Casino owners worried about gaming discussions
The Confederated Salish and Kootenai Tribes and the state have yet to reach an agreement on gaming negotiations and many area bar and restaurant owners fear a Class III gaming prohibition, which could drastically affect their revenue.
The tribe and state have until Nov. 30 before their contract expires, but another meeting has yet to be scheduled, said state negotiator Deanne Sandholm. However, Rob McDonald, communication director for the tribes, noted that the lines of communications are open and that there are "high hopes" that an agreement will be reached.
If the state and Tribes fail to come up with a new contract, the plug would be pulled on all Class III gaming on the reservation, which includes casino-type games such as video keno and poker. The tribes want jurisdiction over all gaming on the reservation and to increase the number of machines as well as maximum bets and payouts. As it is, the state limits the number of tribal gaming machines and puts a cap on maximum bets and payouts. These are the key issues in the discussions, said Sandholm.
With less than two months to come to an agreement, many business owners are trying to figure out ways to compensate for the potential loss of gaming profits. Several said they'll have to let several employees go or cut back hours. Others said they plan on having specials, live entertainment and games to draw in customers.
"It's going to hurt my business a lot," said Rick Clary, part owner of Cheers in Pablo. Clary couldn't comment on how much revenue he makes from gaming machines, but "It's probably close to 50 percent of my business," he said.
He said he has nine employees, and if gaming is brought to a halt, he might have to let some go, or reduce hours. Cheers may start having to serve breakfast — something they've never done in the past — in order to supplement income.
As a tribal member, Clary said he has more leverage to speak to the council, but non-members have no voice in tribal government.
Lori Peterson, owner of the Pheasant Lounge in Ronan, said she might have to lay off some employees as well, and as a result, she might have to work double shifts. She also speculates that Lake County could see an increase in drunk drivers.
"I believe we're going to have a lot more intoxicated people on the road" — because rather than nurse a drink while playing keno or similar games, people are going to consume more alcohol, she explained.
Peterson, a member of the Lake County Tavern Association, said that the LCTA donates thousands of dollars to area non-profits like the Boys and Girls Club and the Mission Valley Animal Shelter and that the community could take a big hit if local bars won't be able to provide as many monetary donations.
"I don't think the tribe is going to be able to make that up, or the state," she said.
Karokee, dart and pool tournaments are several activities that may take the place of her 10 gaming machines, she said. And she is considering buying bingo machines, which is Class II gaming, "but then comes the expense of buying the machines," she said.
Peterson echoed the concerns of several business owners who believe the state isn't doing enough to represent them. And as a tribal member, she doesn't think the tribes are doing an adequate job representing her interests either.
"It seems like they aren't even negotiating," she said.
But not everyone has dire predictions. Colleen Congdon, owner of Raleigh's in Polson, said that no gaming machines means more floor space to serve more customers. She might put in a dance floor and feature live music two nights a week. In addition, she plans to "step up the menu."
"We really have some neat plans," she said. "We are just going to have more fun than we can hardly stand."
She said the machines have proven to be more of a hassle than anything else.
Chris Ricciardi, owner of Ricciardi's Italian Seafood House, said if his machines go, he'll just replace them with more seating. He speculates that a gaming prohibition would have an impact on his business but that "We're more of a restaurant than anything else," and the machines are just an added extra.
"There's not much I can do about it," he said. "Apparently, I don't have any say."
Jason Buckingham, owner of The Regatta in Polson, also feels he has a mute voice in the matter.
"It feels like I have no power. There is nothing I can do," he said.
With the resturant business, it is nice to have the machines there to offset other expenses, he noted.
"It helps keep prices low and wages high," he explained, saying that he is pround that he offers his employees above-average wages.
Buckingham is most concerned about the jobs that will be lost as a result of a gaming prohibition.
"As far as our place, I am happy to say we are not going to [lay] people off, but there are places that are going to shut their doors. There is going to be a lot of people losing their jobs and their livelihood," he said.
Buckingham also noted the loss that area cities would take without tax revenue from state-regulated gaming. As it is, 15 percent of revenue from gaming goes to the state.
Take the city of Polson for example. City Clerk Aggie Loeser provided statistics for fiscal years 1999/00 and 2000/01, in which the city earned $214,485 in revenue from gaming in 1999/00 and $224,209 in 2000/01. (After 2000/01 the Department of Revenue combined gaming taxes with other revenue, making it difficult to distinguish how much was earned in more recent years, she expained.)
She also noted that the city makes a portion of money from annual fees gaming operators pay to the state. In fiscal year 2004/05, the city earned $20,600 from those fees and $19,575 in fiscal year 2005/2006.
"It's one of those things were you kind of wish we were all in this together," Buckingham said. "We are all affected and we hope [the negotiating parties] can see that."