Indian Reservations Seek Federal Bailouts To Offset Casino Losses

While the political slant is inaccurate, a unique perspective is offered. Maybe someday, the author will conduct some research.

Indian Reservations Seek Federal Bailouts To Offset Casino Losses

By Rat on March 27, 2013

 

Foxwoods Resort Casino on the Mashantucket Pequo Indian Reservation

From the Have Your Cake And Eat It Too department: The Mashantucket Pequot tribe, who owns the Foxwoods Resort Casino in Connecticut, is among federally recognized tribes that, although considered “sovereign nations,” are seeking increased revenues through direct grants from the U.S. government.

What? How can sovereign nations seek federal bailouts? Maybe they should request foreign aid. Oh – wait – knowing O, he’d probably send them F-16s, too. Never mind.

According to the Associated Press, the once billion-dollar Pequot casino empire has, in the past, distributed stipends of more than $100,000 annually to all adult tribe members. Now, however, the Pequots have joined other gaming tribes, including nearby rival casino Mohegan Sun, in the pursuit of more federal aid. Federal aid in the form of outright grants, mind you, which never have to be repaid.

Needless to say, the troubling pattern is getting the attention of those who opposed the law that allowed Indian tribes to develop casinos in the first place, since the law was ostensibly promoted as one that would assist Indian tribes in becoming financially self-reliant. (Imagine that: the government hands out billions of dollars in free aid – and is then surprised when those who received it fail to achieve financial independence.)

In 1988, Congress passed the Indian Gaming Regulatory Act (IGRA) which authorized casino gambling on Indian reservations and provided a regulatory and oversight framework for the industry in the form of the National Indian Gaming Commission (NIGC). The purpose of the law was to allow a means for tribes to develop their own economies.

‘‘The whole purpose of the 1988 law which authorized Indian casinos was to help federally-recognized tribes raise money to run their governments by building casinos on their reservations,’’ said Robert Steele, a former Connecticut Congressman. ‘‘I would argue strongly that federal money was meant for struggling tribes. Certainly the Mashantucket Pequots and the Mohegans couldn’t under any circumstances be put in that category.’’

Ah, the law of unintended consequences bites the government in the ass yet again.

Mashantucket Pequot Tribal Nation spokesman Bill Satti said that his tribe “is proud of the work we do with the use of federal funds when it comes to assisting the region and fellow Native Americans.”

Doing his best O impersonation, Satti added that the federal funds have been used to support the tribe’s medical clinic and to repair roadways. (Along with the $100,000 “stipends,” of course.)

Thomas Weissmuller, who served as chief judge of the Pequot Tribal Court until 2011, said that the tribal council had distributed too much money to its members. Pequot tribal chairman, Rodney Butler, encouraged him to apply for more federal grants. Weissmuller hesitated to do so, fearing that such a move would affect the tribe’s sovereignty; he was concerned about pursuing federal monies since most of the issues the tribe was dealing with were related to the casino, which is a commercial enterprise.

“A billion-dollar gaming enterprise should fully fund the tribal government,” said Weissmuller, who also said he was ultimately forced out of his job by tribal leaders who charged that he did not have the best interests of the tribe at heart. (Hmm, that sounds a whole lot like O’s “the best interests of the American people” canard, doesn’t it?)

And so it goes: The government gives away free money. The recipients (takers) make irresponsible financial decisions with money they didn’t earn. The takers expect the government to bail them out. It does. Again and again. When does the downward spiral end? More importantly, where is it leading us?

O’s America.
 

 

http://mikesright.wordpress.com/2013/03/27/indian-reservations-seek-federal-bailouts-to-offset-casino-losses/