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More scrutiny of Indian casino plans

The Abramoff scandal is likely to slow expansion and call into question tribes' relationship with the US.



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By Brad KnickerbockerStaff writer of The Christian Science Monitor / February 7, 2006

The scandal involving high-powered lobbyist Jack Abramoff and members of Congress is likely to slow the spread of Indian casinos that have rapidly become a $19 billion industry.

But beyond that, recent revelations also raise questions about the fundamental nature of the relationship between Uncle Sam and native American tribes around the country, which is based on a complex history of treaties, forced removals, and the controversial notion of "sovereignty."

Two things are under heavy scrutiny these days: the 1988 Indian Gaming Regulatory Act (IGRA), which is meant to control Indian casinos, and tribes' unique position regarding campaign contributions.

Today, 223 tribes operate 411 casinos in 28 states. Some are modest in size and out of the way; others are huge operations near metropolitan areas or along major highways. Some are on traditional reservation land; others - to the consternation of local communities - have popped up elsewhere.

As gambling revenues grew, so did tribes' efforts to court political allies in approving new casinos or to prevent rival tribes from opening gambling operations. Mr. Abramoff collected millions of dollars to facilitate both, and he urged tribes to make direct contributions to candidates and political-action committees.

By the 2004 elections, tribal campaign contributions had grown to more than $8 million, from a few thousand dollars in 1994. One crucial factor here is the loophole in federal campaign-finance law exempting tribes from the limits applied to corporations and unions.

"Oversight of tribal casino cash flow into political campaigns is cursory at best, and tribes are the only enterprise in the entire United States allowed to give corporate money to campaigns," Rep. Mike Rogers (R) of Michigan said last week in introducing a bill that would impose a two-year moratorium on new Indian casinos.

Other proposed reforms in Congress would prohibit "reservation shopping" for casino property not contiguous to existing reservations, require the approval of governors and state legislatures for new casinos, and direct the US Department of the Interior (which oversees Indian affairs) to determine whether new casinos would have a negative economic impact within a 50-mile radius.

The Senate Indian Affairs Committee last week heard from tribes, federal agencies, and affected communities.

Sen. John McCain (R) of Arizona, who chairs the committee, chastised Interior Department officials for failing to complete work on regulations for Indian casinos. "It really is unacceptable 17 years later not to have regulations written to implement a law which now applies to a $19 or $20 billion-a-year business," he said.

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