Gambling compacts with New Mexico tribes pass final hurdle

ALBUQUERQUE, N.M. (AP) – Gambling compacts that allow a handful of American Indian tribes to operate their casinos for another two decades received final approval following a review by the U.S. Interior Department.

It was the last hurdle for the deals, which stemmed from years of negotiations between New Mexico Gov. Susana Martinez's office and tribal leaders.

Officials faced a hard deadline to get the compacts through the New Mexico Legislature and to the Interior Department because current agreements with the Navajo Nation, the Jicarilla and Mescalero Apache tribes, and the Acoma Pueblo expire at the end of June.

They would have been forced to close their casinos without new deals.

The Interior Department took no action after reviewing the compacts, but federal law says they are considered approved if they are consistent with the Indian Gaming Regulatory Act.

Interior Assistant Secretary Kevin Washburn spelled out some concerns in a letter sent Tuesday to Martinez and tribal leaders. He pointed to an apparent increase in revenue-sharing rates for some tribes.

“Our analysis leads us to conclude that it is a close question whether the 2015 Compacts provide a substantial economic benefit to these tribes,” he wrote.

However, Washburn acknowledged that the tribes were united in saying they would benefit under the new terms.

The Legislature approved the compacts in March, and Martinez signed them a few weeks later. The Interior Department began its review in late April.

Navajo Nation Council Speaker LoRenzo Bates said tribal officials devoted countless hours to the negotiations in hopes of preserving hundreds of jobs.

“We are pleased with the outcome,” Bates said in a statement.

Martinez's office spent the past three years working with tribes to craft a compact that would bring stability to New Mexico's gambling industry, protect jobs and increase revenue to the state.

The deals allow tribal casinos to stay open around the clock, extend credit to certain high-rolling patrons and offer a limited amount of complimentary food and lodging.

Alcohol sales still are prohibited in areas with gambling machines or tables, and tribes have to submit monthly and quarterly reports to state regulators. Tribes also have to provide more information to players about resources to treat problem gambling.

Nine other tribes operate under different compacts, which were approved in 2007 and won't expire until 2037.

Tribes that operate casinos in New Mexico reported more than $731 million in net winnings last year. Net winnings are the amount wagered on gambling machines, minus the prizes won on those machines and regulatory fees.

State officials say the tribes paid New Mexico more than $66 million last year under revenue-sharing agreements. Those call for the state to ensure gambling exclusivity in exchange for a percentage of net winnings.

Revenue sharing under the new compacts is expected to top an estimated $77 million in 2019, officials have said.

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