Thursday, March 31, 2011


The March 26 edition of the Winona Daily News carried a strongly worded editorial opposing proposed racino legislation in Minnesota. Here's the full text of the column:

Our view: ‘Racino’ idea no solution, potential problem

Call it a racino to the bottom.

On Monday, legislators introduced the ballyhooed “racino” legislation that would permit slot machines at the two racetracks.

Some legislators say it’s a $125 million fix toward the state’s deficit.

Yet, GOP lawmakers don’t want to send the money to fix the deficit problem. It would go toward a special account that would create jobs and be the province of the state’s economic development agency.

For so many reasons, this legislation is deeply flawed and should be killed soon.

First, this legislation does nothing to help the state’s massive financial problems. Any new revenue needs to go to patching the gaping budget hole that exists in St. Paul.

Secondly, how the state’s Department of Employment and Economic Development would use the funds to create jobs is about as haphazard and unknown as it could be. There are no plans, guidelines and policies. And, if the “racino” money is anything like the JOBZ accounting, as soon as the money is collected, accountability will stop.

Finally, the estimate of $125 million is fanciful. It’s only estimated, and there could be a lot less since slot machine gaming is already legal and established. The novelty has to be limited since slot machines are available elsewhere in the state.

Let’s be clear: While we don’t oppose gambling, balancing budgets on the back of gaming revenue is certainly ethically suspect. In other words, we should think long and hard about making up deficits or funding new programs on the backs of those who may have a gaming addiction.

It’s not that we should prohibit or ban gaming because that only drives it underground. But adding more gaming, especially in fragile economic times is questionable.

Finally, we’d suggest that Minnesota strongly consider the effects of gaming creep.

One need look no further than a few states away to Montana, or even South Dakota where electronic gaming has been made legal.

In the Treasure State of Montana, there is hardly a cafe, restaurant or gas station that doesn’t have a few slot machines clanging, buzzing or flashing.

They are a nuisance and eyesore, yet now well-established source of state revenue.

It’s become like crack cocaine for the Legislature. Now hooked, it can’t hardly quit.

And that’s the danger of expanded gaming. Right now, those who want to gamble have to make a serious effort to visit the casinos.

That’s fine.

But make it too easy and gaming becomes a community scourge. Make it too easy and it becomes a stream of revenue St. Paul will be forever addicted to.

This legislation solves a problem that simply doesn’t exist.

Lawmakers would do well to listen to John McCarthy of the Minnesota Indian Gaming Association. “Once this door is open, it doesn’t close,” he told the Star Tribune.

That’s not just a man protecting his own interests, that’s a man who understands the business of casinos.

They are experts.

Minnesota needs to leave this door closed.

By Darrell Ehrlick, editor, on behalf of the Winona Daily News editorial board, which also includes publisher Rusty Cunningham and deputy editor Jerome Christenson.

Sunday, March 27, 2011


The top official of a conservative Minnesota think tank has called the campaign to expand gambling "a crusade for bigger government." The March 26 edition of the Star-Tribune featured a guest column by Freedom Foundation CEO Annette Meeks. Meeks challenged the basic assumption that gambling expansion would produce significant benefits for the state. Here's the complete text.

More gambling good for Minnesota? Certainly not!
by Annette Meeks, CEO, Freedom Foundation, and Board Member, CAGE (Citizens Against Gambling Expansion)

Minnesotans live in interesting times. In fact, as our elected officials in St. Paul get down to the business of passing a balanced budget, I'm guessing they wish their task were a bit less interesting -- maybe $5billion less interesting.

Our unprecedented fiscal challenges are likely to force state and local governments to the brink of what could be a radical makeover of what government does, doesn't do and how we pay for it. I believe that's a good thing, a conversation long overdue.

Voters sent a message last November, calling for less but more transparent government. With nearly every budget hemorrhaging red ink, policymakers have a once-in-a-lifetime opportunity to shrink the size and scope of government. Yet after two months of the legislative session, an alarming number of lawmakers in both parties continue their crusade for bigger government, including an expansion of gambling.

Many legislators are wedded to the idea that gaming provides free money for state coffers. Yet many states have crossed the gambling Rubicon and have found that the game has changed. What looked like a good idea just a few years ago isn't working now. The list of disappointments is long and growing.

In Kansas, of four casino licenses sold in 2007 when the legislature in that state expanded gambling, only one casino has been built. After three years, the state has brought in just $13.5 million. Adding to this fiscal disappointment, the Kansas treasury had to return $75 million in "privilege fees" paid by casino developer Harrah's, which backed out of its commitments.

Even the state's racetrack owners have all turned down the opportunity to add slot machines, saying it's just not worth it. In Illinois, gambling revenues are down as much as 30 percent since 2008, but policymakers there still hope to hit it big. First, they bet on slot machines in bars, and when that failed the test of local voter approval, they started peddling more casino licenses.

Yet, in terms of sheer hubris, it's hard to compete with Pennsylvania. The Keystone State has lined its New York and New Jersey borders with casinos and dreams of tripling the 24,000 machines it currently operates. Pennsylvania gambling officials recently had to return $50 million in "privilege fees" to the Foxwoods Casino Management Group for a casino promised three years ago but never built.

One Pennsylvania casino has actually asked for permission to reduce the number of slot machines it operates. When Lesley Stahl of CBS' "60 Minutes" asked Pennsylvania's then-Gov. Ed Rendell about the predatory nature of slot machines, he became agitated, calling her and her producers "simpletons" and "idiots" because they didn't understand gambling. He went on to say that Pennsylvanians "would lose their money anyway."

Many Minnesota policymakers seem to believe that more gambling in Minnesota will somehow avoid the problems other states have seen. It won't be easy.

Take, for example, the once-booming charitable gambling industry in Minnesota that is now in a death spiral of demographics, competition, and economic and social change. The proposed solution? Ten slot machines in any liquor-licensed establishment that currently offers charitable gambling. That means 25,000 clanging machines spread across every neighborhood of Minnesota. In some rural communities, slot machines would easily outnumber residents.

Sadly, these small-town mini-casinos would continue to draw their profits from the pockets of local citizens and would likely add to Minnesota's unemployment when the local charitable gambling business was completely replaced by automated slots.

The racino crowd is back at it, too, betting the farm that Minnesotans want slot machines at our racetracks, promising to save the horse industry if only they had slot machines. Here's a sure bet: Slot machines at Canterbury Park and Running Aces are guaranteed to make one group rich quick -- the tracks' current owners. Interestingly, Running Aces' windfall will go to its out-of state owners.

Racinos in other states have proven that slot machines do little to help the slowly dying horse-racing industry. And most important: A racino monopoly will do little or nothing to help balance the state's budget deficit.

The list of gambling dreams goes on. Recently, the new owner of Block E in downtown Minneapolis decided to go "all in" by proposing to tear down the nine-year-old building and replace it with a Monte Carlo-like, upscale, 24-hour casino.

Not to be outdone, the Iron Range Resources and Rehabilitation Board proposed another horse-racing track with slots in its neck of the woods. Perhaps this could be built adjacent to the poorly conceived Ironworld center, thus saving taxpayers the extra expense of eventually having to separately shutter two failing facilities.

Yet gambling, especially "convenience gambling," comes with a hefty cost, both to local governments who must handle the criminal prosecutions that result when problem gamblers resort to crime as a method of financing their addiction, as well as to families, many of whom suffer in silence.

Robert Goodman, author of "The Luck Business," writes that "each problem gambler costs society from $13,000 to $52,000 per year." According to a compulsive gambling counseling center, "after casinos opened in Atlantic City, the total number of crimes [committed] within a 30-mile radius increased 100 percent." Earlier this year, the list of Pennsylvanians who have voluntarily "self-excluded" or banned themselves from their new "convenience casinos" topped 2,000.

The real face of gambling addiction is often found in tragic stories that unfold in our court systems. Last December, the U.S. Senate, for only the eighth time in American history, impeached a federal judge in Louisiana who acknowledged that he had a serious gambling addiction that led him to accept bribes from lawyers and to lie to Congress.

After Pennsylvania supersized its state-sponsored gambling, Mike O'Neill, a tax collector in Jenkintown, embezzled nearly a quarter of a million in taxpayers' money to gamble at casinos "around the corner." Gambling "changed me, who I was," O'Neill said at his sentencing. He lost his wife, his son, his home, all of his money and his dignity.

His lawyer said his addiction became out of control "when he could go to a casino on a daily basis." Indeed, the lawyer continued, "I talked to all Mike's friends, and no one knew he gambled." Sadly, Gov. Rendell and other gambling proponents weren't in court when O'Neill was sentenced.

Nor were any Minnesota gambling proponents around a few weeks back when a former auditor in the Minnesota Department of Revenue pleaded guilty to defrauding taxpayers out of nearly $2 million to satisfy her self-confessed "gambling addiction." And just last week, a Catholic church in Hudson, Wis., announced it had ousted a priest who had stolen some $10,000 in charity funds to support his gambling habit.

Rather than gambling on ways to increase revenue coming into state coffers, legislators should accept this worthy challenge and reduce the size and scope of state government.

Thursday, March 24, 2011


A March 21 blog by internationally recognized Indian gaming law experts Kathryn R.L. Rand and Steven Andrew Knight, co-directors of the Institute for the Study of Tribal Gaming Law and Policy at the University of North Dakota, urges Minnesota legislators to think carefully before adopting gambling policies that might harm rural areas of the state. Here's what Rand and Knight had to say:

Racino Legislation in Minnesota

Minnesota lawmakers once again will consider the expansion of legalized gambling in the state. Today, Sen. Dan Sparks, DFL-Austin, along with Sen. Dave Senjem, R-Rochester, and Rep. Bob Gunther, R-Fairmont, are expected to introduce legislation that will authorize gaming machines at two race tracks. The proposed racinos locations are gaming devices at Running Aces, along Interstate 35 near Forest Lake, and Shakopee’s Canterbury Park. While the two horse parks already can offer poker and gaming tables, the addition of slot machines would put them in direct competition with tribal casinos.

Canterbury Park is near the Shakopee Mdewakanton Dakota Community's highly successful Mystic Lake Casino. Both Canterbury Park and Running Aces are a short drive from the Twin Cities area of Minneapolis and St. Paul, and in closer proximity than several other nearby tribal casinos.

The legislation is being posited as a solution to Minnesota's $5 billion projected budget deficit. And while some are raising concerns that tribal casinos will be hurt, those supporting the legislation maintain that the competition will be healthy. This morning on Minnesota Public Radio, the chief lobbyist working on the legislation, former state Senator Dick Day suggested that Minnesotans would want competition for tribal casinos, incorrectly implying that tribal casinos do little for the state's economy because there is no tribal-state revenue sharing provision in the Minnesota compacts.

Minnesota Indian Gaming Association, which opposes the proposed legislation, has more accurate information about the economic impact of tribal casinos. And, for what it's worth, Minnesota is not the only state without direct revenue sharing. It may be the only state that has a lucrative tribal gaming market and no revenue sharing, but it's important to remember that Minnesota's lucrative market is only in the Twin Cities area. The northern part of the state is rural, and the tribal casinos there more closely resemble those in North Dakota and South Dakota. According to MIGA, the proposed legislation "could do serious harm to tribal gaming and the jobs and benefits that thousands of tribal employees rely on. Expanding gambling at the expense of Indian tribes doesn't just affect the casinos; it affects the ability of tribal governments to provide the programs and services that Indian communities rely on--education, health care, housing, child and elder care, and vital infrastructure."

And that's worth thinking about. Under the proposed legislation, the Minnesota State Lottery would operate the machines, and the revenue would be earmarked for "economic development," as determined by the state legislature. When asked whether the revenue could be used for a new Vikings stadium, Day said it could, but it would be up to the state legislature to decide.

We think the state legislature should weigh the benefits of tribal gaming not only to the state, but to those folks who need it most. We think the state legislature should pay attention to the role tribal gaming plays in building strong and healthy reservation communities. There's no doubt that the state is in a budget crisis -- but proposals to expand legalized gambling must be considered in the context of the socio-economic impact of tribal gaming on some of our state's poorest residents.


Bet the Nag: Racino as a Policy Distraction

The Racino Bill was recently introduced in the State Legislature. Again. This time, it’s touted as a job creation measure but that hasn’t always been the case. Racino offers state policymakers a remarkably elastic legislative instrument, serving whatever purpose is required. Far more than creating jobs, Racino creates a public policy distraction.

Since at least 2003, some version of Racino has been introduced, authorizing Minnesota race tracks to expanding gambling beyond betting on the ponies. The term “racino” is an amalgamation of “racing” and “casino.” Since Canterbury Park, the Shakopee horse racing track and highest profile non-tribal gaming operation in Minnesota, already offers a 50-table card game room, gaming expansion really means slot machines. They’re the low-overhead, high profit-margin path to separating fools from their money.

Racino advocates claim that expanded gaming will create 3,500 jobs and generate $125 million in public revenue. Opponents note that few “new” jobs will grow; more likely, jobs will simply shift from existing tribal-owned casinos to non-tribal, privately-owned racinos.

$125 million per year, in the context of a $5.2 billion budget deficit, is a drop in the bucket. It’s not going to fundamentally rescue Minnesota’s economy. Bill sponsors propose restricting revenue to “economic development” without specifying what kind of economic development. A very rough calculation reveals that $125 million falls in line with the public debt-servicing required of a new professional football stadium. I’m not saying that will happen; just that it could be a potential revenue use. Stadium debt service isn’t quite the same as adequately financing Minnesota’s schools, healthcare, roads or real job creation.

Suddenly, we’ve tipped into Racino’s true purpose: distracting Minnesotans from what really matters. Conservative policymakers are most interested in preserving the “no new taxes” policy measures that financially favor Minnesota’s highest income earners. Rather than funding schools, affordable healthcare, good roads and creating job-growing economic development, conservative policymakers need to redirect the public’s attention. In this regard, it’s a remarkably successful, if politically dubious, strategy.

Rather than create real jobs, conservative policymakers are simply working to preserve tax policy that allows Minnesota’s highest income earners to pay a lower percentage of income tax than 9 of 10 Minnesotans pay. In economic development policy terms, the Racino proposal is the policy equivalent of rearranging the Titanic’s deck chairs. Whatever their configuration, they won’t stop the ship from sinking. Instead, Minnesota needs public policy focused on schools, healthcare, roads and jobs; the things that move Minnesota forward.

Wednesday, March 23, 2011


Minnesota citizens are speaking out against the racino, and giving their legislators an earful. According to statistics from the MIGA Website Action Center, more than 100 Minnesotans have emailed Governor Dayton and their local legislators with messages over the past 24 hours opposing the racino and other proposed forms of gambling expansion. Many of those messages have been targeted to Sen. Claire Robling and Rep. Michael Beard, who represent District 35, where the Shakopee Mdewakanton Sioux Community is located. Robling is a strong supporter of the racino.

The media are hearing from racino opponents, too. The March 12 edition of the Prior Lake American carried a powerful letter to the editor from Ted Guth, a savvy Prior Lake resident, who raised some important points about the racino proposal. Here's the complete text of Ted's letter as published.

If racino is a must, money’s not Zygi’s

In response to the racino story appearing in last week’s Prior Lake American, I felt the need to offer my opinions relative to racino and the intended use of racino tax money.

Some people aren’t excited about the proposition of expanded gambling. On the other hand, some people think that $125 million racino dollars flowing into the depleted general fund would be nice. Although I have lived in Prior Lake for many years, I have never stepped inside of the Mystic Lake Casino. Quite frankly, I am not a big supporter of gambling, either tribal or other forms of state licensed gambling. That said, I would like to offer two opinions I formed after reading the article.

The Shakopee Mdewakanton Sioux Community (SMSC) will be hurt by the state Legislature approving a racino at Canterbury Park. I don’t think enough recognition and credit is given to the SMSC/Mystic Lake for what I see as non-gambling expansion of their facilities. They have spent millions of their own dollars expanding non-gambling entertainment such as concert arenas, health clubs, indoor skating rinks, golf courses, RV camping facilities, restaurants and more.

State and local economies have benefited from the SMSC providing both construction jobs and permanent employment. Many residents of this area enjoy these non-gambling facilities. I doubt very much if Canterbury Park or Running Aces Harness Park have any intentions of duplicating the SMSC’s non-gambling amenities. The SMSC has done nothing wrong. The only thing they are guilty of is responding to the public’s desire to be entertained, and satisfying this desire by spending their own money and growing their enterprise.

I strongly oppose any racino tax money used to fund the construction of a Vikings stadium. As a Republican, I have supported Sen. Claire Robling in each election; however, I disagree with her desire to “skim” racino tax proceeds and give it to the Vikings. I would happy to show Robling many examples of other essential needs and services currently suffering after another round of budget cutting. I can’t believe it’s in the best interest of the citizens to fund a Vikings stadium while reducing the funding of health and human services, aid to local governments, transportation, etc.

The article said, “A 2010 Survey USA poll found that 80 percent of 500 Minnesota adults surveyed approve of a racino proposal.” I hope Robling isn’t confused by this poll and think that those who support a racino want its tax used to fund a Vikings stadium. In reality, 75 percent of taxpayers do not want public funds being used for the construction of a Vikings stadium.

If and when expansion of state licensed gambling is allowed, the money should go directly into the state general fund. After that, this money should be redistributed to fund the necessary and essential services throughout the Minnesota. Potential racino tax proceeds belong to the citizens of Minnesota, not Zygi Wilf and his business associates from New Jersey.

Ted Guth, Prior Lake MN

Saturday, March 19, 2011


For many Indian tribes, their casinos are not only their primary revenue source, but also among the largest employers in the counties where they are located. A February 20 article in the Duluth News-Tribune highlighted the commitment of one tribe to protecting its employees as well as its tribal members from recession-related cuts. Here's the whole story:

Fond du Lac band shows resolve amid recession
The Fond du Lac Band rode out a difficult economy in 2010, avoiding layoffs, erecting new buildings and increasing spending.
By: Jana Hollingsworth, Duluth News Tribune

The year 2010 was a stable one for the Fond du Lac Band of Lake Superior Chippewa — good news, leaders say, considering the rough shape of the

“We really havenʼt had revenue growth … but there was a conscious choice not to do any work force reductions,” said Karen Diver, chairwoman of the five-person Reservation Business Committee, the bandʼs governing body. “We didnʼt want to have our employees … and band members feel the brunt if we could carry that.”

The band, one of the largest employers in the region with more than 2,000 workers, “kept a large part of Northeastern Minnesota working at a time when that
wasnʼt the norm for the area,” Diver said. “Even a small change in our activities would have a large impact.”

Even as revenue declined, the Fond du Lac Band moved forward on projects, completing a natural resources building, several housing complexes and a
drug treatment center expansion.
Some positions went unfilled last year, but the band spent $182 million — including payroll and membership payments. In 2009 it spent less than $160 million.

Diver noted that the bandʼs operations encompass government services as well as sand and gravel, lumber and construction businesses, and that more than
half of the bandʼs employees work in non-casino jobs.

The chairwoman, entering the last year of a four-year term, gave a State of the Band address to members last week, an annual event she began three years
ago. In it, she highlighted accomplishments for 2010, including:

  • The completion of a 22,000-square-foot natural resources building, 24 units of supportive housing, an assisted-living facility and an expanded meth and prescription drug treatment center. Federal stimulus money helped pay for some of the projects.
  • The natural resources building — paid for in part with a loan from the Shakopee Mdewakanton Sioux Community — is on track for gold-level Leadership in Energy and Environmental Design certification. It will be the first building in Carlton County to be designated LEED-certified. Solar panels, a green roof, reclaimed wood and other recycled materials adorn the building, which also houses the tribal court. It was needed for the bandʼs extensive conservation and environmental work and accommodates 60 employees.
  • The supportive housing complex, three townhome structures circling a community building, is one of only two of its kind in Indian Country, Diver said. To live there, members must prove homelessness and are assigned to case workers. The workers provide social services and help residents become self-sufficient. Filling the townhomes cut the bandʼs waiting list for housing by 10 percent. It now sits at about 240 people.
  • The new drug treatment center, meant for court-ordered and voluntary clients, has room for 40 people. Thatʼs 15 more than before, Diver said.
The band finished its first reservation-wide direction-planning effort. Members want the band to promote more self-sufficiency, personal responsibility for things like jobs, and more emphasis on Ojibwe language and culture.

The band was approved for more power for its new radio station, WGZS. “Giizis” is “moon” in Ojibwe. The station is set to debut in August. Reach will extend
to the Iron Range, into Duluth and down to Moose Lake.

Services were added to the bandʼs tribal court, including those for marriages, name changes, domestic partnerships, divorces and small claims. The band is

working toward adding business services to encourage investment on the reservation, and a wellness court.

The bandʼs involvement in mining issues continued with its work as a federally appointed cooperating agency for the proposed PolyMet mine near Babbitt. A
new environmental plan is in the works, partly because of work the bandʼs environmental staff did to show the original plan was inadequate.

“We didnʼt oppose PolyMet or mining,” said Ferdinand Martineau, secretary/treasurer of the band. “We opposed the way they wanted to do it.”
The band is working to protect the Lake Superior watershed.


This year, the band hopes to resolve legal issues with the city of Duluth regarding Fond-du-Luth Casino profits and determine what a new contract with the
city will look like. The current one is set to expire in April.

In 2009 the band stopped paying the city casino revenue because it said it wasnʼt getting a fair return in services. The city filed a lawsuit and the band filed a
counter-claim. A U.S. District Court later ruled the band must abide by the 1994 agreement. The issue continues to move through the legal system. The band and city have yet to negotiate terms of a new contract. Diver said the lawsuit and a new contract are separate issues.

The band also hopes to raise casino revenue, which is well below pre-recession levels, Diver said. On average, people spent $80 per trip to the casino
before the recession and now spend $55 to $60 per trip, Martineau said. “But if people can only afford to spend $50, thatʼs great,” he said. “We advocate people staying within their budgets.”

The tribal council is encouraged by feedback it has received from band members.
When a tough policy was enacted in 2008 on felony-level violence and drug offenses, band members were supportive. But the tribal council wasnʼt sure how they would react to its enforcement — which can mean loss of tribal housing and banishment.

“Over the last two years weʼve used it half a dozen times,” Martineau said. “Every single time there was push from the community: ʻWhat are you going to
do?ʼ” The response, Diver said, highlights a piece of Anishinaabe culture.

“When you make bad choices, it affects the rest of us,” she said. “Your success is a blessing, so give the best you can give. Weʼre responsible to each other.”

Friday, March 18, 2011


The staff counsel for the Shakopee Mdewakanton Sioux Community (SMSC) has spoken out in response to a recent racino story that appeared in several southern Minnesota newspapers. Here is William J. Hardacker's commentary:

With coverage of the racino issue in local papers it is officially confirmed that the annual racino sales pitch is in full swing. Perhaps, it should be called what it is, a sales scam. At least, three-fourths of the “correspondent’s” reporting in one article which ran in several local papers directly supports the racino proposal.

The author quotes five people who support putting slot machines at Canterbury. How many people are quoted offering any number of reasonable arguments opposing racino? Yes, readers, you guessed it: zero. One must ask whether the paper’s editor was drowsy when the story got filed. These newspapers might as well turn the editor’s job over to Canterbury’s public relations firm.

Stories about the racino are full of the same misleading messages used for many years now by the Canterbury shill machine. No one is contradicting their account of the issue. There are two sides to every story, a fact which is overlooked when it comes to the racino or any expansion of gambling in Minnesota.

First, the addition of slot machines at Canterbury is a qualitative expansion of gambling. It would dramatically alter the make-up of who provides what types of games. Simply ask the question: how would Canterbury feel if the SMSC commenced operations of numerous poker rooms and pari-mutuel horse racing at Mystic Lake Casino?

Second, the tribal governments do not have a “monopoly” on gaming in Minnesota. The gaming market is already divided in a way that brings revenue to the various operators. Canterbury has horse racing and a multitude of card games. The state government operates a diverse array of lottery games. Charities and bars sell pull tabs and can offer poker. Bingo halls are easy to locate throughout the state. And the tribal governments operate video slots and blackjack pursuant to the tribal-state compacts. There are plenty of gambling options in Minnesota today. No one has a monopoly on gaming.

Third, the approval of slot machines for the horse racing tracks will kill jobs. The gaming market in Minnesota is over 20 years in the making and is a mature market. There are very few, if any, new gamblers in Minnesota waiting to spend money only if there are slots at Canterbury. The expansion of gambling will not increase gambling revenues statewide, it will only siphon revenues from the tribal governments, the lottery, and charities. For every job created at a racino, there will be at least four or five jobs killed at a tribal facility.

Fourth, racino proponents ignore the fact that projected revenues of $125 million will barely impact the overall state government deficit of nearly $6 billion. Also, projections of racino revenues do not take into account the cost of appropriate and effective regulation of those operations and do not take into account the likely competitive response from the tribal governments and the state lottery. It may cost a lot more for Canterbury to hit its projections.

Stories also include inaccurate information. One figure often reported as fact is that the tribal governments in Minnesota net about $1.4 billion annually from gaming. This number is alleged by Racino Now’s Dick Day; it is not based in fact and is conveniently overblown. Also, there are presently 23 lobbyists working for the expansion of gambling which do not include the lobbyists for the Minnesota Vikings who support a gambling proposal if the revenues from it are used to pay for a new stadium.

Finally, [reporter] Adams provides no opposing view on the suggested benefits to the horse racing industry. The equine industry might have a positive economic impact in Minnesota but horse racing is a fraction of the entire equine industry. And Minnesotans might remember that card club revenues were supposed to save the horse racing industry in Minnesota. If card club revenue was not enough to save horse racing, why would anyone believe that slots revenues will save it? Nationwide attendance at horse tracks is down as are monies wagered even at tracks with casino games added. And if a failed business model like horse racing can get bailed out by slot machines, why would the legislature stop there? The pressure will be on to authorize slot machines throughout the state. And then Minnesota will be more like Nevada and South Dakota than the Minnesota we know.

Sunday, March 13, 2011


The Chairman of the Bois Forte Band of Chippewa has expressed concern that the push for slot machines at racetracks in Minnesota could lead to a racino in his tribal casino's backyard.

Chairman Kevin Leecy said a proposed racino in Hibbing could cost hundreds of jobs at Fortune Bay Casino in Tower. His comments appeared in the March 8 edition of the Duluth News Tribune. The Hibbing racino is one of as many as four that would be authorized if the Minnesota Legislature passes a bill allowing slot machines at state racetracks.

Here's what Chairman Leecy had to say:

Racino would steal existing jobs

The recession that has pounded our country and our communities might finally be abating, but a new threat to regional jobs is brewing. And this threat is originating right here at home.

A group of private developers wants to put a combined racetrack and casino — a “racino” — in Hibbing on land owned by the Iron Range Resources and Rehabilitation Board. The IRRRB recently granted the group a four-year option to purchase more than 600 acres (“Casino, racetrack sought for Range,” Feb. 24).

Backers of the project touted the jobs they said the racino would create. What they failed to point out was that these hypothetical jobs would come at the expense of hundreds of existing ones.

That’s because the racino wouldn’t create new gamers. Instead, it would draw them away from places like Fortune Bay Resort Casino, which employs 500 people in our region. The majority of these men and women are non-Indians.

Chances are good you know someone who works for Fortune Bay; the resort casino is the largest nonmining employer in Northeastern Minnesota. You probably also have met someone who works for one of the many companies that supply Fortune Bay with products and services.

In its 24 years of operation, Fortune Bay has done more than provide good-paying jobs with excellent benefits. Fortune Bay partners with local business groups to encourage tourism to the entire region. The Bois Forte Band of Chippewa, which owns and operates Fortune Bay, invests gaming revenues in tribal government programs, services, and construction and infrastructure projects that serve and employ Indians and non-Indians. The band and Fortune Bay contribute to a wide range of charitable organizations and causes. And despite the ongoing recession, Fortune Bay has not laid off a single employee.

Would a racino have a similar commitment to this community? Though its current backers may be local, that could change. Big Las Vegas operations like Harrah’s and MGM can — and do — buy out local ventures. Investors take the cash, and a racino is left in the hands of absentee owners.

Fortune Bay and other locally owned businesses have invested in the success of this region. It is our home as well as yours, and the money we earn goes back into our communities. We want to work with our neighbors to generate more jobs and strengthen our economy, rather than fight to protect jobs we already created.