Despite casino setbacks, Indian clout rises

"States all over are beginning to think of Indian tribes as their piggy banks to bail [states] out of financial crises," says Mr. Wilkins. He notes that the US Supreme Court paved the way for the legitimacy of Indian casinos with a 1987 decision finding that, because states can operate lotteries to raise money, Indians can operate gambling halls. "State revenues are not what the casino operations are for," he adds. "They are for ... development of tribal communities."

Here in California, the compacts have been decided largely by two initiatives passed in 1998 and 2000 - pushed forward after former Gov. Pete Wilson refused to negotiate compacts with the Indian tribes. Both arrangements gave Indians a better deal than they might have gotten otherwise. Governor-elect Schwarzenegger is looking to change those agreements. But first, he has to wait until existing compacts expire, entice Indians back to the negotiating table, or launch new compacts with new tribes.

The result could be a statewide increase in gaming operations, because one way to bring tribes back to the table is to offer expanded slot-machine operations - big moneymakers for the tribes.

"Governor-elect Schwarzenegger wants to renegotiate these compacts so that both sides can get something from the deal," says spokesman Darrell Ng. Of 28 states that allow Indian gaming, only six have revenue-sharing agreements, according to Karla Nicholas of the National Indian Gaming Association. Most notable is Connecticut, where tribes give roughly 25 percent of casino income to the state - $280 million last year. A similar percentage would bring in over $1 billion for California.

If Schwarzenegger pursues the Connecticut model, the profile of Indian gambling will likely keep looming large. Observers say support for tribes rises with perceptions that gambling is a way to address historic injustices - but drops when Indians push the notion of "sovereignty," claiming exemptions from taxes, environmental regulations, and other laws.

To some, that's the lesson from Maine's vote. And it worries tribes in Massachusetts, where three large casinos are in the offing. Despite millions spent by Maine tribes to sell the idea of community development, jobs, and income from the proposed casino, rival factions raised $9 million to defeat it, and the measure lost by a 64-36 percent margin.

To many Indians, such votes mean an inestimable loss. "These gaming operations are a win for Indians and everyone elsel," says Kurt Luger, head of the Great Plains Indian Gaming Association. "Just when Native Americans are beginning to turn their plight around, everyone wants to come along and squash us or take a piece of our pie."

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