A New Jackpot in New Mexico?

Thread: Indian Gaming in the News

The 13 gaming tribes in New Mexico have asked Governor Bill Richardson to renegotiate existing tribal-state compacts, and it appears the tribes and the state soon will announce they’re reached new agreements. Tribes currently pay 8 percent of slot-machine proceeds to the state – roughly $40 million per year. They’re ready to pay more. Why would the tribes voluntarily renegotiate when the compacts don’t expire until 2015? And why would they offer to increase the state’s take?

Tribes are looking down the road – way down – and they see that a little foresight today will forestall major roadblocks in the future. The best way to attract outside investors is to demonstrate a low-risk lending environment. With stable, no-surprises compacts in place, tribes can leverage their existing properties to obtain necessary external financing to further expand their gaming operations and diversify their economies.

The state treasury benefits, as well. That’s why a January 18 editorial in the Albuquerque Tribune lauds the renegotiations as providing a potential “jackpot” for tribes and the state.