Veterans, fraternals also want gambling law changes

Tuesday, Aug. 26, 1997 | 5:16 a.m.

Bill Previtti, president of the Fraternal and Veterans' Clubs Association of New Mexico, said Tuesday it would be unfair for the state to consider revising terms of the Indian gambling compacts without also looking at easing the revenue-related requirements on newly legalized off-reservation gambling.

"If you're going to open the game up, fine. But you can't just turn your backs on the veterans' and fraternal clubs because we felt we were dealt the same bad hand the Indians were," Previtti said in an interview.

His comments came as two tribes - Santa Ana and Santa Clara pueblos - formally requested the state begin negotiations on revising portions of the compacts, which Interior Secretary Bruce Babbitt is allowing to take effect without his signature.

Babbitt has cast doubts over the validity under federal law of compact provisions that require tribes to pay the state 16 percent of their net slot machine proceeds and high fees for regulatory costs. He suggested the state and tribes negotiate a new revenue arrangement.

Johnson has agreed that the revenue provisions should be changed. He said Monday he would issue invitations for lawmakers and tribal leaders to meet with him soon to begin the talks.

Any changes in the compacts would have to be approved by the Legislature, which meets in January for a 30-day session.

But as Previtti's comments illustrate, any attempt by the governor and the Legislature to iron out problems with tribal casinos could reopen issues related to off-reservation gambling at horse-racing tracks and fraternal and veterans' clubs.

Previtti said clubs are unhappy with restrictions on the numbers of machines they can have - 15 slot machines in each club - as well as requirements they use 88 percent of their gambling profits for charitable and educational purposes.

"We feel the current Gaming Control Act needs a lot of work," said Previtti.

The off-reservation gambling portion of the law took effect once the federal government approved the tribal-state compacts. But it will be at least next year before tracks and clubs can start to operate electronic slot machines.

First, the state must implement its regulatory system to license and oversee the non-tribal gambling. Johnson said he won't appoint members to the state's regulatory board until next year and the Legislature also must approve money for the regulators.

John Underwood, a Ruidoso lawyer and lobbyists for tracks there and in Albuquerque, said Johnson appeared to be moving slowly in setting up the regulatory board. If the governor waits to make appointments until January or February and the Legislature has to approve a spending bill for the regulatory costs, then off-reservation gambling might not begin until mid-1998 - potentially months after the beginning of the racing season.

"Our preference would be to get the ball rolling as quickly as possible," said Underwood.

The state regulatory board must write and approve rules and regulations before tracks and clubs could be licensed to operate slot machines - a process that could take several months.

Underwood suggested that Johnson not wait until next year but instead ask the state Board of Finance for a short-term loan to cover off-reservation regulatory costs until lawmakers can allocate the money.

Underwood, a former legislator, also worried that any attempt to rewrite the Indian gambling provisions during next year's legislative session could backfire.

"I have a great deal of concern ... if it goes back into any major amendment or renegotiation of the Gaming Act. If they (legislators) open it up too far, they are opening themselves up to having the entire act gutted," said Underwood.