Law gives tribes advantage over rival gaming interests

Sharon Theimer

Wednesday, March 19, 2003 | 9:55 a.m.

WASHINGTON -- Some Indian tribes with gambling halls rivaled Las Vegas casino interests in their level of political giving in the last election -- and the nation's new campaign finance law will give them new advantages over their competitors in 2004.

While companies are now banned from donating out of their treasuries, tribes can, and with no overall limit. In addition, tribes are free of new restrictions on political advertising in the law. Unlike corporations, they can use treasury money to run ads on issues or candidates close to the 2004 primaries and general election.

Tribes gave at least $7 million to federal candidates, party committees and political action committees in the two-year election cycle that ended with last year's elections, an Associated Press analysis of figures compiled by the Federal Election Commission and PoliticalMoneyLine campaign finance tracking service found.

While unlimited-size donations known as soft money are now outlawed for everyone, including the tribes, the campaign finance rules' special treatment of Indian nations has some competitors crying foul.

"They can give money unlike any American businesses," said Mike Sloan, senior vice president for the Las Vegas-based casino company Mandalay Resort Group. "It's a disparity that Congress has created, probably unintentionally, and it's the result of the explosion of Indian gaming."

Tribal advocates, including the National Indian Gaming Association, say some in Congress considered putting tribes on the same ground as other donors, but they lobbied to maintain the special status the Federal Election Commission gave them.

Tribal leaders dismiss the criticism as jealousy over the Indians' efforts to raise their political stature.

"There's a lot of people bashing the Indians because they're on the scene and they're active now," said Stan Brand, the Indian association's counsel. "The minute they have exercised the least bit of political muscle, people want to change the rules on them. ... People have tried, and people have failed."

Jacqueline Johnson, executive director of the National Congress of American Indians, said the tribes' political interests go far beyond those of casinos to such issues as economic diversity, improved public services on reservations and protection of Indian sovereignty.

Neither the new nor the old campaign finance law specifically mentions Indian tribes.

Rather, their special status comes from the FEC, which views them as "persons" under the rules. Tribes must observe the same per-candidate and party committee contribution limits as individuals, but unlike individuals, they aren't bound by a $95,000-per-cycle cap on their total contributions.

Other unincorporated entities the FEC puts in the same category, such as homeowners' associations, could give as tribes do, but few exist, said FEC Commissioner David Mason.

"I'm not aware of any other organizations who are similarly situated to do this," Mason said of tribal giving.

The tribes will also be able to run election-time ads that non-tribal casino interests can't. According to the FEC, the tribes do not fall under a provision in the law that prohibits corporations, unions and a range of interest groups from airing political ads that mention federal candidates close to elections, although tribes would now have to report such spending.

More than $8 of every $10 in tribal contributions in the 2001-02 cycle came from 30 tribes, all with enterprises including casinos.

At least two tribes gave more than $500,000, within range of the contribution levels of Las Vegas-based casino giants such as Harrah's Entertainment and Mandalay.

Among top donors, the Mississippi Band of Choctaw Indians in Choctaw, Miss., gave at least $615,000 to federal candidates and political organizations, and the Ho-Chunk Nation, based in Black River Falls, Wis., donated at least $512,000. The Agua Caliente Band of Cahuilla Indians in Palm Springs, Calif., gave roughly $429,500. The Mashantucket Pequot Tribal Nation, whose Foxwoods casino in Connecticut ranks among the world's biggest and most profitable, contributed at least $419,895.

"We encourage the invitations to fund-raisers, both Democratic and Republican, for party organizations as well as individuals, because that gives us an opportunity to participate and network," said John Guevremont, the Mashantucket Pequot tribe's chief operating officer. "All the parties have come to us."

Overall, tribal giving has leaned toward Democrats in past elections. Guevremont, a Republican, is among the Indian leaders who expect that to change now that Republicans have control of both the White House and Congress.