Hearing may decide whether Indian slots can remain

Monday, Nov. 23, 1998 | 6:17 a.m.

The hearing is a watershed event in a decade-old dispute involving the Spokane Tribe of Indians, the Colville Confederated Tribes and the state of Washington over the gambling devices that are a staple of Nevada casinos.

The U.S. Department of Justice in August filed a civil action to seize 794 slot machines being operated in Colville casinos and 1,020 others the Spokane tribe operates in its casinos and gaming halls.

Contending slot machines are banned from federal reservations by a 1950s anti-mob law, agents "arrested" the machines, but a judge allowed them to remain operable in Indian casinos pending resolution of the dispute.

The tribes and the state have been at odds over slots since Indian reservation gambling was expanded under the federal Indian Gaming Regulatory Act of 1988.

The state contends the devices are illegal and cannot be negotiated into a compact called for by the act to allow so-called "Class III," or Nevada-style gaming machines.

Slots are allowed in Indian casinos in 23 states, including Oregon, the National Indian Gaming Commission said. Some states have passed legislation allowing Indian casinos to operate slots.

In 1993, the Spokane Tribe accused the state of bad-faith negotiations and began installing slot machines in its three casinos at Ford and Chewelah. The Colvilles soon followed suit in casinos at Grand Coulee, Okanogan and near Manson at Lake Chelan.

The Eastern Washington tribes have argued in numerous lawsuits that they are exempt from the Indian gaming act and, because there is no compact, can offer whatever Class III games they want in their reservation casinos.

The issue languished in federal appeals courts until U.S. attorneys here and in Seattle filed civil forfeiture proceedings this summer against three tribes that offer slot machines in their casinos.

Both sides will ask U.S. District Judge Fred Van Sickle for summary judgments. Van Sickle could grant summary judgment, or send the case to trial in January.

The tribes hope Van Sickle will see the slots as an economic necessity and stay the government's forfeiture action.

"It means economic opportunity to Colville members and everything that entails: hopes, planning for the future, economic stability in rural environments," Colville reservation attorney David Shaw said Monday.

A favorable ruling "allows tribes to continue to operate one of the sole viable industries in this area," Shaw said. "When you live in an isolated environment, it's hard to get a sustainable industry. We finally got one and we're working hard to diversify. Gaming dollars help us diversify our tribal economy."

The Colvilles won't disclose gambling revenues from their three casinos, but contend the gambling devices contributed about $25 million to the economy of north-central Washington, including $7 million in annual payroll. About 750,000 people visited the tribal-owned casinos last year, according to figures from the tribe.

The government will argue the "one-armed bandits" are prohibited by the federal Johnson Act and by the 1988 Indian gaming law, which bars them without a compact with the state, said Jim Shively, an assistant U.S. attorney.

The state recently approved creation of a form of on-line lottery, or "electronic scratch ticket" game for some tribes, but that development is not expected to affect the slot forfeiture case, Shively said.

"I doubt it very much," Shively said. "Neither party relied to any degree on that agreement" in preparing briefs for Van Sickle.

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