The New Mexico Senate last week rejected a gaming compact with the Navajo Nation that would have allowed the tribe to open three more casinos. The defeat comes in the wake of a 36-30 vote by the House approving of the compact the day before.
The Senate vote was 31-10 against the compact, which also would require approval by the Bureau of Indian Affairs. The compact, which was negotiated by Governor Susana Martinez, would have allowed the nation to open three more casinos over a 15-year period.
Currently the nation, the largest tribe in the U.S. operates two Las Vegas style casinos near Gallup and Farmington and one low-stakes Class II gambling casino near Shiprock not subject to a compact.
There are nine other gaming tribes in New Mexico, each of which has different compacts with the state. Some tribes operate two casinos. Most of them pay higher rates to the state than the Navajo pay. The rejected compacted would have increased that rate for the Navajos in return for more casinos. The existing compact does not in fact limit the number of casinos that the nation can operate.
Navajo President Ben Shelly was clearly unhappy with the vote and implied possible legal action against the state.
“I always thought that the state of New Mexico has always been friendly to Native Americans,” he commented. “I can’t believe that they have only been friendly to a few—the pueblos—and not to the Navajo Nation.”
The tribal president also criticized pueblos that had opposed the compact because they feared more casinos would cut into the profits of their existing facilities. Currently 14 tribes and pueblos operate 20 casinos and there are also five racinos in the state.
“I thought we were unified in everything we do,” he said. “I don’t know what happened to them. I guess greed and business is what happened.”
Several tribes had sent representatives to testify before the legislature that the gaming market in New Mexico was saturated. Opposition was especially strong against more casinos in the Albuquerque area. The Acoma and Laguna pueblos that operate casinos along Interstate 40 say their casinos would lose business and jobs if another casino were opened in that area.
The existing compact will expire in 2015. The new compact would have expired in 2037. Although the nation wants to eventually add three more casinos, one goal of a new compact would be to upgrade existing facilities. One senator who supported the new compact, Senator George Munoz, said that without a compact that the nation might have to close its existing casinos because of a lack of a lack of confidence from vendors.
Other senators who supported the compact said it was necessary for the nation’s economic development. The existing casinos employ 950, of which the great majority are tribal members.
Some lawmakers criticized the way in which the tribe reacted when a committee of the legislature broached the subject of fewer casinos. Senator Clemente Sanchez complained, “I think the Nation was disrespecting our process up here.”
Rep. Georgene Louis, who represents Albuquerque, said she fears that the gaming market is saturated. “I’m just afraid there’s not the market for more facilities,” she said.
Recently President Shelly vetoed a junk food sales tax that was passed by the tribal council.
