By NIGEL JAQUISS/Willamette Week
On Nov. 8, just three days after the Democrats faced a significant setback in the presidential election, President Joe Biden’s administration made a surprising move by approving an off-reservation casino in Minnesota, a decision that reverberated across the nation. Leaders of two prominent Oregon tribes expressed their deep concerns about this decision, warning that it could significantly disrupt the gambling landscape in Oregon, affecting both on-reservation and off-reservation operations.
This change is particularly alarming as the Biden administration is simultaneously evaluating a number of other casino applications in various states, including several that are proposed in Oregon. One of these proposed projects came to fruition on Wednesday, with a major decision by the federal Bureau of Indian Affairs notifying state officials that it would soon issue a final environmental impact statement (EIS) that endorses the Coquille Indian Tribe’s ambitious plan to establish an off-reservation casino in Medford.
Once the Bureau publishes its findings in the Federal Register, a 30-day public comment period will commence, allowing community members and stakeholders to voice their opinions. Following this period, the Bureau will release a final document, a record of decision that typically supports the findings of the EIS, although this is not guaranteed.
According to the leaders of the Confederated Tribes of Grand Ronde and the Cow Creek Band of Umpqua Tribe of Indians, the implications of this decision could drastically destabilize Oregon’s tightly regulated gambling market. They fear it could pave the way for a mega-casino on the outskirts of Portland while also creating gaming alternatives that would seriously challenge the state’s lottery system, which serves as Oregon’s second-largest source of revenue after income taxes.
Following the Biden administration’s recent approval for the Minnesota casino, the chairs of the Grand Ronde and Cow Creek tribes urgently requested a meeting with Governor Tina Kotek, who plays a crucial role in mediating conflicts among Oregon’s nine federally recognized tribes. The tribal chairs expressed their pressing need for dialogue, underscoring the stakes involved in the gambling landscape.
“We need to meet with you as soon as possible,” wrote Cheryle Kennedy of the Grand Ronde and Carla Keene of the Cow Creek Band in a letter to the governor dated Nov. 14. “We expect more [approvals] to follow, including the Salem and Medford casinos, as early as Thanksgiving week. If these casinos move forward, they will destroy the balance of gaming in Oregon. The Grand Ronde will have no choice but to file a casino application on lands we own in Wood Village.”
Cow Creek CEO Michael Rondeau further amplified these concerns, indicating that his tribe would also explore options to expand their gaming operations should the Medford casino receive federal approval. “If the Medford casino is approved, we will have no choice but to explore every opportunity to provide for our people, which would mean expanding gaming into urban areas, like Eugene, and providing mobile gaming statewide,” Rondeau said emphatically.
This potential expansion could significantly threaten the Oregon Lottery, which generates over $1 billion in revenue annually, especially as tribal casinos collectively reported about $650 million in revenue in 2019, the latest available statistics. However, there are concerns that the tribes’ opposition may be a strategic posture rather than an immediate threat.
Nonetheless, Governor Kotek must take their concerns seriously. Oregon’s unique policy, in place for over 30 years, allows each of the nine federally recognized tribes to operate a single casino on their designated reservation lands, while the state supervises video slot machines across other locations. This delicate balance has proven effective, yet it has also led to frustrations among tribes that wish to expand their gaming enterprises beyond their reservations.
The Confederated Tribes of Siletz Indians have long sought an off-reservation casino along Interstate 5 north of Salem, while the Coquille Indian Tribe has been advocating for a second casino in Medford for over a decade. Both proposed locations are poised to draw significantly higher traffic than the tribes’ existing on-reservation casinos, threatening to siphon customers away from the Grand Ronde and Cow Creek markets. This looming competition is why apprehensive tribes are particularly concerned about any approvals from the outgoing Biden administration.
“It is common for outgoing administrations to make decisions affecting tribes after an election and before the next administration takes office,” the two tribal chairs succinctly stated in their communication to Governor Kotek. “Especially when the incumbent administration is defeated.”
From the onset of legal on-reservation gambling in 1987, Oregon has adopted a policy that each tribe can operate a single casino on its reservation—initiated by then-Governor Barbara Roberts. While this policy has largely remained intact, it has sparked contention among tribes who feel constrained by the rules which mandate that that all casinos must be established on tribal lands.
Oregon’s policy on gambling has become a mixed bag when it comes to public sentiment. On one hand, the state actively promotes the lottery, which is designed to maximize revenue generation, while numerous bars and restaurants profit from the widespread use of video slot machines by residents. On the other hand, a 2010 ballot measure aimed at legalizing non-tribal casinos was overwhelmingly rejected by voters, highlighting the complexities of public opinion regarding gambling expansion.
In February 2022, at the behest of the tribes themselves, then-Governor Kate Brown, along with the Oregon Department of Justice, intervened to prevent a significant gambling project at Grants Pass Downs, declaring it would breach the state’s ban on private casinos and lotteries. Shortly after assuming office in 2023, Governor Kotek reaffirmed her stance to all nine tribes, clearly stating her opposition to any expansion of gaming in the state.
“I do not favor an expansion of gaming,” Kotek wrote on April 13, specifically voicing her dissent against the Coquille Tribe’s proposed Medford Casino project. “This proposal would not only lead to the expansion of gaming in the area but would create many more concerns about the expansion of gaming statewide.”
The controversy surrounding the Medford proposal has also drawn the ire of tribes from Northern California. Governor Gavin Newsom sent a letter to President Biden in August, urging against the establishment of new tribal casinos within his state.
Supporters of gambling expansion, however, maintain a different perspective. The Siletz Tribe’s legal representatives have argued that the state is attempting to restrict tribal gaming revenues, calling for a more equitable approach to address the inequities present in the current system. Attorney Craig Dorsay raised an important point during a legislative session in April 2023 when he noted, “Tribes are the state’s biggest gaming competitor and the state is choking off tribal gaming revenue.”
The path to approval for a tribal casino can follow two routes. The more straightforward process, which the Coquille are undertaking in Medford, only necessitates federal approval, effectively circumventing the governor’s office entirely. Competitors worry that the precedent set by the recent Minnesota decision indicates the imminent possibility of approval for Medford.
In contrast, the Siletz project in Salem is subject to a more complex “two-part” approval process that mandates both state and federal permissions. However, should the Medford project gain federal approval, concerns abound that this could undermine Oregon’s longstanding one-tribe, one-casino policy, thereby reducing the state’s leverage to block the Siletz proposal.
Despite ongoing discussions, Kotek’s spokesperson Roxy Mayer reiterated that the governor’s stance against gambling expansion remains firm as she awaits the federal decision. “As the Bureau of Indian Affairs evaluates applications,” Mayer remarked, “the governor is committed to continued dialogue with each of the nine federally recognized sovereign tribes about their plans.”
Oregon’s senior U.S. senator, Ron Wyden, alongside his colleagues in the state’s congressional delegation, wants to maintain the existing policy framework. “Sen. Wyden respects all tribes exercising their sovereignty, but strongly believes Oregon has done well to strike a careful balance around the principle that each federally recognized tribe should operate one major casino,” stated Wyden’s spokesperson, Hank Stern. “That principle has proven a good balance to give all tribes an equal opportunity at economic success, and upending that harmony poses a needlessly risky gamble.”
What are the potential economic impacts on Oregon’s tribal communities if the Medford casino is approved?
**Interview with Tribal Leader: Implications of Recent Gambling Decisions in Oregon**
**Interviewer:** Good afternoon, and welcome to the program. Today, we have with us [insert name], a leader from one of Oregon’s tribal communities. Thank you for joining us.
**Tribal Leader:** Thank you for having me. I’m pleased to be here to discuss these important issues.
**Interviewer:** Let’s start with the recent approval of the off-reservation casino in Minnesota. How do you think that decision will affect the gambling landscape in Oregon?
**Tribal Leader:** The approval certainly sends a signal that the federal government is open to expanding gaming options for tribes, which could lead to a shift in the balance here in Oregon. Many of us are concerned that it could open the floodgates for similar projects and destabilize the current regulatory system that has been in place for over 30 years.
**Interviewer:** The Coquille Indian Tribe’s proposed casino in Medford is becoming particularly controversial. What are your specific concerns about this project?
**Tribal Leader:** We are deeply concerned that if the Medford casino is approved, it could lead to a proliferation of casinos throughout the state, overwhelming our existing operations and threatening the Oregon Lottery, which is crucial for state revenue. Our tribes have operated under the agreement that each can have one casino on reservation land, and changes to that framework could lead to intense competition and inequities that we believe will be detrimental to our communities.
**Interviewer:** Governor Kotek has expressed her opposition to the Medford project. How important is her stance to the tribes?
**Tribal Leader:** Governor Kotek’s position is crucial. She plays a pivotal role in these discussions. If she maintains her opposition to the expansion of gaming, it could help safeguard the existing balance that we have worked so hard to maintain. We appreciate her willingness to engage with us on these issues, and we are hopeful for a constructive dialog.
**Interviewer:** How do the tribes intend to respond if the federal government moves forward with the Medford casino approval?
**Tribal Leader:** Should that happen, we will need to reassess our strategies. Options could include pursuing applications for our own casinos in urban areas or expanding mobile gaming as a response to compete with emerging alternatives. But our priority remains to work collaboratively with the governor and the state to find solutions that respect the integrity of all tribes involved.
**Interviewer:** what is your message to the public regarding the potential impacts of these gambling expansions?
**Tribal Leader:** It’s vital for the public to understand that expanding gaming isn’t just about new facilities; it’s about community impacts, economic fairness, and maintaining a balance that benefits everyone. We urge the public to engage with this process and voice their opinions, especially during the upcoming comment periods. This is a matter that affects us all in Oregon, and collective voices will be crucial in shaping the future of gambling in the state.
**Interviewer:** Thank you, [insert name], for your insights. We’ll be following this issue closely as it unfolds.
**Tribal Leader:** Thank you for having me. I appreciate the opportunity to share our perspective.
