Lure of gambling money has proven hard to resist for States

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Star Tribune

Published February 8, 2004







As more and more state governments struggle with a still-sluggish economy, some are casting an envious eye on an industry that is more profitable than ever: Indian gambling.

Gov. Tim Pawlenty has put out the first feelers on recasting the deal struck between Minnesota and its tribes in 1989. Other states are on the same path.

To help patch his state's leaky budget, Wisconsin Gov. Jim Doyle last year gave the state's Indian tribes the right to some high-stakes games, such as roulette, baccarat and poker, in return for more than $200 million over two years and loosened rules that may permit the conversion of truck stops into "mini-casinos."

In New York state, leaders of the Oneida Indian Nation last month sent a letter to suppliers accusing Gov. George Pataki of a "shakedown" because he wants the state to get 25 percent of the profits from the tribe's lucrative Turning Stone Casino. New York's Mohawk tribe has already agreed to give the state 25 percent of its slot machine earnings.

California Gov. Arnold Schwarzenegger, laboring under a projected deficit that would bankrupt a small nation, has said he will seek to renegotiate tribal gambling compacts -- something Arizona and Connecticut have already done.

"Where there are successful gambling operations, virtually every state is looking at ways of getting more money out of those gambling operations," Sen. John Hottinger, DFL-St. Peter, said Friday.

Hottinger works on state policy issues with other legislators from the National Conference of State Legislators.

In Minnesota, where the state's projected deficit is $185 million and likely to grow, pressure to find revenues that don't involve raising taxes will be strong.

Tapping the revenue

Following his State of the State address on Thursday in which he said the compacts need to be revisited to provide a "better deal for Minnesotans," Pawlenty outlined a couple of possibilities during a WCCO Radio (830 AM) interview.

The tribes, he said, could "make a financial contribution to the state" in return for continued exclusivity. Recognizing that many tribal leaders would see that as a violation of their existing compacts, Pawlenty said the state's "other point of leverage" is the ability to negotiate new compacts for different games or additional locations.

That would make for a deal similar to the one that Doyle reached with Wisconsin tribes, although that accord is being challenged in the state's Supreme Court by legislative leaders, who say Doyle exceeded his authority in bypassing the Legislature.

Under the existing compacts, Minnesota's tribes have the right to operate blackjack and video slots, and they pay the state only a nominal fee of about $150,000 for regulatory costs.

That may strike some as unusual, but Judy Zelio, an analyst on gambling issues for the National Conference of State Legislatures, said it's not.

Of the 24 states that have tribal gambling compacts, she said, seven receive a portion of the profits: Michigan, Wisconsin, Arizona, California, New York, New Mexico and Connecticut.

In some states, Zelio said, tribes contribute to local governments, as in Louisiana. Other states, she said, "are just happy to have the economic development."

In some instances, she said, there is a potential roadblock: The federal Bureau of Indian Affairs has to sign off on any state-tribal compacts.LINK
 

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Gambling is saving the state of IOWA.

To bad that Republican from Nebraska, TOM OSBORNE, keeps fighting to keep gambling out of Nebraska.

Soon Nebraska will not have money for decent roads.

Lets see Martha, we shall we live, IOWA OR NEBRASKA? Boy, thats a tough one.

Basically, Nebraska has only two things.

The Cornhuskers and Bison.
 

Another Day, Another Dollar
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You bet sports gambling is a good idea!

mndaily.com

Professional sports is already a money-driven industry, we should let the fans gain, too.


Gambling and sports are stuck together like peanut butter and jelly, and wherever one is present, you are sure to find the other. At times however, they can react like baking soda and vinegar, causing an eruption of controversy.

From Pete Rose to Rick Neuheisel, great athletes and coaches have been busted for betting on sports — even on their own teams. To some it’s a big deal and to others it’s not, but it is a venture that has made criminals of those in the spotlight, while those in the shadows rake in the profits. The spotlight might illuminate those shadows soon, as Minnesota lawmakers are considering a bill to legalize sports gambling. The bill would allow sports betting to occur at licensed lottery retailers. If the bill passes, Minnesota could be a very popular economy-boosting bookie.

The kicker is that sports gambling would be limited to professional sports only. If collegiate sports — or any other amateur sports for that matter — are bet on, the bill is out of the question. NCAA student-athletes have enough pressure already between classes and competitions; the last thing on their young minds should be how much money is riding on their performance. They are out there to compete for no one other than themselves, their fans and their schools. Amateur sports must be kept innocent, with the drive to win overcoming the drive to cash in.

As a money-driven industry, professional sports, is a very different story. Tiger Woods raked in $80.3 million last year to finish out 2004 as the world’s highest- paid athlete. Indianapolis Colts quarterback Peyton Manning galloped to the bank with $42 million to top the NFL money list. The NBA’s Shaquille O’Neal deposited $31.9 million in 2004, while New York Yankees shortstop Alex Rodriguez led the MLB with a modest $26.2 million.

With inflated bank accounts and the egos to go along, how could one feel bad about betting on professional athletes? Diehard fans feel the highs and lows while watching their teams compete, and the bill could allow Minnesotans to grab a piece of Kevin Garnett’s check (or maybe Latrell Sprewell’s, he hasn’t earned it).

Aside from the cash cows of professional sports, the next best reason to legalize sports gambling is the fact that it already happens right before our eyes. Gambling on sports isn’t a subtle occurrence, as it infiltrates offices everywhere, with both professional and amateur betting. Come March, long-awaited NCAA basketball tournament brackets will be floating around offices, fraternity houses and high school hallways everywhere, as Sweet Sixteen and Final Four picks are compared.

Focusing on professional sports gambling, fantasy football is a phenomenon that has brought brute football fans and computer geeks together. After buying into leagues that range anywhere from pocket change to hundreds of dollars for the 17-week season, fantasy competitors track their players religiously. Injury reports and box scores are read with more intricacy than a preskydiving medical waiver, while everyone waits for their “sleeper pick” to break out. Entire television programs and Internet sites have been devoted to fantasy football analysis. The proposed bill should pass through the Legislature easily. Whether it does will have no effect on the sports gambling business. Bets will still be placed and money will still be won and lost. The odds of cashing in favor the State. After all, the House always wins.
 

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