MONTEAU & PEEBLES LLP
HAROLD A. MONTEAU MT CHARLES J. ANTONEN CA
JOHN M. PEEBLES NE JENNIFER L. BLISS MI, NE
MICHAEL J. ANDERSON CO, D.C. QWENDOLYN N. BROWN GA
FRED ASSAM NE, SD JERRY D. GUENTHER MT, WA
ROBERT A. ROSETTE AZ, CA, D.C. STEVEN P. HARRIS CA
CONLY J. SCHULTE NE ATTORNEYS AT LAW ROBERT L. HUNTER, JR. AZ, MT
LORETTA A. TUELL CA CHRISTINA V. KAZHE CA
1001 SECOND STREET • SACRAMENTO, CALIFORNIA 95814 MARK A. LEVITAN CA, NAV, NM
OF COUNSEL TELEPHONE: (916) 441-2700 • FACSIMILE: (916) 441-2067 SHILEE T. MULLIN MO, NE
LANCE G. MORGAN MN MICHAEL A. ROBINSON CA
SHELBY L. SETTLES D.C., WA
JEREMIAH D. WEINER MT
THE SECOND STREET JOURNAL
NO. 29: September 26, 2003
been part of the discussions all along and are
TOP STORIES aware of what's happening, Howard Hughey, a
spokesman for the mayor, said Friday.
Detroit gaming houses close to The investor groups that created the MotorCity
settling lawsuit and Greektown casinos were granted
preferences because they pushed the
September 20, 2003
statewide ballot measure that voters approved
BY TINA LAM
in 1996 allowing casinos in Detroit.
FREE PRESS STAFF WRITER
Hughey said the deal hasn't been sealed. "The
As a possible settlement was being ironed out
mayor is anxious to hopefully reach a
Friday in the long-running lawsuit over Detroit's
settlement next week," he said.
casinos, one person familiar with the
discussions said a small Upper Peninsula
The lawsuit has dragged on since 1997, when
Indian tribe could get $78 million over 25 years
the tribe, which is based in Watersmeet, said
from two of the city's three casinos. MotorCity
granting preferences to two groups for casino
and Greektown, the two casinos that were
licenses made the process unfair. A federal
granted preferences in the ordinance that set
judge in Grand Rapids has twice thrown out
up gambling in Detroit, would each pay half, or
the tribe's claims, and the U.S. 6th Circuit
$39 million, said the person, who agreed to
Court of Appeals in Cincinnati has twice
speak only on condition of anonymity.
overturned the judge's decisions. The appellate
judges said the tribe's constitutional rights were
That's a lot of money for the Lac Vieux Desert
violated. The case now sits before the appeals
Band of Chippewa Indians, Michigan's
court, which has scheduled no hearings but
smallest tribe with just 430 members. But for
has tried to get the parties to settle.
the casinos, the annual payments would be
barely more than a day's revenue. For the city,
For the past year, the court has prevented the
ending the lawsuit successfully would mean
casinos from putting shovels in the ground to
1,200 new hotel rooms and other benefits,
build casino-hotels with 400 rooms each, until
possibly in time for the January 2006 Super
the case is resolved.
On Friday, the casinos were mum, and the Lac
MGM Grand Detroit Casino, which won its
Vieux tribe's attorney and the tribe's business
casino bid without a preference, would not
partner, Don Barden, did not return calls.
share in the payments. MGM Grand officials
were not at a marathon session Mayor Kwame
Patrick Diedrickson, senior securities analyst
Kilpatrick said he held Saturday, but they have
for H&R Block Financial Advisors in Detroit,
who covers the Detroit gambling industry, said possess no such credentials.
if the settlement ends up being $39 million over The letter goes on to say, euphemistically, that
25 years, it won't hurt the casinos' bottom line. U.S. Federal Court Justice Thomas Platt’s
"It's not a lot," he said. decision last month to halt construction on the
The settlement would amount to $1.56 million casino for 18 months shouldn’t be viewed as
a year for each of the two casinos. Last month, either defeat or victory for either side, but that it
MotorCity took in just over $1 million a day and “presents us all with an opportunity” for
Greektown Casino took in a little less than that. compromise.
Diedrickson said MotorCity and MGM Grand The letter also states that, should the
already are making "fantastic returns any Shinnecock continue on its present course, the
investor would be happy with." future would be rife with “years of conflict
…and ill will from the community” with little
But Jake Miklojcik, a consultant in Lansing who chance of a casino actually being built.
has done financial studies for several casinos,
said the money "is not a drop in the bucket." Lawmakers are proposing that the Tribe meet
"If it was, they wouldn't have negotiated over it with state and local officials to explore “good
this long," he said. faith” alternatives to casino -- with the caveat
that whatever they come up with is unlikely to
be as lucrative as a gaming facility. In doing
Lawmakers to Tribe: Let’s Talk so, according to the letter, the Tribe would
pursue a “certain course,” would avoid years of
By Michael Colello (Source: Southampton litigation, and could preserve the “long-
Independent online) standing, good relation” between the Tribe and
the adjacent community.
The Shinnecock Indian Nation received a letter
last week from four prominent New York According to Thiele, alternatives to be
lawmakers offering to meet with the Tribe to discussed could include purchase of
discuss alternatives to the construction of an development rights or the possible
Indian gaming facility at the Westwoods parcel, implementation of a non-gambling tourist-
in Hampton Bays. based operation. Thiele added that his office
The letter, signed by State Assemblyman Fred has received an “initial call” from the Tribe, but
Thiele, Congressman Timothy Bishop, Senator that no meeting has been definitively set up.
Ken LaValle and Southampton Town
Supervisor Patrick “Skip” Heaney, and sent
last Thursday, states the “critical juncture” the
Indian gaming is good
issue has reached and that the tribe must for tribal, nontribal
cooperate with state and local authorities.
“No Indian nation will succeed in operating a economies
full casino gambling facility without compliance BY ERNEST L. STEVENS JR.
with relevant state and federal law,” the letter
states. “Casino gaming on eastern Long Island
First and foremost, Indian tribes are sovereign
is opposed by local officials and the public at
nations — governments — with a vision for the
large … the chance that a gambling casino on
future of our peoples.
eastern Long Island will ultimately be approved
From the first days of the United States, Indian
The letter restates what the legislators have
nations maintained their right to self-
long maintained: to open a casino the Tribe
government. Legendary chiefs, such as Red
must first acquire federal acknowledgement,
Jacket, Tecumseh, Osceola, Red Cloud,
have the federal government take the land
Cochise, Crazy Horse and Dull Knife, fought to
where the casino is to be located into trust, and
protect our ways of life and our right to pass on
enter into a compact with the state of New
our traditions and values to our children and
York to permit casino gaming. The Shinnecock
grandchildren. Although the United States many other essential governmental
often broke the peace and instead programs.
implemented policies of assimilation and
genocide against our peoples, the treaty Not only is Indian gaming beginning to turn
guarantees of tribal self-government are still around tribal economies, it's also helping non-
the supreme law of the land, according to the Indian communities in economic need. With
U.S. Constitution. That Constitution requires the economic slowdown across the United
that the United States government honor those States, many states are facing difficult budget
treaty obligations. shortfalls. Given the historic destruction of
tribal economies and the fact that most Indian
The legacy of the Indian wars and western tribes are just taking the first steps on the long
expansion dispersed tribal communities across road to economic self-sufficiency, it is ironic
the nation. Tribes were left to eke out the most that tribal governments are aiding state and
meager living on the poorest corners of our local communities.
aboriginal lands, or, worse yet, were "removed"
from our ancestral homelands to places west Through Indian gaming, tribes indirectly
of the Mississippi in the 19th century version of contribute to federal, state and local budgets.
ethnic cleansing. Other policies encouraged Employment and economic activity caused by
the slaughter of our food sources and Indian gaming increases federal, state and
prohibited Indian people from practicing our local payroll, vendor, employee income and
native religions, speaking our native other taxes, and revenue sharing and other fee
languages. The results of these policies: agreements to the tune of $6 billion annually.
poverty and destitution.
Considering the question of revenue sharing,
However, tribal governments and Indian the first principle is that Indian tribes are
people — all but forgotten and pushed aside — governments and, as governments, cannot be
persevered. Since the late 1960s, tribal taxed by other governments. Thus, just as
governments have exercised their original, state lottery revenues are not subject to
inherent powers of self-government by using taxation, tribal government revenues are not
gaming — just as states use lotteries — as a subject to state taxation. The Indian Gaming
means of creating employment and generating Regulatory Act reflects this principle by
a steady stream of tribal governmental providing that if a state asks for taxation during
revenue. compact negotiations, such a request is prima
facie evidence of bad faith.
Indian gaming has proved to be the most
important avenue for tribal economic The secretary of the interior has, however,
development. In just 30 years, Indian gaming permitted revenue-sharing agreements where
has had a substantial impact on Indian there is a clear, substantial benefit to the tribal
communities — and is beginning to reverse the government to justify revenue sharing and
devastation of the policies of the 1800s. Indian ensure that it is not simply a state tax in
gaming generates more than 300,000 disguise. Caution must be exercised in this
American jobs, provides tribal governmental area, because revenue sharing cannot be
revenue to build essential infrastructure such justified in many regions of Indian country.
as schools, health clinics, roads, clean water
systems, communication systems and So, in our view, states and local governments
recreations centers — and also helps must first recognize the substantial benefits to
fund essential programs such as their communities because of Indian gaming.
education, child and elder health care, And they should not forget that tribal
law enforcement and fire protection governments must first take care of their own
programs, water and sewer services and communities, which still have a long way to go
to reverse the economic devastation of the
1800s. Again, it's ironic that the governments CNIGA ACTIVITIES
that aided in that devastation now seek Indian
country's aid. 9/16-18: CNIGA at Global Gaming Expo Week,
Las Vegas Convention Center; see Nationwide
Nevertheless, tribes realize that we are all in Events below for details.
this together. They will continue to help their
neighbors, as long as they are shown the 10/2: CA Tribes Meeting on Sacred Sites;
respect and recognition they have earned. Hyatt Hotel, Sacramento, CA 10 am
10/13-17: CNIGA Responsible Gambling
Awareness Week; contact CNIGA for details
WELCOME TO THE CIRCLE
10/23: CNIGA Monthly Meeting, Fantasy
Please welcome Felicia D. Kaufman to the Springs Casino, 84245 Indio Springs Parkway,
Phoenix, Arizona office. Felicia is a legal Indo CA
secretary with 13 years of experience in
litigation, real estate, eminent domain and NATIONWIDE EVENTS
other practice areas. She has a B.S. degree
from Arizona State U. in Global SEPTEMBER 2003
Business/Information Systems Management.
Felicia will be visiting the Sacramento office 9/29-10/2: NIHB 2003 Consumer
this week for orientation. Conference, Radisson Riverfront
Hotel, St. Paul, MN: for reservations
Plans are underway to expand the Arizona call (651) 292-1900
office and relocate it to Tempe. Rob Rosette
and Felicia will be spearheading this project. 9/29-10/3: 13th Annual Indian Land
Consolidation Symposium, hosted by
Please welcome Dessa Romasanta to the the Confederated Salish & Kootenai
Sacramento office. Dessa is a part-time file Tribes at the KwaTaqNuk Resort.
clerk who was hired to fill in for Jay Maschas’ Reservations call: 800/882-6363 or
reduced work hours. Jay is pushing to direct at 406/883-3636. For more
complete his final year of law school at information go to www.ilwg.net or
McGeorge. contact Marlena Johnson or Theresa
Carmody at: 505/247-9561 or
CALIFORNIA GAMBLING CONTROL 505/668-9013
9/30-10/2: Indian Child Welfare
The CGCC’s next scheduled meetings are: Training Institute, Best Western
Doublewood Inn, Bismarck, North
Dakota. For more information call
Wednesday, October 8, 2003 at 2399
Kim Just at NICWA at: 503/222-4044
Gateway Oaks Dr. Suite 100, Sacramento
CA, 1:30 pm
Wednesday, October 22, 2003
Wednesday, November 5, 2003 10/2-3: Conference on Tribal Councils
Wednesday, November 19, 2003 and Tribal Courts, Conference Center
Wednesday, December 3, 2003 at the Seattle Center, Room A,
Wednesday, December 17, 2003 Seattle, WA. Hotel: Homewood
Suites (4 blks from Seattle Center)
Reservations call: 206/281-9393
(“Subject to change without notice”) For more information call Elizabeth
Fry at: 509/826-6821 or fax: Mashantucket, CT: Call 800-369-9663
509/826-2223 or e-mail: for reservations.
10/23-24: Trading at the River
10/3-6: International Indian Treaty Conference, Portland, OR. For more
Council Conference Sac and Fox information contact Kayeri Akweks,
Indian Nation, Oklahoma. For more Special Projects Manager at
information e-mail Shelly Vendiola at: ONABEN: A Native American
firstname.lastname@example.org Business Network at: 1/800/854-
8289 or 503/968-1500 or web site:
10/7-9: Region 10 Tribal Leaders www.onaben.org
Summit and Environmental
Management Conference. Coeur 10/24-25: Statewide Indian Parent
d'Alene Casino Resort Hotel, Worley, Forum, Holiday Inn, Billings, MT; for
ID. For more information contact info contact: Leslie A. Munro,
Tiffany Allgood at: 208/686-8802 or email@example.com - 338-7646,
for registration and/or vendor Browning, MT;
information contact April Mettler at: Norma Bixby, firstname.lastname@example.org,
208/686-5602 or e-mail: 477-6602, Lame Deer, MT;
email@example.com Arlene Augare,
10/7-8: Fall Great Plains Indian 338-3334, Heart Butte, MT;
Gaming Association Quarterly Thomas Brown, firstname.lastname@example.org
Meeting, Harrah’s Prairie Band 768-3524, Poplar, MT
[Potowatami] Casino, Mayetta KS:
call GPIGA at 701-255-9275 for
information; 1-800-HARRAHS for NOVEMBER 2003
11/16-21/03: NCAI 60th Annual
Session, Hyatt Regency Hotel,
10/10: Government-to-Government Tribal Albuquerque, NM; pre-registration
Summit, Helena MT; contact Lori Ryan, [MT] deadline is 10/31/03; visit
Office of Indian Affairs 406-444-3702 email: https://www.ncai.org/form/e/e.asp to
email@example.com register online.
10/13-17: Responsible Gambling 11/18-20: Indian Child Welfare
Awareness Week, a California Tribal Training Institute, Monarch Hotel and
Government initiative. Convention Center, Portland, OR.
For more information call Kim Just at
10/20-22: NIGA Casino Manager NICWA at: 503/222-4044 ext. 113
Certification - Security/Surveillance
and Accounting Departments. Palm 11/20-22: American Indian Science
Springs, CA. Click Here for pricing, and Engineering Society Conference,
agenda, travel and hotel details, or Convention Center, Albuquerque NM;
call 202-546-7711 x217. register online at
10/20-22: USET ANNUAL MEETING
& EXPO (United South & Eastern
Tribes) Hosted by the Mashantucket DECEMBER 2003
Pequot Tribal Nation; at Foxwoods
Resort Casino 12/10-11: NIGA’s Native American
Hotel & Resort Meeting & Workshops;
details to be announced on NIGA tribes to share their profits, which come mostly
website from slot machines.
JANUARY 2004 "Reel Time Bingo devices also could start
showing up in traditional tribal bingo parlors
1/14-15: Western Indian Gaming and on tribal lands currently without gambling,
Conference, Palm Springs emerging as competitors in gambling markets
Convention Center, Palm Springs CA. established by other tribes or commercial
"…A spokesman said the American Gaming
2/23-25: NCAI Executive Council Association, which represents the commercial
Winter Session; Wyndham Hotel, casino industry, was studying the ruling and
Washington DC; see NCAI National had no comment.
Calendar online for updates.
"…But Reel Time game manufacturer
SEPTEMBER 2004 Multimedia Games Inc. of Austin, Texas, was
bracing for plenty of orders for the new games.
9/25-28: American Indian-Alaska Multimedia's stock rose $4.65 a share
Native Tourism Association Wednesday, closing at $34.60.
Conference; Green Bay, WI.
"…Kansas Attorney General Phill Kline earlier
NIGC ANNOUNCEMENTS AND this week filed a lawsuit against the national
NEWS commission and the U.S. Department of the
Interior, seeking to shut down the 7th Street
NIGC Ruling will be Far Casino, alleging violations of federal
environmental and historic preservation
MISSOURI – As reported by the Kansas City TRUST FUND LITIGATION
Star:: "Gambling devices that look and play
like slot machines are not slots but a version of
bingo, the National Indian Gaming Commission
Cobel Lawsuit Ruling
has ruled. 'Historical'
Says Interior must provide full accounting
"That distinction means American Indian tribal by 2007
casinos can offer the slotlike machines to the
WASHINGTON DC Sam Lewin 9/25/2003 (source: Native
public without state consent or oversight. The Times.com)
long-awaited ruling blurs the line between
categories of federally licensed tribal gambling Native American groups at the forefront of the
activities and could trigger the explosive battle to seek a full accounting of Indian Trust
growth of tribal slot parlors nationwide. Funds are hailing today’s decision in the Cobel
lawsuit by a federal judge as “ historical.”
"`The ramifications of this decision are far-
reaching,' Merrill Lynch gaming industry U.S. District Judge Royce Lamberth said he
analyst David Anders said Wednesday. would give the Interior Department another
chance to account for money owed to
"`Losers may be state governments,' which American Indians. He set a deadline of 2007,
cannot prohibit the slot-machine-like games, with several intermediate deadlines along the
said Anders, and thus lose whatever leverage way. His decision came after a 44-day trial.
they might have had to persuade gambling
But Lamberth expressed little faith that would Department of Interior.''
actually happen, saying he didn’t believe the
Interior was incapable of providing an Lamberth’s decision is the latest chapter in a
accounting. multi-part case that began with a lawsuit
against the Interior Department seeking an
“ Rather, it is that the Court has no confidence accounting of billions of dollars the government
that Interior is willing to actually implement an has held in trust since the late 19th century.
adequate accounting, ” Lamberth wrote.
The trust fund was started after the breakup of
Interior Department spokesman Dan Dubray is Indian reservations in the 1880’s. Indians were
not in his office this week and could not be allotted beneficial ownership of the lands with
reached for comment. An official with Justice the government acting as trustee. That meant
Department said the case is currently being it was the government’s sole responsibility to
reviewed. keep track of all proceeds from land, mineral or
oil sales. A class action lawsuit sought to
The Native American Rights Fund was determine how much money remained in those
enthusiastic in their reaction to Lamberth’s accounts and reform the way federal officials
decision. NARF filed the case in 1996. keep track of the money….
“ I think it’s a well-reasoned decision by the LAWYER LEVITY
court,” NARF Attorney Keith Harper told the
Native American Times shortly after reading
the decision. “ He has recognized the duties What's your wife's name?
that the federal government has to individual
Indians. He took great pains to delineate the St. Peter is questioning three married couples to see
common law duties. It is the first time someone if they qualify for admittance to heaven.
has said that in such specific terms.”
"Why do you deserve to pass the Pearly Gates?" he
Plaintiffs in the case argued that the Interior asks one of the men, who had been a butler.
Department was incapable of accounting for
the money and petitioned Lamberth to strip the "I was a good father," he answers.
department of its oversight of Indian funds.
They sought an outside party to manage the "Yes, but you were a drunk all your life. In fact,
money. Lamberth said no, but Harper believes you were so bad you even married a woman named
the ruling will probably result in an independent Sherry. No admittance."
receiver anyway. Harper says the 2007 date is
preceded by several other deadlines. St. Peter then turned to the next man, a carpenter,
and asked him the same question.
“ He’s got this outside date [of 2007] but he
has numerous interim dates to determine if The carpenter replied that he had worked hard and
they are fulfilling the order. If not, we can take taken good care of his family.
additional action if it is clear Interior is not
taking the proper steps,” Harper said. That But St. Peter also rejected him, pointing out that he
additional action could include another request had been an impossible glutton, so much so that he
for an independent receiver. married a woman named BonBon.
Cobel attorney Dennis Gingold said At this point the third man, who had been a lawyer,
Lamberth’s ruling was a worst-case scenario stood up and said, "Come on, Penny, let’s get out of
for Interior. here."
"They can't do it. It's absolutely impossible. He
has created the worst nightmare for the