June 22, 2008
Gregoire's Gambling Contradiction

The defense employed by Christine Gregoire and her allies in defending her actions regarding a gaming compact with the state's Native American tribes has been to say the goal was to stop a massive expansion of tribal gaming. The facts don't indicate that actually occurred.

Follow-up P-I coverage said this on the matter:

[Gregoire spokesman Pearse Edwards] said she had renegotiated the 2005 agreement that included revenue sharing in an attempt to keep gambling from expanding too quickly and after listening to concerns from a wide range of groups, including other tribes.

Likewise, Democratic spokesman Kelly Steele's recent appearance on KVI's "The Commentators" show was replete with references to Gregoire not wanting to turn the Evergreen State into Nevada.

One might chuckle at the notion of Sin City coming north to the meet the nanny state favored by many elected officials in Seattle and Olympia, yet gaming itself continues to expand significantly since the compact was negotiated.

The actual debate about gambling regulations and their utility is another issue, but let's assume for this discussion that attempts to limit the growth of gambling in the state is a policy good.

The net receipts for state gaming operations don't support that this stated policy outcome was actually achieved. Overall net receipts were $1.534 billion in the 2004 fiscal year, including $888 million from tribal casinos. By FY 2007, the total had risen to $1.962 billion, including $1.338 billion for the tribes.

Thus, while non-tribal gaming receipts dropped slightly from $646 million to $624 million over that time, tribal casino receipts soared 50.7%.

One could argue that the compact will restrain this explosive growth, which is fair to a degree. Yet the statistics show tribal gaming is already growing at a rapid rate, something of which the general public is quite aware.

Just last week the Seattle Times covered the expanded tribal casino & resort opening on the Tulalip reservation:

Even high gas prices and the weak economy aren't dampening tribal leaders' predictions that the new 12-story hotel near Marysville will become a destination resort competing not with Best Westerns and Holiday Inns along the Interstate 5 corridor, but with the glamorous casino-hotels of Las Vegas itself.

There goes not trying to compete with Nevada.

More importantly, as any observer of TV and radio ads across the state will tell you, tribal gaming operations are expanding, as the Times coverage attests:

Seven other tribes, including the Quinault, Suquamish and Lummi, have built lodging to complement tribal casinos, said Ernie Stebbins, executive director of the Washington Indian Gaming Association.

One has to presume tribes are not build lodging to lessen the number of trips to a casino or to restrain the growth of gambling.

Consequently, it is nigh impossible to take seriously the claims of Gregoire and her supporters that the compact in question has and will achieve its goal of seriously mitigating the overall growth of tribal gaming in Washington state. This rings true especially in light of other policy choices by the state in recent years, including the ban on all online gaming, which results in this from a website for slot machine enthusiasts:

There are well over 100 different casinos listed in the state of Washington. It appears that the tribal gaming centers dominate the slot scene in Washington, especially after getting the recent ban in online gaming pushed through the legislature, so make sure you call ahead to make sure that the casino you wish to visit offers slot machines.

Good people can argue about the merits of gambling regulation and how far it should and should not go. Nevertheless, Gregoire negotiated a compact that doesn't actually achieve meaningful restraint of tribal gaming as pledged, doesn't include any revenue sharing to benefit the state as is common practice elsewhere, and is now publicly coupled with hundreds of thousands of dollars in tribal contributions to the state Democratic party.

It is no wonder this story doesn't look good.

UPDATE: typos fixed.

Additionally posted at the Examiner and The Next Right.

Posted by Eric Earling at June 22, 2008 09:27 AM | Email This
Comments
1. Eric nicely summarizes the bottom line of this story, which feels like it does indeed have legs:

''Gregoire negotiated a compact that doesn't actually achieve meaningful restraint of tribal gaming as pledged, doesn't include any revenue sharing to benefit the state as is common practice elsewhere, and is now publicly coupled with hundreds of thousands of dollars in tribal contributions to the state Democratic party.''

SIDEBAR: I would expand the last above sentance by adding this suffix:

''; that were immediately passed on directly to the Gregoire campaign.''

Whoever Gregoire's ''constituents'' are, the average taxpayers of WA clearly are not on the short list.

Posted by: Methow Ken on June 22, 2008 10:54 AM
2. You know it's bad when Gregoire lapdog Joel Connelly says she has jumped the shark on her kickbacks with the tribes.

Posted by: Andy on June 22, 2008 10:57 AM
3. It sure is exhausting keeping up with the slippery
actions of the Democrats. It doesn't matter the
subject, if a Democrat is involved, somebody somewhere is getting screwed.

Posted by: mark on June 22, 2008 11:29 AM
4. Back in early 2007, the Indian gaming pact was criticized by Republican leaders, Stefan Sharkansky and even David Goldstein for allowing too much expansion of tribal gambling.

However, there was no criticism that the gaming pact failed to share any gambling revenues with the State of Washington. Why wasn't this important at the time?

As for thr tribal donations to the state Democratic Party, about half of that $650,000 was donated in 2004 for use in the 2004 election and recount. And almost all of the money has gone to the soft money account, which cannot be given to candidates. (It can free up hard money to give to candidates, if the hard money had to be used on overhead -- such as Dwight Pelz's salary -- and is now freed up to give to candidates because soft money is now available for these expenses.)

This story definitely has "legs", especially since Gregoire's response has not been very effective so far.

Posted by: Richard Pope on June 22, 2008 11:36 AM
5. In light of Richard Pope's comment and just so there is no confusion on what I meant when in #1 above I said:

''; that were immediately passed on directly to the Gregoire campaign.''

Yes: I realize that SPECIFIC soft dollars contributed to the (D) party cannot themselves be transferred directly to the Gregoire campaign, but:

Unless the (D) party literally had and has NO other expenses on which it must spend hard money (very unlikely at best, I would think), I would maintain that my ''passed on'' to the Gregoire campaign is fundamentally and functionally correct. For max accuracy I should probably have omitted the word ''directly'', to best reflect the situation Richard pointed out.

Posted by: Methow Ken on June 22, 2008 11:55 AM
6. It's still WAAY annoying that businesses that actually HELP people are expected to pay hefty B&O tax to the state, while harmful ones like GAMBLING are off the hook---thanks to Gregoire. Twisted priorities, girl. Twisted priorities. This is a HUGE slap in the face to decent businesses everywhere in Washington. Vote NO on Gregoire this fall, everyone. And tell a friend.

Posted by: Michele on June 22, 2008 01:37 PM
7. Gregoire is all about Tribes and State Employee Unions. Between the two, she gets all the soft money she needs, and in return she does lots of favors using the force of government. A fine example is banning online gaming, and the tribal gambling compact.

WA deserves a lot better leadership when we have real transportation issues, etc. Gregoire is a 40 year career government stooge. It's time to vote these career bums out of office regardless of which side of the aisle they are on.

Posted by: Jeff B. on June 22, 2008 02:07 PM
8. The on-line gambling ban, SSB 6613 enacted in 2006, apparently passed the state Senate unanimously and the state House by a 93-5 vote:

http://blog.seattletimes.nwsource.com/davidpostman/2006/06/online_gambling_ban_was_easy_sell_with_lawmakers_1.html

At least you can say that all five votes in the House against the bill were Republicans: Chandler, Dunn, Holmquist, Morris, and Nixon

But why not go ahead and blame Gregoire for all this? Forget about the fact that several dozen Republicans voted for this, and less than half a dozen against it.

At least Rossi wasn't in the legislature, otherwise he would have probably joined with every single one of his Senate GOP colleagues, and couldn't use this as a campaign issue ...

Posted by: Richard Pope on June 22, 2008 02:59 PM
9. So, Pope... is there some reason you've turned into Queen Chrissy's bitch?

The facts are these: Republican support of those bills or a failure to complain at the time being, as it is, completely irrelevant; Queen Chrissy has been paid off by the tribes.

Yes, we can and do blame Chrissy for this. Her actions in bending the taxpayers of this state over with the compact were done entirely to get tribal payoffs, which they have gratefully provided, and the taxpayers of this state have been shafted out of hundreds of millions of dollars by our own governor, who then has lied as to both her motivation and her ignorance as to who provided over $600,000 to her campaign.

And no amount of your spin will either change that, or get you a job with her campaign or administration... which is what it seems you so eagerly are going after.

Posted by: Hinton on June 22, 2008 03:15 PM
10. richard pope loves two things, in order: himself and people paying attention to himself. He will do whatever necessary to promote those two things.

pope points out that most Republicans voted to ban online gaming, along with all Democrats. Individual lawmakers can vote for the same piece of legislation for different reasons. I would assume that Republicans voted against online gambling for moral/social reasons (addiction as a societal ill) while Democrats voted for it to give their native american friends a nice monopoly.

Posted by: AD on June 22, 2008 05:18 PM
11. Sort of related, here's another interesting piece about the current administration's efforts to market gambling to minors:
http://www.thenewstribune.com/news/columnists/callaghan/story/394803.html

Check it out!

Posted by: Renee Radcliff Sinclair on June 22, 2008 05:49 PM
12. One more tribe bribe comment. I heard CG say" I did not want the legislature to become addicted to tribal casino money". What more explanation could you want?

Posted by: ROCKETMAN on June 22, 2008 08:59 PM
13. Rocketman, in other words, "I don't want the legislature to be addicted to tribal casino money, so instead of requiring that they pay their fair share as a cost of doing business (like every other state does), I gave them all the money (oh, and then btw, they gave me over a half million dollars back)."

Chris SHOULD have said "I don't want the legislature to be addicted to the gas tax which will burden EVERY Washingtonian, so that's why I oppose the $31 billion 'emergency' tax increase to fund projects that, aside from being over budget and behind schedule, won't alleviate traffic."

Sadly, though, we toil under the Queen we have and not the Queen we'd like to have. :(

Posted by: AD on June 22, 2008 09:54 PM
14. "about half of that $650,000 was donated in 2004 for use in the 2004 election and recount."

So in other words Richard the tribes actively helped ensure that the Gregoire was "elected" Governor through the recount. Makes you wonder what she promised them to get the moneies for the recount, oh wait we have seen it in the form of this gaming compact, online gambling ban, smoking ban.....


I heard CG say" I did not want the legislature to become addicted to tribal casino money".

Yeah, but she sure does not have a problem with the state being addicted to sin taxes or gas taxes.

Posted by: TrueSoldier on June 23, 2008 05:47 AM
15. she sure does not have a problem with the state being addicted to sin taxes or gas taxes.

Or internet taxes. In light of this revenue sharing giveaway, the tax she imposed on internet sales (affecting ALOT more people) is even more egregious.

Posted by: Palouse on June 23, 2008 07:40 AM
16. What I find interesting is that the Democrats spokesman Mike Steele, Margarita Prentice (Designated PI apologist and noted expert on receiving tribal donations for legislative action) and the Governor herself seem to be claiming that the Tribes are not happy with the compact. Well they have the opportunity to challenge the State in Federal court under the IGRA ( Indian Gaming Regulatory Act) if they feel that the State is not negotiaing in "Good Faith". Let's have a show of hands, who here thinks that the Tribes would NOT lawyer up if they really felt they didn't get a sweet monopoly
deal?

Posted by: Smokie on June 23, 2008 07:51 AM
17. Florida governor, Charlie Crist (R), just inked a deal with the tribes down there to allow table games at their casinos, with $100 million a year going to the state. And people are lined up to play and have fun. The horror! Apparently, the good people of Florida don't have to be protected from themselves.

Posted by: Palouse on June 23, 2008 10:05 AM
18. I don't see the contradiction. Her stated goal all along was to limit the growth of gambling. She did that. The original compact with Spokane tribe which she rejected would have led to a quadrupling of available gaming machines in Washington. Instead she demanded the Gambling Commission renegotiate the agreement specifically to reduce the number of machines, thus limiting the growth of gambling. How is that a contradiction?
And people better think very hard about this scramble to get a cut of tribal gaming revenues through profit sharing. Do we really want to be in business with the tribes? If we start profit sharing we will be forever addicted to and dependent upon tribal gaming revenues. Once we start, future governors and legislatures it will be virtually impossible to tell the tribes "NO!" when it comes to even more expansion.

Posted by: Tangpo on June 23, 2008 11:10 AM
19. The state is addicted to higher taxes, so why not exchange that addiction for one that makes the tribes pay for the right to run casinos.

Doesn't matter to me where the money comes from if it's legal, just as long as I don't have to pay it.

You can be sure that the next time Queen Chrissy asks for higher taxes for roads, ferries, bridges, etc., I won't be the only one telling her to hit up the tribes for their share before she puts her hand in my pocket.

Posted by: Clean House on June 23, 2008 11:50 AM
20. Do we really want to be in business with the tribes?

The state Democratic party already is. We the taxpayers might as well get a cut of it.

Posted by: Palouse on June 23, 2008 12:24 PM
21. Palouse @ 20:

What has the Republican Party done for the tribes lately? Or ever? You know the answer -- zero.

Now the tribes have money -- because surprise, people like to gamble -- and they are using it in the political arena, and you lot are getting none of it.

These are choices that *your* Republican leaders made -- like Slade Gorton -- and now the tribes are getting some payback on you. Cry me a river.

Own up to your actions, accept the consequences, and quit your whining, like you're so good at telling everybody else to do.

Posted by: ivan on June 23, 2008 12:43 PM
22. Ivan @21. Is there a point there, because other than "nanny, nanny boo boo, we're getting tribe money and you're not", I don't see one.

Guess what ivan, I could care less if Republicans get tribe money. I just dislike the political payoffs like the one your Queen gave the tribes, while she raises taxes on the rest of us.

Posted by: Palouse on June 23, 2008 01:55 PM
23. Thank you, Palouse, you explain it so much better.

ivan's MO is like the rest of the Democrats- give millions of illegals the right to vote to win elections, give every special interest group lots of money and legal status in order to win elections; yep, sounds like a winner. Thank goodness for Republicans who want to limit government or slow it down.

Posted by: swatter on June 23, 2008 02:17 PM
24. Ivan hides one very important fact. He said "Now the tribes have money -- because surprise, people like to gamble..." Tribes don't have money because people like to gamble or because people just LOVE going on indian reservations to gamble (given the choice, most people would go anywhere BUT an indian reservation to gamble).

Tribes have money because they were granted a monopoly by the government for a specific line of business. Now, they're giving hundreds of thousands to Democrat politicians not because they just got a hankering to be civically engaged but to PROTECT and EXPAND their monopoly. It's pay to play politics.

Posted by: AD on June 23, 2008 06:20 PM
25. Maybe it is time for the State to offer exclusive NON-Tribal gaming licenses, The licenses come with a smoking exemption, the ability to operate as many hours and in as many locations as the Tribes currently have, If more tribes are recognized (like the Duwamish) andother NON-Tribal license is issued, The exception is that the NON-tribal licenses can only be held by people/ groups who are not a shill group or holding company for the tribal interests and they are taxable. Let the market dicatate who is offering the best product.

Posted by: Smokie on June 23, 2008 07:10 PM
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