"Years ago, the U.S. Supreme Court ruled that sovereign Indian tribes could conduct gambling on tribal lands without interference from the state. However, the Federal Gaming Regulatory Act of 1988 added a requirement that in order for tribes to operate casino-style gaming, they must enter into a compact with the state to provide some measure of control at the state level over Indian gaming.

Minnesota tribes were the first in the nation to negotiate and sign gaming compacts with a state government. Then-Governor Rudy Perpich signed the compact that permits video games of chance (slots) and blackjack (a class of gaming illegal in the rest of the state) to be operated on tribal land, and a gaming monopoly was born.

The Minnesota compact has no expiration date and doesn’t require the tribes to pay taxes to the state on gambling proceeds, but it does grant the state power to impose and collect specified fees to reimburse the state for gaming enforcement costs. This gaming monopoly granted to Minnesota’s Indian tribes has been a contentious issue at the Capitol for years. It is estimated that tribal gaming produces up to $600 million a year from the 18 casinos in the state. Year after year, there is an eager group of lawmakers who want to end the tribal gaming monopoly. But the difficult question is how?"

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