Editorial: It's time to renegotiate casino compacts in Minnesota

Tuesday, March 8, 2011  

"John McCarthy, executive director of the Minnesota Indian Gaming Association, visited with the board and offered reasons why MIGA, which represents 9 of 11 Minnesota tribes, doesn’t think a racino is a good idea.

Revenue at tribal casinos will be lessened, McCarthy said, and once gambling is expanded, he said, there will be no turning back because more gambling will be inevitable. McCarthy also said that expanding gambling will cost the state more than it generates.

Members of the editorial board had lively discussions after both presentations and agreed Day and McCarthy had both made strong arguments.

They came up with idea that during these difficult economic times there may be a way to increase revenue as future governors and legislators seek to find ways to balance the budget. And that is to renegotiate the compact with Indian tribes that would allow the state to share in revenue from tribal casinos.

There are precedents for that throughout the country as some states have decided that they should share, or share more than previously, in casino profits.

For example, in 2007 in New Mexico, 11 tribes renegotiated a gaming compact with the state to share between 9.25 and 10.75 percent of slot machine revenue, depending upon the size of the facility. Previous to that the tribes shared 8 percent. The deal is good until 2045 and the estimated total revenue increase is $1 billion.

In 2009 the state of California signed a new compact with the Habematolel Pomo Tribe, good through 2030, that gives the state 15 percent of annual net win revenues."

Get the Story:
Editorial: The time has come to renegotiate the compact with Indian tribes (ECM Publishers 3/7)