Sportsbooks could be open at the Eastern Band of Cherokee Indians’ two North Carolina casinos in time for the 2021 National Collegiate Athletic Association’s men’s basketball tournament in March, following Governor Roy Cooper signing of an amended tribal gaming compact. North Carolina Secretary of State Elaine Marshall and Attorney General Josh Stein also signed off on the compact. Now it will be forwarded to the federal Bureau of Indian Affairs which will have 45 days to approve it and published it in the Federal Register.
Cooper signed SB 154 into law in July 2019, allowing the tribe to operate sportsbooks at their casinos Harrah’s Cherokee in Cherokee and Harrah’s Valley River Casino in Murphy. However, the legislation required an amended tribal compact including sports-betting information and approval from Cooper and the U.S. Department of the Interior. Covid-19 caused delays but the amendments recently were approved by the tribal council.
Eastern Band Principal Chief Richard Sneed said, “Covid-19 has negatively impacted funding for critical community services within our nation, so we welcome this new diverse revenue stream. The addition of these new services is a positive step towards a more stable and secure future for our tribal members and government operations.”
Sportsbooks already have been constructed at both Harrah’s casinos and will be known as the Book. Some key employees already have been hired. The venue operator is likely to be William Hill, which Harrah’s owner Caesars Entertainment has agreed to purchase and which is the sports betting operator at all Caesars properties.
One of the new provisions under the amended compact requires the tribe to contribute $191,000 annually to “help defray any problem gaming or state costs involved” with sports wagering.
Only in-person sports wagering will be allowed at the Eastern Band’s casinos; geo-fencing will limit betting to casino properties. Approval of statewide online sports betting is expected to be more difficult that retail sportsbooks, due to the political clout of religious and conservative groups.
Still, the two Harrah’s Cherokee casinos are located at the southwestern edge of the state. As a result, bettors may find it easier to take advantage of mobile sports betting in Tennessee, and those in northern North Carolina might take their business to Virginia, which is planning to launch mobile sports betting in January.
However, some bettors in eastern Tennessee may choose to travel to North Carolina for the sociability of a sportsbook. Harrah’s in Murphy, about two hours from Atlanta, may attract wagerers for the same reason.
Meanwhile, tribal leaders said they won’t adopt Cooper’s executive order, requiring most businesses to close by 10 p.m. in an effort to contain Covid-19. “The stakes are dire. This is truly a matter of life and death,” Cooper said. Sneed responded, “As Principal Chief, I have worked with tribal public health officials to enact social distancing measures that protect our tribal citizens and guests while balancing the financial position of our community. I will continue to monitor the impact of Covid-19 in our community and will update our community if further measures are warranted.”
In related news, last month the tribal council of the Eastern Band approved funding to conduct due diligence on possibly purchasing a casino in southern Indiana. Recently, however, the tribal council voted to put on hold approving $130 million toward the purchase, estimated at $250 million to $300 million. The project would be the first venture into commercial gaming for the tribe, which owns two casinos in western North Carolina.
Principal Chief Richard G. Sneed said, “We have enjoyed, for over 22 years now, an unprecedented success story in the gaming industry. While much of our success is attributed to the outstanding properties that we operate, we cannot ignore the fact that market forces have leaned heavily in our favor because of a lack of competition.”
But that situation could soon change, Sneed noted, as the Catawba Nation moves forward with its Two Kings Casino Resort in Kings Mountain. Sneed said, “We find ourselves, today, facing competition from all sides. The Catawba casino decision by the Department of the Interior, if allowed to stand, poses a potential loss of revenue to our tribe that could easily exceed $100 million.”
Sneed said that loss of revenue could impact the Eastern Band in many ways. “ First, a loss of per capita distribution. Second, and I believe even worse, would be a reduction in the tribal budget that would translate to loss of tribal jobs, loss of services including elder services– jobs and services that our predecessors helped us secure by voting to approve gaming.” The Eastern Band has filed a federal lawsuit to stop the Catawbas’ casino.
Regarding the Indiana casino purchase, Sneed pointed out, “This project before you has been thoroughly vetted, and the due diligence that was conducted drilled down into every facet of this project from financials to the property itself.”
In discussion regarding the resolution to put the issue on hold, Birdtown Rep. Albert Rose stated, “It’s not that I don’t want the tribe to move forward. I just think we need to slow down. The threats aren’t as vast as we think they are.”
Eastern Band Secretary of Treasury Cory Blankenship noted, “Even though we have a short window of time, the amount of diligence work that has gone into this particular deal as a tribal member and as an employee of the tribal government appointee of Principal Chief Sneed, I would not stand here and bring to you a particular deal that I didn’t think was good for this Tribe moving forward. Future generations, including my own kids and their kids, are looking to us for leadership. So, we’ve got to make some tough decisions.”
Tribal Council Chairman Adam Wachacha added, “If we do everything right and we do our due diligence and we continue to keep our public educated, then I feel the support will be there for us. I support the idea of moving into commercial gaming, and I feel that this is step one. If we really want to shoot for the stars, we’ve got to start somewhere, and I feel that the due diligence has been done.”
The tribe would establish EBCI Holdings LLC to oversee its commercial casino business.
