Tracks clash with tribes, governor

Scott Thomsen

Tuesday, April 9, 2002 | 9:45 a.m.

PHOENIX -- Horse and dog racetracks clashed Monday with Indian tribes and Gov. Jane Hull as the Senate Government Committee started the Legislature's deliberations on whether to approve new agreements for Indian casinos.

Hull is proposing a deal negotiated with 17 tribes that allows house-backed blackjack and puts more slot machines into play while providing the state a share of the profits. Horse and dog tracks say such compacts would drive them out of business. They want lawmakers to allow them to operate slot machines too.

"This very much puts us in jeopardy," said Jim Brundy, general manager for Yavapai Downs in Prescott. "We can't compete with what this bill would put forth. We just want a chance to stay in business."

Hull, making a rare personal appearance at the Legislature, said her plan is the only one that limits casino gambling to Indian reservations, allows state regulation and shares revenue with the state.

"Gaming will go on with or without compacts," Hull said.

Tribal leaders said every tribe can find something to disagree with in the plan, but they support it because it provides the most benefit to all.

"It's the best deal possible for all of them," David LaSarte, executive director of the Arizona Indian Gaming Association. "And it's the best possible deal for the state."

Members of the Government Committee could vote on Hull's proposal, the tracks' alternative and a third version offered by Sen. Pete Rios, D-Hayden, next week.

The high stakes of the Legislature's decision were evident in the size of the crowd. About 300 people packed three hearing rooms to listen to three hours of testimony.

"It's probably the biggest crowd ever," Senate President Randall Gnant, R-Scottsdale, said.

Additionally, tracks have been running radio commercials and newspaper ads criticizing Hull's plan and accusing the governor of negotiating the deal in secret.

"This has been the most personal, ugly attack on a governor I have seen," Hull said. "I resent the lies that have been going on."

The Legislature authorized Hull to negotiate new compacts and while the discussions were closed to the public, the governor's staff outlined the general issues at play.

Hull encouraged senators to pass her plan to avoid an expensive election campaign with battling initiatives. "Everybody has given," she said. "It is a delicately balanced compromise."

Hull then returned fire at the tracks, arguing that their proposal would expand gambling throughout Arizona.

While exclusive agreements with Indian tribes are possible under federal law, Hull said the state could not offer slot machines to one type of business off the reservations, but deny it to another.

"In puts gambling, I think, in our neighborhoods," she said. "We'll have slots in every Circle K and 7-Eleven if it goes through."

Neil Wake, an attorney for three of the tracks who won a lawsuit last year that prevents Hull from signing new compacts without the Legislature's approval, challenged the fairness and legality of Hull's plan.

Tribes would not have to tell the public how much their casinos make, arbitrators may be able to adjust what type of gambling is allowed and the tribes would be given a state-sponsored monopoly, Wake said.

"This bill is replete with unconstitutionality, with illegality, with unfairness," he said. "The governor has asked you to take it or leave it. I suggest you leave it."

Testimony is scheduled to resume next Monday on the track's proposal and Rios' plan, which limits the scope of gambling and requires the Legislature to ratify any deal negotiated by the governor.

Rios said he does not expect a quick resolution.

"There is a lot of opposition to this," he said. "It's got a long way to go yet."