The Bureau of Indian Affairs on Friday rejected the Class III gaming compact submitted by the Mashpee Wampanoag Tribe and the state of Massachusetts, saying it did not comply with the Indian Gaming Regulatory Act.

In one of his first major decisions as the new Assistant Secretary for Indian Affairs, Kevin Washburn identified several major problems with the compact. He said the state's demand for 21.5 percent of gaming revenues wasn't justified because the state's "single meaningful concession" was geographic exclusivity.

"We have determined that the commonwealth has not made meaningful concessions that would confer a substantial economic benefit to the tribe in a manner that would justify a revenue sharing rate above and beyond 6.5 percent," Washburn wrote in his decision.

Among other claims, the tribe argued that the state's support for its land-into-trust application was a significant concession. But Washburn  said such support was "illusory" and was primarily of a "symbolic" nature.

Washburn also noted numerous "problematic regulatory provisions" in the compact. Some of them addressed issues that weren't related to gaming at all -- such as land claims and hunting and fishing rights -- while others affected how the tribe does business with non-gaming entities.

"We cannot conclude that vending machine providers and linen suppliers, for example, implicate the integrity of the tribe's gaming activities," the decision states.

Despite rejecting the agreement, Washburn encouraged the tribe and the state to negotiate a new one. Both sides appear to have a good working relationship that could lead to a better compact, he wrote.

"While disappointing, this possibility was anticipated in our agreement with the commonwealth, which requires that we return to the negotiating table immediately to address the outstanding issues in the compact and come to a revised agreement. We believe that these issues can be resolved quickly and cooperatively, and the compact can be re-submitted to the BIA for swift action," Chairman Cedric Cromwell said in response.

H.3702, the state's gaming law, authorizes three casinos in the state. The one in southeastern Massachusetts -- known as Region C -- is reserved for "a federally recognized tribe."

The law allows the state to open the region to non-Indian entities if the land-into-trust application falters. The Massachusetts Gaming Commission has indicated that it will allow plenty of time for the tribe to go through the process.

Get the Story:
Feds Reject Casino Compact Between Mass. And Mashpee Tribe (WBUR 10/12)
Mashpee Tribe, State Gaming Deal Denied (Cape News 10/12)
Feds reject Mashpee Wampanoag casino deal (The Boston Globe 10/12)
Gamble on tribe casino loses (The Boston Herald 10/13)
Feds reject casino compact (The Cape Cod Times 10/13)
Feds send Mashpee casino compact back to the negotiating table (The Taunton Daily Gazette 10/13)
Taunton casino suffers major setback (AP 10/13)

Related Stories:
Mashpee Wampanoag Tribe statement on Class III gaming compact (10/12)
BIA statement on Mashpee Wampanoag Tribe Class III gaming compact (10/12)
Rep. Markey and Rep. Keating statement on Mashpee Wampanoag Class III gaming compact (10/12)