Tribes initiate united front against pending racino legislation

Observer Staff

1/25/2005 12:00:00 AM

Using pending legislation to legalize slot machines at Michigan horse racing tracks as a rallying point, officials representing 12 federally recognized Tribes in Michigan vowed to stay united on common issues affecting all of them.

Tribal leaders said the Feb. 20 summit at the Soaring Eagle Casino & Resort was an opportunity long overdue to discuss various issues impacting Indian Country.

"Obviously the racino legislation is something we have to come together on to fight," stated Pokagan Band of Potawatomi Indians member Matt Wesaw. "The only disappointment is that it's taken something like this to get such a distinguished group together to meet."

About 50 people attended the summit, which included a keynote address from 99th District State Rep. Sandy Caul. On May 22, the House passed a package of three bills that would allow video lottery terminals run by the Bureau of State Lottery at horseracing tracks. Caul voted against the racino package, which has been referred to the Committee on Gaming and Casino Oversight.

"As this lingers in the Senate, I felt this was an opportune time to, and really past time, to involve the other side of the issue-the individuals who it's going to impact other than the Agriculture Enhancement Coalition that has been formed," stated Caul. " I met with Chief Audrey Falcon and told her I'm hearing in Lansing that I am the only one who voted against that package because the Saginaw Chippewa Indian Tribe is the only group who opposes this package, but all the other Tribes around the state of Michigan are in support of this package.

"I found that really difficult to believe because if it was going to have that great of an impact on the casinos in Detroit, I couldn't' believe it wasn't going to have an impact on the Native American casinos around the state of Michigan. And yet when there had been no challenge from you as a group in the state of Michigan, the silence seemed to be an approval."

The Agriculture Enhancement Package is one of the ways the state is looking at tackling a $1.3 billion budget deficit, explained Caul. She also said the Tribes have allies on the issue they haven't been in contact with. Caul challenged the Tribes to look into the future and work as a true partnership with the state.

"Don't let your silence be interpreted as approval if you indeed are not in agreement with Ag Enhancement Package here in the state of Michigan," she said. "I have no problem voting against it because I really feel we can continue to make the tax cuts and balance the budget here in the state without adding 7,000 slot machines."

The three bills making up the Agriculture Enhancement Package would allow the implementation and operation of video lottery terminals at the seven licensed Michigan racetracks-including up to 500 video lottery terminals-and being able apply for permission to install more with a maximum of 2,000 terminals; the Michigan Horse Racing Commissioner to issue up to 15 off-track betting parlor licenses to licensed horse track owners or licensed Detroit casino operators; and amendments to the Michigan Penal Code to make it a Class D felony for manipulating the outcome or payoff of a video lottery terminal.

Proponents of the bills believe the legislation will dramatically improve the economic condition of Michigan's agriculture economy, as revenues from off-track betting and video lottery terminals will increase the purse pool paid to horsemen.

On Oct. 8, the Michigan Senate Gaming and Casino Oversight Committee heard testimony from Michigan's horse racing industry. Supporters testified the racing industry in Michigan is a declining $1.2 billion and adding the video lottery terminals could revitalize it.

Of the seven Michigan tracks, the Isabella Reservation has the dubious distinction of having one located in its backyard-Mt. Pleasant Meadows. The other six tracks are located in Fruitport, Northville, Swartz Creek, Hazel Park, Jackson and Saginaw. Most of the states' Indian casinos are peppered throughout Michigan's Upper Peninsula and along the west side of the state.

Mt. Pleasant Meadows Track President Walt Bay said the bills will allow a more level playing field.

"We are in a situation where there's 20 some casinos in the state of Michigan to compete against and we don't have the same tools," stated Bay. "We do not feel we are any threat to any Native American casino. Somebody's not going to come to the track if they don't like horse racing already.

"For Mt. Pleasant's purposes, we are looking at the video lottery terminals at the race track as a way to bring more people to it. It is not our intent to expand gaming where it is not currently located."

Tribal officials expressed their disdain for the bills, defending their casino income has a more significant impact on local economies.

"It's not just our casinos that are going to be hurt," explained Lee Sprague, chairman of the Little River Band of Odawa Indians. "In a dollar comparison, our dollar is a very strong dollar in terms of its economic impact in the local communities. Employees, vendors, businesses and the 2 percent funds contributed are all at risk if the racino bill package is successful."

The Tribes hope to put together a coordinated response, according to Falcon.

"The summit was awesome in terms that we followed through on some ideas and could meet as a group today," she stated. A second meeting is planned in March.

Little Traverse Bay Bands of Odawa Indian Tribal Council Representative Fred Harrington Jr. said the Tribe's need to make a united impact on the racino bills.

"The state of Michigan needs to know that Indian gaming is only a tool for us," he explained. "I believe the very core of our problem is taxation without representation. I believe we need resolve as a group of people within the entire state to win this battle. We've got to remain united for eternity."