Tribal group accuses Pawlenty of inflating casino numbers

Wednesday, Oct. 6, 2004 | 9:10 a.m.

ST. PAUL -- A group representing American Indian bands that run casinos in Minnesota accused Gov. Tim Pawlenty on Tuesday of distorting gambling revenue to increase pressure on them to share profits with the state.

The Minnesota Indian Gaming Association allegations stem from a report issued by Pawlenty's administration last month and the governor's public mentions to it since. Authors estimate that as much as $10 billion is wagered each year, contributing to casino profits of about $1.4 billion.

The group says Pawlenty has repeatedly referred to the tribal gaming as a $10 billion industry, without clarifying that the figure isn't adjusted for prize payouts and operating expenses.

"We find it very disturbing that the governor is trying to sell his 'squeeze-the-Indians' agenda by promoting misinformation and making the tribal gaming pot look much larger than it really is," said John McCarthy, MIGA's executive director.

Pawlenty responded that the numbers are based on the information available. The tribes give audits on a confidential basis to the Department of Public Safety, which enforces gambling regulations. Some audit information has been made public, but not until several years have passed.

"If they'd like to open their books and make their financial information available we'd certainly be willing to take a look," Pawlenty said.

McCarthy said Pawlenty has never formally asked for a look at the tribes' books but he could get a better sense of the industry from the audits given to the state.

Pawlenty said the goal of the report, put together by state lottery officials, is "to make it clear to the state of Minnesota that the time has come to get a better deal." He has suggested he will entertain legislation allowing competition to the tribal casinos if the Indian bands don't agree to profit sharing.

Minnesota's pacts with American Indian tribes give them exclusive rights to operate casinos. They pay the state about $150,000 a year in regulation and inspection costs, and they voluntarily contributed about $16.1 million to local governments in 2003.