This article starts off as if it will talk about poker in bars across NC, but quickly becomes a rehash of earlier articles about plans for poker at the Cherokee casino. It does go into a bit more detail on the tribe's political activities, which I find interesting.
Story is available on the web at http://www.citizen-times.com/cache/article/news/73603.shtml
From the Ashville (NC) Citizen Times:
"It's nothing we're trying to hide. We're continuing to look at various options to allow us to diversify, especially in consideration to the job creation and unemployment rates we are addressing (through the casino) in Western North Carolina."
But state and federal laws regulating gambling conflict with each other. North Carolina allows poker, including in its video form, as long as there are no cash payoffs.
Cherokee casino officials said they would not take a cut of the poker profits.
"Basically, the house (casino) would get a fee and the players would play amongst themselves," Hicks said. "It's not a heavy moneymaker for the tribe. It gives clientele who don't have that option here in Western North Carolina a chance to play."
This is a major distinction in federal gambling laws. Poker is considered a nonbanked game, which means participants play against themselves for winnings. Blackjack, which is illegal in North Carolina, is a banked game. It means the house, in this case the casino, would be taking part in the wins and losses.
Banked games require state and federal approval. The legislature must pass a law to permit it in the state. The governor could also expand the Cherokee's contract witE"We're considering poker at this point," said Principal Chief Michell Hicks.
"It's nothing we're trying to hide. We're continuing to look at various options to allow us to diversify, especially in consideration to the job creation and unemployment rates we are addressing (through the casino) in Western North Carolina."
But state and federal laws regulating gambling conflict with each other. North Carolina allows poker, including in its video form, as long as there are no cash payoffs.
Cherokee casino officials said they would not take a cut of the poker profits.
"Basically, the house (casino) would get a fee and the players would play amongst themselves," Hicks said. "It's not a heavy moneymaker for the tribe. It gives clientele who don't have that option here in Western North Carolina a chance to play."
This is a major distinction in federal gambling laws. Poker is considered a nonbanked game, which means participants play against themselves for winnings. Blackjack, which is illegal in North Carolina, is a banked game. It means the house, in this case the casino, would be taking part in the wins and losses.
Banked games require state and federal approval. The legislature must pass a law to permit it in the state. The governor could also expand the Cherokee's contract with the state to allow the gaming. Once the state approves it, the U.S. Secretary of Interior must give the nod and the chairman of the National Indian Gaming must grant a gaming ordinance.
A Durham lawsuit is also challenging whether poker is a game of skill or chance. Games requiring skill are legal in the state while games of chance are not. That means that if the courts find that poker is a game of chance, poker could be illegal in North Carolina. But that's all a part of the chance one takes when playing poker, says Gentz.
Can't buy me influence
The casino earns "well over" $100 million a year, according to Hicks, and the tribe is using some of that money to bolster its political clout.
The Cherokee donated at least $1 million in the past four years to state and federal candidates and political parties and committees. That puts the tribe on par with the state's major corporate donors, according to an analysis by Democracy North Carolina, a campaign finance watchdog.
Contribution totals since 2001 include: $185,000 to the N.C. Democratic Party; $15,000, N.C. Republican Party; $8,000, Gov. Mike Easley; $5,000, House Speaker Jim Black; $50,000, National Republican Congressional Committee; $40,000 to the National Republican Senatorial Committee; and $25,000 to the Republican National State Elections Committee.
The tribe gave a total of $70,500 during the 2002 election cycle to 65 members of the N.C. General Assembly and one challenger, current N.C. Rep. Ray Rapp, D-Madison.
"They are a growing presence in North Carolina politics," said Bob Hall, research director of Democracy North Carolina. "They are being courted and are courting politicians because they are after changes in the law and politicians are looking to them for money. The gaming industry is a cash cow, and others want to tap into it."
Last year, the tribe hired Alexander "Sandy" Sands, a top- ranked Raleigh lobbyist who has represented corporate heavy hitters such as Kraft Foods and Phillip Morris, to push the tribe's case for changes.
"This (the casino) is the largest employer west of (Interstate) 77," Sands said. "They employ almost double the number of people Dell says they'll bring. They've been able (with casino profits) to build a school system, wellness programs, transportation and a system to take care of the elderly.
"People think it's just table gaming. But there's a bigger story to be told."
Hicks said conversations with the state to get table gaming have been "very candid." But Cari Boyce, a spokesman for Gov. Mike Easley, said the tribe has not made an official request for Las Vegas-style gaming.
The tribe also faces significant opposition from social conservatives like the Family Policy Council of N.C., who also oppose a statewide lottery, video poker and "casino night" fund-raisers given by nonprofits.
"The great concern we have is the rise in popularity of seven-card poker and Texas Hold `Em is the fact that people seem to be drawn to it significantly," said John Rustin, the council's director of government relations.
"Certainly, there have been economic gains the tribe has experienced in the region because of the casino," Rustin said. "But inevitably, individuals and families have been torn apart because of a gambling addiction. The expansion of gambling would facilitate and exacerbate that problem." Betting on the lottery
Another issue still brewing in Raleigh could affect the Cherokee casino. With the state facing this year a $1 billion shortfall and another $1.2 billion in anticipated needs, talks of a lottery are again heating up in the General Assembly.
Tribe members support the idea of state a lottery, claiming that lotteries in neighboring states sometimes drive would-be casino traffic there instead of keeping the money in North Carolina.
The state Senate is poised to pass legislation calling for a referendum on a statewide lottery. But it's unsure whether the state House will have the 61 votes needed to pass the measure.
"It's not just good for us, but for Western North Carolina," said Teresa McCoy, a former representative on the tribe council. "When the casino came here, it brought people to the area in months when no one was coming. Those people had to eat and stay in a hotel. I know the spin-off economy from the casino has helped the region."
If the state gets a lottery, it doesn't mean that Las Vegas-style gaming or poker will come to the Cherokee casino, said John Hood, president of the John Locke Foundation, a public policy think tank in Raleigh.
"A potential impact of the lottery would be to compete with the casino at Cherokee," Hood said. "That might well leave the Cherokee to seek additional kinds of gaming (like poker) to stay competitive. That also means that legislators voting for a lottery may feel an incentive to say no to the casino."
Contact Bolton at (919) 821-4749 or KBolton@CITIZEN- TIMES.com.
Harrah's at a glance
Harrah's Cherokee Casino opened in 1997, creating 3,000 jobs for the main gaming operation.
The casino is the largest employer in North Carolina west of Asheville.
The Eastern Band of Cherokee oversees the general operation of the tribe and the money made inside the casino. The government also controls money enrolled members get from the casino. The payouts, called per capita payments, reached $6,000 for each member in 2002. The tribe has a trust fund for members younger than age 18 and has more than 13,000 enrolled members.
Tower One of Cherokee Casino Hotel opened in 2002, creating 100 jobs. Tower Two is expected to open this year. Another 100 jobs will be created.
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