Howard Dickstein is a tribal lawyer who fought major casino expansions that voters approved for four Southern California tribes. He is sounding an alarm over prospects of an initiative to overturn a state Supreme Court ruling by restoring state lottery Keno games.
The Bee talked with him about gambling in California.
Gov. Schwarzenegger's office is now adamant it doesn't support overturning the ban on Keno games for the lottery despite the fact the suggestion was made in a draft of the governor's lottery plan. Do you take him at his word, and does a revamped lottery pose concerns for Indian casinos?
The governor's first draft of this initiative expressly says … it would allow Keno. I think it's disingenuous for the administration to say that its proposals are not a wholesale expansion of the California state lottery. It's a deceptive initiative that … uses terms like "modernization" that really hide the ball from voters.
Two major casino tribes, Viejas and Pechanga, recently announced layoffs amid a weakening economy. Is this the canary in the casino – proof that tribal gambling is vulnerable to economic downturns and its growth and financial contributions to the state treasury are far from assured?
I think the timing turned out to be very bad for a few tribes because they entered into compacts that required them to increase their revenue shares with the state dramatically, and when they did so – when negotiations occurred – it was based on certain economic conditions. … But these are temporary dislocations. … It's certainly nothing like the credit markets. You're not going to see casinos going under. You're going to see casinos tightening their belts, operating as efficiently as they can and with reduced profits. But certainly no casinos are losing money.
Is there a role for casino tribes to play in helping the horse-racing industry in this state, and should they play it?
I don't think that tribes have any obligation to help an industry that has indicated it wants to compete and take away market share. On the other hand, I think tribes have indicated as a business matter and a political matter that they're willing to work with racetracks in … cross-marketing efforts. But I think racing's problems are independent of what tribes do or don't do.
We are six months removed from a $150 million ballot fight that pitted some of the state's wealthiest tribes against one another over 17,000 new slots voters approved for four Southern California tribes. What is the enduring impact on inter-tribal relations and gambling politics in California?
I don't think it will have a huge, enduring impact. Tribes, like any political entities or governments, from time to time don't see eye to eye. … Tribes on both sides of that issue are now working together on the governor's lottery proposal, which they are united against – just as they are united against expansion of slot machines and gambling for nonprofits and urban areas.
Call Peter Hecht, Bee Capitol Bureau, (916) 326-5539.
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