The gaming deal Washington Governor Chris Gregoire signed with the Spokane Tribe of Indians on Friday got only so-so attention on the west side, but it may be one of the biggest events of recent years in regional gaming. Which makes it of interest regionally.
The tribe’s stand on it sounds almost nondescript: “This proposed Compact promises to benefit not only our Tribe but the entire region as well, creating needed jobs and boosting the local economy. The proposed Compact also ensures that Spokane Indian Gaming stays limited and well regulated.”
There are counter-views. State Senator Jim Honeyford, R-Sunnyside, wrote in an op-ed that “If anyone thinks that this deal is a one-time expansion of gambling, think again. The compact secures the tribe’s right to expand gambling well into the future. Bottom line: The governor has a strong voice in this matter, and her voice should echo what the public has to say. In 2004, voters overwhelmingly rejected I-892, an initiative to expand gambling. A compact that would add more gambling machines, encourage gambling expansion by other tribes, reward illegal operations and pave the way for off-reservation gaming takes us in the wrong direction. It’s a sweet deal for the Spokane Tribe, but for families across the state, it’s simply an escalation in gambling.”
The deal allows the tribe to build five casinos and put in place 4,700 gaming machines (not all at once; there’s a phase-in). That’s larger than we’ve seen before, but hardly overwhelming.
But there is another factor to consider.
A group called the Citizens Equal Rights Alliance (which is, it should be noted, in opposition to a number of tribal and reservation claims of rights) points out that Washington state policy – not formally law but adhered to enough that it could not be lightly discarded – calls for treating all tribes in the state the same. CERA Chair Elaine Willman speculates on the possible implications:
With this compact, all 29 tribes in Washington State just hit the lifetime lottery wherein all basic needs and life-essentials are federally funded by taxpayers and Governor Gregoire has guaranteed many more millions every year just to play around with. The “Favored Nations” policy forecasts and assures a similar picture now for all other interested tribes in Washington State.
So how does this impact the State? It is important to understand the basics about the State of Washington in order to fully comprehend the horrific economic impact of a potential of 145 future Class III casinos that the Governor has just penned. There are 39 counties, only 11 of which have more than 100,000 citizens. Out of 280 cities, only five cities (Bellevue, Seattle, Spokane, Tacoma and Vancouver) have over 100,000 residents. Over 75% of the cities in our State, 209 cities, have less than 10,000 persons and equivalently small local economies.
Doing the math, 29 tribes times a permissible 5 Class III casinos is 145 potential new tax-exempt, Indian casinos coming to your counties and communities. That is a potential for one casino in every other town in the entire State, factoring in the Governor’s blessing for off-reservation casinos.
That probably sounds unrealistic and it probably is.
But it does prompt a question about casino growth. A little over a generation ago, most of the legal, substantial gambling in this country was confined to Las Vegas and Atlantic City. Supposedly, the move to state lottos would eat into their market and damage them economically. Never happened. Nor did it happen with riverfront gaming, with the tribal casinos and all the rest – the market just kept growing. Is there a limit to the size of the gambling market, or will it keep on growing as long as new venues for wagering open up?
Washington may start to figure out some of that.
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