Why? Casino revenues kept quiet by tribes

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Photographer: KNXV
Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Posted: 05/22/2011

PHOENIX - It's a game of chance, but for the state of Arizona, gambling is a guaranteed payout -- just with a bit of a secret.

Each time you lose a bet at a casino, a portion of that money goes back to the state. But you’re not allowed to know which casino is giving back the most.

Arizona's 22 casinos divvy up the return in two ways:

The largest chunk goes into a fund that helps pay for things like education, emergency services and wildlife conservation. Last fiscal year, that totaled $77 million.

There’s also a smaller, second portion, totaling $11 million that went to cities, towns and community organizations.

The Secret

“They have discretion as to which programs they want to be funded,” said Rick Medina of the Arizona Department of Gaming. He said individual tribes don't have to reveal which governments and organizations receive funds and how much they get.

In fact, no one is allowed to know. Not you, not lawmakers and not even the Governor. Only the Department of Gaming has access to the specific numbers.

On the department’s website , you can see the total amount of revenue share for all 22 casinos. But, what you won’t see are the numbers for each individual casino.

We asked State Senator Steve Pierce if he was concerned.

“Yes, it's concerning because you can't say, ’well, why didn't you do this and how come the numbers are off this much’. We don't know what the gross numbers are.”

Pierce may not like it, but there's not much he can do about it. Arizonans voted for the rules, nine years ago.

Prop 202

Prop 202 established a compact between tribes and the state.

It increased the number of slot machines at casinos and required tribes to share a percentage of their revenue with the state.

It also made it okay for casinos to keep their individual revenue numbers secret. That surprised State Senator Krysten Sinema.

“My guess is that a lot of voters didn't know that. You know I wasn't aware that we agreed to have that information remain confidential.”

Medina insists there is oversight to make sure each casino pays its fair share.

“Because some figures aren't circulated people think we can't see that and that's not true. The truth is that the tribes report their winnings there's an independent auditor,” said Medina.

“I'm not accusing anybody; it's just that it would be nice to know and have the facts,” said State Senator Pierce.

Sovereign Governments

Shiela Morango leads the Arizona Indian Gaming Association and said there is something else to consider. She says, “The tribes are individual sovereign governments, and they can decide how they want to explain.”

Which is why at the Mazatzal Casino in Payson, tribal leaders wouldn’t tell us how much revenue they give the state.

“That is the extent of the law by way of the compact what the state and the tribes have agreed to,” said Hubert Nanty with the Tonto Apache Tribe.

He also was quick to tell us how proud he is of their business and the many contributions made to the community.

“The tribe does much more than the law requires them to do.”

He said casino revenue paid for books at a library, a track for an area high school, and helped pay for the local war memorial.

“It is our way of returning back to what the town has done, and we have the capability of doing that. It is just a part of who we are.”

Since the compact was signed in 2002, Arizona's tribes have given more than $662 million to state and local communities and programs.

Casinos in Arizona have taken a hit in the last few years, but new figures just released by the Department of Gaming show revenue is rebounding.

We checked and found revenue is up 6 percent in the first quarter of this year compared to the first quarter of 2010.

Fund your next project

If you have a program that you want a tribe to fund, you can find their website and contact information at the Arizona Department of Gaming’s website .

Many have applications online, others you’ll have to call.

Copyright 2011 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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