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Gambling measure concerns Tribe

Alecia Warren | Hagadone News Network | UPDATED 12 years, 12 months AGO
by Alecia Warren
| November 19, 2011 8:15 PM

The Coeur d'Alene Tribe is wary as Congress reconsiders the federal ban on online gambling, which the Tribe fears could threaten its casino revenue that fuels much of its government operations.

"It's something that we believe really jeopardizes our livelihood here," said Helo Hancock, tribal spokesperson.

The Tribe isn't opposed to the idea of allowing Internet gambling operations, which the federal government banned in 2006 and is now rethinking as a possible means to bring in more revenue.

But current bills in the House, like others proposed in years past, Hancock said, include provisions that could threaten tribal income.

"Them don't seem to accomplish what would respect the Tribe's sovereignty, the Indian Gaming Regulatory Act and the current regulations that are in place," he said.

Specifically, the Tribe is worried by a measure that would tax revenue on all online gaming, without exceptions for tribes.

Currently, tribes' gaming revenue isn't taxed by the federal government, under the Indian Gaming Regulatory Act.

"That's because their function is tribal government, and revenue is used to fund myriad projects and departments," Hancock said.

Like the Coeur d'Alene Lake Management Plan, he said, that "benefits everybody."

So taxing gambling revenue would deprive the Tribe of a portion of income it relies heavily upon, Hancock said.

It could also mean the loss of some of the 2,000 jobs between the Coeur d'Alene Casino in Worley and the tribal government, he said.

"Right now, these bills are set up with the commercial gaming industry in mind," said Hancock. "Tribal gaming is so much different than Harrah's or the MGM Grand. Their profits go to a select few shareholders. Our funds go to fund an entire population."

Although the Tribe prefers not to disclose how much the casino brings in, Hancock said about 60 percent of revenue goes to fund tribal government operations.

Online gaming has a ways to go to become legal.

A House committee approved a bill this week that would legalize online poker and nonsports betting. A companion measure pending in committee would allow online gambling operations to be taxed.

There's no saying the life those will see, said Kyle Hines, spokesman for Sen. Jim Risch.

"What comes out of the House and ends up in the Senate are two different things," he said.

The measures are motivated by hopes to ease the country's economic issue, Hines noted.

"Online gaming has been around for the last 10 years. It'll come up and then go away, come up and go away," he said of legislative proposals. "This time it seems to be attributed as a way for the Congressional government to raise revenue."

Risch believes cutting spending, not increasing revenue, is the way to end the country's problems, Hines noted.

And the senator is dubious of online gaming overall, Hines added.

"It gets to be a complex issue," he said. "You've got tribal rights issues and state rights issues."

Spokespeople for the Kootenai Tribe, which owns the Kootenai River Inn Casino and Spa in Bonners Ferry, could not be reached Friday about the tribe's stance on Internet gambling.

The Coeur d'Alene Tribe may lobby on the issue down the road, Hancock said.

"We do watch (related bills) closely," he said. "When and if there's a bill that could really jeopardize our interests, or really benefit our interests, we'll weigh in."

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