WampaGate

Tribe must choose: casino OR sovereignty

The new Magic Bullet: A mortal wound to tribal advantage
27% to state, $335k to bid, $1 billion to invest, $200m to license

"No casino license shall issue to an applicant who is a federally recognized Native American tribe located in the Commonwealth or an applicant who is partnered with a federally recognized Native American tribe located in the Commonwealth unless the Native American tribe has entered into a contractual agreement with the Commonwealth in which the Native American tribe agrees to waive any and all of its rights under the Indian Gaming Regulatory Act, 25 U.S.C sections 2701 et seq., and be subject to the civil and criminal laws, statutes, ordinances, and jurisdiction of the Commonwealth..."By Peter Kenney 

Governor Deval Patrick has unveiled his casino legislation, "AN ACT ESTABLISHING AND REGULATING RESORT CASINOS IN MASSACHUSETTS."

In the title of the bill the governor is making clear his intentions to eliminate Massachusetts cities from competing for casino development. One word, "resort," says it all. He also wipes out any advantage federally recognized Indian tribes might otherwise have enjoyed.

Page 45 spells it out, advantage Patrick

On page 45 the bill says, "No casino license shall issue to an applicant who is a federally recognized Native American tribe located in the Commonwealth or an applicant who is partnered with a federally recognized Native American tribe located in the Commonwealth unless the Native American tribe has entered into a contractual agreement with the Commonwealth in which the Native American tribe agrees to waive any and all of its rights under the Indian Gaming Regulatory Act, 25 U.S.C sections 2701 et seq., and be subject to the civil and criminal laws, statutes, ordinances, and jurisdiction of the Commonwealth with respect to all activities relating to the development and operation of the resort casino and the applicable rules and regulations prescribed by the authority."

These few words appear to eliminate any advantage an Indian tribe might have expected in the coming casino bidding.

The final paragraph of the governor's letter introducing his bill the the "honorable Senate and House of Representatives" summarizes the promise he sees in the bill:

"Addressing the needs of the regional economies throughout the Commonwealth, this bill takes a critical step toward expanding economic development and job creation. Along with the Life Science Initiative, the Readiness Project and the Administration's five year capital plan, the construction and operation of up to three casinos will help create more than 100,000 new jobs by 2010 and secure the Commonwealth's position as a leader in the global economy. Accordingly, I urge your early and favorable consideration of this bill."

Capecodtoday will present section-by-section summaries of the 79-page bill in the coming week, but here are the first highlights.

The fine print: Points to ponder

1. A bidder for a casino license will pay a non-refundable fee of $350,000 to cover the cost of reviewing the application.
2. Successful bidders will be required to "invest" at least $1 billion in to the resort casino. This figure  will not not include the cost of land acquisition, which must be completed within 60 days of the license being granted.
3. 20% of this investment must be cash. 
4. A one-time license fee of  "at least" $200 million will be paid by successful bidders $100 million or 27% of "all gross gaming revenues" (whichever is greater) per year of the license.
5. The licensee shall obtain the approval of the proposed host community by means of a binding referendum.
6. The proposed casino projects may not be located in "any area of critical environmental concern pursuant to section 2 of chapter 21A."
7. Each casino resort must demonstrate its ability to provide 5,000 permanent jobs within the first five years of operation.
8. Contribution for gambling addiction treatment is a charge of 2.5% against the 27% of gross revenues.
9. Each casino will be required to host state lottery and Keno games .
   

In a nutshell, a bidder for a casino resort license in Massachusetts will need at least $435 million in cash plus access to at least another $800 million  in investment or loan money, a large piece of dry ground somewhere outside a city, the approval of the voters of the host town(s) and the blessing of the Commonwealth of Massachusetts. Each license will be renewable every ten years.

Three casinos not guaranteed

The governor's proposal defines three areas or regions, each of which will be eligible for one casino;

Region 1 - Suffolk, Middlesex and Essex Counties
Region 2 - Norfolk, Bristol, Plymouth, Nantucket, Dukes and Barnstable counties
Region 3 - Worcester, Hampshire, Hampden, Franklin, and Berkshire counties.

There is nothing to require the granting of a license in each region. It will be left to the Commonwealth to determine if there is a satisfactory bid proposal for a region; if the decision is that there is none there will be no casino license awarded for that region.

First casino in 27 months

Overseeing the casinos will be two new bodies. The Massachusetts Gaming Control Authority will have five members appointed by the governor plus the state Treasurer and the state Auditor. A twelve-member advisory committee will be made up of the state secretaries of Human Services, Administration and Finance, Housing and Economic Development, Public Safety and Security or their designees; three appointees of the governor, one representing organized labor, one who will be expert in gaming addiction and one police chief; two appointees selected by the Senate and two by the House of representatives.

The bill does not indicate how long the bid review process will be or how it will be possible for three casinos to complete the process of bidding, designing, building and commencing operations by the year 2010. January 1 of 2010 is less than 27 months away.

Send us a NEWS TIP: Casino gambling is among the most important issues facing Cape Codders in generations and you can help us reveal the truth by emailing news tips to the capecodtoday editor here or Peter Kenney here. Your information will be "off the record" if you wish.
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