Negotiations between the state and Confederated Salish and Kootenai Tribes began last week on the Tribes' proposed gaming compact that, if approved, would give them more jurisdiction over Class III gambling revenue from businesses on the reservation.

Currently, the Salish and Kootenai Tribes have jurisdiction over tribally operated gaming establishments on the reservation, while about 15 percent of revenue earned from non-tribal gaming goes to the state. The Tribes presented their formal proposed compact to state officials last Wednesday, in Helena.

If the compact is approved, the Tribes would have control over all Class III gaming on the reservation, which includes casino-type games like keno and video poker. However, if negotiations fail, Class III gaming cannot continue on the reservation.

Tribal communications director Rob McDonald said this has happened once before in the mid-90s and it took a tremendous toll on local businesses.

"As a good neighbor with the surrounding community, the Salish and Kootenai Tribes are hopeful for an efficient negotiation process with the state," McDonald said in a prepared statement.

The current compact expires in October.

According to McDonald, gaming generates an estimated $11.4 million of gross play annually for the Salish and Kootenai Tribes. About 185 gaming machines are located in about a dozen reservation businesses. The largest concentrations of machines is located in Polson at the Best Western KwaTaqNuk Resort.

Class III non-tribal gaming operations account for 371 machines at 37 locations with about $15.7 million in gross play, according to the Tribal press release.

Deanne Sandholm, Legal Counsel for the governor's Budget and Program Planning Office, said that it was too early to comment on the Tribes' proposal and that the state will meet with the Tribes and discuss the issue further in about four weeks.

The state limits the number of tribal machines and the maximum bet and payout, and the Tribes would like to change that and regulate all Class III gaming on the reservation.

The Tribes have become the largest employer in Lake County and a major economic presence in the region. The economic success of the Salish and Kootenai Tribes also means the success of the regional economy, explained Tribal chairman James H. Steele, Jr., in a prepared statement.

"Gaming is only one of many ventures used by the tribe to preserve our right to determine our own destiny," Steele said.

Unlike private gaming operations, revenue from tribal gaming operations must be used exclusively for governmental or charitable purposes, the press release notes.