TRIBAL GAMING IN 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 '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. But you won't have ting new games, higher betting limits, 24-hour to wait until then. play for table games, and more tables and slot To sum it up? machines at the casino.

Wisconsin Interest 17 The debate has moved beyond whether expression of local approval. I am not going to casino gambling is good or bad. It focuses now do it without an expression of local approval. on how much gambling there should be, If that is what they want to do, even then, I where it should be located and how it can it be don't think it is going to happen," Doyle said at used to benefit the tourism industry, small the WisPolitics newsmaker breakfast, pulling businesses, and the state's economy. back from what had been a more encouraging administration tone. He continued: Tribal gambling is here to stay. Federal law, the building of big casino and hotel com- This process, by the way, is an incredibly plexes, and the loyalty of gambling hall long and difficult process that has little to patrons ensures that. But the controversy over do with the state. Before you ever move tribal gambling is also here to stay. forward on this you have to first purchase the land. . . . [Then you] have to go to the Republicans and the press don't seem likely to federal government and have the [BIA] put let it go. the land in a trust. . . . [And you have to] That obviously nettles Doyle, who used to make the determination that the land can dig at Thompson on the issue. At a be used for gaming. That is a long and dif- ficult process, long in terms of years and WisPolitics.com newsmaker breakfast in late years. . . . I was in Beloit recently and of March, Doyle said he was surprised at the course they bring it up and I said to them, Republican Legislature's stance on the issue. “Anybody who thinks a casino in Beloit is Obviously, the Legislature never objected going to be a quick and easy answer to eco- when Tommy [Thompson] entered into a nomic problems better look at the history compact with the Menominee tribe that of these [casino initiatives] all over the would have given Kenosha an off-reserva- country that take years and years to ever tion casino, signed it, and it wasn't happen.” revealed until three months later and there But some Republicans predict new off- wasn't a peep out of the Legislature. I reservation casinos will be established under guess it was a little surprising to see the Doyle's watch, benefiting the tribes more than vehemence of [the reaction to] my deliver- ing a compact that delivers five times more the taxpayers and the State unless the money, does not have off-reservation gam- Legislature can gain oversight authority. bling. Assembly Speaker John Gard, R-Peshtigo, who has emerged as Doyle's leading critic, says he The fact that they would move so precipi- and his colleagues support longer gaming tously, go into an extraordinary session on one day, have a bill passed the next day. . . compacts but are pressing the tribal gambling I would have thought that they would issue because every generation should have have taken a deep breath and thought the right to examine the role of gambling in the about it a little, talked it over a little before state. Some tribal supporters say the they did all of that. . . . It doesn't surprise Republican stance is rooted in racism (and cite me that there were people who were the GOP Web cartoon as proof). But Gard told strongly opposed to compacts and some WisPolitics.com in early April: who have been consistently opposed to compacts, but people who never uttered a Some representatives of some of the tribes word when Tommy signed the secret deal want to play the race card because they're with the Menominee [tribe] for an off- afraid to talk about the merits of gambling. reservation casino in Kenosha that gave That is a copout. And . . . I think it hurts them the full range of games that suddenly their own credibility, not the credibility of got so worked up over this, I guess that the people around here. . . . There is a dark was a little surprising. side to gambling that nobody wants to talk about. And they know it. Everybody knows Still, Doyle didn't rule out new casinos in it. Look, if anybody else had gotten the Kenosha and Beloit. “It is not likely that that is sweetheart deals that the tribes have gotten, going to happen — certainly not without an they'd want it approved, too. The problem

18 Spring 2003 is the taxpayers of Wisconsin could've got- I mean, Governor Doyle's premise has ten a much better deal for much shorter been, we need the money so badly, I'll sell terms. And . . . when you're in a budget my soul on gambling to get it. You know, if problem the way we have it, I . . . think we it's all about the money, you can make could've . . . gotten a better deal. They want more money on video lottery. [But with] longer contracts. We were prepared to give permanent gaming compacts that just blow it to them, just not forever. the doors off expanding gaming in the state, it's much harder to look at Joe aver- Gard says he expects to win in the age small business guy — who's paid his Supreme Court, but a decision there could be taxes, hired people and [is] earning an hon- months away. In the meantime, the GOP est living — it's harder to tell those folks Legislature is likely to stick with Doyle's pro- that they don't deserve some of the same jected gambling revenue line-item in the bud- opportunities that Native Americans do. get. About the Supreme Court victory he fore- And I think there is a growing sense that sees, Gard says: the current standard in Wisconsin is unfair. [it] would mean that [the tribes] would Some see Republicans gaining a political have to come back and negotiate fairer advantage if Doyle would veto such a propos- deals to the taxpayers in al, estimated to bring in Wisconsin. I've main- between $100 million and tained we could've got- $500 million over the next ten a better deal. And I two years. Republicans maintain that this is not Public opinion seems to would portray Doyle as the only alternative out being against small busi- there. I mean, the gover- have shifted as voters nor has to hard-sell this, nesses and for the tribal because he knows peo- realize gambling is here monopoly. Polling done ple are suspicious as to for the Tavern League of why the deals were cut to stay and that the Wisconsin by The the way they were. But Tarrance Group appears regardless of what hap- issues now are property to support the coming pens in the court, at the campaign themes. end of the day, tax relief and fairness. Potawatomis, Ho- A poll of 800 likely Chunks and Oneidas voters near the beginning want longer-term gam- of April 2003 suggests ing compacts. They can what seems to be a shift get them, as long as they're not forever, in voter attitude, at least according to propo- and more reasonable terms. And then I nents of video gambling in bars. After years of think the state can receive a significant amount of money for them. I don't think opposing video gambling in bars, public opin- it's the Doyle plan or nothing. . . . Anybody ion seems to have shifted as voters realize who wants to say that, I think, is playing gambling is here to stay and that the issues the state for a bunch of fools. now are property tax relief and fairness. Here is a summary of the relevant polling data: As to video lottery in taverns, Gard hinted that his Assembly caucus might approve it. 1. "As you may know, there is a proposal to allow Said Gard: video lottery terminals in taverns. Under this pro - posal, the state would charge taverns a fee and I think from Milwaukee, to Madison, to Marinette, people believe it is unfair that license them to provide video lottery games. The one group of people get wholesale, mas- proposal would generate more than $200 million a sive expansion of gaming, and nobody else year to be used for property tax relief. Do you favor is entitled to it. And every poll I've seen or oppose tavern owners in Wisconsin offering recently would support that belief. . . . video lottery in their bars?"

Wisconsin Interest 19 Sixty-one percent of those polled said they Democrats. The GOP Web cartoon flap spurred favored video lottery in bars, 32 percent said a backlash that appeared to deepen the divi- they were opposed, and 7 percent were sions caused by the veto override debate. unsure. This represents a shift from 1993, Forest County Potawatomi Community when state voters said they wanted to limit Attorney General Jeff Crawford called the GOP gambling. Analysts also have noted that tying cartoon "racist and derogatory." Said Crawford: the latest proposal to the already-accepted lot- Someone should tell the Republican party tery might make it more palatable to voters. that the political campaign is over and it is 2. "Other people say that they are in favor of time to govern. Legislators should be allowing video lottery terminals in taverns because working to balance the budget, not trash the people who are helping to solve a prob- it will generate as much as $200 million annually lem that Indian tribal governments did not in property tax relief, and allow taverns to compete create. . . . with the Tribes, while not jeopardizing tribal pay - ments to the state." I have counseled tribal leaders to be bipar- tisan and support Republicans and Sixty percent supported that statement. Democrats. We will continue to support Republicans who support us, but the 3. "Governor Doyle says that he is opposed to racism embodied in this cartoon makes it allowing video lottery in taverns because it may more difficult. jeopardize the payments that the Tribes currently make to the state." You would think that any politician would be happy with payments that are five times Twenty-two percent supported that state- what they were under the previous com- ment of opposition. pact and payments that are two or three times what the corporate income tax would The numbers also suggest that the gam- be if these tribal governments were subject bling issue is contested statewide, not merely in to corporate taxation. northern Wisconsin. The TLW issues scored The latest casino gambling controversy not well in Milwaukee County, Dane County, and only threatens to dog Doyle but also renews in the Twin Cities media market that covers old divisions not seen since the spearfishing western Wisconsin. For the tribes, legislative wars of the late 1980s. Such divisions won’t endorsement of video lottery in bars would be help the governor or the legislative leadership seen as one more reason to tilt to the build a better Wisconsin economy.

20 Spring 2003