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New Mexico Tribes Oppose Proposed Gambling Expansion
By Jeff Osienya Oct 21, 2020 LegalityExecutives of commercial racinos in New Mexico tabled new legislation for the launch of full-blown gambling, but the tribes are hotly opposing the proposal as they want to maintain their exclusivity rights and revenue sharing plans with the state.Towards the end of September, a new gaming expansion legislation was proposed by commercial racetracks and casinos in New Mexico. Currently, each of the five commercial racetrack casinos in the state is restricted to have a maximum of 600 slot machines, and operations on the gaming floors are limited to only 18 hours of operations per day or a total of 122 hours per week.
Now, under this draft legislation that was tabled last month, racetracks in the Land of Enchantment would be allowed to add table games, unlimited video slot machine cabinets, and accept in-person sports wagers. On top of that, the commercial racetracks popularly referred to as racinos would also be permitted to introduce internet gaming and even have a gaming floor that operates round the clock – 24 hours a day.
Based on the proposed plan for gaming expansion, casino floors would also be permitted to have ATMs and alcoholic beverages will be allowed on the menu. Additionally, the racinos could have the mandate to set up credit lines for their patrons, and qualifying players may even receive complimentary golf rounds, meal tickets, and hotel rooms.
Tribal Operators Take Issue with the Proposed Legislation
On Monday, 19th of October, tribal leaders in New Mexico came forward to testify their concerns about the proposed expansion by the commercial racetracks and casinos during a legislative hearing in Santa Fe. According to the Native American leaders, the draft legislation which aims to open the state to Sin City-style gaming would lead to a market shift that will violate the revenue-sharing compacts that the tribes presently have with the state.
Right now, the Native American tribes in the Land of Enchantment enjoy exclusivity rights in compacts that they signed with the state back in 2015. Per these compacts, the tribes share 2-10.5% of their revenue from the 21 casinos they operate in the state, in exchange for regional exclusivity. On average, the 21 tribal casinos in New Mexico contribute $70-80 million annually to the state’s tax coffers.
Gov. Stuart Paisano of the Sandia Pueblo Native American tribe expressed his opposition to this draft legislation in a statement to one of the local dailies saying;
Quote“This proposed legislation presents not only a renewed challenge to our economic security, but a reckless attempt to expand private wealth at the expense of our ability to provide essential government services,”
Up to Over $75 Million More in Taxes Could be Generated from the Expansion
On the other hand, track executives project that this expansion would enhance tourism in New Mexico, and guarantee that the state’s racing industry will survive and thrive. Moreover, given that the proposed legislation plans to scrap the revenue-sharing agreements with the state, track executives also argue that the Native American tribes will also benefit from the expansion as they will no longer be required to share their revenue with the state – meaning that they will have more funds to invest in their tribal programs.
Following a Union Gaming Analytics study that was published in 2019, the Land of Enchantment has the potential to collect $62 million more in tax revenue from the commercial racetracks and casinos should the gambling expansion be allowed. Better yet, the figure could even hit over $75 million if online gaming is included, at least according to Ethan Linder, the Marketing Director for Sunland Park Racetrack and Casino.
As is the case across many other states in the USA, the Native American tribes have always been adamant about negotiating with the states to let go of their exclusivity and give room for fully-fledged commercial gambling. While there have been some exceptions over the years, most tribes cling to their hard-earned compacts with the states to maintain complete control over gaming.
But then in the face of the Coronavirus pandemic which has battered state economies, gaming expansion is one of the best solutions to heal the economies. Even though some New Mexico lawmakers are already favoring the plan, it will take more consideration to fully understand the impact of the changes to both the state and the tribes.
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