After years of feuding between Arizona, competing Phoenix-area gaming tribes, and the Tohono O’odham tribe over its Desert Diamond Casino in Glendale, and days before a federal court is set to rule on the tribe’s lawsuit against the state—Governor Doug Ducey announced that he was ready to do a deal.
Ducey signed an agreement with 10 of the 17 total gaming tribes to reopen negotiations on the existing 2002 compact. The ceremony was held in the state Capitol’s old Senate building. The Tohono O’odham tribe was not one of the 10 tribes that signed the agreement.
“Unfortunately, there have been some challenges with the agreement, but, today, by working together in good faith, we’ve generated a new path forward for the future of tribal gaming in Arizona,” said Governor Ducey.
The governor released a proposed revised gaming compact with the tribe that would allow it to operate a Class III casino in Glendale. The tribe has been operating a Class II casino for nearly a year, but hasn’t so far been able to get the state’s Department of Gaming to certify its Class III games. With Class III games, including blackjack and roulette, the casino would potentially be more profitable. It went to court to try to force the issue.
The amended document, in the words of one of Ducey’s Chief of Staff Kirk Adams, “gives them what they have asked for.” However, one key element is missing: The Tohonos themselves, who have so far not been party to any negotiations.
Adams commented, “We’re hopeful that the Tohono O’odham will agree to sign the amendment, as it is what they have been asking for, which is a Class 3 facility designation for their casino in Glendale. This provides them that. It allows the Tohono O’odham, the state and the other tribal nations to move on to more productive conversations around modernizing the gaming compact.”
Adams explained, “The Tohono O’odham have been invited to participate. They have all the necessary documents. I know they are considering it. But we have not received a final decision from them.”
The new document would only allow future casinos in the Phoenix Valley on tribal lands that existed as of February 2003, which was when the original compact was adopted. Which would prevent another tribe from doing what the Tohono tribe did: buy land after the adoption of the compact and put it into trust for a casino. It would also prevent the Tohonos from building a second casino. But it also exempts the Tohono land in Glendale, which has already been developed—but which has been a bitter bone of contention for a dozen years. The tribe used money from a federal land settlement that compensated the tribe for a dam project that inundated a large section of the tribe’s reservation.
Officially a compact between the state and all the tribes, it offers the other 16 gaming tribes a consideration: more poker tables and keno games, as long as they too agree not to build additional casinos.
The original 2002 compact was adopted by the passage of Proposition 202 with what voters believed was a guarantee of no casinos near Phoenix and that casinos would only be put at existing reservations. However, due to their special circumstances the Tohono O’odham were able to buy new land in Glendale and build there. The new compact settles the question of whether other tribes could do the same. It states clearly that no other casinos will be able to be built in the Phoenix Valley.
The governor has also said he was willing that the new compact reflect changes to the state’s gaming market as well as advances in technology, which might include online gaming.
“It’s a view that’s been expressed by tribal leaders over the years, and I agree,” he said. “The time has come to allow each tribe more freedom in their gaming operations and give every nation the opportunity to have a seat at the table.”
The Tohono tribe’s statement released after Ducey’s announcement was cool, but not hostile: “The Tohono O’odham Nation was made aware of the state’s request for compact amendments just last week and has not been a part of this process. The lack of communication on this important issue is a concern, but the Nation has said repeatedly that it is committed to moving forward. The Nation stands ready to consider compact amendment language that would resolve the outstanding litigation, including the Class III issue at its west valley facility, and includes language regarding no new casinos in the Phoenix area during the current compact.
It concluded, “For over two decades, Arizona gaming tribes have remained unified through the Arizona Indian Gaming Association (AIGA). AIGA plays an important role in ensuring fairness and protecting all Arizona tribes and the Nation looks forward to considering any proposed compact amendment under the AIGA framework to ensure that continued fairness amongst all Arizona tribes.”
Two of the largest gaming tribes in the state, the Gila River Indian Community and Salt River Pima-Maricopa Indian Community, withdrew from AIGA earlier this year over the Glendale casino controversy, upset that AIGA took no position on the issue.
It is no coincidence that U.S. District Court Judge David Campbell is preparing to hear arguments in the latest lawsuit between Arizona and the Tohono O’odham tribe. The tribe sued the state to force it to certify the casino’s Class III games. The state’s attorney Michael Liburdi has said he is “very confident” that the state will win this lawsuit; however, the tribe has won every other lawsuit that has challenged its right to build the Glendale casino.
Liburdi says it is prudent to settle before the case goes to trial. “As the governor has said, he’s interested in doing the business of the state with as little legal activity as possible,” adding, “The way we view this is the Tohono O’odham Nation gets what they want: the casino in Glendale. Allow them to have what they want and let’s move forward with a new compact where all sides in the state could benefit and the state of Arizona could benefit.”
One of the tribes that has not sued to try to stop the $200 million Glendale casino, Navajo Tribal President Russell Begaye, said, “It’s about keeping Arizona money in Arizona,” and not sending it to neighboring Nevada. Currently the state collects $100 million annually from casino revenue sharing.
Salt River President Delbert W. Ray, Sr., said in a press release, “Today we reaffirm the promise we made 15 years ago that Indian gaming would be limited, well-regulated and there would be no additional casinos in the Phoenix metropolitan area.”
Governor Stephen R. Lewis of the Gila River Indian Community called the proposal “a significant step for the tribes who have stood by the promise we all made in 2002 not to open any additional casinos in the metropolitan Phoenix area. “He added, “Because these tribes have been trusted allies with the state, we will now have the opportunity to see a substantial return for having kept our promise to Arizona’s voters and leaders.”
Although it appears that the governor has little leverage at this point, the state’s Department of Liquor Licenses and Control has been holding up approval of the tribe’s request for a liquor license at the casino. And without the Class III certification the tribe cannot offer card games.
At the same time, a bill in Congress pushed by Rep. Trent Franks would force the tribe to close its casino. Adams referred to that bill, saying it was “unpredictable” what might happen with it.
However, Franks attended the event announcing the proposal, and said that his bill would be mooted if the tribe agreed to it.
“If everyone does what’s right, which is to follow the governor’s leadership here, any legislation that we made would be congruent with the governor’s plan,” he said.
U.S. Senators John McCain and Jeff Flake, who have also supported Franks’ bill, chimed in with praise for the governor. In a joint statement, they declared, “We applaud Governor Ducey for his leadership in developing a state-tribal resolution to the Glendale casino issue.”
They added, “We have long opposed the air-dropping of Indian casinos on land that is not contiguous to an existing Indian reservation. The controversy involving the Tohono O’odham gaming facility in Glendale has divided Arizona’s Indian tribes for years, and we hope this agreement will heal those divisions and eliminate the need for federal legislation.”
