MIGA MOURNS LOSS OF CHAIRMAN STANLEY CROOKS

Minnesota Indian tribes are mourning the loss of Minnesota Indian Gaming Association (MIGA) Chairman Stanley Crooks, who passed away today at St. Francis Medical Center in Shakopee, MN.

Crooks, 70, had led MIGA since 1992, shortly after being elected to his first term as chairman of the Shakopee Mdewakanton Sioux Community. He brought unprecedented stability and continuity to his tribe and MIGA during more than two decades of service.

“It is hard to find the words to express the extent of the loss we have suffered today,” said MIGA Executive Director John McCarthy. “Chairman Crooks was one of the most respected and admired leaders in all of Indian country, but he was also a beloved friend and colleague to many of us who have worked with him over the past twenty years.”

Under Crooks’ leadership, MIGA became an influential advocate on behalf of tribes in Minnesota and nationally.

“Stan Crooks was a tireless warrior for sovereignty and tribal rights,” said McCarthy. “He wasn’t afraid to take on the tough fights, even when it meant going toe to toe with powerful politicians in St. Paul as well as Washington DC. For Stan, it was all about protecting the future so tribes wouldn’t have to repeat the past.”

Funeral arrangements are pending. 

TPT'S ALMANAC AIRS INTERVIEW WITH CHAIRMAN STANLEY CROOKS

In a rare TV interview last week, Chairman Stanley Crooks of the Shakopee Mdewakanton Sioux Community (SMSC) told TPT "Almanac" reporter Mary LaHammer that he and Canterbury Park President Randy Sampson reached their historic joint marketing agreement after "a great conversation" that lasted only two hours. "The handlers took it from there," he said.

Despite the deal, Crooks said he thinks the pressure for expanded gambling isn't likely to go away, given the state's continuing budget deficit problems. "The racino issue may be quieted somewhat, but there's plenty of clamor still out there," he said.

LaHammer asked Chairman Crooks about the hundreds of millions of dollars his tribe has donated to charitable causes and other Native nations. "You have to remember that we didn't have a lot back in the '60s when our community was first recognized," he responded. "It's just part of our culture--you use what you need, and you share the excess." The total so far is approaching one billion dollars--about half a billion in loans, and over $200 million in grants. 

The interview also touched on the sesquicentennial (150th anniversary) of the Dakota Conflict, which led to the December, 1862 hanging of 32 Sioux warriors by order of President Abraham Lincoln. The event remains the largest mass government execution in American history. "Certainly it's on the minds of a lot of Dakota people," Crooks said. "It's very close to us."

Chief Shakopee, for whom the Shakopee community was named, was one of those hung. Crooks is a descendant of friendly Sioux who helped white settlers escape harm during the conflict, but most of those Indians were exiled from Minnesota. A handful of families remained behind or returned, forming the tiny community that eventually won federal recognition in 1969.

"People ask how we were able to set up a village next to the Twin Cities," he said. "We were always here. In hindsight, we're grateful that the Twin Cities got built; if they hadn't been, we wouldn't be so successful."

After twenty years as SMSC Chairman, Crooks commented on his legacy. "I find all we've been able to accomplish astounding, and I'm humbled to have been able to play a role. Of those to whom much is given, much is expected. That's kind of my belief anyway."

MYSTIC-CANTERBURY JOINT AGREEMENT TAKES RACINO OFF TABLE

Mystic Lake Casino, an enterprise of the Shakopee Mdewkanton Sioux Community (SMSC), has entered into a long-term joint marketing agreement with Canterbury Park that takes racinos off the table for ten years, fostering growth at both properties and preserving rural jobs in gaming and the horse industry.


The agreement was described by Canterbury Park President and CEO Randy Sampson as "a milestone that will mark the rebound of Minnesota horse racing and our local equine industry." Under its terms, Mystic Lake will contribute $75 million over ten years to enhance purses at the track, and another $8.5 million over that period to fund joint marketing efforts. In exchange, Canterbury Park will no longer pursue legislation authorizing racinos in Minnesota, and will join forces with SMSC to defeat other proposals for gambling expansion that could hurt both businesses. Other joint promotional efforts will be developed as well.


SMSC Chairman Stanley Crooks said the agreement offers advantages to both parties. In addition to preserving rural jobs for Minnesota, he said, "it lets us focus on the broader interests that we share."

Mystic Lake CEO Ed Stevenson explained that the partnership would enhance the branding of the southwest metro area as "the premier entertainment and gaming destination in Minnesota and the midwest, while providing significant financial support to horse racing at Canterbury Park and much-needed stimulus to the Minnesota equine industry.”


The deal was initiated by Canterbury officials at the suggestion of Minnesota House of Representatives Speaker Kurt Zellers, who urged Sampson to contact SMSC and explore possible joint efforts.


Minnesota tribes have been fighting the racino proposals for nearly fifteen years, fearing that legalizing slot machines at race tracks would open the door to slots in bars, restaurants, shopping malls and other venues statewide. The deal between Mystic Lake and Shakopee probably takes those other options off the table for the foreseeable future, according to Senate Majority Leader Dave Senjem, who authored the racino bill in the 2012 session.


In a June 5 MinnPost story, Senjem said, "My sense is that discussion of a larger-scale gaming effort in Minnesota, at least at this point without racino, is probably over for a while. I don’t sense any other cause that would bring it to the floor that can’t and shouldn’t otherwise be addressed through … building a strong and robust Minnesota economy."


John McCarthy, executive director of the Minnesota Indian Gaming Association (MIGA), agreed. "Many people who wouldn't otherwise have supported gambling expansion felt obligated to support the racino because Minnesota's horse industry was in pretty bad shape and needed the boost. Now that racino is off the table, I can't think of another expansion scheme that has anywhere near enough public or legislative support to pass, at least in the near future."

For a sampling of media coverage of the story, follow these links:

MinnPost, June 5, James Nord

Star Tribune, June 6, Rachel Blount

Star Tribune, June 6, Tony Kennedy

Pioneer Press, June 4, Steve Karnowski

RACINO BILL MAY BE DEAD FOR SESSION

A racino bill passed by the Minnesota Senate Finance Committee on March 30 may be dead for the 2012 session, according to yesterday's edition of "Hot Dish Politics," a political blog written by Star-Tribune reporter Rachel Stassen-Berger.

According to Stassen-Berger, Senate Majority Leader Dave Senjem, a racino supporter, said "the idea lacks a majority of backers in the House and Senate."

"I think we are perhaps a little short right now...the stark reality is that it would be difficult," Senjem reportedly said.

The blog also reports that the bill was supposed to receive consideration in the Senate Rules committee, which Senjem chairs, but that he "has no plans to hold a hearing on it."

WHITE EARTH CASINO PLAN 'MISGUIDED,' MIGA TRIBES SAY

A statement issued today by the Minnesota Indian Gaming Association (MIGA) says the White Earth Band of Ojibwe’s offer to partner with the State of Minnesota on a casino to benefit the Minnesota Vikings is “misguided,” and contrary to long-term tribal interests. Here is the full text of the statement:

The member tribes of the Minnesota Indian Gaming Association (MIGA) continue to oppose efforts by the White Earth Band of Ojibwe to develop an off-reservation casino in the Twin Cities. White Earth has put forth similar proposals at least three times in the past, and MIGA has opposed them on numerous grounds.

First, we believe that any effort by a tribe to expand gambling into off-reservation locations is misguided and contrary to the spirit of the Indian Gaming Regulatory Act (IGRA), the federal law under which Indian gaming is conducted and regulated. IGRA was intended to create jobs and stimulate economic activity on Indian reservations, where traditional approaches to economic development have failed.

Second, White Earth’s proposal is contrary to long-term tribal interests because it compromises sovereignty, diverts tribal revenues to non-tribal purposes, in violation of federal law and the tribal government’s responsibility to its own members, and sets a dangerous precedent for unwarranted revenue-sharing. By positioning itself as a financing partner offering to develop a casino and share proceeds with the State of Minnesota outside the framework of IGRA, the tribe has waived its sovereign status and put itself on the same level as any private-sector developer.

Third, the premise of the White Earth proposal is that it would address “the extreme disparity in revenues generated by tribal casinos.” Since Indian gaming was intended as a tool for economic development on the reservation, it was never envisioned or intended that tribes would benefit equally. IGRA recognized that each tribe would be operating its gaming enterprises on tribal lands with all the benefits and limitations inherent in those locations. Moreover, the proposal as currently written would not remedy revenue disparities; it would merely increase revenue for one tribe, at the expense of others.

Fourth, the White Earth bill (Article 1, Section 1) asserts a “lack of significant direct revenue to the State of Minnesota” from tribal gaming. In fact, federal law and the rulings of the National Indian Gaming Commission (NIGC) both have reaffirmed that tribes may not divert gaming revenues to states or cities except to pay for benefits or services provided by those entities.

The intent of Indian gaming was to produce revenue for tribes, not states. The suggestion that the state has a right to tribal gaming revenues is simply wrongheaded and totally inconsistent with the stated intent of IGRA. In Minnesota, tribal casinos were developed without a nickel of state assistance. The 41,000 jobs created, directly and indirectly, by Indian gaming have not cost Minnesota taxpayers a dime.

Fifth, the suggestion that the state would bind itself to an exclusivity agreement for thirty years in exchange for 50 percent of the proceeds of a White Earth-owned casino is patently absurd. There is not a single state in the U.S. that, having entered the casino business, has stopped at one casino. What happens when Minnesota decides it needs another casino, and then another?

MIGA member tribes take no pleasure in opposing White Earth on this matter. However, the tribe’s proposal is so inimical to the interests of the other tribes in Minnesota that we believe we have no alternative.

PRAIRIE ISLAND RESPONDS TO STRIB "SUPERFICIAL ANALYSIS" ON GAMING REGULATION

Calling a recent Minneapolis Star-Tribune article about Indian gaming regulation a "superficial analysis" that "omitted key facts," Prairie Island Indian Community President Johnny Johnson took the newspaper to task in an opinion column published today. The complete text of the piece follows:

Tribal slots and casinos get abundant review

On Jan. 22, for the second Sunday in a row, the Star Tribune published a front-page article that omitted key facts about tribal government gaming in Minnesota ("Slots get little or no state review"). The superficial analysis of tribal gaming regulation leaves readers misinformed and gives tribal gaming opponents false ammunition to unfairly criticize the gaming enterprises and to disparage state regulators.

Minnesota's tribal casinos are among the most heavily regulated casinos in the United States -- that includes private casinos in Las Vegas and Atlantic City. Multiple layers of operators and regulators provide comprehensive, redundant oversight of video slot machines and table games in tribal casinos

to ensure that they are operated in full compliance with all applicable laws and regulations -- tribal, state and federal.

Does the fact that the Alcohol and Gambling Enforcement Division of the Department of Public Safety has only three inspectors, who may not inspect each tribal casino annually, mean they are unregulated and operating in violation of the tribal-state compacts? Of course not.

The integrity of tribal gaming is protected at all levels, not only by tribal, state and federal regulators, but also by the vendors who supply the games and by the tribal casinos that operate them. Treasure Island Resort and Casino, like other tribal casinos, purchases video slot machines only from respected vendors licensed by the Prairie Island Indian Community Gaming Commission and the state of Minnesota. Vendors who provided noncompliant machines would jeopardize not just their tribal licensure, but their licensure at every facility in every jurisdiction where they do business.

In addition, Treasure Island only purchases video slot machines that have been approved by the Alcohol and Gambling Enforcement Division. Before any machine is placed on the floor, it is rigorously tested and certified for compliance multiple times by independent laboratories such as Gaming Laboratories International, and also by casino employees and the tribal gaming commission. All components are sealed with security

tape to prevent tampering.

Each video slot machine is constantly monitored during operation on the gaming floor and also when removed for maintenance. Treasure Island, for example, utilizes state-of-the-art surveillance and slot monitoring systems to ensure integrity of gaming operations. These sophisticated systems provide daily reporting to the gaming operation, as well as to tribal regulatory authorities, to demonstrate ongoing compliance. Any exceptions are identified and investigated, including further compliance testing, if necessary.

Two other independent layers of review -- the tribe's internal audit and its third-party external audit -- will review these reports and perform their own inspections. Machine compliance is reverified through that same multilayer regulatory structure when machines are serviced, and machines will be returned to operation only when such compliance is demonstrated. This is all over and above what any state regulators may do.

In addition, the National Indian Gaming Commission performs its own independent reviews, audits and inspections to ensure that the gaming enterprise complies with applicable laws, regulations and minimum internal control standards. Each level of operational and regulatory oversight ensures that the video slot machines and table games are fully compliant with tribal-state compacts and with all applicable laws, regulations and internal control standards.

Our efforts are thorough and exhaustive to ensure the integrity of our games for our customers. We hold ourselves to an even higher standard than the state requires. We are very proud of our gaming enterprise and regulatory oversight, and invite Gov. Mark Dayton, Public Safety Commissioner Ramona Doh, Director of Gambling Enforcement Michele Tuchner, Sen. Mike Parry, Rep. Steve Drazkowski, Rep. Tony Cornish and any other interested legislator to come tour our gaming facility.

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TRIBAL GAMING HEAVILY REGULATED WITH OR WITHOUT STATE, TRIBE SAYS

The Shakopee Mdewakanton Sioux Community has responded to a recent story in the Minneapolis Star-Tribune claiming that lax state regulation means its casinos have been unregulated. Here is the complete text of the tribe's response, published on Friday, January 27 on the news website www.bringmethenews.com.

Tribal gaming at the Shakopee Mdewakanton Sioux Community:
A heavily regulated game

Recent print news articles suggest the biggest tribal casinos in the state, including Mystic Lake Casino Hotel operated by the Shakopee Mdewakanton Sioux Community, have gone years without inspections to validate the integrity of slots and table games. Unfortunately, this information is factually incorrect and misleading.

These misleading stories report that the Minnesota Department of Public Safety, the state regulator with the authority to inspect tribal casinos under the Tribal-State Compacts, is lagging in its responsibility to inspect casinos. The stories are misleading because they imply that tribal casinos aren’t regulated. Such an implication misrepresents the high level of regulatory compliance that tribal casinos are subject to on a continuing basis, regardless of the activity of state regulators.

The fact is that the Mystic Lake and Little Six Casino properties of the Shakopee Mdewakanton Sioux Community are two of the most highly regulated operations in Minnesota and across the United States. For these regulatory efforts, Mystic Lake and Little Six Casinos are recognized as the gold standard for regulatory compliance throughout Indian Country.

Mystic Lake Casino, Little Six Casino and other Indian casinos in Minnesota are regulated by multiple entities other than the State of Minnesota. This includes the National Indian Gaming Commission, their respective tribal gaming commissions, internal compliance departments, and independent testing laboratories. The State of Minnesota does not have the primary regulatory authority over these federally authorized gaming operations.

Through the National Indian Gaming Commission (NIGC), an independent federal regulatory agency within the Department of Interior, Minimum Internal Control Standards have been promulgated setting forth the regulatory standards to be complied with by all Tribes in the conduct of gaming. The NIGC conducts independent regulatory inspections; Mystic Lake Casino and Little Six Casino were subject to three on-site inspections in 2011 by the NIGC, with no problems or exceptions noted.

In addition to NIGC regulatory oversight, the Tribal governments have their own gaming commissions, responsible for regulatory oversight. Mystic Lake Casino and Little Six Casino are subject to the regulatory oversight of the Shakopee Mdewakanton Sioux Community Gaming Commission, an independent gaming regulatory entity of the tribal government that employs 27 experienced regulators.

The sole responsibility of the Gaming Commission and its staff is to regulate and inspect gaming operations to ensure the integrity of slots and table games, and compliance with all federal, state and tribal regulatory standards. At Mystic Lake and Little Six Casinos, various Gaming Commission staff are on-site daily performing inspections of all gaming operations.

At Tribal casinos, the game program software in all slot machines is required to be certified by an independent gaming test laboratory. It is through such testing and certification that there are assurances the slot machines comply with the standards of the Tribal/State Compacts and other promulgated regulatory standards regarding operations and payout percentages.

The Gaming Commission staff regulating Mystic Lake and Little Six Casinos randomly inspects 30 percent of all slot machines yearly to verify the validity and integrity of the game software programs. Furthermore, with any new game or a program change to an existing game, prior to such games being placed into play, the Gaming Commission inspects the games and verifies the software.

In addition to the role of the Gaming Commission, within the operations of Mystic Lake Casino and Little Six Casino is the existence of a Compliance division that operates independently of management and reports directly to the Board of Directors. Within Compliance, the departments of Internal Audit, Surveillance, and Security are entrusted to monitor and enforce regulations and operating standards as they pertain to the conduct of gaming.

Internal Audit with a staff of 10, comprising over 90 years of Internal Audit experience and nearly 140 years of gaming experience, independently examines and verifies slot and table game procedures to ensure on-going regulatory compliance. This regulatory review includes the independent inspection of 10 percent of all slot machines yearly. Additionally, Internal Audit conducts monthly inventory inspections of game program chips.

Between the Gaming Commission and Internal Audit, 40 percent of slot machines are inspected yearly; in addition to on-going inspections of table games. In contrast, the Star Tribune article mentions the State of Wisconsin’s Division of Gaming uses 15 staff members to inspect 10 percent of machines and observe table games activities for five days at each Indian casino in Wisconsin every 18 months.

To further complement the compliance regulatory activities of the operations at Mystic Lake Casino and Little Six Casino is the Surveillance department. With more than 50 trained specialists, the Surveillance Department monitors slot and table gaming activity with the latest technology; 24 hours per day, seven days per week, 365 days per year.

Surveillance staff do not just watch cameras; they are highly skilled and trained in all casino operations and procedures to identify incidents of wrongdoing and ensure compliance with regulations. Such specialized skills include being certified card counters, in an effort to detect cheat and scam attempts regarding the play of blackjack.

The regulatory efforts in place at Mystic Lake Casino and Little Six Casino have been successful in identifying and apprehending individuals, which have attempted to perpetrate actions to defraud or cheat gaming operations. In these instances, actions are taken to prosecute these individuals to the fullest extent of the law. Any efforts to adversely affect the integrity of gaming will not be tolerated.

The Shakopee Mdewakanton Sioux Community, as do other Tribal governments, recognizes that gaming is the economic engine that allows for the funding of the goods, services, and other activities supporting their members and communities. It is further recognized that for gaming to prosper, the highest standards of integrity must be maintained by the Tribes.

To maintain integrity, and to perpetuate public trust and confidence in Tribal gaming, the Tribes comply with, and have invested in resources, enacted regulatory standards and developed compliance programs that far exceed any state regulatory program. While the State of Minnesota may need to re-focus its regulatory authority under the Tribal-State compacts, the fact is that the Mystic Lake and Little Six Casinos operated by the Shakopee Mdewakanton Sioux Community are highly regulated. The Shakopee Mdewakanton Sioux Community is recognized throughout the gaming industry for its commitment to regulatory compliance and operating gaming within the highest standards of integrity. Any suggestion to the contrary is not based in fact.