phony or ersatz tribes, or those like the Seminoles who flaunt the law, and the tribal officials take the lions share of gambling losses living in gated mansions, with servants caring for the land purchased for them with the tribal gambling profits! Then, they think nothing of taking millions more in federal welfare and grant money from the federal govenment paid for by the non-Indian taxpayers.

» wrote on 11.24.09 @ 10:01 PM

And JAX forgets that the courts also said they had no authority over the Indian tribes so the court couldn’t declare they were doing anything illegal.

» wrote on 11.25.09 @ 09:44 AM

Danny,

    Let’s go over this again….any Indian tribe offering such CLASS III gambling games without a valid tribal state compact, existing and in effect UNDER STATE LAW, is operating illegally. See 25 USC 2710 (d) (3).
What part is so hard for you understand???

» wrote on 11.25.09 @ 10:37 AM

Nadine:
You forget, the compact was approved by the Feds and published in the Federal Register. The Seminoles were given the go ahead by the NIGC. Until the Federal Government orders the Seminoles to stop, they are acting legally.

» wrote on 11.29.09 @ 08:14 AM

DannyK;

  The federal courts have jurisdiction over Indian tribes and jurisdiction to decide federal questions arising under federal law, like the Indian Gaming and Regulatory Act of 1988 25 USC 2701 et.seq.  In this case, as Nadine and I have both pointed out, 25 USC 2710 (d) (3) requiring a tribal-state compact for class III gambling to be LAWFULLY IN EFFECT ACCORDING TO STATE LAW.

  IT MEANS NOTHING THAT THE NIGC AND/OR THE SECRETARY OF INTERIOR HAVE “APPROVED” THE COMPACT OR “REPORTED THAT APPROVAL IN THE NATIONAL REGISTER”. Those are ultra vires acts! (if you are really interested, read the Jacarillo Apache case dealing with this very issue)

  The position taken publically and by documentation from both these agencies is as follows. 
  Their regulatory powers over Indians and Indian Gambling are created by (or enabled by) the applicable federal laws. In the case of class III gambling their regulatory powers are shared with the states [the compact requirements of 25 USC 2710 (d) (3)]

Because operating a class III casino in a manner outside of the authority or the auspices of the IGRA, such as without a valid tribal-state compact VALID ACCORDING TO STATE LAW, then it is also outside of their jurisdiction and control and they will not take enforcement action. Instead, it is up to the State in which such illegal gambling is occuring, to enforce any illegal gambling laws being violated there. That is, the state, like Florida, must enforce their laws against a tribe, like the Seminoles, who are now illegaly offering these class III games!

I know this may either be over your head or doesn’t fit into your biased agenda, but the is the law and it should have been enforced long ago!

 

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