Should the Federal Government Foreclose Tribal-Local Partnerships?

Thread: Proposed IGRA Amendments

In several prior postings, we’ve discussed recent congressional efforts to curtail the spread of “off-reservation” casinos. One key implication of Sen. McCain’s and Rep. Pombo’s proposed reforms is their potential impact on intergovernmental relations among tribes and localities.

Critics of off-reservation gaming seem to assume that “reservation shopping” means that tribes seeking to open a casino are foisting themselves on unwilling communities. But frequently, localities see the economic development and job creation opportunities that flow from proposed casino and resort developments and seek creative ways to partner with tribes. Now, rarely do such partnerships result in the construction of actual casinos – as we’ve mentioned in other posts, despite the hoopla, only three off-reservation casinos have been opened under the “best-interests” exception to the Indian Gaming Regulatory Act’s prohibition on gaming on newly acquired lands. However, when they do, the negotiations that lead to such casinos can generate what tribes and localities consider a win-win.

Take the case of the Forest County Potawatomi Community in Wisconsin, which operates one of the three off-reservation casinos negotiated under IGRA’s best-interests exception. In mid-August, the tribe transferred $4.2 million to both the city and county of Milwaukee, having shared nearly $55 million with them since 2000. These payments are roughly twice what the tribe would owe if the casino property were subject to local property taxes. The tribe employs nearly 2,000 people in Milwaukee, three-quarters of whom live in the county and pay income taxes, purchase local goods and services, etc.

These kinds of partnerships would be significantly hindered if not virtually foreclosed under versions of the proposed congressional reforms. Should the federal government dictate the terms of local politics and public policy under the pretense that it knows better than local officials what is best for the communities involved?