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	<title>online gambling &#8211; CalWatchdog.com</title>
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		<title>CA deals Indian casino chaos</title>
		<link>https://calwatchdog.com/2014/11/27/ca-deals-indian-casino-chaos/</link>
					<comments>https://calwatchdog.com/2014/11/27/ca-deals-indian-casino-chaos/#comments</comments>
		
		<dc:creator><![CDATA[James Poulos]]></dc:creator>
		<pubDate>Thu, 27 Nov 2014 14:29:47 +0000</pubDate>
				<category><![CDATA[Breaking News]]></category>
		<category><![CDATA[Life in California]]></category>
		<category><![CDATA[James Poulos]]></category>
		<category><![CDATA[prop. 48]]></category>
		<category><![CDATA[Indian casinos]]></category>
		<category><![CDATA[online gambling]]></category>
		<guid isPermaLink="false">http://calwatchdog.com/?p=70748</guid>

					<description><![CDATA[Despite generating huge revenues, California&#8217;s Indian casino industry has been dealt some questionable hands. Political interests have begun to swirl like a roulette ball around fresh efforts to legalize internet gambling statewide.]]></description>
										<content:encoded><![CDATA[<p><img fetchpriority="high" decoding="async" class="alignright  wp-image-70763" src="http://calwatchdog.com/wp-content/uploads/2014/11/Chukchansi-tribe-TemporarilyClosed_800x700-251x220.jpg" alt="Chukchansi tribe TemporarilyClosed_800x700" width="305" height="267" srcset="https://calwatchdog.com/wp-content/uploads/2014/11/Chukchansi-tribe-TemporarilyClosed_800x700-251x220.jpg 251w, https://calwatchdog.com/wp-content/uploads/2014/11/Chukchansi-tribe-TemporarilyClosed_800x700.jpg 800w" sizes="(max-width: 305px) 100vw, 305px" />Despite generating huge revenues, California&#8217;s Indian casino industry has been dealt some questionable hands. Political interests have begun to swirl like a roulette ball around fresh efforts to legalize internet gambling statewide.</p>
<p>But voters have been confronted by unpopular plans to expand brick-and-mortar gaming. And customers in at least one high-profile instance have been confronted by an all-too-literal conflict within tribal casino owners.</p>
<p>Both cases have underscored a new reluctance among Californians to treat Indian gambling operations with the degree of generosity extended by Sacramento.</p>
<p>Earlier this month, voters rejected Proposition 48 — a measure <a href="http://ballotpedia.org/California_Proposition_48,_Referendum_on_Indian_Gaming_Compacts_%282014%29" target="_blank" rel="noopener">designed</a> to approve the state&#8217;s legal authorization for a new, off-reservation casino.</p>
<p>AP <a href="http://www.nbcsandiego.com/news/politics/California-Prop-48-Tribal-Gaming-Measure-Defeated-281604221.html" target="_blank" rel="noopener">reported</a> Gov. Jerry Brown signed off on the plan because it would have precluded putting the casino on &#8220;environmentally sensitive&#8221; locations in Humboldt County.</p>
<p>It would have allowed the North Fork Rancheria Band of Mono Indians to construct a massive, 2,000-slot building 40 miles away from its reservation. It lost, <a href="http://ballotpedia.org/California_Proposition_48,_Referendum_on_Indian_Gaming_Compacts_%282014%29" target="_blank" rel="noopener">61-39</a>.</p>
<p>But <a href="http://www.pe.com/articles/measure-753482-prop-angeles.html" target="_blank" rel="noopener">according to AP,</a> Prop. 48 backers blamed &#8220;opponents — including wealthier tribes with competing gaming interests&#8221; that &#8220;had confused voters by construing the ballot measure as a referendum on the limits of gaming statewide instead of the one-tribe compact it was.&#8221;</p>
<p>Regardless, the tribe&#8217;s spokesman Charles Banks-Altekruse told AP the failure of Prop. 48 would simply lead to another deal at a later date. &#8220;What&#8217;s next is we&#8217;ll go back and get another agreement and we&#8217;ll build the casino with another compact,&#8221; he said.</p>
<p>The ordeal reflected a potentially rancorous political situation, where voters struggle against lawmakers — ultimately unsuccessfully — to impose limits on California gaming. <a href="http://www.reviewjournal.com/columns-blogs/inside-gaming/internet-poker-california-shapes-coveted-prize" target="_blank" rel="noopener">According</a> to the Las Vegas Review-Journal, California&#8217;s Indian casinos generate nearly $7 billion in revenue per year, a figure that makes up a fourth of gaming totals nationwide.</p>
<h3>Winners and losers</h3>
<p>The combination of big money and government regulation that drives Indian gaming expansion well could turn voters who won the fight against Prop. 48 into losers.</p>
<p>According to Jeff Heiman, the Southern California managing director of Tribal Financial Advisors, the defeat of Prop. 48 actually works to the advantage of a troubled casino. The Chukchansi tribe, currently feuding over its Chukchansi Gold Resort and Casino in the town of Coarsegold, recently sent patrons fleeing as a former tribal leader <a href="http://abcnews.go.com/US/wireStory/california-indian-casinos-embroiled-turmoil-27102552" target="_blank" rel="noopener">staged</a> an armed raid of the property last month.</p>
<p>The shocking attack, however, was just the latest twist in a factional fight that closed Chukchansi last month. As Heiman <a href="http://www.fresnobee.com/2014/11/21/4253523/in-chukchansi-turmoil-financiers.html" target="_blank" rel="noopener">suggested</a> to the Fresno Bee, the big financial interests with a large stake in Chukchansi and other Indian casinos will be more apt to work out a deal since Prop. 48 hasn&#8217;t put another massive gaming project on the table.</p>
<p>Now temporarily closed (the above image is of the front page of its <a href="http://www.chukchansigold.com/" target="_blank" rel="noopener">website</a>), Chukchansi has cost the tribe millions in lost revenue — an especially large poker chip to swallow given the unfavorable terms the tribe had worked out with its creditors.</p>
<p>As the Bee noted, the tribe agreed in 2011 to restructure its debt at an interest rate of 9.75 percent.</p>
<p>In fact, the Bee reported, the October raid was launched to &#8220;recover financial records&#8221; about audited financial statements from the past two years. Because the audits were late, the National Indian Gaming Commission slapped Chukchansi with an order imposing the temporary closure.</p>
<p>As ABC <a href="http://abcnews.go.com/US/wireStory/california-indian-casinos-embroiled-turmoil-27102552?singlePage=true" target="_blank" rel="noopener">reported</a>, &#8220;Chukchansi&#8217;s financial losses are unclear because Indian casinos are not required to disclose earnings.&#8221;</p>
<h3>Trickle-down benefits</h3>
<p>The trouble faced by Chukchansi has exposed the way the economy surrounding Indian gambling often allocates revenues more to financial concerns than to tribal members.</p>
<p>Generating some $100 million a year, the Bee calculated, only about $12 million a year from the casino went to the Chukchansi tribe. The remainder was divided between bond payments, payroll and operating costs.</p>
<p>As a result, tribes face continued pressure to expand casino operations, especially into online gambling.</p>
<p>Robert Martin, chairman of the Morongo tribe, told the Review-Journal that as &#8220;tribes come together&#8221; on Internet betting, &#8220;the opportunity for success grows.&#8221;</p>
<p>Yet online gambling faces major high-stakes opposition not only in California, but nationally. <a href="http://www.forbes.com/sites/nathanvardi/2013/11/22/sheldon-adelson-says-he-is-willing-to-spend-whatever-it-takes-to-stop-online-gambling/" target="_blank" rel="noopener">Forbes </a>reported:</p>
<p style="padding-left: 30px;"><em>&#8220;<a class="exit_trigger_set" href="http://www.forbes.com/profile/sheldon-adelson/" target="_blank" rel="noopener">Sheldon Adelson</a>, the nation’s 11th richest person and chief executive of casino company <a class="exit_trigger_set" href="http://www.forbes.com/companies/las-vegas-sands/" target="_blank" rel="noopener">Las Vegas Sands</a>, says he is determined to stop online gambling in America and he will go to great lengths to battle the corporate interests pushing for it. &#8216;I am willing to spend whatever it takes,&#8217; Adelson said in his first interview since <a href="http://www.washingtonpost.com/politics/sheldon-adelson-top-2012-donor-launching-campaign-against-internet-gambling/2013/11/17/d70054f6-4e40-11e3-be6b-d3d28122e6d4_story.html" target="_blank" rel="noopener">The Washington Post revealed</a> that he had hired an army of lawyers and lobbyists to try to convince Congress to ban online gambling.&#8221;</em></p>
<p>As a Republican, Adelson will wield even more clout when the GOP takes over the U.S. Senate in January.</p>
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