Part 1 - Look Who's Cashing In At Indian Casinos - Hint: It's not the people who are supposed to benefit

Part 2 - Playing the Political Slots - How Indian casino interests have learned the art of buying influence in Washington
Money Talks
Tax Dollars at Work
California Scheming
Nightmare Neighbors
A Tale of Two Tribes

Short Articles

Facts

How much are tribes spending?  To win passage of the two ballot initiatives in 1998 and 2000, that legalized Indian gaming in the state, several small tribes spent a total of nearly $100 million.  The San Manuel Band of Serrano Mission Indians, which owns a casino in San Bernardino County, spent a staggering $34.7 million - an average of almost $520,000 for each of the tribe's 67 adult members.  Both initiatives passed.

It's not only the size of the political expenditures that is causing concern.  Some tribes have violated campaign finance laws.  Earlier this year, California's Fair Political Practices Commission, which monitors the state's elections, charged that since 1998 one tribe - the 232 member Agua Caliente Band of Cahuilla Indians, which has a pair of money-churning casinos near Palm Springs - had failed to promptly report multiple contributions totaling $8.5 million.  When the commission tried tow work out a settlement, the Agua Caliente would not negotiate, contending that because the tribe is a sovereign nation, California campaign finance laws do not apply.  Like all federally recognized tribes, the Agua Caliente is a self-governing entity and thus generally exempt from state and local laws.

Despite that, the commission filed a lawsuit, assuming that California's attorney general, Bill Lockyer - the state's top law enforcement officer - would represent the agency.  But he declined.  Lockyer, by the way, has accepted substantial campaign contributions from Indian tribes - some $800,000 in the past four years, including $175,000 from the Agua Caliente Band.  As a consequence, the commission has had to hire an outside lawyer, a move that will cost unnecessary tax dollars.  jim Knox, California Common Cause's executive director, believes that actions against the Agua Caliente and other tribes must be pursued.  "If they are sovereign nations, they shouldn't be able to contribute to candidates or ballot measures," says Knox, pointing out that it's illegal for a foreign state or business to pump money into U.S. elections.  "And if they aren't, they should be subject to the state's election and campaign finance laws.  The tribes are trying to have it both ways."

And so far, that has worked.  Tribes have become California's largest special interest donors.  In his recent reelection campaign, Governor Gray Davis picked up $1.8 million from them, and he, more than anyone else, is responsible for the face of California gaming.  The compacts he signed with the tribes in 1999 paved the way for the explosion in the state's Indian casinos, which number 48 and may climb to 70.

Because tribes pay no state or local taxes, the compacts Davis negotiated provide for tribal contributions to a special impact fund.  The money will go to local communities overburdened by booming casinos and help defray the increased costs of local government services.  California officials estimate that the tribe swill pay about $100 million a year into the fund.  By contrast, Connecticut collected $332 million last year from its two Indian casinos, Foxwoods and the Moheegan Sun.  If California tribes were paying at the same rate - 25% of slot revenue - the state would collect up to $1 billion.