Clock ticking on proposed New Mexico gambling compact

ALBUQUERQUE, N.M. (AP) – Casinos run by some American Indian tribes in New Mexico would get to stay open around the clock and offer complimentary food and lodging under a revamped gambling compact negotiated by Gov. Susana Martinez’s office and the tribes.

A special committee of lawmakers met Tuesday to discuss the latest version, which would also clear the way for the casinos to extend credit to some high-rolling patrons.

The Legislature is under pressure to act this session because the current compact with the Navajo Nation and some other tribes expires in June. If the tribes want to legally operate casinos, a new compact has to be approved by both the Legislature and the U.S. Interior Department.

The proposed gambling agreement is the result of three years of negotiations with the Navajos, the Mescalero and Jicarilla Apache tribes, and the pueblos of Jemez and Acoma.

Jessica Hernandez, Martinez’s deputy chief of staff and lead negotiator, told lawmakers the compact is more socially responsible and would provide stability for New Mexico’s gambling market for another two decades. Revenues to the state would increase in exchange for it ensuring gaming exclusivity for the tribes, she said.

“It’s a very carefully negotiated agreement that balances a lot of different interests,” Hernandez said.

A similar effort to update the Navajos’ compact failed during the 2014 legislative session, but the dynamics during this session are different because the clock is ticking and more tribes are involved.

“There’s so much more at stake,” said Dion Killsback, general counsel for the Jicarilla Apache. “If this doesn’t happen, it’s going to put the tribes in a real bind, with hundreds of jobs at stake for Jicarilla and thousands of jobs statewide with the other tribes.”

Nine other New Mexico tribes operate under different compacts with the state. Those agreements were approved in 2007 and won’t expire until 2037.

Under the proposal, those tribes would have the option to sign on to the new agreement, which in some cases would offer more favorable terms when it comes to sharing revenue with the state.

Under the formula outlined in the proposal, revenue sharing would range from 8.5 percent to 10.75 percent depending on the amount of net winnings and the number of years the compact has been in place.

Because Navajo casinos bring in around $80 million a year in net winnings, that tribe’s sharing rate is expected to go up from the current 8 percent to 9 percent for the first three years. It would increase to 10 percent in 2018 and 10.75 percent in 2030.

The proposed compact also calls for tribes to submit monthly and quarterly reports to state regulators, and tribes would have to provide more information to players about resources to treat problem gambling.

Some lawmakers raised concerns about extending credit to high rollers and allowing tribes to keep their casinos open 24 hours a day. Others questioned the effects on state horse tracks and nontribal casinos.

The compact committee plans to hold another meeting Saturday to take public comment. Committee Chair Sen. Clemente Sanchez, D-Grants, said the goal is to forward a recommendation to the Legislature well before adjournment on March 21.