Indian Gaming Now

Kathryn and Steve's blog

Tribe's Efforts at Economic Stimulus Stimulates Controversy

Sep 5 2009
The Yakama Nation in Washington state tried to help jump start the economy by issuing "stimulus" money to each of its members.  Each of the Nation's some 10,213 members received $2,000.  But now the NIGC says the stimulus payments violate IGRA, since they constitute per capita payments.

Texas-Size Those Casinos!

Apr 9 2009
The prospects for widespread casino-style gaming in Texas, with massive Vegas-style resort casinos, drew huge crowds to a state House hearing yesterday. Proposals are now on the table to transform the landscape by allowing racinos (casinos at horse and dog race tracks), destination resorts, and on American Indian lands.

How big might this be? When
Sheldon Adelson, chair and CEO of Las Vegas Sands (the legend whose company who brought the Venetian and Palazzo to Vegas and Macao), shows up to testify, you’re talking big: Texas-size, that is.

Members of the Tigua Tribe of El Paso and the Alabama-Coushatta Tribe of Livingston also testified before the Texas House about the rationale for reopening the tribes’ casinos, which were closed by federal authorities in 2002 after the state sued. The tribes have been in casino limbo ever since.

With All Deliberate Speed: Hearing Held on Deputy Interior Secretary Nominee

Mar 16 2009
Despite high expectations, things have slowed down a little at the Interior Department. Interior Secretary Ken Salazar has been the only confirmed nominee, and not much is happening on Indian affairs. However, former Clinton Administration Deputy Interior Secretary David J. Hayes is set to assume the same position under President Obama.

Hayes, an attorney, has been a partner at the Washington office of Latham & Watkins, well known as one of the leading environmental, energy, and natural resource law firms in the world. At Latham & Watkins, Hayes’ practice focused on counseling, litigation, and transactions, and he was, in effect, a lobbyist.

With a promised focus on tribal economic development, Hayes told the Senate Entergy and Natural Resources Committee that he is looking forward to “working with Native American communities,” which “was one of the most rewarding aspects of the job” when he worked at Interior in the Clinton era.

Although after leaving office last time around, Hayes was accused of violating anti-“revolving door” policies designed to prevent too much cozying up between lobbyists and government, a bipartisan investigation did not evidence that to be the case. Still, the relationship did not sit too well with Senator John McCain. Hayes did not represent any tribal clients during his time at Latham and Watkins.

A “Bolt from the Blue” from the Supreme Court

Feb 27 2009
The U.S. Supreme Court has laid down the law once again for Indian Country, holding that the Indian Reorganization Act of 1934 (IRA) does not authorize the Secretary of the Interior to take land into trust for tribes that were not under federal jurisdiction as of the date the IRA was enacted. The decision has major implications, as is discussed in the Boston Globe, in which Steve is quoted.

The 6-3 decision in Carcieri v. Salazar, No. 07-526 (Feb. 24, 2009) throws into doubt previous decisions by the Secretary to take land into trust for recently recognized tribes, including the Narragansetts in Rhode Island (who were the subject of the Court decision) and the Mashpee Wampanoag in Massachusetts (who have been hoping to build a $1 billion casino in Middleborough).

Carcieri concerned the Narragansetts’ argument that 31 acres of land it owns in Charleston, Rhode Island, should be placed in trust. Following an administrative decision that came down on the side of the Secretary, the state sued. Both a federal district court and the First Circuit found in favor of the tribe, but the Supreme Court reversed.

The Court’s analysis for the most part turned on its reading of the IRA’s statutory language, and the related application of basic principles of administrative law. The IRA authorizes the Secretary to take land into trust for the benefit of a “recognized Indian Tribe now under Federal jurisdiction.” The question of whether “now” means in 1934, or at the time the Secretary acts, had been held to be ambiguous enough by a lower court to merit deference to the Secretary under the Chevron doctrine (which requires a court to defer to an agency interpretation under such circumstances)—as had been the case for the last 75 years.

First Lady Visits Interior Department

Feb 17 2009
Last week, First Lady Michelle Obama packed the house at the Interior Department during her barnstorming tour of federal agencies. Of special note was Mrs. Obama’s comments on Interior’s—and the federal government’s—relationship to Indian Country.

"For those of you focused on meeting the federal government's obligations to the Native Americans, understand that you have a wonderful partner in the White House right now," she said.

More on the Recession's Effects on Local Tribal Casinos

Feb 10 2009
We said in an earlier blog post that "local" tribal casinos may take a smaller hit than large casino resorts in the current economic climate. And while it appears that spending is down less for local casinos than for tourist-destination casinos, tribes are still worried.

A Split in a Landmark Tribal-Corporate Partnership?

Feb 3 2009
We've given a number of presentations in the last several months on economic trends in Indian gaming. One trend that we discuss is the increase in tribal-corporate partnerships -- tribes partnering with Marriott, Harrahs, Radisson, and other hotel, resort, casino, entertainment, and restaurant companies. One of the biggest examples is the new MGM Grand at Foxwoods. But a Connecticut media outlet is reporting on a possible split between the Mashantucket Pequot Tribe and MGM Grand.