[Congressional Record Volume 151, Number 94 (Wednesday, July 13, 2005)]
[Extensions of Remarks]
[Pages E1474-E1476]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


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                           GAMBLING EXPLOSION

                                 ______
                                 

                           HON. FRANK R. WOLF

                              of virginia

                    in the house of representatives

                        Wednesday, July 13, 2005

  Mr. WOLF. Mr. Speaker, gambling is exploding throughout our country. 
Tribal casinos have been propagating at an alarming rate.
  I am deeply concerned about the impact this is having on our society. 
Gambling destroys families and preys on the poor. The number of tribes 
now actively ``reservation shopping'' is extremely troubling. The cover 
story of the May 9, 2005, issue of CQ Weekly reports on the explosive 
growth of tribal casinos and cites eight states--Oregon, Kansas, 
Minnesota, Florida, California, Illinois, New York and Ohio--where off-
reservation gambling is being proposed.
  Mr. Speaker, I would like to enter into the Record a copy of the 
letter I recently sent to President Bush urging his action on this 
matter, a May 9 memorandum prepared by the Congressional Research 
Service (CRS) of the Library of Congress at my request detailing 
options the Bush Administration could take to address this issue, and 
the CQ Weekly sidebar article detailing the explosive growth of tribal 
casinos. If the administration believes it does not have authority to 
issue a moratorium to halt new tribal gambling operations, it should 
send Congress legislation so that we can take action.

                                     House of Representatives,

                                                     May 19, 2005.
     Hon. George W. Bush,
     The President, The White House,
     Washington DC.
       Dear Mr. President: Many in America, myself included, are 
     deeply concerned by the explosive growth of tribal casinos. 
     There are now more than 400 tribal casinos in 30 states. 
     Tribes also are now aggressively seeking off-reservation 
     land--commonly referred to as ``reservation shopping''--to 
     build even more facilities. This rapid expansion of casino 
     gambling is spiraling out of control, with devastating 
     consequences for our country.
       This is not a Republican or a Democrat issue; nor is it a 
     conservative or a liberal issue. It is a matter that calls 
     for action in the best interest of every American. Casino 
     gambling, once limited to places like Las Vegas and Atlantic 
     City, is now coming to cities--and even small towns--across 
     America and bringing with it all its social ills, like higher 
     crime and suicide rates, increased personal bankruptcies and 
     the breakup of families.
       I write today asking that you issue an executive order 
     placing an immediate two-year moratorium on the opening of 
     any more tribal casinos until Congress can thoroughly review 
     the Indian Gaming Regulatory Act (IGRA) of 1988. Congress, 
     with the help of your administration, must examine the 
     unintended consequences of this legislation and address the 
     gaping loopholes in the law.
       The moratorium also should apply to the federal recognition 
     process of tribes, which is completely broken. As you know, I 
     have long been calling for reforms of the tribal recognition 
     process. I repeatedly asked former President Clinton and his 
     administration to take action and have written your 
     administration on several occasions asking for a top-to-
     bottom review of the process. To date, no steps have been 
     taken to address the issue.
       Something also needs to be done to address the issue of 
     senior level staff leaving the Bureau of Indian Affairs and 
     then immediately going out and representing tribes seeking 
     federal recognition. Tougher restrictions must be put in 
     place.
       Native Americans have become mere pawns in what is now a 
     billion dollar battleground as outside interests--and 
     investors, some from outside the country--have worked behind 
     the scenes to spur the growth of tribal casinos. In September 
     2001, the then General Accounting Office issued a scathing 
     report saying the process was fraught with problems and 
     needed improvement. The report concluded by saying because 
     of weaknesses in the process, ``the end result could be 
     that the resolution of tribal recognition cases will have 
     less to do with the attributes and qualities of a group as 
     an independent political entity deserving of a government-
     to-government relationship with the United States and more 
     to do with the resources that petitioners and third 
     parties can marshal to develop a successful and political 
     strategy.''
       The number of tribes now actively ``reservation shopping'' 
     is extremely troubling. The cover story of the May 9, 2005 
     issue of CQ Weekly reports on the explosive growth of tribal 
     casinos and cites eight states--Oregon,

[[Page E1475]]

     Kansas, Minnesota, Florida, California, Illinois, New York 
     and Ohio--where off-reservation gambling is being proposed. 
     The sidebar article detailing the battles being waged in 
     these states over this issue is enclosed.
       Also enclosed is a May 9, 2005, Congressional Research 
     Service memorandum, which I requested, detailing options your 
     administration can take to address this issue, including 
     ``(1) withdrawing authority to recognize new tribes; (2) 
     directing that regulations be issued for land acquisition for 
     gaming purposes and that regulations be rescinded for issuing 
     procedures for class III gaming in the absence of a tribal-
     state compact; and (3) directing the Attorney General to take 
     certain steps to enforce laws against illegal Indian gaming 
     operations.''
       The unintended consequences of IGRA have not been positive, 
     either for the overwhelming majority of Native Americans who 
     still live in poverty or for the hundreds of communities 
     across America that are now home to tribal casinos. As long 
     as reliance on gambling continues, the welfare of most Native 
     Americans will be in jeopardy. At the same time, the victims 
     of the gambling industry will continue to mount in community 
     after community after community and the economic and socials 
     costs to those communities will only increase.
       I implore you to involve your administration in this issue 
     before it brings even more harm to the American people. 
     Congress has begun to take steps to address some of these 
     issues--legislation has been introduced in the House to 
     prevent ``reservation shopping''--but an executive order will 
     have an immediate impact and is the right thing to do until 
     the myriad of problems that have come with this explosive 
     growth are addressed.
           Sincerely,
                                                    Frank R. Wolf,
     Member of Congress.
                                  ____

                                                      May 9, 2005.

                               Memorandum

     Subject Presidential Authority with Respect to Indian Gaming.
     To Hon. Frank R. Wolf, Attention: Courtney Schlieter.
     From M. Maureen Murphy, Legislative Attorney, American Law 
         Division.

       This responds to your request that our office provide you 
     with a brief list of possible tools that the President might 
     employ to curb ``reservation shopping,'' that is, locating 
     Indian gaming on off-reservation, possibly distant, sites 
     that are more conducive to gaming than traditional 
     reservation lands. Specifically, you are interested in 
     preventing recognition of new Indian tribes under the 
     administrative acknowledgment process under 25 C.F.R. Part 
     83; limiting trust acquisition of land to be used for gaming; 
     and curtailing the extension of casino gaming. We will 
     address each in turn and indicate any Presidential authority 
     or agency discretionary authority that may be used to pursue 
     these goals.
       Options to achieve the above results include: (1) 
     withdrawing authority to recognize new tribes; (2) directing 
     that regulations be issued for land acquisition for gaming 
     purposes and that regulations be rescinded for issuing 
     procedures for class III gaming in the absence of a tribal-
     state compact; and (3) directing the Attorney General to take 
     certain steps to enforce laws against illegal Indian gaming 
     operations.
       Recognition of New Tribes. The Department of the Interior 
     (DOI) has a regulation, 25 C.F.R., Part 83, detailing an 
     administrative process by which an American Indian group may 
     establish that it exists as an Indian tribe. Rather than 
     being the result of a special delegation from Congress to the 
     Secretary of the Interior (SOI) to make determinations as to 
     whether or not groups satisfy specified criteria requiring 
     recognition as Indian tribes, 25 C.F.R., Part 83, is based on 
     various statutes delegating authority to the DOI. It, thus, 
     might be possible for the President to issue a directive 
     withdrawing from DOI the power to recognize groups as 
     Indian tribes. Were that to occur, however, groups seeking 
     to establish themselves as Indian tribes and eligible for 
     benefits and services provided to federal Indian tribes 
     would likely turn to the federal courts or Congress to 
     obtain federal recognition.
       Limiting Trust Acquisition of Land for gaming. Unlike the 
     tribal acknowledgment process, the trust land acquisition 
     process rests on authority specifically delegated to DOI by 
     statute. There are general Indian land acquisition 
     regulations. There is, however, no specific DOI regulation 
     detailing a procedure that must be satisfied before land may 
     be taken into trust for gaming purposes. Although DOI issued 
     a proposal to this effect on September 14, 2000, and reopened 
     the comment period on December 27, 2001, no final regulations 
     have been issued. Should DOI decide to revisit the issue of 
     amending its Indian land acquisition regulations and issue 
     proposed regulations for land acquisition for gaming, it is 
     possible that provisions could be included in such 
     regulations that would have the effect of modifying the land 
     acquisition process to such an extent that the overall effect 
     would be to limit acquisitions for gaming purposes, including 
     off-reservation acquisitions. Although it would seem that 
     even if the President has no direct authority to modify or 
     promulgate such regulations, he would be able to provide DOI 
     with policy guidance to move in that direction.
       Curtailing the Extension of Casino Gaming. Although SOI, 
     rather than the President, has been delegated authority under 
     the Indian Gaming Regulatory Act (IGRA), that authority is 
     limited. For class III gaming to occur, there must be a 
     tribal-state compact and SOI has authority to approve such 
     compacts. Approval may be withheld only for three specified 
     reasons, and the compact is deemed approved if SOI does not 
     act within 45 days.
       One way that might be available to SOI to curtail further 
     casino gaming is to rescind regulations that the SOI has 
     issued authorizing the promulgation of procedures for class 
     III gaming when a State raises an Eleventh Amendment 
     sovereign immunity defense to a suit brought by a tribe to 
     compel negotiation of a tribal-state compact. These 
     regulations, 25 C.F.R. Part 291, have not yet been used. 
     Without the regulations, there would be no possibility of 
     class III gaming in the absence of a tribal-state compact.
       Other options that might be available to the President 
     include instructing the Department of Justice to review all 
     casino gaming on Indian lands and, to the extent permitted 
     under applicable statutes, bring federal prosecutions or seek 
     judicial injunctions against any gaming being operated in 
     violation of IGRA or state law.
       We hope this information is helpful to you and that you 
     will call upon our office should you need further assistance.
                                                M. Maureen Murphy,
     Legislative Attorney.
                                  ____


                   [From the CQ Weekly, May 9, 2005]

                       Reservations Not Required

       The best casino sites on Indian reservations have been 
     taken, and some tribes are looking elsewhere for new markets. 
     States around the country are debating proposals for off-
     reservation gambling, in addition to the expansion of 
     existing casinos. Here are some of the proposals:


                                 oregon

       Gov. Theodore R. Kulongoski has signed a deal with the 
     Confederated Tribes of the Warm Springs Reservation to build 
     a casino in the Columbia River Gorge, with the state getting 
     a share of the revenue. The tribe would close a smaller 
     casino in central Oregon. The federal government now must 
     approve the site. The local congressman, Greg Walden, 
     supports the plan. Meanwhile, across the river in Washington, 
     just north of Portland, the Cowlitz Tribe wants to build a 
     casino with the backing of the Mohegans of Connecticut.


                                 kansas

       Gov. Kathleen Sebelius has an agreement with two tribes--
     the Kickapoo and the Sac and Fox--to build a casino in the 
     Kansas City area. Legislators also have been looking at other 
     proposals for expanding gambling in the state, and there are 
     reports of other plans for Indian casinos in the works. A 
     court ruling on the state's education funding, expected soon, 
     could leave Kansans scrambling to find more money for 
     schools--and gambling could be the most attractive option.


                               minnesota

       Gov. Tim Pawlenty has proposed a casino in Minneapolis-St. 
     Paul and is talking with the White Earth Band of the Chippewa 
     Indians and a non-tribal operator about running it jointly. 
     Gambling is already big business in Minnesota. But Pawlenty 
     is having trouble selling his new casino idea to the 
     legislature. Competing tribes also object to the deal. For 
     now, anyway, his prospects are uncertain.


                                florida

       In March, voters in Broward County, north of Miami, voted 
     to allow slot machines at places with parimutuel betting, 
     such as racetracks. The vote also could be an opening for two 
     tribes--the Seminole and the Miccosukee--to get into Las 
     Vegas-style slots, since the Supreme Court has said tribes 
     are entitled to any kind of gambling allowed in a state. The 
     tribes are pressing for talks with Gov. Jeb Bush. Meanwhile, 
     the state legislature has been fighting over how to regulate 
     and tax machines in Broward.


                               california

       A deal for one tribe to build a huge casino in the Bay Area 
     might fall flat, but Gov. Arnold Schwarzenegger has struck 
     revenue-sharing agreements with 10 tribes since he took 
     office, allowing them to start or expand casinos. He is in 
     talks now with a number of others.


                                illinois

       The Ho-Chunk Nation of Wisconsin wants to open a casino in 
     the Village of Lynwood, on Chicago's south side. The tribe 
     has the backing of the town board as well as officials from 
     some neighboring communities. Local Rep. Jesse L. Jackson Jr. 
     is lobbying for it and says local and state governments could 
     expect a share of the revenue. A congressman from an 
     adjoining district, Jerry Weller, is fighting it.


                                new york

       In 2001, to boost revenue and tourism, the legislature 
     approved six new casinos. One tribe has opened two in western 
     New York and is building a third. Gov. George E. Pataki now 
     wants to let five tribes put casinos in the Catskills. The 
     deal would title tribal land claims. A Supreme Court ruling 
     in a separate New York case has forced him to rework four of 
     the deals, which would have let the tribes buy thousands of 
     acres of land. The court rejected the Oneida Nation's effort 
     to unilaterally declare sovereign authority on newly 
     purchased land and all

[[Page E1476]]

     local taxes and regulations, knowing the tribe has to go 
     through the Bureau of Indian Affairs.


                                  ohio

       A number of mayors state lawmakers and others been 
     discussing ways to bring gambling to Ohio. Some have been 
     negotiating with the Eastern Shawnee of Oklahoma, which 
     claims historic ties to the state. The mayor of one town 
     testified before Congress recently, saying that a tribal 
     casino complex would bring new jobs and money to an area hard 
     hit with the loss of manufacturing jobs. However, Gov. Bob 
     Taft has said he opposes gambling.

                          ____________________