Gaming shutdown: Tribes disagree with governor over issue of jurisdiction

The plug was pulled on dozens of Class III gaming machines last week after the state and Confederated Salish and Kootenai Tribes couldn't reach an agreement, as the two sides argued over whether Gov. Brian Schweitzer can even grant the Tribes the jurisdiction they desire.

Schweitzer traveled to Polson last Wednesday (Nov. 29) to address concerns over the gaming compact, which was set to expire at midnight last Thursday. He offered to extend the agreement that was in place until May 1, but the Tribal council voted not to sign that extension at a meeting last week, and criticized the governor for what they said was a lack of initiative in the negotiation process.

"Eight months after we started these negotiations, the governor has gotten involved. Now he wants to string out the process another six months," Tribal chairman James Steele, Jr. said in a prepared statement to the Tribal council last Thursday.

Had the Tribes signed the extension, it would have allowed Class III gaming to continue, but Tribal officials decided to resend their original proposal back to the governor, which would grant them complete jurisdiction over gaming on the reservation — jurisdiction Schweitzer says he doesn't have authority to give.

"The governor does not have the statutory authority to offer jurisdiction. What has been requested, I cannot do," Schweitzer told a large crowd last week at the Elks Lodge in Polson.

According to Schweitzer, state attorneys have told him that only the Legislature can decide jurisdiction issues, and Schweitzer said extending the agreement for six months would allow the Legislature to rule on that issue, while allowing Class III gaming to continue.

But Tribal officials disagree, saying the governor can give them authority over all gaming on the reservation, which is at the heart of the proposal they submitted last March.

Under that proposal, they could offer parimutuel racing, sports pools, lotteries, simulcast racing and other forms of gaming. The current compact only applies to Class III gaming, but that affects every keno and video poker machine on the reservation, and the livelihoods of dozens of employees and casino owners, many of whom were in attendance last week.

"We disagree with the governor's interpretation [on jurisdiction] and we expect attorneys will begin to point out to the governor's office that indeed he can sign our proposal," Steele told the council last week.

The Tribes believe their jurisdiction is outlined in the Indian Gaming Regulatory Act, and that they simply gave up some of that jurisdiction to the state in the original gaming compact signed with the Martz administration — jurisdiction they feel can be given back.

"We do cede a little authority when we enter into a compact with the state," said Tribal communications director Robert McDonald. "We want to be the regulatory authority over all gaming on the reservation, and we believe we already have the right to."

Under the state's latest proposal to the Tribes, made on Friday, Nov. 24, the Tribes would stand to get about $200,000 more in state gaming revenue, but Tribal officials say that's an insultingly low amount.

"The Tribes will never get rich on gaming in Montana. Never," said former councilwoman Jami Hamel at last week's meeting in Polson.

Hamel, who chairs the Montana Tribal Gaming Association, emphasized she wasn't speaking on behalf of the Tribal council when she addressed Schweitzer.

She cited tribes in nearby states who took in millions of dollars in revenue, but said the Confederated Salish and Kootenai Tribes weren't looking to get rich, but to continue to provide good jobs, health care, educational opportunities and other benefits to tribal members.

Hamel asked attendees to consider how much sovereignty the Tribes had given up under the current compact, especially in relation to other tribal/state agreements around the nation.

"We've proven continuously that we can work with our non-tribal neighbors," but we've conceded so much over the years, she said.

One thing both sides agree on is that the Tribes cannot sue the state unless the state gives up its sovereign immunity. Therefore, the two parties are largely at a stalemate without a signed agreement or extension.

During the public meeting, Schweitzer made reference to $500,000 in gasoline tax revenue which could be made available to the Tribes to sweeten the state's offer, but McDonald said that figure has not been included in any formal offer.

"He threw that out there as if he offered this. He has discussed that with Mr. Steele, but that has not been part of any formal proposal," McDonald said in an interview earlier this week. "In writing, he has never said 'We're offering $700,000, so I can't speak for what the Tribe would do if that was put on the table."