$1 Billion Due If Arizona Casino Construction Stopped

Despite 16 court and administrative decisions in favor of the Tohono O'odham Nation, the U.S. House of Representatives is considering legislation to stop its $550 million West Valley Resort and Casino, now under construction near Glendale, Arizona. If that happens, taxpayers could owe the tribe up to $1 billion.

A study recently released by the Congressional Budget Office indicated the Tohono O’odham Nation could sue and collect up to billion from taxpayers if Congress passed legislation stopping construction of its 0 million West Valley Resort and Casino on tribal land near Glendale, Arizona. Tohono O’odham officials stated, “More than 1,300 construction workers are currently building the Nation’s project, and more than 3,000 permanent jobs will be created when the construction has been completed. These jobs would be taken away if H.R. 308/S.152 passed, as would the hundreds of millions of dollars in annual economic impacts that it would create in Arizona.”

U.S. Rep. Raul Grijalva noted if the casino doesn’t open, with a potential loss of $100 million in annual revenues, “You’re going to have exposure to Arizona taxpayers, too. The proponents of this bill are asking the taxpayers to roll the dice, no pun intended.” Grijalva said he expects the measure, HR 308 sponsored by U.S. Rep. Trent Franks, to come up this week for a vote before the full House.

The resolution, known as the Keep the Promise Act 2015, is co-signed by other members of the Arizona congressional delegation, including Republicans Matt Salmon, Paul Gosar and David Schweikert, and Democrat Ann Kirkpatrick. An identical measure sponsored by U.S. Senators John McCain and Jeff Flake is awaiting action by the Senate Committee on Indian Affairs, where no votes or hearings have been scheduled.

The CBO summary stated, “Whether the tribe would prevail in such litigation, and when those proceedings might be concluded are both uncertain. CBO estimates that possible compensation payments from the government could range from nothing to more than $1 billion. However, we have no basis for estimating the outcome of the future litigation.” Grijalva said, “I really believe that the liability to the federal taxpayer is considerable.” He acknowledged it might not reach $1 billion, “but it’s certainly not zero,” he said.

Stephen Roe Lewis, governor of the Gila River Indian Community, which is fighting the casino, said Congress should not back off because of the CBO report. “Anyone can bring a suit, and a plaintiff can allege any damages they might wan. But they have to prevail, and the CBO score makes very clear that this would be next to impossible.”

Supporters of Frank’s legislation have said the Tohono O’odham committed fraud against voters who, in 2002, approved a ballot measure giving tribes the exclusive right to operate casinos in exchange for a percentage of the profits. Supposedly the measure limited casinos to existing reservations, leading to the assumption that no new casinos would be built in the Phoenix area. However, the initiative included a loophole, applicable to the Tohono O’odham’s Glendale land purchase, allowing gambling on lands added to reservations under certain circumstances.

As a result, federal courts have rejected arguments that the tribe’s plan violates the 2002 voter-approved compact.

Franks’ bill would allow the tribe to buy the property and make it part of the reservation—which it already has done—but it would ban gambling there until 2027.

Ian Hugh, vice mayor of Glendale, Surprise Mayor Sharon Wolcott, Peoria Mayor Cathy Carlat and Tolleson Mayor Adolfo Gamez recently signed a letter in support of the project. They wrote, “There have been 16 court and administrative decisions affirming the right of the Tohono O’odham Nation to operate the West Valley Resort and Casino. In light of federal court decisions in support of the project, it makes no sense for Congress to stop this project. We were not consulted on this legislation, and we stand together to affirm that those closest to the project are solidly in support of this development. We appreciate this most significant economic development project in our communities. We can personally attest to the tremendous public support for the casino resort. The support exists because of the creation of new jobs, unique gaming entertainment and upscale resort environment that the West Valley Resort and Casino brings to metropolitan Phoenix and the West Valley.”

In opposition to the casino, Scottsdale Mayor Jim Lane, Apache Junction Mayor John Insalaco, Fountain Hills Mayor Linda Kavanagh and Litchfield Park Mayor Thomas Schoaf wrote, “Governor Doug Ducey and Attorney General Mark Brnovich are exactly right: The Tohono O’odham casino, born in deception, has been marked by a years-long pattern of fraud and misrepresentation. From the concealment of Tohono O’odham’s true intentions during the compact negotiations to false assurances amid the 2002 campaign to ratify the tribal gaming compacts to the constant spin from their pro-casino lobbyists, truth has been in short supply for years. Should this tribe’s Glendale casino be allowed to open, it surely will not be the end of their greedy scheme, but merely the beginning. The Glendale casino may well open the door to an unprecedented gaming explosion in our state.”

Recently, the Arizona Department of Gaming suspended the regulatory process required for the tribe to open the casino following completion of phase one in late 2015. Tohono O’odham President Ned Norris Jr. said construction would continue while the tribe weighed its legal options.