Study Questions Economic Forecasts, Massive Negative Impacts on Smaller Tribes
VALLEY CENTER, Calif., RINCON INDIAN RESERVATION, June 28 /PRNewswire/ --
A new economic study conducted by Business Research and Economic Advisors
(BREA) provides an in-depth market analysis of the unintended negative
consequences of the recently announced new Indian gaming compacts with the
State of California.
The study was commissioned by the Rincon Luiseno Band of Indians, who has
repeatedly expressed concerns over the closed door negotiations between the
state and five Indian gaming tribes with large casinos in major metropolitan
areas who signed the new compacts.
The study was included in today's filing of a motion for a temporary
restraining order against the state's new Indian gaming compacts filed in
United States District Court in San Diego by the Rincon Luiseno Band of
Indians.
The study reveals the massive destabilization of Indian gaming anticipated
as a result of the elimination of limits on slot machines and a proposed new
license fee schedule. In addition, the study also reveals how the new
compacts will negatively impact many smaller tribes, resulting in significant
loss of market share, jobs, revenue, and ultimately their self-reliance.
"These new gaming compacts will create a number of mega-casinos that could
put smaller tribes like Rincon out of business and force many of our tribal
members back on public assistance," said John Currier, chairman of the Rincon
Luiseno Band of Indians. "These new compacts do not foster self-reliance or
fair share -- and they are not good for California. We urge the Legislature
to reject these new compacts, seek equitable alternatives, and send the state
back to the negotiating table. All California tribes should participate in a
solution for Indian gaming, not just a handful."
The study makes clear that the new compacts will place many Indian casinos
at a distinct economic disadvantage and create a huge disparity between them
and large casinos in major metropolitan areas and gateway communities. While
the tribes with big gaming operations would be guaranteed protection from
commercial competition, the smaller tribal gaming operations will bear the
brunt of the unintended consequences of unlimited expansion. Smaller tribal
gaming operations, especially those in rural and remote areas, will suffer the
most.
"The state may be experiencing budget difficulties, but there's too much
at stake to rush these agreements through the legislature," Currier added.
"Billions of dollars and thousands of jobs are at stake, as well as huge
impacts on the environment, the economy, local infrastructures, and the
communities where these mega-casinos will be located."
The Rincon Band's filing for a request for a temporary restraining order
is to demonstrate to the court the urgency of the matter. The legislature may
be prepared to vote on the new gaming compacts as early as today. "Our goal
is to demonstrate how flawed and devastating these new compacts are going to
be -- devastating tribes that have only been able to claim self-reliance since
1999, and the fact the state is trying to do this without a vote of the people
of California," Currier added.
The Rincon Band's lawsuit, already filed in U.S. District Court against
the State of California, argues that the State of California is trying to
enter into agreements that significantly change the principles of Indian
gaming that California voters overwhelmingly approved with the passage of
Proposition 1A and Proposition 5.
"There is no need for unlimited gaming expansion. Indian gaming is about
self-reliance, it's not about maximizing profits and tax revenue. The Rincon
Band, like other tribes, counts on gaming revenue to help provide better
opportunities for our tribal members and to help ensure that they and their
families have a brighter future. Ultimately, these new compacts will make it
much more difficult for tribes like the Rincon Band to provide for tribal
members. There are better alternatives that would include all the California
gaming tribes," Currier stated.
NOTE: Electronic copies of the economic study on the new Indian Gaming
Compacts and copies of the Motion for Preliminary Injunction filed in United
States District Court-District of California in San Diego on June 28, 2004 are
available by contacting Robert Rice or Brandon Edwards at the numbers above.
For more information about the unintended consequences of the unlimited
expansion of gaming allowed under the new compacts, please visit
http://www.StopUnlimitedSlots.org.
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