Friday, March 16, 2007

The Senate has approved a new state-tribal gambling compact that would last
until 2037 and boost the state's share of the profits from Indian casinos.
The proposal was approved Tuesday on a vote of 27-14. It also has to be
endorsed by the House before Gov. Bill Richardson and the tribes could sign
the new agreements they negotiated. They would replace existing compacts,
which are slated to expire in 2015. Ten of New Mexico's 13 tribes with
casinos currently support the proposed changes. Tribes that didn't sign on
would continue to operate under the existing agreements. Richardson has
urged lawmakers to approve the new compacts before the Legislature finishes
its 60-day session Saturday. Sen. Richard Martinez, D-Espanola, who chaired
the legislative committee that reviewed the proposal, said it would bring
certainty and stability to New Mexico's gambling industry and provide the
state more money. Revenue sharing _ the amount the tribes pay the state _
would increase gradually from the current maximum of 8 percent of slot
machine proceeds to a maximum of 10.75 percent. Over the next 30 years, that
could provide the state about $650 million more than it would have received
under the current compacts _ but only if all 13 tribes sign the new
agreements. Tribes want the extended compact period so they can get more
advantageous financing for their casino, resort and tribal infrastructure
projects. The new agreements also limit off-reservation casinos at race
tracks to six _ there are now five _ and freeze their hours of operation and
number of slot machines at the current levels, 18 hours a day and a maximum
of 750 machines. Opponents complain it doesn't make sense for the state to
lock itself into agreements for the next three decades. While the state, the
tribes or the governor could request new negotiations during that period,
nothing guarantees that would occur. Some lawmakers also object that tribal
gambling in New Mexico has created disparity, leaving the non-gambling
tribes mired in poverty. The new compacts don't address that problem, they
said. "The gaming tribes have become part of the 'haves', but the
'have-nots' still exist," said Sen. Joseph Carraro, R-Albuquerque, who voted
for the proposal. By law, legislators can vote for or against the proposed
compact but not change it. The legislative Committee on Compacts had asked
the governor and the tribes to add a provision to the agreement that would
funnel money into an infrastructure fund for non-gambling tribes, but that
was rejected.

The gambling tribes objected to paying out the extra 1 percent of slot
machine proceeds required by that proposed change.

Opponents of the new compacts also said not enough money is being set aside
to deal with problem gamblers. Martinez said $1.7 million was set aside last
year, and he cited a variety of programs.

Opponents also objected that the state was rushing into new agreements when
the current pacts don't expire until 2015.