Tribes, state vow to join forces in regulating booming Indian casino industry

Michelle DeArmond

Tuesday, March 21, 2000 | 9:19 a.m.

PALM SPRINGS, Calif. - Angered by charges that California tribes are incapable of regulating their casinos, state Indian gambling officials vowed Monday to ward off corruption and ensure that employees pass adequate background checks.

Their appearance at the California Indian Gaming Summit marked the first time state and tribal officials have spoken publicly together since California voters legalized Indian gambling March 7.

Presenting a united front, officials said they will meet in a week to begin forming industry standards for personnel background checks and other issues.

Newspaper editorial boards, analysts and others have said they fear tribal casinos will be inadequately regulated, making them vulnerable to organized crime and other corruption.

The critics' warnings went largely unheard during the Proposition 1A campaign.

"I am convinced that there is no better regulatory system than that that is being built in California," said Harlan Goodson, director of the Division of Gambling Control for the California Department of Justice. "I am convinced that not only will California be the single largest gambling jurisdiction in the world, it will be the best regulated in the world."

About 60 of the state's roughly 107 Indian tribes are expected to operate casinos as a result of the constitutional amendment approved by voters, bringing Las Vegas-style slot machines and card games to the nation's most populous state.

Goodson will join dozens of tribal regulators and officials in one week when they meet on a Southern California Indian reservation for their first formal meeting since the election.

The association of state and tribal representatives was a component of the gambling compact the tribes signed with Gov. Gray Davis. Proposition 1A allowed that compact to take effect and paved the way for expansion of tribal gambling in California.

The association will talk "about the kinds of issues that the naysayers have said aren't talked about," Goodsen said.

Tribes will not be obligated to comply with any uniform standards established by the association, but several speakers Monday said they expect tribes to reach agreement on key issues. Among them: employee background checks and technical standards for building slot machines and other equipment.

"I think it's pretty do-able," said Norman DesRosiers, gaming commissioner for the Viejas Casino & Turf Club near the San Diego County community of Alpine.

Tribes will be able to fight scams waged against their casinos and better detect potential corruption by pooling their knowledge and resources, said Ray Leonard Patencio, chairman of the Palm Springs-based Aqua Caliente Gaming Association.

He also urged tribes to perform thorough background checks on all employees and others who work with the tribe.

The tribes' livelihood is at stake, he said.

"These are the people handling the tribal assets," he said of employees. "Making the money is not the role of the regulator. Making sure the tribe keeps it is the role of the regulator."

The three-day conference at the Riviera Resort & Racquet Club is sponsored by companies that hope to do business with tribal casinos, such as slot machine makers and architectural firms. At least one Nevada casino, Bally Gaming, also was a sponsor.