Congress eyes reforms in wake of corruption

Observer Staff

2/28/2006 12:00:00 AM

LANSING (AP)-Concerns about the growth of Indian casinos and Tribal lobbying of public officials have sparked talk of reforms in the federal government.

Republican Rep. Mike Rogers of Brighton has introduced legislation that would place a two-year moratorium on new Indian casinos. Sen. John McCain, a Republican from Arizona who heads the Senate Indian Affairs Committee, is holding hearings to try and strengthen Indian gaming laws.

"We have got to stop the proliferation of these casinos," Rogers said. "Putting a complete halt to new Tribal casinos for two years would give us time to get our arms around the process and better understand the problem."

Nationwide, 223 Indian Tribes run 411 casinos in 28 states with annual revenues fast approaching $20 billion. McCain has said that Congress never intended for the Indian gaming business to grow so fast.

Some suggested reforms would stop Tribes from so-called "reservation shopping"-buying land miles away from their existing reservations for the sole purpose of opening a casino, closer to where gamblers live. At least two proposed Indian casinos in Michigan-near Romulus and Port Huron-would have off-reservation sites.

The reforms also would give states a more active role in Tribal gaming. The governor and state Legislature both would have to approve compacts negotiated with Indian Tribes under the changes.

Rogers would double the funding for the National Indian Gaming Commission, requiring it to conduct more exhaustive background investigations into financial interests of Tribes related to casinos. And the U.S. Department of Interior would be required to study the economic impact of casinos on communities as far as 50 miles away.

The stricter rules are under consideration mostly because of the fallout from tainted lobbyist Jack Abramoff, who pleaded guilty in January to federal charges of conspiracy, tax evasion and mail fraud. Abramoff had ties to several Indian Tribes, including the Saginaw Chippewa Tribe in Michigan.

Some critics of the proposed reforms say they would unfairly block competition for existing casinos-fulfilling one of Abramoff's goals-and deny some Indian Tribes the economic benefits others have received from the industry.

Others are concerned that Indian Tribes are being singled out for punishment in the scandal's aftermath. National Indian Gaming Association Chairman Ernie Stevens Jr. in January said Indian gambling opponents in Washington will try to "use Indian Country as a scapegoat."

Abramoff's Tribal clients were victims in the scandal, according to federal prosecutors. The Saginaw Chippewa Tribe, a former Abramoff client, says it was defrauded of millions of dollars.

D.K. Sprague, Tribal chairman of the Gun Lake Tribe seeking to open a casino near Wayland, calls the reforms a knee-jerk reaction.

"The fervor to reform lobbying is understandable, but it should be focused on fixing the wrongdoing of culprits like Abramoff, not punishing victims like the Gun Lake Tribe," Sprague wrote in a letter to The Grand Rapids Press.

Rogers defends his proposed reforms, saying he also is opposed to the casinos already operating.

"I am opposed to them being there," Rogers said. "But if they are going to be there, we have got to have the best regulation possible."