Boren, Cole torn between interests
Boren, Cole torn between interests
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31
By Tony Thornton
Published: February 24, 2008
What's a representative to do when his home state's financial interests conflict with those of an industry that contributed heavily to the congressman's campaigns?
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What are the consequences?
The difference has huge financial ramifications. Tribes give their respective states a cut to offer Class III gambling. Class II requires no such agreement.
In Oklahoma, tribes must pay the state 4 to 6 percent of their machine revenue from Class III games. The state is on track to make $62 million this year from those machines. That money is earmarked for education.
The Chickasaw, Cherokee and Choctaw tribes are by far the leaders in Oklahoma's gambling industry. All three pay the state, on average, more than $1 million a month in compact fees.
However, the state still has an estimated 25,000 Class II machines — far more than any other state.
The tribal gambling industry has spent untold millions of dollars since 2003 to kill federal regulators' effort at clarifying the difference between the two types.
Most experts say the proposed rules would force Oklahoma tribes to use compacted games exclusively, resulting in millions more per year for education.
Boren said he's not convinced that would happen.
Gambling interests give to campaigns
Both Boren and Cole rank near the top in gambling-related campaign contributions among House members for 2006 and 2008, according to opensecrets.org, a Web site run by the Center for Responsive Politics.
For the 2008 cycle, Cole has received $38,600 and Boren $33,700 from the gambling industry (including tribes), ranking them sixth and eighth among all House members, according to opensecrets.org.
For 2006, Cole received $70,307 and Boren $42,375, ranking them 11th and 17th.
Fallin has received $14,750 from gambling interests for the 2008 campaign and $16,600 in 2006.
Cole said his opposition to the proposed Class II rules should be no surprise, since he's a Chickasaw Nation member and because Oklahoma has the nation's largest percentage of American Indians.
"The belief by some that there is a difference between the interests of the tribes and the schoolchildren of Oklahoma is, in my opinion, a false and misleading dichotomy,” Cole said after the hearing.
"To suggest that it is appropriate to cripple an industry that provides millions of dollars for education, health care, housing, senior citizen centers, wellness centers and a myriad other social services in order to increase money for the state is essentially robbing Peter to pay Paul. It makes no sense.”
He said the Class II changes would cause massive lost revenue, significant job losses and possible casino closures.
"Clearly the adoption of the regulations in question is bad for the tribes, the school children of our state and the economy of rural Oklahoma. I will do everything I can to see that they are not adopted or implemented as written,” Cole said.
Boren also said the proposed regulations would cripple tribes, which are his district's largest employer.
"After review of the testimony by the panelists, it is clear to me the NIGC (National Indian Gaming Commission) proposed these regulations without forethought for the economic impact on rural Oklahoma or in-depth consultation of the affected parties,” Boren said Friday.
"The state of Oklahoma, the tribes of Oklahoma and local communities have long been partners for the continued prosperity in our state,” he said.
Fallin said she generally opposes gambling in Oklahoma.
"However, I am curious about the motivation behind the proposed change which, by some estimates, could render nearly one half of Oklahoma's games obsolete. It appears we are trying to change the rules in the middle of the game,” Fallin said.
Where does state stand?
Governors of two Indian gaming states, South Dakota and Washington, recently urged regulators to pass the new rules.
Oklahoma Gov. Brad Henry hasn't filed an official comment with federal regulators. His com-munications director, Paul Sund, said Henry hasn't reviewed the proposed regulations.
"However, he believes that greater clarity in the definition of and distinction between Class II and Class III games benefits everyone and reduces the potential for confusion and the possibility of protracted, expensive litigation.
"While the governor supports rules that will result in greater revenues for public education, he believes the regulators should listen carefully to the concerns of all interested parties,” Sund said.
State Treasurer Scott Meacham, the state's main negotiator of the tribal gaming compacts, also said he supports greater clarity between Class II and Class III games.
"Obviously if there are more games that would fall under our compact, then the state would receive more revenue for education,” Meacham said.
Related Topics:
U.S. State Government, U.S. Government, Special Interest Groups, Gambling, Native American Issues
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and for your information i do work for a tribe, I work in their nutrition Department. so, please, dont bother touting your mouth off if you dont know what your talking about
No one wants to talk about the BIG WHITE ELEPHANT in the room. Its the Class II gaming vendors! They currently under Class II gaming regulations receive from the tribes 20 to 30% of the tribes profits. The gaming vendors are the ones who are behind this mess and you can follow their contributions to the front door steps of Cole and Boren.
If a tribe compacts with Oklahoma the class II vendors gets NOTHING, because he no longer can lease out the slot machines to tribes...under the class III compact, the tribes have to purchase their own slot machines.....all this mess is to protect the hundreds of millions of dollars that class II vendors receive from the tribes....and both Boren and Cole have sold not only the citizens of Oklahoma down the drain but the members of tribes who have no control over their bought and paid for leaders.
The abc of it;
Class II, 20 to 30% of profits goes to gaming vendors (slot machines companies)
Class III, 6% to the state of Oklahoma, no venders involved, the tribes actually make more money.
Do the math folks...
I agree. Not to mention all the Federal dollars sent to this school because of the high NA enrollemnt. You shouldn't need to look very far for the source of misapporpriation of funds. All schools recive enough to operate if the money is used properly. It may not be the first class education the kids deserve, but enough to function. Unfortunately the fox is watching the hen house.
Now for all those who want to get into the namecalling and snakehandling part of it, here it comes: why is Tom Cole's position not considered a "conflict of interest," and why should Tom Cole not be asked to excuse himself from voting on this issue?
And thanks, Jason, for the vote of confidence. I have never wanted to be associated with those people who have "business sense." I may frame your comment just to show it to my "scumbag, babbling idiot, crack addict" buddies at the reformatory. But you shouldn't lie about C. The minister of your church doesn't think.