Tribal Leaders: Casino Deal Is on the Table

The state and three northern Minnesota Indian tribes are ironing out a deal for a metro-area casino that would be operated through the Minnesota State Lottery, according to tribal leaders and an official from Gov. Tim Pawlenty's office.

An announcement on the deal could come as early as next week, they said.

Ron Valiant, executive director of the White Earth Band, said that the tribes and the governor's office "are getting very close to final agreement. We're down to figuring out the final details."

Pawlenty's chief of staff, Dan McElroy, said: "Yes, we're close. We're down to details and language."

Pawlenty has been trying to get Indian-owned casinos to share a portion of their revenues with the state. He failed in attempts to force tribes with the most profitable casinos to pay the state. So he turned to the Red Lake, White Earth and Leech Lake tribes, whose casinos in the north are isolated and less lucrative.

Valiant and George Goggleye, chairman of the Leech Lake Band of Ojibwe, said the deal will require legislative approval, even though Pawlenty had previously thought that a casino run through the State Lottery could bypass the Legislature.

Goggleye said, "We're looking at a gaming floor of no less than 4,000 (slot) machines, a hotel complex, entertainment and several food venues. We are planning on all the amenities that give casinos the ability to compete in the market."

Valiant said the tribes could put up a temporary structure within six months of receiving legislative approval and use any proceeds to finance construction of a permanent complex. The permanent structure probably would open within two years, he said.

Valiant said the tribes probably would hire a professional company to manage the casino, with tribal members sitting as a board of directors.

In addition to slots, he said the casino probably would feature poker, blackjack and possibly roulette and keno "if they would bring in some real money."

Pawlenty has said the issue is one of "fairness" because Minnesota is one of the few states whose tribes do not make revenue payments.

He also noted that Red Lake, White Earth and Leech Lake make up 85 percent of the state's Indian population, but remain among the state's poorest tribes.

Goggleye said the shared profits from a metro casino could do wonders for the Leech Lake band. "This would be huge," he said. "Just for Leech Lake alone, if we could pump another $20 to $30 million a year, it would allow us to do so much more."

Goggleye said his band would put the money toward road repair, improved water quality, affordable housing, a health care facility, extended care for seniors and better schools.

"Education is huge for us," he said. "We want our children to become doctors, lawyers, leaders. This money would help."

The proposal is not site-specific.

Valiant said Burnsville and Albertville have come up as possible locations, but "we're leaving it open right now."

The Mall of America "keeps getting brought up," he said. "It would be perfect, but we don't want to go where we're not wanted."

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