Arizona tracks challenge casinos’ legality

Jacques Billeaud

Thursday, April 12, 2001 | 10:09 a.m.

PHOENIX -- The future of Indian gambling in Arizona is at stake in a lawsuit by three race tracks that contend the state's 15 tribal casinos operate illegally.

The lawsuit set to begin today asks U.S. District Judge Robert Broomfield to prohibit Gov. Jane Hull from renewing the state-tribal compacts that allow Indian casinos. The state and tribes have been negotiating new compacts for more than a year.

"We think the governor has acted legally in negotiating with the tribes and that the existing compacts are consistent with federal and state laws," said state Solicitor General Scott Bales.

Neil Wake, attorney for three Phoenix area tracks, said slot machines, keno and poker games at Indian casinos are illegal and divert about $20 million from tracks each year.

A tracks-commissioned study estimates the casinos, which aren't named as defendants in the case, bring in about $830 million annually.

Wake said unfair competition from Indian casinos put a track in Yuma and another in Tucson out of business.

The compacts violate the Arizona Constitution by giving tribes monopolies that aren't available to non-Indians, Wake said.

David LaSarte, executive director of the Arizona Indian Gaming Association, said tribes are granted compacts because they are sovereign governments, not because of their race.

Without the compacts, many tribes wouldn't have money for their roads, police departments, school and health care, LaSarte said.

"The tracks want slot machines," LaSarte said. "When it comes down to it, it's just that simple."

Wake said the tracks aren't pursuing legislation to allow them to operate slots. Though the tracks raised the possibility of getting slots, the statement was made only as a rebuttal to a hypothetical legal argument by the state, Wake said.

Hull agreed to hold off signing compacts until the case is resolved.

Still, the state intends on resuming compact talks when the current legislative session ends and government leaders can focus on the issue again, said Christa Severns, spokeswoman for the Arizona Department of Gaming.

"I think we see that Indian gaming is here to stay, and the governor wants to regulate and limit it to reservations," Severns said.