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Tribal Gaming in Wisconsin: an Emerging Political and Economic Force

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Tribal Gaming in Wisconsin: an Emerging Political and Economic Force TRIBAL GAMING IN WISCONSIN AN EMERGING POLITICAL AND ECONOMIC FORCE JEFF MAYERS ne controversy removed the cartoon above all oth- after a round of Oers marked fierce criticism. Democratic Governor And then on Jim Doyle's first 100 April 25, the Doyle days in office: tribal administration gambling. It is a con- announced seven troversy many TRIBES TAVERNS TRIBES new compacts pat- Republicans say could terned after the dog Doyle throughout Potawatomi com- his first term and pact, which is change the face of already moving for- Wisconsin politics and ward. The new com- culture for the worse pacts include one in years to come. with the Ho Chunk Doyle supporters tribe that could say the gambling con- result in a full- troversy has been sen- fledged casino in sationalized, that, in Madison. New the first four months of 2003, Republicans Madison Mayor Dave Cieslewicz, a Democrat used tribal gambling as a fig leaf for their lack who beat Doyle-backed Paul Soglin to win in of budget-balancing ideas, that the GOP is try- April, immediately opposed turning the cur- ing to play the race card to gain political rent bingo hall into a casino and then called for advantage in northern Wisconsin, and that a referendum to show opposition. The some strident opponents of more tribal gam- announcements also spurred renewed legisla- bling exhibit contradictions of their own tive criticism of Doyle and more hand-wring- because they want to expand state-sanctioned ing from some Democratic strategists who gambling to taverns through the lottery. worried that Doyle's gambling expansion shift could make him vulnerable in 2006. Larger global issues as well as the state's budget crisis and Doyle's leadership have tend- Those episodes demonstrate again that ed to overshadow the gambling issue recently, gambling is one of those issues that voters and but it keeps popping up through the clutter. In politicians understand at a gut level, and its mid-April, partisans tussled over a state GOP long-term political impact shouldn't be under- Web site cartoon that showed an airborne tom- estimated. ahawk chasing a Wisconsin taxpayer. A voice said, "As taxpayers, we got scalped." The GOP Jeff Mayers is the editor and president of WisPolitics.com, an online news service in Madison. Wisconsin Interest 15 Here's why: the same slate of candidates with millions of dollars worth of TV ads every cycle — their • As attorney general over a dozen years, impact could be huge. Doyle consistently criticized GOP Governor Tommy Thompson's gambling expansion poli- • One subplot in the issue involves a consti- cies. If Doyle now presides over widespread tutional dispute between Wisconsin's first expansion — especially if new off-reservation Democratic governor in 16 years and a casinos are opened in Kenosha and Beloit under Republican-controlled Legislature. The his watch — that turnaround could eat away at Republicans say they should have the authori- his credibility and give Republicans a scandal- ty to approve compacts negotiated by Doyle — tinged issue to use against him in 2006, building something the Legislature gave up years ago to on the negative advertising assault launched in Thompson. Doyle, switching positions from 2002 (remember Bingo-gate?). The editorial his stance as attorney general, has stated that press in Wisconsin has been critical of Doyle on the tribes can't negotiate with 132 lawmakers. the gambling issue, and newspaper editorial He has vetoed two Republican bills aimed at opposition to expanded gambling is reinstating legislative oversight and beat back entrenched. The political debate has focused on a Republican veto-override attempt. whether the pattern compact with the Republicans have pressed on, asking the state Potawatomi — whose chief lobbyist (ex- Supreme Court to step in. If the Court gets Democratic Governor Martin Schreiber) served involved, it could play havoc with the current as a Doyle campaign adviser and inaugural regulatory framework — maybe even unravel emcee — received a "permanent" compact and a the arrangements that support an industry val- lenient payment schedule in return for hun- ued by the Legislative Audit Bureau at nearly dreds of thousands of dollars in soft money $1 billion in 2001. The legal dispute could put campaign donations. Early on, Republicans on hold money due to come to the state from aggressively defined the terms of the debate, to the tribes. Without that money ($237 million the dismay of some Democratic strategists who more over the next two years, on top of the say the issue helped Republicans unite against a $24.3 million a year received currently, accord- new governor. Better communication with leg- ing to the Doyle budget), the state's long-term islators in advance of the Potawatomi compact fiscal health would become even more precari- signing might have allowed Doyle to avoid the ous and further cuts would be necessary. prolonged controversy. But this Republican • If the Republican Legislature, at the urging theme still has political legs: Doyle made a 2002 of the Tavern League of Wisconsin (TLW) — campaign deal that gave away too much for too which is armed with poll numbers — approves li t t l e . legalizing and taxing video lottery, tribal pay- • Full-fledged tribal involvement in ments to the state could be placed in jeopardy Wisconsin politics will put a new political titan and state-sanctioned gambling would gain a on the scene. Tribes have enough money to prominent place in one of the state's cultural play politics like the big interest groups. Some icons — the local tavern. Doyle has said video tribes — the Potawatomi and Ho Chunk — poker in bars is unconstitutional; proponents, already have more than tiptoed into the politi- including some Democrats, say you can get cal arena with big soft-money contributions around the constitutional problem by hooking and commercials aiding Doyle and the games in bars to the already-legal lottery. Democrats in the campaign and in Doyle's suc- To partisan spin-meisters, the political cessful battle to protect his veto of a lines are clear. Democrat Kent Fitch and Republican gambling-oversight bill. If the 11 Republican R.J. Johnson squared off on the tribes around the state ever got together — act- issue recently at WisOpinion.com. ing in unison on the political front and backing 16 Spring 2003 Wrote Fitch, now part of ChristiansonFitch Price to buy yourself a governor? About consulting in Madison: $1.7 million. There are really only two types of people The payoff for that investment? $250 mil- in the state — those that gamble and those lion a year and counting. that don't. The people who don't like gam- Handing Republicans three more Senate bling believe we should banish all gam- seats (in 2004) because in a payoff you bling in the state. And those who like gam- expanded gambling in Wisconsin forever? bling are happy we now have longer com- Priceless. pacts. Democrats dispute whether the three sena- So why are the compacts receiving so much tors who voted with Doyle on the veto over- play around the state? It is a sexy story for the media, and a very convenient foil that ride — Roger Breske, Dave Hansen and Mark allows the Republican Legislature to hide Meyer — will go down next fall over the gam- its inability to come up with a solution. bling issue. But Republicans appear intent on keeping the issue alive, and it's probably a con- You have to give credit troversy those incum- where credit is due. The Republicans have suc- bents would rather not cessfully changed the deal with. debate about our bud- In addition to those get [into] a discussion political considerations, about the compacts. Longer-term compacts there's a clear economic Johnson, with the could make the tribes one. Longer-term com- Eisner Johnson group, pacts could make the noted $700,000 in soft true partners in tribes true partners in bol- money contributed to the stering Wisconsin's flag- DNC, plus an estimated bolstering Wisconsin's ging economy. The tribes $1 million in issue ads flagging economy. have money to invest, but paid for by the tribes they need longer-term (Eisner had a hand in compacts to ensure the some of the ads). He shot financing for bigger pro- back to Fitch: jects. If the rich tribes It's estimated the Forest were to leverage gam- County Potawatomi will double their bling money into true non-gambling economic annual net revenue to $500 million. That's development, the state's long-term economic just one tribe. Would you consider a payoff picture could brighten. One 2001 study con- of $250 million a good return on your cluded that the positive economic impact of investment of $1.7 million? 147 times your longer compacts on Wisconsin's economy money back. Now that's my kind of gam- would exceed $1.1 billion. Bureau of Indian bling. I smell a campaign ad. Affairs (BIA) approval of the Potawatomi- We are told we should be grateful as tax- Doyle Compact paves the way for a $120 mil- payers to be getting so much more money lion investment in the Potawatomi Bingo than we did before. I don't know about Casino and an estimated $340 million in pay- you, but I don't feel grateful to have a gov- ments to the state over the next 10 years, say ernor who was bought. I don't care how Potawatomi officials. They also say that the much money it brings in. compact will allow the casino to compete effec- We don't get to see the results on Doyle's tively with casinos in other states by permit- electability until 2006.
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