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A political impasse over live dealers and table games at Harrah’s Cherokee Casino has been resolved, but the tribe still has some heavy lifting to go before it can close the deal.

The Eastern Band of Cherokee Indians needs the blessing of both the governor and state lawmakers to add live dealers and table games. The tribe offered to give up a cut of gross gaming revenue to win the needed support.

While Gov. Beverly Perdue and Republican leaders in the General Assembly had agreed in theory to live dealers last fall, they had locked horns on a seemingly obscure sticking point. Perdue wanted the state’s cut of casino revenue to go directly to schools, bypassing the General Assembly. That way, lawmakers couldn’t be tempted to tap the money for other uses.

Republican leaders, however, said casino revenue couldn’t legally be put in a lockbox and earmarked for future years. One set of lawmakers today can’t impose mandates on how future lawmakers can spend money. It’s up to members of each General Assembly to craft the state budget each year as they see fit, regardless of instructions left behind by previous lawmakers.

For its part, the tribe preferred that the state’s cut of casino revenue be directed to education as well.

Sen. Jim Davis, R-Franklin, said it was admirable of the tribe to choose such a worthy cause for casino revenue, but it’s simply not possible to make those kind of promises.

“I think it is totally appropriate for the Eastern Band to express their wishes for where the money goes, but the General Assembly cannot determine for future General Assemblies where money goes,” said Davis, the state representative for the seven western counties, including Cherokee.

Based on letters written between the Republican leadership in the General Assembly and Perdue in recent months, each blamed the other for holding up Cherokee’s live dealers. The dispute underscored a longstanding source of acrimony between Perdue and her Republican counterparts over education funding.

It appears Perdue eventually gave in, according to a recent version of the live gaming deal.

New language in the proposed deal acknowledges the wishes of the governor and the tribe to see the state’s cut of casino revenue go to schools. But it likewise acknowledges that “the General Assembly is not bound” to spend the money for education. It will simply go into the state’s general fund instead.

Perdue seems to have extracted a promise that at least for the next couple of years, however, the casino money will go to education. But there are no guarantees after that.

“Gov. Perdue believes that the state’s revenue from the new compact should be used for education, and we are confident that will be the case for at least the next two years,” according to a statement from Chris Mackey, Perdue’s press secretary.

 

Other hurdles not yet cleared

While one logjam has been broken, the tribe still faces a challenge in mustering the necessary support to pass the General Assembly.

The tribe is actively lobbying to get the number of votes needed to bring bona fide live dealers and table games to the casino. On the Senate side, things are looking good, according to Davis.

“I think we have the votes in the Senate. I have been working really hard to get those,” Davis said.

It appears to be much closer in the House of Representatives, however — perhaps too close to call right now.

“Some people were concerned it might be another Las Vegas,” Davis said. “There are some people who have real ethical principles against gambling.”

One of those is Rep. Ray Rapp, D-Mars Hill, who has been torn over the issue.

Rapp is against gambling for the social ills it causes. For some, gambling is simply a form of entertainment and recreation. But for others, it is an addiction.

Rapp voted against the state lottery several years ago and has been public enemy number one against the video gambling and video sweepstakes industry, leading the charge to outlaw the digital gambling terminals.

“Many of the people who are playing these games have little or no disposable income. They are taking away from their family’s basic needs, food and housing money, to gamble,” Rapp said.

Rapp had resigned himself to the casino’s presence in Cherokee and was willing to support the addition of live dealers there — but only there.

“If they were going to stay in those confines of the existing campus, I would be fine. They already have gambling there, so I could support that,” Rapp said.

But the deal brokered with the state would have allowed live dealers at any new casinos built by the tribe in the future on other tribally-held lands in Jackson, Swain, Graham or Cherokee counties.

“This wasn’t permitting it in place, but was allowing an expansion,” Rapp said. “That brought me up short.”

Specifically, Rapp was concerned about a tribally-owned tract of land near Andrews that is being eyed by the tribe for a small-scale casino — something less than a full-fledged casino but something slightly more than a bingo hall.

There has been movement to amend the language in the compact with the state to limit live dealers to gambling facilities on land held by the tribe prior to the mid-1980s — not tracts it has added to trust lands in more recent years. But that still may be too much of a blank slate for some legislators. If the vote was held today, it’s not clear how the final count would come down.

“It will be a very, very close vote in the House with both Republicans and Democrats voting against it,” Rapp said.

Davis said lawmakers might be a little more flexible after this week’s primary election is behind them.

Davis said while he personally doesn’t gamble, his Libertarian streak doesn’t think the government should over-regulate and limit free enterprise. He also is eager for the economic boost live dealers may bring.

“I think we need to do everything we can to enhance the economic climate in the western part of the state,” Davis said.

Harrah’s Cherokee Casino currently is limited to video-based gambling. The tribe has touted the economic impact of adding bonafide table games and real cards.

It would attract more guests — those of a different caliber and demographic than its core base of players today — which in turn will mean 400 more jobs and an economic boost for all of WNC.

It will also mean more money for the tribe, which uses casino proceeds to fund social programs, education, health care and other services for tribal members, as well as a twice-annual personal check for each of the 14,000 members of the tribe.

 

Years in the making

It took years of lobbying and negotiations for the tribe to get to this point. In an historic agreement signed with Perdue last November, the tribe agreed to give up a cut of its revenue from the new table games — on a sliding scale starting at 4 percent and maxing out at 8 percent over the next 30 years. In exchange, the state would allow real dealers and a guarantee that no other casinos would be allowed to encroach on its core territory, namely anywhere west of Interstate 26.

Perdue’s office is putting a positive spin on the prospects of passing the measure before she leaves office in November.

“We are comfortable that all of the issues around the agreement will be settled in time for the General Assembly to pass the appropriate legislation this year,” Mackey said in a statement.

Gov. Bev Perdue and leaders from the Eastern Band of Cherokee Indians have headed back to their respective sides of the negotiating tables to tweak the landmark agreement that would permit table games, real cards and live dealers at Harrah’s Cherokee Casino and Resort.

The agreement would give the state a cut of gaming revenue in exchange for a promise of exclusivity, namely a pledge that the state wouldn’t allow any other casinos in the immediate region. The agreement is now being tweaked in hopes of satisfying legislators in the General Assembly who have yet to sign off on the deal since it was inked by the tribe and Perdue last November.

“The Eastern Band of Cherokee Indians has been working diligently with the governor and the General Assembly on a new compact that will allow for live dealers at Harrah’s Cherokee Casino,” said Chief Michell Hicks in a statement. “We hope to have the new compact approved soon and be ready to take this important issue in front of the North Carolina General Assembly in the upcoming short session.”

It is still unclear exactly what portions of the compact the tribe and Perdue are hoping to renegotiate. Republican leaders in the General Assembly and Perdue had previously disagreed on whether the revenue the state collects from the tribe should go into a dedicated fund for education, as Perdue wanted, or into the general budget, which Republican legislators wanted.

The deal struck between the tribe and Perdue was the product of years of lobbying and negotiating. The clock is now ticking to get it finalized given Perdue’s announcement that she will not be seeking another term.

The tribe and governor’s office seem confident an agreement will be reached soon and the deal will get the necessarly rubber stamp from the General Assembly.

“We’ve got 10 months and an entire legislative session yet to go,” said Mark Johnson, a press officer for Perdue, in an email.

It is unclear whether the tribe would have to start back over at Square One if a new governor came into office before the agreement is finalized by the General Assembly.

Techincally, the compact already signed between the governor and the tribe is good for 30 years. Even if the General Assembly doesn’t approve it this year, it could still do so next year, or the next year, without the agreement going back to the new governor’s desk for approval.

But, a new governor could gum up the works if he wanted to, by vetoing it after the General Assmebly passes — making getting it passed before Perdue leaves office the safest bet for the tribe.

Hicks has spent his eight years in office working toward a deal, which would mean hundreds of new jobs, thousands of new tourists and millions dollars more flowing through Western North Carolina.

“If approved, this will bring more than 400 jobs to the boundary and help to create additional revenue for the casino, which will result in a positive impact not only for the Eastern Band but also for the state of North Carolina,” Hicks said.

Meanwhile, casino management is getting its ducks in a row so it will be ready to roll out live dealers if and when the General Assembly gives its blessing.

“We are looking at the many, many things that would have to happen if that is passed,” said Brooks Robinson, general manager of Harrah’s Cherokee. “We aren’t pulling too many triggers on it but we are monitoring the situation.”

The Eastern Band and Perdue initially signed a compact in late November. They had hoped the General Assembly would vote on the issue before it took its winter recess. But, Republican leaders rebuked the idea, saying they did not have adequate time to review the agreement before the break.

According to the November version of the compact, Cherokee will give the state 4 percent of gross revenue off new table games for the first five years, 5 percent for the next five, 6 percent for the next five, 7 percent for the next five and 8 percent for the final 10 years of the 30-year gaming compact.

Perdue wants the money to be placed in a trust fund and funneled directly to public education in K-12 classrooms across the state based on student population. GOP party leadership, however, wants the money to go directly into the state’s general fund with no special strings attached.

In return, the tribe would be allowed add live gaming and receive exclusive gaming territory west of I-26 in Asheville. The tribe wanted a larger swath of exclusive territory, but the state would not yield.

The tribe has reaped about $226 million a year off the casino recently. Half funds tribal government — from education to housing to health care — while half goes to tribe members in the form of per capita payments.

— Staff writer Becky Johnson contributed to this story

After years of lobbying and months of hard negotiating, the Eastern Band of Cherokee Indians sealed a deal with Gov. Beverly Perdue this week to bring table games, real cards and live dealers to Harrah’s Cherokee Casino and Resort.

“It has been along hard process,” said Cherokee Chief Michell Hicks. “With any negotiation you are going to have doubts but at the end of the day we kept pushing.”

Hicks has spent his eight years in office working toward a deal.

The addition of table games will mean hundreds of new jobs, thousands of new tourists and millions dollars more flowing through Western North Carolina.

“Lots of people claim their huge economic impact and you can kind of see it if you squint and tilt your head the right way — but with these guys you can probably see it from outer space,” said Stephen Appold, senior research associate with the UNC-Chapel Hill business school, who authored a report on the casino’s driving economic force in the region.

The tribe is still one step away from final success, however.

The tribe needs the General Assembly to ink the deal. The General Assembly is out on winter break, aside from a brief return to Raleigh this week to take up pressing issues that couldn’t wait. The deal with Cherokee was supposed to be one of those issues, but Perdue is at odds with the Republican leadership in the General Assembly over the state’s cut of revenue off the new table games.

Perdue wants the money to be placed in a trust fund and funneled directly to public education in K-12 classrooms across the state based on student population. GOP party leadership, however, wants the money to go directly into the state’s general fund with no special strings attached.

Republicans balked this week at quick-signing the compact, saying they need more time for review. Sen. Jim Davis, R-Macon County, said the GOP-dominated General Assembly simply didn’t have adequate time to read and review such a lengthy document.

“I regret we weren’t able to vote on it this session,” Davis said. “But for the Governor to drop this in our laps without giving us a chance to read it seems shortsighted.”

Hicks said the tribe isn’t worried that the deal will fall apart, but merely sees it as a delay.

“It is frustrating but I am pleased we have progressed to the extent we have and I am confident in the very near future it will be approved,” Hicks said. “We’ve taken a giant step forward.”

Hicks, the vice chief, half a dozen tribal council members and a delegation of advisors from within the tribe and hired lobbyists spent the first part of the week in Raleigh getting the gaming compact signed by the Governor and pushing the General Assembly to take it up.

While the General Assembly doesn’t officially reconvene until May, Hicks hopes legislators will return to Raleigh soon to decide on the bill.

“We truly hope we don’t have to wait for May,” Hicks said.

The region desperately needs the jobs and the state desperately needs the revenue. Calling a special session of the General Assembly during the off-season to take up economic development isn’t unheard of. The state did it to approve incentives for Dell Computer several years ago.

“We are like any other company or organization. We feel if we are creating jobs, we should have our Governor and legislature get behind us,” Hicks said.

In the meantime, there is plenty of work to be done to prepare for table games, and the tribe and Harrah’s aren’t wasting any time.

“As of yesterday the planning process was rolling,” Hicks said Tuesday.

Table games must be bought, space made for them on the casino floor, and an army of dealers must be hired. The hiring and specialized training of the casino dealers will be the lengthiest part of the process.

Hicks said the timeline for the roll out of live table games will be laid out within the week.

 

A delicate dance

Ultimately, Cherokee is giving up a share of its revenue on the new table games to secure the state’s approval. How much revenue has been a chief issue in the negotiations. The tribe also wanted a guarantee from the state that no other casinos will be allowed to encroach on its territory.

The two issues were linked at the bargaining table. Cherokee offered up a bigger piece of the pie if the state would promise to keep other casinos out of the rest of the state.

The state would only agree to a relatively small exclusive territory, however, and settled for a smaller share of revenue as a result.

Cherokee will give the state 4 percent of gross revenue off new table games for the first five years, 5 percent for the next five, 6 percent for the next five, 7 percent for the next five and 8 percent for the final 10 years of the 30-year gaming compact.

This helps Cherokee in the early years after rolling out table games, when the tribe is still paying-off its start-up costs for the games and realizing their potential.

As for exclusive territory, Cherokee got less of what it wanted. The state would only grant exclusive gaming territory west of I-26 in Asheville.

Written correspondence between the tribe and the Governor’s office over the past four months paints a picture of their respective positions, and the compromises they arrived at as negotiations played out. Neither side would talk about their positions during the deal making, but letters between the two provide a surprisingly candid storyline of where the parties stood.

Only in retrospect are the tactics and bargaining positions of the tribe truly apparent.

“We knew where the stopping point was. Again in any negotiation you have to have a starting point and a stopping point. We knew how far we could push and how far we could be pushed,” Hicks said.

Those decisions were made in concert with the vice chief and tribal council, Hicks said. Cherokee drew on its history of more than 300 years of experience negotiating deals with other governments, “not all in our favor,” Hicks pointed out.

But in this case, the gaming compact is fair to both parties, with neither trying to take advantage of the other, Hicks said. Hicks said the tribe is pleased with its deal.

The tribe has reaped about $226 million a year off the casino recently. Half funds tribal government — from education to housing to health care — while half goes to tribe members in the form of per capita payments.

That amount is sure to increase with the addition of live table games.

Until now, the casino has been limited to digital video gambling machines. Despite the handicap, the Eastern Band of Cherokee has catapulted to the forefront of WNC’s economy.

The approval of live table games comes just in time. The tribe is nearly finished with a $633-million expansion of the casino that remade the property into a destination resort.

When the tribe embarked on the expansion six years ago, it hoped that live table games would be in its cards one day — rather than the video gambling machines it had been limited to.

The expansion has already proved its worth, even without live table games rounding out the picture. Revenue peaked at Harrah’s Cherokee in 2007 before the recession began to take its toll. Profits have been on the rise since 2010.

Casino General Manager Darold Londo predicts Harrah’s Cherokee will return to its pre-recession levels by the end of next year — even without the addition of table games.

“That’s quicker than the industry,” Londo said, crediting the Cherokee expansion project. “The industry doesn’t expect to recover sometime until 2014 or beyond, whereas we expect to hit that sometime in 2012. We’ve had the ability to control a little bit more of our own destiny.”

The Eastern Band of Cherokee Indians has agreed to give up 8.5 percent of the gross revenue from new table games if the state will open the doors for live dealers at Harrah’s Cherokee Casino and Resort.

In addition to the live dealers, the tribe wants a guarantee from the state that no other casinos will be allowed to encroach on its territory. The state has agreed in principle — but exactly where to draw the line around Cherokee’s exclusive gaming territory remains a major sticking point.

The tribe and the state have made major strides in working out a deal, however. What was once a wide chasm in their negotiating positions has closed to a mere gap over the past 11 months of talks and correspondence.

“I believe we are on the verge of success,” Cherokee Principal Chief Michell Hicks wrote to the governor’s office earlier this month. “Let us resolve these few remaining concerns in short order. Hundreds of new jobs and much needed revenue for the state depend on it.”

Hicks urged the governor’s office to agree on a deal by this week, in time for the General Assembly to take up the issue. State lawmakers are usually on a prolonged recess this time of year, but returned to Raleigh this week to take up a handful of pressing issues that couldn’t wait until the new year.

An agreement with the tribe is tentatively on the General Assembly’s agenda, should the governor and tribe manage to work out their differences.

 

Where to draw the line

Initially, the tribe agreed to give up 8.5 percent of gross revenue from new table games if the state promised no other casinos would be allowed anywhere in North Carolina.

The state countered that was too big a territory. Cherokee conceded, agreeing it would settle for being the only casino west of I-95. That would satisfy the state’s Lumbee contingency, which hopes to one day get federal recognition as an Indian tribe and potentially open a casino in the eastern part of the state.

But the state again said Cherokee was asking for too much exclusive territory. In the latest counter offer from the tribe, the tribe said it would settle for being the only casino in the western half of the state — determined by the state’s geographic mid-point. But if the tribe had to acquiesce in its quest for exclusive gaming territory, it was no longer willing to give the state an 8.5 percent cut of profits, and instead offered 4.5 percent.

“The portion of our revenue to be shared with the state will depend upon the area of exclusivity provided to the tribe,” Hicks wrote in a letter to the state this month.

The governor’s office replied that it wanted at least 7 percent of the tribe’s revenue, and wanted to limit the tribe’s exclusive casino territory to merely “west of Asheville.”

Gov. Beverly Perdue’s office has more than the tribe to contend with in the gaming negotiations. Perdue and Republican lawmakers are at odds over what the casino money should go toward.

Perdue wants it earmarked for education, namely pre-K education initiatives that saw budget cuts from Republican lawmakers this year. But Republican lawmakers want the Cherokee casino proceeds to simply go into the general budget with no restrictions on their use.

Cherokee has been lobbying the state for more than five years for permission to bring in live dealers with dice and cards and real table games rather than the electronic and video gaming the casino is currently limited to. But negotiations hit a brick wall under former Gov. Mike Easley but were reopened under Gov. Perdue.

The tribe and the governor have bandied offers and counter offers back and forth since January. In one of the most recent exchanges, the state went out of its way to compliment the tribe on the nature of the parley.

“At the outset, I want to express how much we appreciate the cooperative and collegial manner in which we have concluded these negotiations as we work together on these important issues,” Mark Davis, general counsel to the governor, wrote to the tribe’s Attorney General Annette Tarnawsky.

Who has the upper hand at this juncture isn’t clear. Getting live dealers at the casino is critical to the tribe’s financial wellbeing: The Eastern Band has a $633-million expansion to pay for at a time when the recession has taken a toll on casino business.

Meanwhile, the state has budget problems of its own that need solving, and the prospect of a lifeline from Cherokee is coming none to soon.

Principal Chief Michell Hicks hinted last week at a renewed effort to bring live dealers to Harrah’s Cherokee Hotel and Casino, in a ceremony renewing the management contract between the Eastern Band of Cherokee and Ceasars Entertainment.

At an event christening the first phase of the casino’s $650 million expansion project, Hicks said the tribe continues to lobby Gov. Bev Perdue to allow live card dealers at Harrah’s. Currently, the state limits the tribe to electronic gambling only.

“We’ll continue to push her to do the right thing,” said Hicks, who is running for a third term for office this year. Hicks said he hoped the governor would wake up and “smell the roses” on the issue, but later said that such negotiations were an ongoing process rather than specific haggling with the state.

“The Eastern Band of Cherokee is continually trying to impress upon all elected officials and state leaders the importance and value of an expanded gaming enterprise,” Hicks said in a later statement. “We maintain a cordial and productive relationship with the Governor’s office and the state legislature officials and look forward to continuing that relationship.”

Negotiations for live dealers and table games — slot machines, craps, roulette and other Las-Vegas style games in addition to live card dealers — stalled last year when a video poker company brought suit against the state. The suit claimed the governor had no legal right to negotiate with the tribe for increased gaming freedom. The same company hamstrung talks in 2009 with a separate suit, which charged that allowing video gambling in Cherokee, but nowhere else in the state, was illegal and unfair.

Harrah’s General Manager Darold Londo said that while the casino wasn’t involved in talks to bring the stepped-up gaming to Cherokee — that’s between the tribe and the state — it would certainly be a boon to the business if it came.

“I’d like to think that we would offer a full-service casino experience,” said Londo. “With our proximity to Atlanta and Charlotte and Knoxville, where you have people that fly to other places to play those games, if we offered those things they could come to Cherokee instead.”

The tribe’s renewed interest in negotiating comes at a time when casino distributions are down — 16 percent according to Hicks — though he and Londo both said they’re hopeful the new expansion, which includes expansive luxury suites for high rollers and is the largest construction project in the Southeast, will crank up revenues again.

As the primary election for principal chief draws closer, however, many in Cherokee are asking how the tribe can pull its focus away from Harrah’s and diversify its revenue portfolio.

Currently, 87 percent of the tribe’s income is generated by Harrah’s. The proceeds are split evenly, with half being divvied up among tribe members and the other half funding tribal operations and programs.

Hicks himself has said that the tribe needs to move away from the casino-as-cash-cow model, and a central tenet of his platform is eradicating the debt.

The Eastern Band now hold almost a billion dollars in debt — $650 million of that is from the major expansion underway at the casino, an endeavor approved by tribal council in 2007.

Critics, including opponents running against Hicks for chief, have questioned whether it was wise to take on so much debt.

Hicks said he has a plan to eradicate the debt completely within the next four years, though he hasn’t spelled out the details of how he’ll do it.

Moving forward, he said, the tribe should look less to gaming and more to its historical traditions, especially arts and crafts.

“To generate gross receipts you’ve got to create business, and we’ve got to change our view of what Cherokee is about,” said Hicks. “We’ve got to get creative by using the thing that we’re better at than anybody else.”

While he conceded that Cherokee couldn’t compete with tourist Meccas of Gatlinburg and Pigeon Forge — they just have less real estate to work with — their selling point is the deep cultural heritage and quality craftsmanship the Cherokee bring to their crafts. This, he said, should be the basis of the new, diversified Cherokee economy.

But even as the call for fiscal diversity is made on all sides this election season, Hicks is still behind the push for live dealers, saying it would bring more jobs and dollars into the economy and help decrease the debt he’s promised to demolish.  


New suites cater to the high rollers

The crowning touch of Harrah’s new hotel tower is its range of newly opened luxury suites, reserved for casino high-rollers and VIPs.

The suites feature expansive mountain views, designer furnishings and subtle touches of opulence, like TVs in mirrors, marble logless fireplaces, 5-person Jacuzzis and wrap-around porches. Some even sport names like Crisp Hydration

The 21-story Creek Tower, the third hotel tower on campus, is part of a larger $650 million expansion of the casino.

The expansion includes a 3,000-seat entertainment venue that opened last fall, an 18,000-square-foot spa, Asian gaming room and additional poker room and will double the footprint of the casino floor.

New restaurants and retail stores will bulk out the space, too; Southern kitchen queen Paula Deen installed one of her renowned restaurants there earlier this year, while Italian chain Brio and the Ruth’s Chris steakhouse franchise are scheduled to move in by the end of 2012.

It’s currently the largest hospitality expansion project in the Southeast and, when finished, it will boast the most hotel rooms in the Carolinas.

The Eastern Band of Cherokee contract the casino’s management to Caesars Entertainment, which runs more than 50 casinos and seven golf courses across the globe. Harrah’s Cherokee has been in business since 1997 and opens its doors 24 hours a day.

After years of a stalemate with the state over live dealers at Harrah’s Casino, the election of Gov. Beverly Perdue signaled new hope for the Eastern Band of Cherokee Indians that an agreement finally could be reached.

Perdue had signaled a willingness to reopen talks about allowing live dealers, in addition to the electronic games now offered at Harrah’s. But the state’s banned video gambling industry has other ideas.

A lawsuit filed by a video gaming firm argues the governor does not have the right to negotiate gambling compacts with the Cherokee, alleging that the power lies only with the General Assembly.

“The approval of compacts between the State of North Carolina and other sovereign entities, including the Eastern Band of the Cherokee Indians, is a core legislative function; therefore, by negotiating and executing the Compact and amendments thereto Governors Hunt and Easley violated the state constitution’s ‘separation of power’ clause,” states the complaint filed by New Vemco Music Co. in Wake County Superior Court in February.

It’s the second such case filed by New Vemco. Last year, a lawsuit claimed the state didn’t have the right to allow video gambling in Cherokee while banning it everywhere else. The company has appealed to the Supreme Court, which hasn’t yet decided whether to review the case.

Ralph Amik, New Vemco’s owner, pledged to keep fighting for to restore the outlawed video poker industry in the state.

“We may wind up taking it to the Supreme Court to do it, but we are going to win,” Amik said. “I don’t care what the Cherokees do. I really and truly don’t, but we were in business first. They can’t give it to one and not the other.”

Together the two cases have been seen as an effort to force the state to lift its ban on video gaming, which it prohibited in 2007, by hamstringing the process of expanding gaming on the Qualla Boundary.

Officials in the governor’s office have acknowledged that the cases have stalled negotiations over live gaming at Harrah’s Cherokee Casino.

“The governor has always welcomed that dialogue with the Cherokee, but the fact that there are two legal cases pending in court certainly affects her ability to carry those discussions forward,” said Chrissy Pearson, Gov. Perdue’s press secretary.

Pearson said the governor would wait until the cases are resolved to move forward with the live dealer discussion.

“The crux is that both cases do need to go through the courts so we can know what precedents will be set before we proceed any further,” Pearson said.

Eastern Band of Cherokee Indians Principal Chief Michell Hicks would not comment on the status of the live dealer discussion or the lawsuits, citing a policy against discussing “pending lawsuits or compact negotiations with the state” with the media.

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