— Shawn Slaton , CEO of the Cherokee Nation ’ s Cherokee Nation Businesses , pointing out his tribe ’ s strategy is playing defense
Confronting Competition
Tribal commercial casino efforts in Arkansas , Connecticut and elsewhere are partly intended to confront or prevent potential competition .
Such is the case with the Quapaw and Cherokee Nation efforts in Arkansas , which last year passed a ballot initiative to legalize four commercial casinos , two at existing racetracks and two others in Pope and Jefferson counties .
Quapaw ’ s Downstream Casino Resort enterprise and the Cherokee Nation ’ s Cherokee Nation Businesses ( CNB ) operate tribal government casinos along the East Oklahoma border with Arkansas .
“ Their goal and part of my goal was to protect the western side of the state of Arkansas from expanded gambling , which would encroach on the market of Downstream Casino Resort and the Cherokee Nation ,” Quapaw Chairman John Berrey says .
Berrey says the Quapaw also wanted to invest in the tribe ’ s ancestral lands in Jefferson County .
“ Our strategy is to try and get back to where we ’ re from ,” Berrey says . “ It ’ s a mandate from the tribe to get back home .”
The Cherokee Nation , forced out of its ancestral lands in the Carolinas in the 1800s , hopes to expand its market .
“ Arkansas , being an adjacent state , would be a logical extension of our operations here in Oklahoma ,” says Chuck Garrett , vice president of CNB , the economic arm of the tribal government with gambling , health care , aerospace , technology and other enterprises .
The two tribes contributed more than $ 6 million to the initiative campaign . Arkansas citizens in November voted 54 percent to 46 percent to adopt Ballot Issue 4 , a constitutional amendment allowing four casinos in the state .
Quapaw ’ s Downstream Development Corporation is looking to open a casino and 12-story hotel in Pine Bluff , in Jefferson County , as early as 2020 .
The Quapaw casino would offer all gambling options , including a sports book , but Berrey says sports wagering is not a major focus of casino operation because it has a low profit margin .
The Cherokee Nation , meanwhile , has aspirations of building a casino resort near Russellville in Pope County , not far from where the tribe operates nine casinos in northeast Oklahoma . The tribe failed in attempts to get an initiative on the 2016 ballot . Developing a casino in Pope County may be problematic . Pope County voters approved an ordinance requiring county officials to hold a referendum before issuing letters of support for a casino . The ordinance is likely to be challenged in the courts .
The tribe also faces competition . Gulfside Casino Partnership , operator of a hotel-casino in Gulfport , Mississippi , is seeking state approval of a $ 250 million resort in Russellville .
“ We are excited to make a significant economic investment in the Arkansas River Valley with this first-class resort ,” Terry Green , co-owner of Gulfside , said in a press release .
“ This project will create more than 1,500 new jobs and generate millions of dollars in taxes , improving the county ’ s infrastructure and its overall quality of life .”
Cherokee leaders fear a commercial operation would seriously impact business .
“ A significant portion of our market originates in northwest Arkansas , and if an operator other than Cherokee Nation was to gain a foothold , that would threaten jobs at Cherokee casinos ,” CNB CEO Shawn Slaton told the Cherokee Phoenix newspaper .
“ It could also decrease , for the first time ever , revenue that ultimately funds health care , housing , education and other tribal services ,” Slaton says . “ CNB will always go to whatever lengths necessary to protect Cherokee jobs and not only preserve , but continue to increase the dividend paid to the Cherokee Nation , which funds critical services for Cherokee Nation citizens .”
Tribal War with MGM
The Mohegan and Mashantucket Pequot tribes of Connecticut have similar concerns about MGM Grand ’ s $ 1 billion facility in Springfield , Massachusetts .
The casino entertainment company has lobbied heavily against the tribes ’ efforts to develop a commercial casino in East Windsor to prevent the state from losing jobs and revenue to the Springfield resort .
Tribes have assured state officials the East Windsor project would not impact tribal-state casino regulatory compacts that pay the state 25 percent of their slot revenues , or more than $ 270 million for the last two years .
But MGM has lobbied the Department of the Interior and the Trump White House , stalling the East Windsor project . MGM officials contend the East Windsor project , along with a proposal to establish another casino in Bridgeport , should be open to public bidding .
Now that former Interior Secretary Ryan Zinke has resigned , tribal leaders expect the approvals could be finalized .
State Senator Cathy Osten has submitted a bill , co-sponsored by other legislators , that would eliminate the need for federal approval of the East Windsor project , newly titled “ Tribal Winds .”
The tribes say the casino — estimated to cost $ 250 million to $ 300 million — would open 18 to 24 months after construction begins and generate $ 75 million annually in state revenue .
“ We ’ re ready to go when you are ,” Mohegan tribal Chairman Kevin Brown told a legislative committee in January . Brown stepped down from his position in February , but remains on the tribal council .
26 TRIBAL GOVERNMENT GAMING 2019