Warfare in California; Turnover at SLS

Fear of spreading off-reservation gambling are fueling opposition to Proposition 48, which would ratify a casino compact in the greater Fresno area. The North Fork FeinsteinRancheria Band of Mono Indians, supported by Station Casinos, would be permitted to open a $350 million casino in Madera, 38 miles from its tribal land near Yosemite and close to Highway 99. In an unusual provision, the Wiyot Tribe — which lives near a national wildlife refuge — would forego the prerogative of building a casino, in return for a cut of the Mono Indians’ gaming revenue.

Speaking of which, the Mono, Station and California Democrats have been heavily outspent, with $400,000 going to the “yes” campaign, compared to $14 million spent in opposition. The “no” forces can count Sen. Dianne Feinstein (D) and two county boards of supervisors among their allies, along with various newspaper editorial boards. Table Mountain Rancheria and Chukchansi Gold Casino, which could lose business to the North Fork Rancheria, have been particularly vocal in their opposition, with Table Mountain ponying up $10 million.

The opposition (which mainly consisted of rival tribes, like Pechanga Resort & Casino) is raising the bugaboo about “reservation shopping,” arguing that tribal casinos could start popping up in major California cities. The administration of Gov. BrownJerry Brown (D, right) argues otherwise, citing a laundry list of “exceptional circumstances” that — they say — makes this a one-off. These include a provision whereby the Mono Indians pay into a fund that redistributes gaming revenue among non-gaming and small-casino tribes.

“It bothers me a bit to think that you’re changing the provisions that the voters approved,” said Dave Toler, a member of the tribal council of the San Pasqual Band of Mission Indians, with reference to Proposition 1A, which legalized tribal gambling 14 years ago. One example of the potential snowball effect is the Los Coyotes Band of Cahuilla & Cupeño Indians, which lives in a remote area of the state but wants to open a casino in well-traveled Barstow … 150 miles off-reservation. (MotorCity Casino affiliate BarWest Gaming is allied with the tribe.) Although rebuffed once by the Interior Department, the Cahuilla & Cupeño Indians are trying again, with the support of the City of Barstow.

Dismissing the reservation-shopping argument as “ludicrous,” Brownstein Hyatt Farber Schreck attorney Jennifer Carleton notes that only six tribes have been able to have land taken into trust in the past 25 years, adding “In 2014, it’s become extremely difficult to acquire land into trust without the historical tie.” Regardless of the outcome of the referendum, both sides intend to litigate the results of the vote.

* Station was also in the headlines this week for its philanthropy. With Nevada near the very bottom of the U.S. in per-pupil school spending, the company is chipping in $5,000 apiece to the 10 neediest elementary schools in Clark County. The money palacestation-picisn’t strictly for academic purposes: Rex Bell Elementary School, hard by Palace Station, received $2,500 to buy student uniforms. “The school district wanted to focus on elementary schools. That’s where the biggest impact can be made inside the classroom,” said company spokeswoman Lori Nelson. Station also made a big back-to-school supply drive and encourages volunteerism between employees and students. Station is to be applauded for keeping up the good work, particularly in a cautious economy. High-end developments like newly opened Downtown Summerlin are seeing heavy foot traffic, but it’s not trickling down to the middle- and low-income segments. The rapid proliferation of thrift stores testifies to our conversion to a savings-driven economy.

Oseland* Perhaps former SLS Las Vegas President Rob Oseland (right) prefers developing properties to running them. In any event, he has jumped ship from SLS to James Packer‘s and Andrew Pascal‘s casino project on the site of the New Frontier. The move reunites Wynn Resorts veterans Oseland and Pascal. All indications are of a smooth and orderly transition at SLS — with Oseland staying on through year’s end — as it brings in Scott Kreeger, late of … Revel, where he was briefly COO. Prior to Revel, Kreeger presided over the financially underwhelming debut of Red Rock Resort. If nothing else, Kreeger has by now surely become an expert on what not to do when rolling out a new resort.

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