The Mashpee Wampanoag Tribe and Gov. Deval Patrick (D) finalized a new Class III gaming compact that includes a high revenue-sharing rate. The agreement requires the tribe to share 21 percent of gaming revenues. In exchange, the state promises exclusivity throughout the entire state, a concession that won't last for long since two non-Indian casinos have been authorized in other regions. The rate will be reduced to 17 percent once another casino opens in the state. That still appears to be the highest rate of any compact in the nation. The rate will drop another 2 percent if a slot machine parlor opens in southeastern Massachusetts. Assuming a 15 percent rate, that's the same as one found in a compact for a California tribe that was rejected by the Obama administration in 2011. In one of his first actions as the new leader of the Bureau of Indian Affairs, Assistant Secretary Kevin Washburn rejected the first compact that the Mashpees and Patrick signed. At the time, he said the 21.5 percent revenue sharing rate violated the provisions of the Indian Gaming Regulatory Act. IGRA doesn't specifically allow or disallow revenue sharing so the BIA, over the years, has looked at whether a state has offered a "meaningful concession" in exchange for a share of a tribe's earnings. In the case of Massachusetts, Washburn said the state's first offer was only worth 6.5 percent of the tribe's revenues. Despite the potential problems, the tribe was confident that the new deal will be approved by the BIA. The agency provided assistance to the parties while the compact was being negotiated. “I would like to thank Governor Patrick for his strong and steadfast partnership in working with us to reach an agreement that we believe will be approved by the federal government,” Chairman Cedric Cromwell said in a press release. “Our project has continued to move at a very brisk pace during these negotiations. We look forward to breaking ground in the next year on a development that will bring thousands of jobs and significant economic benefits to our tribe, the people of Taunton and the entire southeastern Massachusetts region." "We are pleased to see this next step in expanded gaming take place and I urge the legislature to ratify the agreement quickly,” added Patrick. “A gaming facility will bring needed jobs and economic opportunity to the region. I look forward to our continued partnership with the tribe as we go forward.” The BIA has promised to make a decision sometime this spring on the tribe's land-into-trust application for the casino site in the city of Taunton. Get the Story:
Mashpee tribe, state reach deal (The Cape Cod Times 3/20)
Wampanoags, state, agree on new compact (State House News Service 3/20)
Mashpee tribe, Mass. agree on new terms for casino (The Boston Globe 3/20)
Mashpee tribe, Governor Patrick reach new casino deal (The Boston Globe 3/19)
World's largest casino operators interested in opening southern Mass. casino (The Cape Cod Times 3/19) An Opinion:
Our View: It's time to open Region C to commercial casino developers (The New Bedford Standard-Times 3/20)
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