Wisconsin governor blocks casinoplan tied to Babbitt investigation

JR Ross

Tuesday, May 15, 2001 | 10:34 a.m.

MADISON, Wis. -- Gov. Scott McCallum has refused to give his consent to an off-reservation casino proposed by three tribes, effectively killing a project that was the focus of an investigation of former Interior Secretary Bruce Babbitt.

McCallum said Monday he sent a letter to the federal government saying he opposed the project and disagreed with the U.S. Bureau of Indian Affairs' decision in February that the casino in Hudson would not harm the surrounding community.

The BIA had agreed to place into federal trust 55 acres of land at the financially troubled St. Croix Meadows dog racing track for a casino with 1,500 slot machines. But under federal law, McCallum had to concur with that decision for the project to go forward.

"The public interest simply is not served by the addition of a major casino gaming facility to the existing gaming industry," McCallum said.

The BIA initially rejected the tribes' bid for a casino in 1995. The three tribes then claimed that they were turned down because of pressure from the Clinton administration after rival tribes that opposed the casino promised campaign contributions to the Democratic Party.

In 1999, Independent Counsel Carol Elder Bruce found there was insufficient evidence to seek criminal indictments against Babbitt or anyone else involved in the decision to reject the permit.

Leaders from the Lac Courte Oreilles, Red Cliff and Mole Lake bands of Lake Superior Chippewa Tribe met with McCallum last month to lobby for the project in western Wisconsin, just across the state line from them Minneapolis-St. Paul metropolitan area.

The tribes then filed a lawsuit last week claiming a 1988 federal law that gives state governors the power to veto off-reservation Indian casinos is unconstitutional.

In a statement Monday, the tribes said McCallum's decision was expected and strikes to the essence of their lawsuit, "that the future of Indian tribes have been played like a football for personal political agendas. Once again, our only hope for fair consideration lies in the courts."

McCallum, who has said repeatedly he opposes the expansion of gambling operations in the state but would not work to undermine existing casinos, said Monday the state has enough legal gambling opportunities.

Still, backers of two off-reservation casinos said they are still moving ahead with their plans.

Dick Matty, a spokesman for the Lac du Flambeau Chippewa, said the tribe believes it will be able to sway McCallum because it signed a compact with former Gov. Tommy Thompson in 1999 saying it has the right to pursue an off-reservation casino. The tribe has proposed a casino for the Lafayette County community of Shullsburg.

"The governor's missing the point here. All of the tribes in Wisconsin, particularly the smaller ones, need an opportunity to pursue economic development. With gaming profits, they can begin to look for other avenues of revenue," Matty said.

The Bad River and St. Croix Chippewa bands also say they need a casino to boost their economy and still plan to submit an application next month to federal officials for a casino in Beloit.

"Our needs are always going to be there," said Michael Wiggins, Bad River vice chairman. "I don't think we'll ever give up."

The BIA is reviewing an application for a fourth project, the Menominee tribe's proposed $275 million casino complex at Dairyland Greyhound Park in Kenosha. The project would need the approval from the BIA and McCallum, who has said he would not endorse it.

City and tribal officials did not return phone calls seeking comment Monday.