|
Tribe, state near agreement on live dealers at Harrah’s
By Derek Hodges
The Eastern Band of Cherokee Indians’ gamble on live dealers may be about to pay off.
Representatives from the tribe and the Governor’s Office have been meeting for nearly a year to renegotiate the terms of the tribe’s Gaming Compact. Their most recent meeting was last Wednesday (Jan. 25).
According to Jill Lucas, a spokesman for the Governor’s Office, “there is a preliminary agreement and it is being reviewed.”
While Lucas was tight-lipped on what the agreement included, she did say one part of it was live dealers.
Principal Chief Michell Hicks offered little more information on the talks.
“We had a positive meeting with the Governor’s Office last week and are confident in the progress of Gaming Compact negotiations,” Hicks said. “Our negotiations covered a wide range of operational and technical requests from both sides. At this time we are not discussing details of our negotiations but are pleased with our progress.”
Tribal Council members have been briefed on the specifics of the negotiations, Hicks said.
In a Feb. 3, 2005, letter to the governor, Hicks requested negotiations on the tribe’s agreement.
The tribe entered into a 30-year compact with North Carolina in 2000. The governor has the sole authority to negotiate gaming compacts.
The 2000 agreement allowed for Class II games at casinos operated by the tribe. Those games include games of skill, or those that require the player to interact with the game. State law prohibits “games of chance,” such as poker and blackjack. With the growing popularity of poker in recent years, the tribe sees an opportunity to increase revenues, Hicks said.
The Eastern Band’s requests for changes to its current compact include:
• Bringing “live” poker, blackjack, craps and roulette. Currently the casino offers electronic versions of each of these games except roulette.
• Offering “markers,” or lines of credit, to gamers.
• Allowing for more than one gaming facility on tribal lands. This request would permit casinos on tribal lands in any of five Western North Carolina counties in which the tribe owns land. Those counties include Jackson, Cherokee, Graham, Haywood and Swain. It would also give the tribe the chance to recruit other gaming operations – in addition to Harrah’s – to do business on the Qualla Boundary. Tribal officials speculate adding another casino could create 1,740 jobs.
• Working with other tribes to offer prizes as part of joint contests.
• Making the compact in effect “in perpetuity.”
• Allowing electronic raffles.
Eastern Band officials argue the changes are necessary to allow Cherokee’s thriving gaming business to continue growing.
“We want to offer the product the market wants so we can keep up with our competition and continue the solid growth of that operation,” Hicks said.
Lucas would not comment on when the talks would conclude, but Hicks said, “we are confident that we will reach a formal agreement before summer.”
One sticking point in the negotiations has been figuring out what the state’s benefit from the casino should be. Since the enterprise is on the reservation and is run by the tribe, the state receives no revenue from the venture. The governor has said he would like to see that change, with an agreement that would give money to the state. He pointed out that such action has been taken in other states that allow live dealers at Indian-run casinos.
The tribe’s current gaming enterprise, Harrah’s Cherokee Casino and Hotel, is the largest private employer west of Asheville, and takes in about $155 million annually. Some of that money returns to tribal programs, while another portion is distributed in per capita checks to enrolled members. The checks now total nearly $8,000 per member annually. The operation is run by Harrah’s Entertainment, which has a contract with the tribe.
Tribal leaders say adding the new gaming positions would create 430 jobs, with a combined payroll of $15.2 million. That would bring the casino’s total operation to nearly 3,500 employees.
The casino facility has expanded several times since its opening in 1997. That growth includes the addition of a two-tower hotel with 576 rooms, a parking deck, a non-smoking gaming area and changes to the casino’s gaming space.
The Tribal Casino Gaming Enterprise, which operates the tribe’s gambling business, is expected to propose more additions soon.
In a proposal presented to Tribal Council, the TCGE asked for money to fund construction at Harrah’s including a third hotel tower, expansion and renovation of the casino, addition of a new restaurant/lounge area, and a new parking deck.
However, TCGE Chairman Norma Moss withdrew the proposal before Council members could formally discuss it..
|
