New Mexico Indians win victory in casinos battle
Story-Date: 11:16 a.m. PST Sunday   , August 24, 1997

New Mexico Indians win victory in casinos battle

ALBUQUERQUE, N.M. (Reuter) - New Mexico's Indian tribes won a key
political victory as Interior Secretary Bruce Babbitt agreed to let their
casinos stay open and said the state government was demanding too large a
cut of their gaming profits.

In a letter to Gov. Gary Johnson Saturday, Babbitt objected to a clause in
the state's proposed gambling agreements that requires the tribes to hand
over 16 percent of slot machine profits, estimated at about $34 million a
year, plus $6 million a year in regulatory fees.

``The legislatively-mandated compacts appear to put New Mexico's tribes
in an untenable situation,'' Babbitt said in a statement, adding that a
main reason for allowing Indian tribes to operate casinos was ``to better
the economic conditions of some of this nation's poorest citizens.''

He declined to either approve or reject the proposed gambling compacts with
11 tribes because rejecting them might have forced the casinos to close
while approving them could have tied the tribes to paying the 16 percent.

By doing nothing, Babbitt allows the casinos to continue operating and
opens the door for negotiations on terms of the compacts.

``It is my hope that the detailed explanation of the department's
objections and concerns will encourage the state and tribes to enter into
genuine negotiations to seek a satisfactory resolution to these issues,''
Babbitt said.

Tribal leaders had signed the proposed compacts under protest and on Sunday
welcomed Babbitt's handling of the issue.

``The state process did not allow negotiations as to whether the tribes
agree to that 16 percent,'' said Frank Chaves, co-chairman of the New
Mexico Indian Gaming Association.

But state attorney general Tom Udall said Babbitt failed to resolve the
issue.

``It was a big do-nothing,'' Udall said, adding the tribes could risk
losing their casinos if they tried to avoid paying the state a fair share
of the revenues.

``If the tribes fail to ante up, the whole thing could fall,'' he said.

Nine of the 11 tribes who signed the compacts already operate casinos that
bring in up to $300 million a year.

Other states where Indian tribes operate casinos have been watching the New
Mexico controversy closely because it could set a precedent on how much
of the tribes' profits should go into the state's coffers.



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