Navajo Chapters Don’t See Gaming Money

Chapters of the Navajo Nation are not yet seeing any gaming money, despite the fact that the nation has had casinos for eight years and they have paid the nation $6 million since the first one opened.

Recently the Navajo Nation received a settlement of 4 million from the federal government for large water projects. In a related development the nation’s gaming casinos have paid the nation million in gaming revenue since it opened its first casino, but so far none of the local chapters have seen any of the money.

The Navajo Nation Budget and Finance Committee said it needs to clarify how the money will be distributed to the chapters. It noted that it goes to them after expenses are taken out for operating, capital costs and borrowing.

The Gaming Revenues Fund Management Fund says that distribution to chapters occurs “in a “manner that recognizes both the immediate and long-term needs of the Navajo Nation, specifically for capital improvement projects and utilities.”

The Indian Gaming Regulatory Act (IGRA) also governs that allocation. Unlike some gaming tribes the Navajo Nation does not pay per capita payments. This is because of the nation’s population of 300,000, which would make the payments small. Being in rural areas, Navajo casinos don’t make the kind of money that the Las Vegas style casinos in California and New York take in.

However, critics note that doesn’t explain why individual chapters haven’t been paid anything from gaming. Currently the money is sitting in an account not earning interest.

Defenders of the program point out that the nation’s casino employs Navajos and that the casinos generate economic activity.

That doesn’t satisfy Council Delegate Seth Damon who said, “The casinos have been operating for almost eight years and the chapters still have not received one dime from the revenues,” he said. “We need a work session to clarify the process and find ways to streamline their proposals so they can start utilizing the funds.”

Meanwhile the Navajo government has introduced legislation, the Navajo Nation Breach of Trust Settlement Act that will earmark the $554 million settlement money.

About $101 million of that will be used for large water projects that will bring in matching funds by state, federal and private agencies. This section of the expenditure plan is known as the S’hasin Fund Bulk Water and Wastewater Development Expenditure Plan.

Council Delegate Leonard Tsosie, chairman of the S’hasin Fund Sub-committee told the Navajo-Hopi Observer, “More than 80 percent of the Navajo people stated that they want infrastructure development with the trust settlement fund.”

The plan identifies over 40 projects for improving water capacity, treatment and transmission and renovating and upgrading existing water systems.

Water infrastructure is considered by many Navajos to be one of the most fundamental needs of Navajo families and communities.