The New Mexico House of Representatives voted in favor of the proposal for a new gambling agreement between the state and five Indian tribes to be signed, as the current one is about to expire in June. Thus, they will be able to keep on operating their casinos.
The new compact is the outcome of three-year negotiations between Gov. Susana Martinez and the Acoma Pueblo, the Mescalero Apache Tribe, the Navajo Nation, the Jicarilla Apache Nation, and Jemez Pueblo.
Furthermore, the casinos managed by the aforementioned tribes will be allowed to operate 24/7 and to offer their customers food and accommodation options. In addition to this, high-roller players will receive certain privileges, such as extended credits.
Now, as the gambling compact has been given the nod by the state Legislature, it needs one final approval from the U.S. Department of the Interior.
Several tribal officials attended Thursday’s hearing, as well. Ben Shelly, President of the Navajo Nation, shared that if the Senate had not backed the agreement, his tribe would have faced quite serious consequences, as it had spent more than $200 million on the construction and improvement of its gambling venues.
Dion Killsback, General Counsel for the Jicarilla Apache Nation, commented that his tribe is content with the Senate’s vote and is now looking forward to the Interior Department’s decision.
Jessica Hernandez, lead negotiator and deputy chief of stuff for Gov. Martinez’s administration, pointed out that the compact will certainly provide the state’s gambling industry with the stability it needs for two more decades.
Sen. Clemente Sanchez, chairman of the committee, which is in charge of the state’s compacts matters, explained that the new agreement is expected to result in an increase in revenue generated from gambling activities.
Last year, the total amount of $731 million was generated out of gambling activities at New Mexico’s tribal casinos. And officials reported that under the current compact, $66 million were contributed to the state coffers, so as for tribes to be allowed to keep their gambling venues open.
Under the new agreement, the revenue sharing might reach $77 million by 2019. According to legislators, $10 million more might be generated in 2016 alone.
The new compact suggests that the tribes will have to share between 8.5% and 10.75% of their revenues. The exact percentage depends on their net winnings (the amount of money bet on gambling machines, minus certain fees and the prizes won by customers), as well as for how long the agreement has been in place.
Nine more tribes manage gambling venues under other compacts. Those were signed back in 2007 and will expire in 2037. The tribes will be given the opportunity to either keep their current agreements or to sign the one that was approved yesterday.
