Tribal casinos are threatened with closure

December 26

In Oklahoma, a disagreement involving how certain tribal casino profits are being spent is threatening closure of three different Cheyenne and Arapaho casinos.

The three casinos, the Lucky Star casinos in Clinton and Concho along with Feather Warrior in Watonga, are being examined by the FBI and the National Indian Gaming Commission. Investigations commenced back in April, maybe even earlier.

A letter dated December 10 from gaming commission Chairman Phil Hogen, he says that he found out that tribal leaders weren't acting in accordance with with a compulsory spending plan that was approved on a federal basis. Failure to act in accordance with the plan often causes hefty fines or, even shuts casinos down in certain cases.

In 2003, the 2 Lucky Star casinos alone raked-in approximately $10 million in profits.

Members of the tribes have allowed an allowance plan for gaming money. Back in August, the US Interior Department sanctioned the plan.

The plan states that 30% has to be spent for economic development; 20% in direct yearly payments to registered tribal voters; 16% must be allocated for elder care; 10% each for education, emergency assistance and culture and heritage; and 4% for vehicle maintenance.

It is said that a few of the tribes' eight elected business committee representatives are against the  plan and have elected not to follow it.

The matter is tied up in a tribal court action filed by a former business committee member who helped with the actual writing of the plan. A judge will hear arguments on the lawsuit in February 2005.

The regulatory agency has expressed frustration before with the two tribes. In November 2002 the commission required the tribes to submit records of how they spent their profits from the casinos.