Casino plan could spark other efforts

Charles E. Beggs

Monday, Dec. 13, 2004 | 9:27 a.m.

SALEM, Ore. -- Gov. Ted Kulongoski may be close to allowing the first American Indian casino on nontribal land in Oregon, a policy shift that could prompt other tribes to consider building gambling facilities on non-reservation land to stay competitive.

The Confederated Tribes of Warm Springs and Kulongoski's staff are negotiating on the tribe's plan for a casino on an industrial tract in Cascade Locks in the scenic Columbia River Gorge.

It would become the closest Indian casino to Portland and cut into the market for the Spirit Mountain Casino, the state's biggest Indian gaming center.

An agreement on the Warm Springs' plan is "close to fruition," according to Anna Richter Taylor, a spokeswoman for Kulongoski. The deal needs the governor's approval because the site is not on tribal land.

Would Spirit Mountain then look into moving to the Portland area?

"I wouldn't want to speculate about what some impacts might be," said Justin Martin, government relations director for the Confederated Tribes of Grand Ronde, operator of Spirit Mountain.

"But do we have a reason to look at a new market if policy in Oregon changes? Absolutely," said Martin. "If the rules of the game are going to change, all the tribes in Oregon then would look at territory and what their options would be."

Spirit Mountain is in Grand Ronde, about 60 miles southwest of Portland. Cascade Locks is 44 miles east of and a quick freeway drive from the state's major metropolitan area.

All nine federally recognized tribes in Oregon operate casinos under gaming compacts with the state outlining the types of gambling allowed and where. State policy limits each tribe to one casino, which under current policy must be on reservation land.

The Warm Springs tribe has a small casino on its remote reservation in central Oregon. They want to build one closer to Portland, to increase casino revenues.

If Kulongoski refuses to give the Warms Springs tribes permission to build in Cascade Locks, the tribes have said they are prepared to build a casino upstream in Hood River on tribal property that is already eligible for gambling under federal law.

There is stiff opposition to building a casino in Hood River because it would require carving out a steep bluff, and the gambling facility would be clearly visible from the river.

Sponsors of the Cascade Locks casino say it wouldn't require tearing up any part of the gorge scenery, and that the facility wouldn't be visible from the river or from Interstate 84.

But there is opposition among conservationists to building a casino in either location because they are in the Columbia River Gorge.

Another issue is that any authorization for a new casino off existing reservation lands would be a major policy shift that other tribes are bound to consider, tribal officials say.

"We've had one casino per tribe on reservation lands as consistent policy for the last 10 years." Martin said.

Dave Tovey, executive director of the Coquille Tribe, which operates The Mill Casino in North Bend, agrees that a change in that policy could prompt other tribes to ponder their options.

"It's fair to say every tribe is always going to be looking for some opportunity given regulatory changes," Tovey said.

Still, Tovey said the Coquille Tribe has no plans for moving its operations.

Sue Shaffer, board chairwoman of the Cow Creek band of the Umpqua Tribe, said downstate rural tribes lack the resources to try to acquire new land and relocate casinos.

"We'd all like to be in Portland, sure. But we have to do the best we can with the hand we're dealt," she said.

She said she long has felt that limiting casinos to tribal lands is good for everyone, while she respects the sovereignty of tribes to make their own decisions.

"My opinion has never changed. It has nothing to do with the particular (Warm Springs) situation that is evolving," she said.

Len Bergstein, a lobbyist for the Warm Springs tribes, said he doubts that the Cascade Locks move will lead to wholesale expansion plans by other tribes.

"I don't think this will start a land grab," Bergstein said.

Some other tribes are quietly weighing the precedent the Warm Springs plan would set.

"We've had some internal discussions, but we're not prepared to take any kind of public position on it," said Debra Crosell, spokeswoman for the Confederated Tribes of the Umatilla Indian Reservation.

The tribes operate a casino east of Pendleton.

Tovey said tribes have to adapt to changes.

He also said the governor is injecting another "troubling" issue into the mix by directing the state lottery to put slot-machine type games on its video poker terminals.

Tribes worry they could lose business because slot machines are the mainstay of gaming machines in their casinos.

"Cascade Locks and line games have a tendency to change the balance of power as far as market share," Tovey said.

He said Indian casinos account for about 40 percent of gambling business in the state to 60 percent for the lottery.