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Editorial: Casino-rich tribes might be shrewd to share more

Sat., Dec. 3, 2011

More gambling is a bad idea, but that is where the state of Washington could be headed if legislators hungry for revenue allow card rooms to introduce the slot machine-like devices now exclusive to tribal casinos.

Republican legislators are circulating a bill that would expand gambling and potentially generate $380 million per biennium in new revenues, according to Rep. Gary Alexander, the ranking member of the House Ways and Means Committee.

About $33 million would go to local governments.

With the two-year state budget about $2 billion in arrears, potential new revenue from gaming has powerful appeal if the alternative is cutting health care services and education; $160 million to state-run colleges and universities alone.

It looks good, too, if the alternative revenue option is the one-half-cent sales tax increase Gov. Chris Gregoire would like the Legislature or, more likely, the voters to approve.

But her plan, at least, would sunset the tax in 2015, presumably when the economy will be stronger. Gaming machines, on the other hand, will surely multiply until they infest many establishments beyond the 60 – five in Spokane County – that would be allowed to have them initially.

If the new legislation adopts the limits set in HB2044, a bill introduced in the regular session, nontribal casinos would be allowed to install a maximum 7,875 machines. The 28 tribal casinos, by comparison, are allowed a maximum 27,300, although there are fewer than that in place.

The tribes netted about $1.7 billion in gaming receipts in 2009, by far the lion’s share of the $2.2 billion total for all gaming operations in Washington. Of the tribal share, by law, $6.5 million went to local governments, $7.8 million to charities, and another $3 million to smoking cessation and problem gambling programs. The more prosperous tribal casinos – Northern Quest among them – give more, some to tribes without gaming operations.

Still, roughly $20 million out of $1.7 billion seems awfully modest. The state gets nothing directly, but it does collect sales taxes on activities associated with casino construction and operations.

The tribes have been approached about further revenue sharing. Many allege, but Alexander denies, that the new legislation is intended only to force the tribes to give up a more generous portion of their revenues.

Rep. John McCoy, a member of the Tulalip Tribe, says Native Americans remain among some of the most impoverished of Washington’s people despite the progress brought by casino gambling. Nontribal gaming will choke off that progress, he warns, noting there are only so many recreational dollars – for gambling, movies, restaurants, etc. – to go around.

True. But right now there are only so many education and health care dollars to go around. The tribes are not the answer to the state’s budget problems. They have their own. But they might want to look at this as an opportunity, and act accordingly.