As the World Turns....the World of Gaming in Minnesota

Opinion - By Dave Snetsinger

It has been very interesting watching Minnesota's Governor Tim Pawlenty during his trek to solve Minnesota's financial problems.

In his State of the State speech in 2004, he stated Minnesota deserves a "better deal". He stated that Indian tribes in Minnesota should pay their share with gaming revenues to help reduce the state's budget woes. Pawlenty has proposed a “take” of tribal gaming proceeds in Minnesota. He estimates that about 25 percent of the gaming revenue or $350 a million would be a fair amount. But the tribes dispute that figure. Where did the Governor get his figures?

Why would Minnesota Tribes want to reopen their gaming compacts with the state and give away 25% of their profits. Did the Governor think that he could just open up the compacts and renogotiate a deal. Tribal Gaming Compacts can only be reopened if both parties agree. Many tribal members said that they would much rather see these funds stay with the reservations, to help serve their people, than go to the states coffers to solve a problem that the Indian tribes had nothing to do with.

Then there were the threats. Governor Pawlenty proposed a “take” of tribal gaming proceeds in exchange of offering the tribes exclusivity of gaming in Minnesota. There were a number of proposals before the legislature last year dealing with gaming. Expanding the Canterbury Park racetrack into a "Racino" was just one proposal that got a lot of attention. Putting slot machines into Minnesota's bars was also proposed. Partnering with northern Minnesota tribes to build a Metro Casino was also debated. These are all cards that the Governor feels he has to pressure a deal.

In late August 2004, Melanie Benjamin, Chief Executive of the Mille Lacs Band, wrote to Governor Pawlenty, proposing several partnership opportunities that could benefit the State and the Band. The Governor welcomes the idea of cooperation. Then the Mille Lacs executive withdraws her proposal, saying the Governor does not negotiate in good faith. She explains why in her letter to the Governor:

• First, at your request, the State filed an amicus brief supporting Mille Lacs
County in its lawsuit aimed at disestablishing the Mille Lacs Reservation’s
boundaries. Fortunately for the Band, the Supreme Court has refused to hear the
case, supporting the ruling of two lower courts against the county.

• Second, you sent a letter to all of Minnesota’s tribal leaders demanding the tribes pay $350 million to the State. This amount is based on the conclusions of a
thrown-together study conducted by your administration without any basis in
reality. Meanwhile, you and your chief of staff made well-publicized attempts to
push forward the idea of opening Minnesota to Las Vegas gaming interests.

• Third, you led a political smear campaign leading up to the election in a
deliberate attempt to turn undeserved animosity toward Indian gaming and Indian
people into votes for Republican candidates. Your name and voice were part of
campaign ads and literature, politicizing the issue to an extent that shows how
out of line your priorities are with the Mille Lacs Band’s wish to work together
on a government-to-government basis. The fact that your campaign failed does not
make it any less shameful.

Chief Executive Benjamin goes on in her letter..."Your actions to politicize the gaming issue since the Band came forward in August have poisoned the water. At this time, there is no point in participating in a one-sided discussion with no real hope of a solution."

Pawlenty once was among the opponents of any expansion of gambling and said "running, managing, licensing casinos is not a proper government function." He told the Pioneer Press in November that he would prefer there were no gambling in Minnesota. But he said the current situation in which tribes enjoy a monopoly on casino gaming but pay nothing to the state is not acceptable.

According to a St. Paul Press article in December, Pawlenty said his strong first choice is to persuade tribes to give the state a 25 percent cut of their revenue in return for a guarantee of a continued monopoly and perhaps state approval for a new Twin Cities casino that would benefit Indians and the state. And if the tribes do not agree? "We're actively pursuing Plan B and Plan C options," He refused to elaborate.

In a Dec. 17 letter to Pawlenty, Stanley Crooks, the Mdewakanton tribal chairman, wrote, in part: "(You) trample your own political party's core principles by promoting a tax or fee (or whatever you wish to call it) on the tribes. Regardless, it is nothing more than a financial punishment against tribes for achieving meaningful economic success."

The Governor's effort to persuade tribes to give the state a share of gaming profits has failed, according to House Speaker Steve Sviggum. "It's not happening," Sviggum said. "They're not meeting with him."

The Governor makes history. On January 6,2005 Governor Pawlenty traveled to the White Earth Reservation to meet with tribal leaders from Leech Lake, Red Lake and White Earth. White Earth Chairwoman Erma Vizenor opened the meeting by stating that "For the first time in my memory and the memories of many of our elders, that a Governor has come to visit us in our home." The Governors tone and tactics were much softer. During this meeting, the Governor offered some "concepts" to consider. The Governor said that he has not presented these "concepts" to the state legislature yet, but wanted to discuss them with the northern tribes. All representatives from the three reservations said that they would take these "concepts" back to their governing bodies to discuss.

The following week, the Governor's spokesman Brian McClung stated that the only new casino proposal the Governor is considering is one that would allow three northern Minnesota tribes to build a Twin Cities casino.

During the Governor's State of the State speech in Rochester, he state that his preferences on gambling have not changed, but eluded to the fact that tribal entities would not change. Thus, he concludes that "we're left to explore other alternatives". He goes on how he was please with the discussions with the tribes in Northern Minnesota.

The day after the Governor's State of the State speech, the Associated Press writes that the governor's spokesman stated that Gov. Tim Pawlenty met with the mayor of Bloomington last month to discuss opening a partially state-run casino at the Mall of America. Pawlenty's spokesman, Brian McClung, stressed that the governor has met with several local officials around the Twin Cities in recent weeks to discuss his casino proposal. It would be a partnership between the state and several northern Minnesota Indian tribes that don't currently own casinos.

McClung also said that Pawlenty has also met with officials in the Anoka area. Interesting.....

According to a Star Tribune article on January 23, 2005 Minnesota's debate over gambling took a couple of sharp turns last week with state approval of a harness racing track in Anoka County The $47 million harness track plan emerged without fanfare from the little-watched Minnesota Racing Commission, which had rejected it as recently as last October. But the commission's vote had barely been recorded before House Speaker Steve Sviggum, R-Kenyon, was talking of adding a casino to what is now 165 acres of hay and scrub trees in Columbus Township near Forest Lake.

Could this be the proposal that Governor Tim Pawlenty intends to propose to the state legislature? Who knows..... Stay tuned... as the World Turns.