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Senate panel takes up bill to halt Tohono O'odham Nation casino

Monday, April 27, 2015

Leaders of the Tohono O'odham Nation and local officials who support the tribe's controversial casino came together for a topping-off ceremony at the West Valley Resort near Glendale, Arizona, in March. Photo from Facebook

The Senate Indian Affairs Committee will take up S.152, a bill that prevents the Tohono O'odham Nation in Arizona from using its trust land for a casino, at a business meeting on Wednesday.

The bill, known as the Keep the Promise Act, does not mention any tribes by name. But it bars Class II and Class III gaming on land placed in trust in the "Phoenix metropolitan area" after April 9, 2013 -- a situation that only applies to the Tohono O'odham Nation.

The prohibition runs until January 1, 2027. That's the date of expiration for the Class III gaming compact.

Ongoing construction on the West Valley Resort near Glendale, Arizona. Image from Facebook

The bill is tied to the expiration date because the state of Arizona, the Salt River Pima-Maricopa Indian Community and the Gila River Indian Community claim voters were promised that no new casinos would be built in the Phoenix area during the campaign to gain approval for the compact through Proposition 202. A federal judge, however, concluded that the agreement contains no such restriction.

The state and the two tribes disagree and they have taken the matter to the 9th Circuit Court of Appeals. Briefing was completed in October 2014, according to documents posted by Turtle Talk, but oral arguments have not been scheduled.

As the case was proceeding, the Bureau of Indian Affairs placed land in trust for the Tohono O'odham Nation in July 2014. The site is located near Glendale, a suburb on the western side of Phoenix -- the Salt River and Gila River tribes operate casinos on the southern and eastern sides of the city.

Artist's rendering of the West Valley Resort now under construction near Glendale, Arizona. Image from Tohono O'odham Nation

Later in 2014, the Tohono O'odham Nation started building the West Valley Resort on the land. The initial structure, estimated to cost $200 million, is due to open later this year.

The project so far has created 1,300 construction jobs. The facility itself could generate more than $100 million a year, according to a cost estimate prepared by the Congressional Budget Office, the non-partisan analysis agency, in response to H.R. 308, the House version of the bill.

As a result, CBO warns that passage of the Keep the Promise Act could cost the federal government $1 billion, or even more, if the tribe pursues a damages claim and wins in court. However, the agency said the outcome of future litigation remains "uncertain."

"Prohibiting the tribe from operating gambling activities at the resort and casino near Glendale could result in a loss of net income to the tribe of more than $1 billion over the next decade," the estimate reads.

CBO notes that the Tohono O'odham Nation has been successful in a string of lawsuits filed by the state and the rival tribes. The estimate quotes from a May 2013 ruling from Judge David Campbell -- the one being appealed to the 9th Circuit -- that said the land near Glendale qualifies for a casino under the Indian Gaming Regulatory Act.

Chairman Ned Norris Jr. signed the last steel beam that's part of the initial structure for the West Valley Resort near Glendale, Arizona. Photo from Facebook

The House Natural Resources Committee approved H.R.308 last month and it awaits action on the House floor. The chamber passed a different version of the bill during the last session of Congress but the Senate did not take action on it while Democrats were in power.

With Republicans in control of both chambers, the Keep the Promise Act is moving a lot faster. Approval by the Senate Indian Affairs Committee is likely at the business meeting, which will not be webcast.

“We have never understood why certain members of the Arizona Congressional delegation are working so hard to send Arizona workers to the unemployment line," Tohono O'odham Nation Chairman Ned Norris Jr. said in a press release. "Now we also are trying to understand why they would be willing to make American taxpayers foot the bill for creating this job-killing legislation, all to protect the market share of a few wealthy special interests.”

Get the Story:
Independent Congressional analysis: Anti-casino measure would cost taxpayers up to $1B (The Glendale Daily News-Sun 4/26)
Blocking Glendale casino could cost taxpayers $1 billion (Capitol Media Services 4/25)
Price for stopping West Valley casino could be $1B (The Glendale Star 4/25)

Some Opinions:
Ian Hugh: Butt out Congress, this casino is already paying off (The Arizona Republic 4/27)
Jim Lane: Don't be deceived. The Tohono O'odham casino is fraud (The Arizona Republic 4/27)

Committee Notice:
Business Meeting to Consider S. 152 (April 29, 2015)