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THURSDAY, MAY 30, 2002

"Indian tribes with casinos argue that gambling is the yellow brick road to Native American economic development. The jury is still out on that and not everyone in Indian country is so sanguine. But one thing is undisputed: The political clout of casino tribes is sharply on the rise, and it is beginning to purchase favors that affect other Americans.

This new power was on vivid display recently in California, where the Board of Equalization reversed established regulations and voted 5-0 to create a big new sales-tax exemption for Indian reservations. The ruling evolved from a lawsuit brought by the casino-owning Agua Caliente tribe against the state. Rather than appeal a federal judge's ruling that most beverages and prepared food sold on the reservation should be exempt from sales tax, the board astonishingly folded its hand.

The ruling creates a loophole big enough to drive truckloads of retail goods through. . ."

Get the Story:
Review & Outlook: Casino Royale Politics (The Wall Street Journal 5/30)

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