Fate of live dealers hinges on state House
The quest to bring live table games to Harrah’s Cherokee Casino faces a final political hurdle.
Both the Governor and N.C. Senate have given live table games their blessing, with the N.C. House of Representatives now the lone hold-out.
Harrah’s Casino is limited to video-based gambling only. Adding live table games like roulette and poker would attract a new clientele of player, and in turn more money and jobs flowing through the entire region, according to the Eastern Band of Cherokee Indians.
“We aren’t going to see a big influx of industry coming in to Western North Carolina, so we have to do what we can to ensure we have economic development,” said Rep. Roger West, R-Marble. West sees the casino, which could employ more than 2,000 if it gets live dealers, as a key economic pillar that spins off in the region.
Whether the Eastern Band has the requisite votes to get the measure passed is unclear at the moment, however. But West is hopeful.
“I think the votes are there. If they aren’t, it is just a matter of getting them,” said West, who represents Macon, Clay, Graham and Cherokee counties.
However, many of the House legislators who are opposing live dealers cite moral and religious grounds, and convincing them to relinquish their convictions in the name of economic development might not be easy.
“My opposition stems from my longstanding belief that state sanctioned gambling has a corrosive effect on our society,” said Rep. Ray Rapp, D-Mars Hill.
Rep. Phil Haire, D-Sylva, said the good the casino has done in the region outweighs any negatives.
“I remember the days before they had Harrah’s — it has brought a whole lot of prosperity to the Eastern Band,” Haire said.
Haire said the jobs provided by Harrah’s are significant, not only the salaries but the health insurance. And Haire personally enjoys going to the concerts at Harrah’s major performance venue. He saw Diana Ross recently, and is headed to see Natalie Cole this weekend.
Haire hopes Cherokee’s casino operation won’t be held hostage to personal ideology.
“I think some people want to put a moral tag on it, but nobody makes you go to Cherokee to gamble. It is all voluntary,” Haire said.
Rapp was willing to go along with live table games for the existing casino campus, since gambling was already going on there. But Rapp is not comfortable with the prospect of Cherokee opening more casinos in the region on their land holdings.
The deal initially inked with the governor would have permitted Cherokee to open more casinos anywhere on land holdings it owned currently.
However, in an attempt to assuage legislators uncomfortable with expansion of gambling onto some of Cherokee’s more recently acquired holdings, new language was added. The new language limits the Eastern Band to a max of four more casinos, and they can only be built on land under the tribe’s domain as of 1988 — making newer land acquisitions off the table.
Live table games passed the senate last week by 33 to 14. All four state senators from the mountains voted for it: Sen. Jim Davis, R-Franklin; Sen. Ralph Hise, R-Spruce Pine; Sen. Tom Apadoca, R-Hendersonville; and Martin Nesbitt, D-Buncombe.
The tribe has hired lobbyist Steve Metcalf, a former legislator from Asheville, to shepherd live table games through the General Assembly. Metcalf declined to comment for this article.
A vote could come as early as next week. If it doesn’t come, it could be a bad sign.
“You never go to a vote unless you have the votes,” West said.
The General Assembly will only be in session for about six weeks.
Education fight resolved
It took years of lobbying and negotiations for the tribe to reach where it is now. In an historic agreement signed with Gov. Bev 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 grant live dealers and a guarantee that no other casinos would be allowed to encroach on its core territory, namely anywhere west of Interstate 26.
While 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.
The 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.
A compromise was reached that places the money in a special “Indian Gaming Education Revenue Fund.” The General Assembly can tap the fund at will — so it does put legislators hand in the till — but they have to hold a special vote to get money out. Otherwise, the money will be disbursed quarterly to school systems across the state based on their student body population, and can only be spent on “classroom teachers, teacher assistants, classroom materials or supplies, or textbooks.”