Monday, October 15, 2012

Feds reject gaming compact negotiated by Patrick, Mashpee Wampanoag - Burlington, Massachusetts - Burlington Union

Feds reject gaming compact negotiated by Patrick, Mashpee Wampanoag - Burlington, Massachusetts - Burlington Union


.The federal government has rejected the state’s gaming compact with the Mashpee Wampanoag Tribe that would have helped clear the way for the tribe to pursue a casino in Taunton, forcing Gov. Deval Patrick and tribal leaders back to the negotiating table.th

The Bureau of Indian Affairs, in a letter to both the governor and the tribe, objected to balance of concessions made by the state to justify a revenue sharing agreement that would have sent 21.5 percent of net casino revenue back to Massachusetts. The government also ruled that the administration overstepped its bounds in seeking to include hunting and fishing rights in the gaming compact, and for trying to exert authority over non-gaming issues, such as the regulation of suppliers and entertainment services.

Patrick, in a statement released late Friday afternoon, Oct. 12, called the Department of Interior’s approach to the compact “outdated” and charged that the government was substituting its judgment for that of the tribe.

“Today’s decision by the U.S. Department of Interior is deeply disappointing on a number of levels. For starters, we negotiated in good faith with the Tribe, and the carefully bargained Compact was extraordinarily fair to both sides. Its terms rightly recognized and respected the sovereign rights of the Mashpee Wampanoag Tribe while remaining consistent with the goals and principles of the Expanded Gaming Act – namely bringing jobs and economic development to every region of the state,” said Patrick, who was in North Carolina Friday afternoon campaigning for President Barack Obama.

The Interior Department and Bureau of Indian Affairs, which also control the tribe’s application for land in-trust necessary for a casino, said its ruling was based on the need to keep compact focused solely on gaming to prevent tribes from being forced into agreements for “political expediency.”

Both Patrick and the tribe have lauded the compact as fair for both sides, but the bureau said it considers the exclusive casino rights for the region to be the only “meaningful concession” made by the state, discounting the administration’s pledged political support for the tribe’s land in-trust application and other agreements as outside the scope of gaming.

“While we have approved varying revenue sharing schemes in exchange for tangible benefits to tribes for over 20 years, the revenue sharing provisions in this Compact go beyond those permitted by the Department and (Indian Gaming Regulatory Act),” read the letter.

Patrick said the market, not the Interior Department, should set the value of the casino license in southeastern Massachusetts, and that potential profits created by allowing the tribe to enter the Bay State gaming market early justified the relatively high revenue sharing agreement.

“This is a setback on what has been a long journey, but we are not done. The Tribe has persevered before and it will again with the Commonwealth at its side. I commend Chairman Cedric Cromwell and Vice Chair Aaron Tobey for their passionate and able leadership of the Tribe. We remain partners,” Patrick said in the statement.

Both sides indicated a willingness to resume negotiations quickly. Under the state’s expanded gaming law, however, the window of exclusivity for the tribe to negotiate a compact closed on Aug. 31 giving the power to the Gaming Commission to seek commercial bids in the southeast region if it wants.

Patrick and the Mashpee Wampanoag tribe reached a deal over the summer that was quickly approved by the Legislature. It would deliver 21.5 percent of gross gaming revenue from a proposed casino in Taunton to Massachusetts.The percentage of revenue the tribe agreed to share is 3.5 percent less than what a successful commercial casino applicant will pay under the state's new expanded gaming law that allows for the licensing of up to three regional casinos, and one facility featuring slot machines. The percentage, however, is higher than in compacts negotiated in most other states.
The agreement outlined the parameters under which the tribe could operate a full-scale casino in southeastern Massachusetts in exchange for the state's support of the tribe's application to take land into federal trust in both Taunton and Mashpee, and to resolve land claims involving the tribe's hunting and fishing rights.
The tribe would have been authorized to operate all types of casino-style games under the agreement, including table card games, but excluding live horse racing.

“While disappointing, this possibility was anticipated in our agreement with the Commonwealth, which requires that we return to the negotiating table immediately to address the outstanding issues in the Compact and come to a revised agreement. We believe that these issues can be resolved quickly and cooperatively, and the Compact can be re-submitted to the BIA for swift action,” Cromwell said in a statement late Friday afternoon.

Under the compact, negotiations must resume between the state and the tribe in the event that the federal government rejects the initial deal, and the Legislature would be required again to approve any new agreement, potentially reviving a debate among lawmakers over the regional license.

When first presented with the state’s compact, lawmakers from southeastern Massachusetts objected to the lack of a deadline in the agreement for the tribe to take land into federal trust for a casino before the state could seek commercial casino bids in the region. Tribe leaders called idea of a deadline a “dealbreaker” at the time.

 


Read more: Feds reject gaming compact negotiated by Patrick, Mashpee Wampanoag - Burlington, Massachusetts - Burlington Union http://www.wickedlocal.com/burlington/news/x1826354131/Feds-reject-gaming-compact-negotiated-by-Patrick-Mashpee-Wampanoag#ixzz29NDWnm8B

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