The Ponca Tribe of Nebraska opened its Prairie Flower Casino in Carter Lake on November 1. Although it’s small in size—9,500 square feet, the smallest of the state’s 19 casinos—it’s causing large reactions from the city of Council Bluff and the states of Iowa and Nebraska. In numerous courtroom battles, the 4,200-member Ponca Tribe has prevailed, but the fights go on even as their casino is now open for business, offering 200 Class II electronic machines and a snack bar. The casino hired about 100 employees, including 20 percent tribal members.
It’s named for Prairie Flower, a daughter of famed Chief Standing Bear. She died on the Ponca Trail of Tears in 1877, when the federal government forced the tribe to leave Nebraska.
Ponca Chief Larry Wright Jr. said the tribe owns five acres in Carter Lake, and could expand the casino “when the time is right.” When the tribe bought the acreage in 1999, it announced it would build a health center there, although observers suspected a casino would be more likely. An attorney representing the tribe wrote a pledge in 2002 that the site would not be used for gaming. The tribe now insists the attorney wasn’t authorized to approve such an agreement. Council Bluffs Mayor Matt Walsh said, “There was concern at the time that they were buying it for a casino and they said, ‘No, no. We’ll sign papers saying it won’t be a casino.'”
Located three miles north of downtown Omaha, Carter Lake is geographically unique since the Missouri River changed course during an 1877 flood, permanently separating the city from the rest of territorial Iowa. The town of two square miles has about 3,700 residents. The casino came close to not opening at all. On September 27, officials from Iowa, Nebraska and Council Bluffs wrote to Ponca leaders, urging them to delay opening the casino since a federal ruling could force them to use the facility for something other than gambling. Their letter stated, “Delaying the opening of this facility until the federal court issues a decision would help minimize these risks, particularly the harm to the careers of employees who are accepting positions at a gaming facility that may be found in violation of federal law.” Wright responded that the tribe had waited for regulatory approval for years. “The tribe cannot afford to wait longer, given the needs of its people,” he said.
Problems first arose a decade ago when the National Indian Gaming Commission determined the Ponca land was eligible for gaming under the Indian Gaming Regulatory Act. A federal court overruled that decision before the 8th Circuit Court of Appeals remanded the case back to the NIGC. That agency again approved the casino in November 2017. Council Bluffs then appealed that decision.
Council Bluffs is concerned that Prairie Flower could harm business at the city’s three commercial casinos on the Iowa side of the Missouri River, which generate millions of dollars for the state and local governments. Since a tribal casino doesn’t pay local taxes—and the city’s commercial casinos pay 22-24 percent in taxes–it has an unfair advantage over commercial operations, Council Bluff officials said. Last year, Ameristar, Harrah’s and Horseshoe casinos in Council Bluffs posted combined profits of $420 million, and paid $94 million in state and local taxes, according to the Iowa Racing and Gaming Commission. That included $4 million to Council Bluffs, which also benefits from another $7 million in annual charitable contributions the casinos make regionally.
Iowa joined the lawsuit, with officials claiming federal law doesn’t allow a casino on the Ponca property because it’s not federally restored land as defined by IGRA. Nebraska also joined the suit; casinos are banned in the states but Carter Lake is the only Iowa community west of the Missouri River, making it easily accessible to Omaha residents.
Iowa Attorney General Tom Miller’s spokesperson Lynn Hicks said, “The casino’s opening doesn’t change our position. We intervened because we believe a federal agency interpreted the law incorrectly.”
The Ponca Tribe will contribute $775,000 of its casino’s earning annually to Carter Lake. That figure could be increased if the casino expands. “We’re part of the community. We’ve been part of the community. Competition, last I heard, was not illegal and so we’re just doing what we believe is our sovereign right,” Wright said. Carter Lake Mayor Ron Cumberledge agreed. “You know, I’m in business myself. Competition is good.” He added, “We’re going to use this as a tool. We’re going to bring in more tourism, more people to town. It’s going to benefit all the surrounding businesses and we’re going to build on this.”
State officials said they’ll closely watch if Prairie Flower impacts revenue at Council Bluffs casinos. Iowa Racing and Gaming Commission Administrator Brian Ohorilko said, “Most people believe a casino opening in Carter Lake will certainly impact revenue in the Council Bluffs market.”
In the meantime, Wright noted some tribal elders have died since the tribe first began working toward opening its Carter Lake Casino. “Casinos aren’t a panacea, but they’ll help us to diversify and be self-sustaining. It hasn’t hit me yet. This has been a long struggle,” he said.
Three other tribal casinos also operate in Iowa: Meskwaki Bingo Casino in Tama, Blackbird Bend Casino in Onawa and WinnaVegas Casino Resort in Sloan.
