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JOURNAL PHOTOS
With Las Vegas-style Indian casinos, a state Lottery and horseracing with slot machines, New Mexico offers plenty of gambling choices.
SERIES AT A GLANCE
PART 1
Part 2
Page 1
n estimated
$3.9 billion will
be wagered this
year on the state
Lottery, racetracks, clubs and
at Indian casinos. Some Indian
tribes with gambling are among
the biggest winners.
Page 5
tate Lottery
sales have
grown every year
since its creation
in 1996. Evidence is mixed
on whether lowincome residents
wager more than
others. Lottery
profits have funded college scholarships for more
than 32,000 people.
Part 3
Part 4
Part 5
Part 6
Part 7
Part 8
Page 7
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Page 14
Page 16
Page 18
ew Mexicos
racing and
casino barons
are a varied lot.
One lives in
Greece; another
once sold Fuller
brushes in
Kansas. A partowner of two
tracks is a close
friend of Gov. Bill
Richardson and a
relative newcomer to politics.
he response to
problem gambling in New Mexico has been
uneven, incomplete and uncoordinated. Most
money to
address the problem goes to a
group whose
executive director
earns $125,000
a year and has
financial interests in two racetracks and casinos.
here have
been both economic winners
and losers since
gambling exploded in the state.
There are new
jobs, entertainment and commerce, but more
bankruptcies and
increased need
for police and
emergency services. Meanwhile, the state
has made no
serious effort to
assess the economic impact.
lot machines
have subsidized a sagging
horse-racing
industry. Slot
play began in
1999 at tracks,
and nearly $118
million in slot revenues has gone
to fatten race
purses. About 60
veterans and fraternal clubs also
operate slots
today.
PAGE 3
tate gaming
regulators
wont say what
they do to oversee Indian casinos. Its secret.
But regulators
arent shy in
policing the racetracks with casinos or others
who may run
afoul of state
gaming laws.
ore gambling
could be in
the cards for New
Mexico. Five
more Indian
tribes have taken
steps toward getting into the casino business, and
three more towns
have been mentioned as possible sites for racetracks with casinos.
ALBUQUERQUE JOURNAL
RICHARD PIPES/JOURNAL
New Mexicos newest racino, the Black Gold Casino at Zia Park, pictured here on the day before its November opening in Hobbs, will combine live horseracing with 600 slot machines.
A host of unknowns
There are some things we
know about gambling in New
Mexico.
For starters, it has helped
some Indian tribes that were
desperately poor. Indian casinos and racetracks employ
more than 10,000 people, and
gambling generates tens of
millions of dollars for the state
treasury as well as for scholarships for thousands of students
at New Mexico universities.
But there are some things
we dont know, perhaps
because we dont want to.
There has been no serious,
independent attempt in recent
years to gauge Indian gamblings economic impact off
the reservations.
There has been no real
state study on problem gamblers since the mid-1990s.
There is anecdotal evidence of
foreclosures, bankruptcies,
divorce and even suicide. How
do the benefits measure up
against the social costs?
There is no way for the
public to know what, if any,
state regulation of tribal gaming is occurring. The process
is cloaked in secrecy.
Does the gambling lobby,
flush with money, wield too
much influence in Santa Fe?
Does the Lottery have a
disproportionate impact on
New Mexicos poor?
Should millions of dollars
from the states take of slot
machines at the
racetrack/casinos be used to
prop up the racing industry, or
should more go to needs like
teacher pay and police?
Former Gov. Gary Johnson,
who signed the historic gambling legislation in the 1990s,
said that under federal law he
had no choice but to negotiate
with the Indian tribes and
pueblos to expand gaming.
Is it good for New Mexico?
I think at best you can call it a
wash because, of course, there
are lot of people adversely
affected by gambling. But
then, on the positive side, its
good for tribes and pueblos,
Johnson said.
Others have a more negative
assessment.
I suspect if one took a poll
in New Mexico by and
large, the Lottery would be
very popular and gaming
would probably have the
majority of citizen support,
said former Democratic Gov.
Toney Anaya.
But we are not Nevada, and
we cant have our economy
based on gambling. But
because we dont have a lot of
other economic development
in the state, were eating ourselves up from inside.
at bay.
Bardacke said Richardson
inherited wide-open gaming
throughout the state of New
Mexico, when he took office
in 2003.
My efforts on behalf of
Gov. Richardson have been to
try to keep it under control, to
keep it from proliferating to
the extent that its unworkable
for the state, and the Indian
tribes and the non-Indian gaming entities, Bardacke said.
Not surprisingly, King said
he doesnt believe gaming has
changed the state for the better.
I tried to tell everybody
that we better not go with all
that gaming, he said recently.
You cant deny the jobs (it has
created) but I think theres
other ways to create jobs is my
feeling. The other problem is
where they get to have entirely too much influence in policy.
After 40 years in public service, King lost his final re-election bid in 1994 to the pro-gaming Johnson.
I spent a long time trying to
show progressive government
and I didnt want to be the one
who brought gaming to New
Mexico, King said.
Johnsons election campaign
received more than $244,000
from gaming tribes. But he
said recently his decision to
sign the compacts had nothing
to do with the contributions.
From day one, when I started running for governor, I said
I would sign off on compacts,
Johnson said.
A better life
While many of the benefits
and liabilities of gambling can
be debated, it has without
question improved living conditions for some of New Mexicos Native Americans.
Today, 13 tribes operate casi-
Change in direction
BY THE NUMBERS
$58.5 million
$150 million
$877.5 million
$2.9 billion
Projected amount
players will gamble on the
state lottery.
Projected amount
players will gamble on slots
at racetracks.
Note: Projections are based on players winning back 80 percent of amount wagered on slots and $79.5 million in Lottery prizes
Source: New Mexico Gaming Control Board
ALBUQUERQUE JOURNAL
ROBERTO E. ROSALES/JOURNAL
Two-year-old Andrea Chavez ponders her next move in designing a hat at Sandia Pueblos Head Start Program. Andrea and her fellow students will
be moving into a new building, paid for in part with casino profits.
Sandia Pueblo Gov. Stuwart
Paisano. Now 100 percent of our
children are being taught our
native tongue.
No direct distribution
A common misperception of Indian gaming is that casino profits are
distributed directly to tribal members.
That doesnt happen in New Mexico.
To distribute casino profits to
individual members, gaming tribes
would have to pass a law authorizing and explaining the distribution.
Then the tribe would need approval
from the Department of the Interior.
New Mexico tribes have not gone
that route.
The (Sandia) Councils main
focus is on the community,
Paisano said. There are a lot of
associated social problems that just
get worse when you hand out
cash.
Santa Ana Gov. Armijo said, We
dont want to make our people
dependent on gaming money.
Dorame said handing out money
really isnt the pueblo way.
We dont weigh success by the
amount of money people have in
their pocket. It is the success of the
community that matters.
Every pueblo leader the Journal
interviewed said the tribal government views casino profits like a
city or town would view gross
receipts and property taxes.
Home improvement
Ask a tribal leader about what
the tribe has done with casino profits and invariably they start talking
about sewer hookups.
We have a crisis with groundwater contamination in this valley,
said Ron Lovato, San Juan Pueblos
development director. We are
working on it. We have 95 percent
of the homes hooked into the sewer
system.
San Juan is a medium-sized
pueblo with more than 700 homes
now hooked up to the sewer system.
At Sandia, the hookup rate is at
98 percent, Paisano said.
Replacing septic tanks with sewer systems is an expensive undertaking.
Running sewer lines to a residence can cost between $10,000
and $15,000. Hooking the home up
to the sewer line can cost more
than $1,200.
See GAMING on PAGE 4
ROBERTO E. ROSALES/JOURNAL
PAT VASQUEZ-CUNNINGHAM/JOURNAL
ROBERTO E. ROSALES/JOURNAL
Saint Antonio de Padua Catholic Church at Sandia Pueblo is framed by the Sandia Mountains. Both the church and the mountains play important roles in the pueblos religious practices. The $2.3
million church, paid for in part with gaming revenues, was completed in 2002 and can seat 500, more than the tribes 480-member enrollment.
ALBUQUERQUE JOURNAL
from PAGE 3
Seeking to diversify
Many tribes have been taking
their own advice and are trying to
expand their economic base.
Unemployment rates on Indian
lands nationally run between 45
and 55 percent.
Six of the gaming pueblos Sandia, Isleta, Santa Ana, Taos, San
Juan and Pojoaque have unemployment rates in the single digits.
Sandia Pueblo has an unemployment rate of 1 percent, according
to the Bureau of Indian Affairs.
The success isnt uniform. Gaming tribes such as Mescalero and
Jicarilla have unemployment rates
of 44 and 33 percent respectively,
according to the same BIA report.
Recovering lands
ROBERTO E. ROSALES/JOURNAL
Lucy Gutierrez, left, and Jennie Holmes are trying to save the Tiwa language at Sandia Pueblo. The language instructors have helped develop
an alphabet and are working on a dictionary. Every school day they teach
Tiwa to even the youngest children.
A 2002 national study found that
tribes with casinos saw a 26 percent increase in Indian employment and the percentage of working poor dropped by 14 percent.
That is a trend tribal leaders
want to continue.
Some Indian casinos are expanding operations to include hotels
and golf courses in the hopes of
expanding the gambling market to
out-of-state and overseas tourists.
Were going to have work closely with the local hotel associations, Dorame said. It will
require partnerships off the reservation to accomplish this.
Mescalero Apache casino is
working on a $2 million advertising
campaign in conjunction with Ruidoso and the Ruidoso Downs horse
track and casino. The tribe will
contribute the bulk of the money,
targeting potential tourists from
Texas.
Santa Ana Pueblo has been courting retail outlets for property set
aside on U.S. 550.
Sandia Pueblo bought the Coronado Airport near I-25 for a hightech industrial park and has plans
for an RV park.
Our council has taken a conservative approach to off-reservation
investments, said Paisano. We
get approached all the time.
San Juan Pueblo is expanding an
airstrip in the Espaola Valley in
hopes of attracting manufacturing
jobs.
Weve met with officials at Los
Alamos Laboratory to try to get
some interest in developing business offshoots in the Espaola Valley, San Juan development direc-
A rocky transition
Laguna Pueblo has built a grocery store. Many tribes have built
gas stations that pay no state gasoline taxes.
But not all has been smooth. Sandia found itself part of a nationwide story when a Senate committee launched an investigation of a
Washington lobbyist-public relations team that had been paid more
than $45 million by more than a
dozen tribes, including Sandia.
Sandia had hired Jack Abramoff
to lobby for congressional
approval of a land settlement
agreement involving more than
9,000 acres on the west face of the
Sandia Mountains.
Paisano said the tribe was not
satisfied with the firms work and
was upset when it was disclosed
that Abramoff in e-mails had
referred to his Indian clients as
morons, monkeys and losers.
Paisano said, There have been
missteps.
Tribes have found that getting
into new businesses hasnt been a
sure thing.
Santa Ana Pueblo went to court
after a $1 million investment in a
Chinese computer school went
awry.
But the bulk of the tribes economic development efforts have
been in the tourism industry.
Bob Ortiz, a planner at Santa Ana
priority lists.
He suggested that tribes are
more likely to be willing partners
with local governments on lands
acquired for economic development.
But properties obtained for religious reasons are likely to be
closed off to the general population
and lead to conflict.
Stitching a society
Bricks and mortar are one form
of infrastructure.
Education and health are just as
important.
Among New Mexico tribes, diabetes is considered an epidemic
that leads to heart disease, kidney
failure and amputations.
Nationwide, Native Americans
are twice as likely to develop diabetes than non-Hispanic whites
and amputation rates are three to
four times higher among Indians
than the general population,
according to the American Diabetes Association.
Several tribes have built medical
clinics and wellness centers to
combat health problems like diabetes that have troubled their communities for years.
Isleta Pueblo set up programs to
teach healthy lifestyles to children
and adults in a recreation center
that includes an Olympic-size pool.
The tribe also provides diabetes
education programs and a medical
clinic.
The Mescalero Apache tribe
built a full-service dialysis unit
that serves tribal members and
people in the surrounding community.
Were able to combine Indian
Heath Services and pueblo money
to expand services to include an
herbalist, physical therapist, a
pharmacy, and counselors for substance abuse, Paisano said. Its
worked tremendously.
Many tribes offer college and
high school scholarship programs,
but Sandias starts in the first
grade.
We will pay tuition for any child
on the pueblo to attend any private
school, Paisano said. We also provide transportation. We require a
commitment from the parents that
they will help their children with
homework and the students maintain their grades.
Most tribes now pay most of the
cost of preschool programs, and
have funded programs for the
elderly and teens.
We all look to how all our people
can benefit from this (gaming),
said Santa Anas Armijo.
Where is the benefit to the
tribe, is the first question we ask.
PAT VASQUEZ-CUNNINGHAM/JOURNAL
Two dogs stand guard at Santa Ana Pueblos new housing addition. Before casino gaming, New Mexico tribes relied on federal housing programs. Now tribes are using casino profits to establish
mortgage programs.
Every business
does it
Some opponents who fought
Johnson on Indian gaming a
decade ago are just as vehement on the issue today.
Im a pragmatist, Chvez
said. It is here and it is not
going away. The challenge is
to make lemons into lemonade.
Chvez said the tribes are
doing wonderful things with
the money. They are investing
it in the tribes, their people.
They are looking to diversify.
They are investing in health
care, education.
Gaming tribes are also
incredibly sophisticated in
manipulating the levers of
power, Chvez said. They
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A BURST OF TEARS
BY COLLEEN HEILD
Delores Walker
PAT VASQUEZ-CUNNINGHAM/JOURNAL
Circle K clerk Jim Weeks, center, waits for the Powerball machine to spit out a ticket for a customer. The store,
at 1200 San Pedro NE, was one of the top 10 locations in the state for lottery sales in fiscal year 2003.
going to prizes and expenses.
Yet many who fought the creation
of a state lottery now describe it as
benign.
As opposed to the other forms of
gambling we have in New Mexico,
the lottery is probably the least
onerous in my opinion, the least
harmful to society, said former
Gov. Toney Anaya, who resisted legislative attempts in the 1980s to create a state lottery.
Anaya still believes gaming
including the lottery is bad for
the state.
But if we have to have a lottery,
thank goodness that theres some
good that comes from it.
A good problem
Since the inception of the New
Mexico Lottery, more than half the
BY COLLEEN HEILD
Journal Investigative Reporter
A regressive system?
COURTESY OF NEW MEXICO LOTTERY AUTHORITY
Richardsons plan
For every $1 spent on the
New Mexico lottery, about 24
cents is earmarked for lottery
scholarships.
In New Mexico, theres a
move backed by Gov. Bill
Richardson and others to
broaden lottery scholarship
eligibility criteria and change
the way benefits are dispersed.
A separate financial aid fund
would be set up for low-income
students. One proposal would
tap interest earned on the lottery surplus.
The governors plan would
ALBUQUERQUE JOURNAL
A winning reputation
Its a Powerball Wednesday
and the jackpot has climbed to
more $127 million.
Since 1999, John Brooks
Supermart #1 has been in the
top 10 retailers in the state
with the highest overall sales.
More than 1,100 retailers sell
tickets.
The store, at 12th and Cande-
PAT VASQUEZ-CUNNINGHAM/JOURNAL
A clerk keys in an order for a Powerball ticket. Per-capita lottery sales in New Mexico have
climbed from $49 in 1997 to $79.52 in fiscal year 2004.
BY THE NUMBERS
$148 million
$85.2 million
$35.9 million
$27.7 million
Lottery scholarship
fund
Expenses of running
lottery
ODDS OF WINNING
(Approximate odds per $1 of play)
ROADRUNNER CASH
POWERBALL
1 in 278,256
1 in 120,526,770
1 in 66
1 in 36
HISTORY OF LOTTERIES
c.100-44 B.C.: Form of lotteries dates back to Caesar
100 B.C.: The Hun Dynasty
in China creates keno. Funds
raised by lotteries were used
for defense, primarily to
finance construction of the
Great Wall of China
A favorable climate
Lotteries across the country
and the District of Columbia
generated nearly $49 billion in
sales in fiscal year 2004. The
first was created 40 years ago
in New Hampshire.
It took New Mexico decades
to join the crowd.
As far back as the mid-1960s,
New Mexico politicians were
pitching lottery proposals. But
none got very far.
Weve tried these lottery
bills before, State Senate
An eye on profits
Initially criticized for excessive operational spending, the
lottery has since cut administrative costs by more than
$3 million annually.
The number of employees
about 62 has stayed the
same while proceeds to state
government have increased 67
percent since the first fiscal
year of operations.
Yet the amount returned to
the state as profits is still less
than 25 cents on the dollar,
compared to a national average about 33 cents.
Shaheen and others say New
Mexicos operational costs are
higher because vendors who
provide online games and other services charge more here
than in other states.
Were going to have higher
vendor fees because we
have a lower volume in sales
and they have to have a profit
margin, Shaheen said.
What the future holds is anyones guess.
With rising gasoline prices,
lottery officials have noted a
decline in sales of instant
scratcher tickets, which tend
to be impulse buys at convenience stores or gas stations
when purchasers have extra
dollars after filling up the gas
tank.
Shaheen said the advent of
legalized Indian gaming also
has had an impact.
Other factors affecting
future sales include the fact
that the state isnt expecting a
major population growth.
And were limited to the
types of games, limited by law
what we can do, he said.
As a result, theres renewed
talk of launching the fastpaced game of keno, which lottery officials once estimated
could add another $4.5 million
a year for education.
A bill to expand the lottery
to keno was rejected by lawmakers in 2001. Opponents
said the game was too addictive.
LIGHTNING STRIKES
Delores
Walker
Part 2
When it came to the
New Mexico lottery,
Delores Walker was no
big spender.
For the past two years,
shed head to the nearby
Circle K store on North
Main Avenue twice a
week and buy a $5
Powerball and a $5
Roadrunner Cash ticket.
For the Aug. 26 drawing, she splurged and
spent $10 on each game.
When Walker returned
to the store the next
morning and presented
her tickets, the cashiers
eyes got big as saucers.
Im going what did I
win, thinking it was like
$500 or something,
Delores Walker recalled.
Maam, you won the
whole thing, the cashier
said.
Youre kidding,
Delores Walker said.
The cashier put the
ticket down in front of
her, showing $290,000 as
the payoff.
Does that help you to
believe? she asked.
The winnings have
allowed Delores Walker
to quit her job of six
years at Desert Motors in
Roswell and care for her
husband.
The Walkers have paid
off medical bills and
bought a new pickup
truck and theres enough
money left so that they
can breathe a little easier about future finances.
With a niece attending
college on a lottery scholarship, she hasnt
stopped betting on the
lottery.
I say, You never
know, lightning could
strike twice.
ABOUT THIS
SERIES
DAY ONE: Gambling explodes
after New Mexico takes a
chance.
TODAY: Lottery sales are
booming.
DAY THREE: A slot subsidy revs
up horse racing.
DAY FOUR: Casino baron is a
friend of Gov. Bill Richardson.
DAY FIVE: Problem gamblers are
left largely to chance.
DAY SIX: The economic winners
and losers of gambling.
DAY SEVEN: Regulation, New
Mexico-style: Casinos, hot dogs
and pizza parlors.
DAY EIGHT: Another crossroads.
Find this series on the Web
at abqjournal.com.
eff Jones, 35, covers gambling issues for the Journal, including tribal gaming, horse track/casino
operations and the business of horse racing.
Prior to taking over those responsibilities after his
assignment to the state desk in 2003, he covered
the police beat in Albuquerque.
Jones is a 1992 graduate of the University of Northern Colorado in Greeley.
HEILD
COLE
M
JONES
GALLAGHER
ALBUQUERQUE JOURNAL
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Jockey Ken Tohill, riding Barbarays Claim, left, finishes fourth in a race at Sunland Park. The ex-California jockey says he is making money and having
fun being a part of New Mexicos racing revival.
The question is how much more
will you bite the public for to support the industry, Coll says.
Through June of last year, slot
machine players at tracks and casinos had left behind $589.4 million
the net win for the racinos.
In addition to the 20 percent that
goes to purses, the state gets a 25
percent cut of what gamblers lose,
with the money going into its main
checking account to help pay for
government services.
Track owners keep the other 55
percent, but have to pay operating
expenses for the casinos, including
machine costs and payroll.
Each of the four tracks that operated in 2003 made a profit, according to their financial statements.
Sunland Park, the states most
successful track, reported net
income of $25.8 million, with slot
machines producing 86 percent of
its revenues. Net income for the other tracks ranged from $781,000 to
$2.9 million.
The revival
The racing industry was in trouble in the 1980s and for much of the
90s.
The industry was rocked by alle-
THE BREEDER
THE JOCKEY
Mac Murray
Ken Tohill
GREG SORBER/JOURNAL
GREG SORBER/JOURNAL
RICHARD PIPES/JOURNAL
races four days a week and works out horses six mornings a week. His expenses eat
up about 40 percent of his pay.
Tohill talked about his move to New Mexico before racing on a day last November at
Sunland Park. He rode six races that day
but never finished better than fourth place.
It happens occasionally. No biggie, he
said afterward in the jockey room. These
are the days that make you appreciate the
good days.
ALBUQUERQUE JOURNAL
RICHARD PIPES/JOURNAL
RICHARD PIPES/JOURNAL
Ken Tohill, aboard Barbarays Claim, prepares to leave the paddock for a race at Sunland Park.
BY THE NUMBERS
$589.4 million
$324.2 million
$147.4 million
State governments share
of take. The money is used
for general
government purposes
$117.9 million
Amount of slot take used
to
subsidize race purses to
benefit owners, trainers,
breeders and
jockeys
the Legislature to reassess the subsidy for horse-racing purses this year
because government is relatively
flush with cash, in large part because
of increased taxes due to higher energy prices.
But Varela, a Santa Fe Democrat,
says the purse subsidy could become
an issue in 2006 if, as he expects, government faces a money crunch as it
feels the full brunt of personal
income tax cuts enacted in 2003.
Were going to have to look at
some of these revenue sources to
and veterans.
Veterans are our priority,
Post 49 Game Room Manager
Tommy Thompson said. We
support Blind Veterans of New
Mexico and help veterans with
hospital bills.
BY MIKE GALLAGHER
Scared by paperwork
RICHARD PIPES/JOURNAL
The Moose Lodge in Truth or Consequences, headed by Ken Johnson, contributed $125,000
to charities from slot machine revenues.
BY THE NUMBERS
61
Number of licensed clubs
$56
Average daily net win for a machine in club
$1.06 million
Amount club gaming paid the state in
fiscal year 2004
Source: New Mexico Gaming Control Board
out of 120 that are eligible
have electronic gambling
machines. Combined, they
comprise the smallest market
share of New Mexicos gaming
triumvirate, with just over 600
machines.
And the daily handle for
each machine is much lower
than originally predicted.
When the Legislature
approved gambling for the
clubs, estimates ranged that
each machine would garner a
net win of $120 or more each
day.
The daily net win for club
machines is less than $60 per
day, compared to more than
$200 a day per machine at
racetrack casinos.
In fiscal year 2004, the clubs
Clubs are allowed a maximum of 15 machines, but nearly half the eligible clubs dont
have any.
Bill Previtti, past president
of the association representing
the clubs, cites two reasons:
Paperwork scared a lot of
them off, Previtti said. And a
lot of them just dont have a
building with enough room to
have a separate game room.
Ken Johnson said, When we
first started, the paperwork
was unbearable. Its still a hassle.
Thompson said, When they
originally started out they
based everything on a Las
Vegas-style setup. They
required things like glass
counting tables.
Previtti said paperwork has
been substantially reduced.
When it first started all the
board members had to have
complete background checks,
he said. Now only key
employees have backgrounds
done.
Brett Woods, executive
director of the Gaming Control
Board, said relations with the
clubs have improved.
Weve had to shut down five
or six over the last few years,
but once the problems were
taken care of, we allowed
those that wanted to reopen,
Woods said.
Most of the problems
stemmed from audit issues
and commingling of operating
funds with money earmarked
by law for charities.
The relationship between the
clubs and legislators has
helped the clubs get changes
they wanted.
Initially, alcohol was banned
from the game rooms in the
clubs. The clubs got that
changed in the Legislature two
years ago although the prohibition still stands for Indian
and racetrack casinos.
This year, the clubs expect to
ask the Legislature to allow
some clubs to have more than
the maximum 15 machines.
Most clubs have only six to
eight machines. A few of the
Bingo moves
elsewhere
Bingo, once the heavyweight
of charity gaming, is a shadow
of its former self.
This year there were fewer
than 150 bingo licensees, down
from almost 300 in the mid1990s, when bingo parlors
grossed $95 million. Last year,
gross revenues for bingo run
by charities were about
$30 million before prizes and
expenses were paid.
Serious bingo players are
more likely to spend their
money at the Indian casinos.
Sandia, for example, has a bingo hall that holds hundreds of
players.
Theres no question casinos
have made an impact on bingo, said Gary Tomada, director of the states Alcohol and
Gaming Division. On-reservation bingo is still very big.
Clubs pay the state 3 percent
of their net bingo win; tribes
dont pay anything under the
compacts and federal law.
Many of the clubs that have
machines also run bingo
games.
We run a bingo and 30 to 50
people will show up, Johnson
said. It is something people
enjoy.
ABOUT THIS
SERIES
DAY ONE: Gambling explodes
after New Mexico takes a
chance.
DAY TWO: Lottery sales are
booming.
TODAY: A slot subsidy revs up
horse racing.
DAY FOUR: Casino barons hit
the jackpot.
DAY FIVE: Problem gamblers are
left largely to chance.
DAY SIX: The economic winners
and losers of gambling.
DAY SEVEN: Regulation, New
Mexico-style: Casinos, hot dogs
and pizza parlors.
DAY EIGHT: Another crossroads.
Find this series on the Web
at abqjournal.com.
ALBUQUERQUE JOURNAL
HOME-OWNED
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4 SECTIONS
PART 4
Daily 50 cents
Stan Fulton
Fulton, through a
company called My
Way Holdings,
owns Sunland
Park, the states
most profitable
racetrack and casino, located near El
Paso.
Fulton, 73,
FULTON: Likes
resigned in 2000
from Anchor Gam- to sit in the
directors box
ing, a major U.S.
gaming company
he founded more than a decade earlier.
Anchor bought stock held by Fulton at an estimated cash value of
$240 million. Also as part of the
deal, Fulton took over ownership of
Sunland from Anchor.
I figured it would be nice to sit in
the directors box and watch the
ponies run, then go downstairs and
hand out a trophy to the winner, he
has said.
Fulton also has said his two
remaining life goals are to make
Sunland Park a world-class operation and to give away a lot of money.
He has given money to the University of Nevada, where the Stan
Fulton Building houses the Interna-
Paul Blanchard
Blanchard, an Albuquerque contractor and developer, owns 25 percent of the Downs at Albuquerque
and 15 percent of Zia Park.
Hes also an FOB. Thats Friend of
Bill, as in Gov. Bill Richardson. The
governor appointed him to a powerful state board and he literally sits
at Richardsons right hand.
Blanchards wife is Kandace Blanchard, executive director of the
New Mexico Council on Problem
Gambling. The council is a nonprofit organization that operates a telephone help line and provides other
services for troubled gamblers.
The Blanchards have a 35,000acre ranch in northeast New Mexico
valued at $4.8 million and a home in
Albuquerques North Valley valued
at $3.9 million.
The home, formerly owned by
health-care executive Andrew Turner, is a sprawling residential and
equestrian complex and has been
jokingly called the Taj MaHorse.
Its given name is Rio Ranchito.
The couple has 15 horses at the
home. He competes in steer-roping
and she in barrel-racing.
Paul Blanchard says the decision
to get into the horse-racing industry
was primarily a business deal, but
we are horse people.
R.D. Hubbard
Hubbard owns 71 percent of the
Ruidoso Downs track and casino
and 55 percent of the Zia Park racino in Hobbs.
He has amassed $200 million or so
in wealth since his humble beginnings in a small Kansas town. His
early jobs included carrying ice for
the family ice business and selling
Fuller brushes.
He and his wife, Joan Dale, give
away millions of dollars each year
for the arts, education and other
causes in New Mexico and elsewhere.
Hubbard got into trouble in 2002
with Indiana gaming regulators
over allegations that prostitutes
entertained high rollers at a golf
tournament hosted by Hubbard at a
casino development.
Edward Allred
Allred, longtime partner and golf
buddy of R.D. Hubbard, owns 24
percent of Ruidoso Downs and 15
percent of Zia Park.
Allred, who is in his late 60s, also
is the sole owner of the Los Alamitos Race Course in Orange County,
Calif.
But he is perhaps best known for
being a doctor.
The Los Angeles Times reported
in 2002 that Allred owned one of the
nations largest privately held
chains of abortion clinics, Family
Planning Associates Medical Group,
with offices in California and Illinois.
Allred has been dogged for the
last 25 years by comments he made
to a newspaper reporter about Hispanics and African Americans.
He said in 1980 that Hispanic
immigrants had a lack of respect
for democracy and social order. Id
set up a (abortion) clinic in Mexico
for free if I could, he said.
Allred also said, When a sullen
black woman of 17 or 18 can decide
to have a baby and get welfare and
food stamps and become a burden
to us all, its time to stop.
Asked about those comments, he
told the Los Angeles Times in 2002,
Thats just not the way I am.
O.D. McDonald
McDonald owns 25 percent of
Albuquerque Downs and is president of Westland Corp., an Albuquerque owner of commercial property.
He and Paul Blanchard, another
investor in the Downs, have been
business partners since 1992 and
have interests in several commercial properties.
McDonald, in a report filed with
the Racing Commission in 1999, said
he had a net worth of about $20 million.
He is credited with helping Blanchard recover from financial troubles in the 1980s and early 90s.
McDonald, 82, is a law school
graduate. He grew up in an orphanage in Oklahoma City and later
attended the Naval Academy in
Annapolis, Md., Blanchard says.
He epitomizes the officer and
gentleman, Blanchard says.
He says McDonald is a longtime
horse-racing fan and was the driving force behind their decision to
buy into the Downs in 1999.
ABOUT THIS
SERIES
DAY ONE: Gambling explodes after
New Mexico takes a chance.
DAY TWO: Lottery sales are booming.
DAY THREE: A slot subsidy revs up
horse racing.
TODAY: Casino barons hit the jackpot.
DAY FIVE: Problem gamblers are left
largely to chance.
DAY SIX: The economic winners and
losers of gambling.
DAY SEVEN: Regulation, New Mexicostyle: Casinos, hot dogs and pizza
parlors.
DAY EIGHT: Another crossroads.
Find this series on the Web at
abqjournal.com.
BY THOMAS J. COLE
Journal Investigative Reporter
EDDIE MOORE/JOURNAL
10
ALBUQUERQUE JOURNAL
from PAGE 9
Finding prosperity
I get screwed
so much
Blanchard says Richardson told
him he vetoed the longtime lease language because Blanchard hadnt
come to him to explain the proposal.
Blanchard says it doesnt make
sense for his group to make significant improvements to the Downs
without the guarantee of a long lease.
He says he told Richardson after
the veto, I wished I hadnt been a
supporter. I wished I hadnt been a
contributor. When the governor
asked why, Blanchard says he told
him, Cause I get screwed so much.
Blanchard says he also told a
Richardson aide that he was getting
counseling at the rape crisis control
center. He adds, Its like all of these
stories about people getting deals
(from the administration). Im waiting for one.
The Fair Commission has hired an
architect and a gaming consultant to
study whether it should build a new
casino for the Downs, possibly at the
corner of a busy intersection.
The current casino is cramped and
inconvenient, limiting its ability to
make money for Blanchard and his
PAT VASQUEZ-CUNNINGHAM/JOURNAL
Albuquerque businessman Paul Blanchard, shown here with Socks, competes in steer-roping competitions and has
horses at his home and ranch.
partners, as well as produce tax dollars for the state and purses for horse
racing.
Also, the Downs is seeking nearly
$271,000 from the Racing Commission
to cover what it says are extra costs
for rebuilding the $4 million-plus
horse barn at the fairgrounds. The
construction work was done by a Blanchard company.
Success,
then trouble
Paul Emir Blanchard was born in
Chicago in November 1949. His mother was born in San Salvador and
raised in Nicaragua, he says. His
father was from Oregon and served
during World War II as a Navy pilot.
The two met in Miami.
Blanchards father died when he
was 16 and his mother moved the
family to Miami.
He attended a private high school
in Coral Gables and the University of
Miami.
Blanchard transferred to the University of New Mexico and played
football for two seasons, in 1970 and
71. He was listed as a 6-foot, 218pound middle linebacker.
He had a falling out with his coach
and didnt play his senior year. He
also didnt graduate, falling a few
hours short of earning a degree.
I was poor. I was very poor, Blanchard says. I just didnt have the
money to finish those last nine hours.
So I went to work.
Isolated incidents
The federal government was
among those who wanted a piece of
Blanchard.
In addition to back taxes, it wanted
the repayment of money loaned to
Blanchard Development & Construction by a federally backed small-busi-
EDITORIAL
ALBUQUERQUE JOURNAL
T.M. PEPPERDAY, Publisher 1926-1956
C. THOMPSON LANG, Publisher 1956-1971
B2
11
ALBUQUERQUE JOURNAL
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PART 5
Daily 50 cents
Losing Streak
In a state where gaming has exploded,
problem gamblers wind up hurting more
than just their wallets
Fifth in a series
BY THOMAS J. COLE
Journal Investigative Reporter
THE TORMENTED
Lionel Griego
Lionel Griego pulled his
truck into the Capitan Cemetery sometime Saturday night
or early Sunday on a weekend
in November 2001.
A prison guard, Griego had
just gambled away his pay at
the Mescalero Apache casino.
He also had been drinking
Miller Lights from an ice chest
in the front seat.
Griego parked next to his
fathers grave and removed a
blue blanket from the truck.
He then cut or tore strips from
the blanket to
make a 6-foot7-inch rope.
Griego, 54, a
husband,
father and
grandfather,
hanged himself from a
cedar tree.
His widow,
GRIEGO
Gloria, says
Griego began
playing slot
machines several years before
when they became available
on the Mescalero Apache
Reservation.
As time passed, he spent
less time with his family and
gambled more, losing paycheck after paycheck. He tried
to quit, once attending a Gamblers Anonymous meeting and
even voluntarily having himself banned from the casino,
Gloria Griego says. She says
he still managed to get in.
An executive at the
Mescalero Apache casino
declined to comment for this
story.
Gloria Griego says she had
nightmares about trying to
See THE TORMENTED
on PAGE 12
RICHARD PIPES/JOURNAL
Lionel Griego, tormented by his gambling problem, hanged himself from a cedar tree at his fathers grave in the
Capitan Cemetery. Griegos marker is decorated with flowers, crosses and angels.
The states leaders, he says, dont
want to upset gambling interests,
which not only help fund government, but also make large contributions to political campaigns.
Its a conscious decision on the
part of many politicians, quite
frankly, Clark says. Public servants ought to take better care of
the citizens of the state.
tracks must set aside for programs for problem and pathological gambling. Thats the
source of most funding for
Blanchards group.
Blanchard says her position
on the Health Department
takeover isnt taken out of selfinterest.
Even if the Health Department took control of the purse
strings, the New Mexico council would likely survive as a
department contractor, she
says. We would still be in
business, Blanchard says.
Blanchard earned $129,302
in the councils 2002 tax year,
its return shows.
She says the 2002 wages
included some pay she had
foregone in leaner years. She
says her current annual salary
is $124,997.
Blanchard took over the
12
ALBUQUERQUE JOURNAL
from PAGE 11
The money
Under their gaming compacts, or agreements, with the state, tribes with casinos
must spend at least one-quarter of 1 percent of the take from their slot machines
on prevention, treatment
and assistance programs
related to compulsive
gambling. That will
amount to about $1.4 million this year.
State law also requires
tracks to spend at least
the same percentage from
their slots about
$439,000 this year.
CLARK:
The Legislature didnt
Gambling
impose such a mandate on
industry relies
the state lottery but
on problem
authorized it to spend
gamblers
money on compulsive
gambling rehabilitation.
The lottery said it will spend about
$193,000 this year.
The money set aside for problem and
pathological gambling programs is small
compared to what troubled gamblers
spend wagering.
Problem and pathological gamblers are
some of the industrys best customers.
Studies estimate troubled gamblers
account for 15 percent to 50 percent of
industry revenues.
They wouldnt survive without problem
gamblers, says Clark of the New Mexico
Coalition Against Gambling.
MARLA BROSE/JOURNAL
THE TORMENTED
THE RECOVERED
Lionel Griego
Everett G.
from PAGE 11
RICHARD PIPES/JOURNAL
Sources: The National Gambling Impact Study Commission, New Mexico Council on Problem Gambling, Gamblers Anonymous and National Research Council
PAT VASQUEZ-CUNNINGHAM/JOURNAL
13
ALBUQUERQUE JOURNAL
BY THE NUMBERS
0
Amount of money state government spends on specific
programs for problem or pathological gambling.
9
Years since New Mexico last conducted a study of
troubled gamblers.
177,000
New Mexicans with some type of gambling problem,
according to 1996 study.
1,236,047
New Mexicans who live in a county with at least one
casino.
$84,265,605
State governments estimated take this year from taxes and revenue-sharing payments on slot machines.
Sources: 2000 Census and New Mexican
Gaming Control Board
The
pathological gambling.
While veterans and fraternal clubs
arent required to spend a percentage
of their slot winnings on problem and
pathological gamblers, they, like the
tracks, must submit plans to deal
with the problem.
The state Gaming Control Board
mandates the plans and requires slot
operators to train workers on how to
recognize compulsive gambling
behavior, to have procedures to deal
with problem and pathological gamblers, and to have signs and brochures
on how patrons can seek help.
The board moved recently to
restrict how much tracks can spend
on administering their compulsive
gambling programs to prevent possible abuse.
The state
Citing a lack of in-house expertise,
the Gaming Control Board last year
entered into an agreement for the
state Health Department to review
the compulsive gambling plans submitted by tracks and clubs.
The departments role, however,
will be limited to making recommendations to the Gaming Control Board
on whether a program should be
approved or rejected.
George Wallace of the departments
Behavioral Health Services Division
says the goal of the agreement is to
make compulsive gambling programs
more professional and to better target dollars.
Were trying to raise the bar incrementally, Wallace said.
Clark is critical of the arrangement, saying the Health Departments role is nothing more than that
of bystander.
The young
How New Mexico deals with problem and pathological gambling is
especially critical when it comes to
children.
We have the first children that are
going to go from the cradle to the
grave with gambling, says Donna
Marie Giaquinto, a Los Alamos counselor who works with troubled gamblers.
Studies have found that rates of
problem and pathological gambling
are higher among adolescents than
among adults despite gambling age
restrictions.
Studies also show that the earlier in
life a person starts gambling, the
more likely he or she is to become a
problem or pathological gambler.
Private gambling, lotteries and unlicensed gambling are the most likely
forms of wagering for those ages 12
to 18, according to the National Gambling Impact Study Commission.
The national commission found that
adolescent pathological gambling is
ABOUT THIS
SERIES
DAY ONE: Gambling explodes after
New Mexico takes a chance.
DAY TWO: Lottery sales are booming.
DAY THREE: A slot subsidy revs up
horse racing.
DAY FOUR: Casino barons hit the jackpot.
TODAY: Problem gamblers are left largely to chance.
DAY SIX: The economic winners and
losers of gambling.
DAY SEVEN: Regulation, New Mexicostyle: Casinos, hot dogs and pizza parlors.
DAY EIGHT: Another crossroads.
Find this series on the Web at
abqjournal.com.
EDITORIAL
ALBUQUERQUE JOURNAL
T.M. PEPPERDAY, Publisher 1926-1956
A8
14
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HOME-OWNED
AND
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112 PAGES
IN
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IN THE
FINAL
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9 SECTIONS
PART 6
Daily 50 cents
ts a trade-off.
Nearly a decade of legalized
casino gambling in New Mexico
has produced new jobs, entertainment and commerce.
And more bankruptcies, traffic
congestion, and an increased need
for police and emergency services,
according to interviews and national studies.
State government has more
spending money. But in some New
Mexico towns, people have lost
their homes, their cars and their
families and now rely on public
assistance.
Its not easy to quantify how gaming has changed New Mexico.
And the state in recent years has
made no serious effort to do so
just as it hasnt studied the issue of
problem gamblers.
Albuquerque attorney Victor Marshall, a longtime opponent of Indian
gaming, said he believes thats
intentional.
We wouldnt want to know the
truth about gambling, would we,
given all the money that they (gambling interests) give to politicians of
both parties and thats whats being
suppressed.
There are the obvious pluses:
Indian casinos and racetracks
employ more than 10,000 people and
more than $84 million will go to
state coffers this year. Last year,
lottery success scholarships went to
more than 10,000 students.
Gaming has been a fast-growing
employment sector in recent years,
with an annual estimated employee
payroll of $630 million, according to
state government estimates.
Most casinos provide entertainment that even non-gamblers can
enjoy: bowling, golf, auto or motorcycle racing events, big-name concerts, and appearances by top-draw
performers.
Nationwide, Indian gambling revenue has helped the poorest minority in the country boost its standard
of living and become more self-sufficient.
But theres a sense that the benefits have come at a price.
Its a golden goose for the tribes,
it brings in a huge amount of money, said Larry Waldman, an economist with the University of New
Mexico Bureau of Business and
Economic Research. From the private sector perspective, its hardly
great.
In the initial years after Indian
casino gambling was legalized,
some New Mexico business owners
blamed it for a slump in sales and
for displacing jobs.
Now, many business and government leaders arent as critical.
Gambling is not our favorite
strategy for building New Mexicos
economy. But it is here to stay, said
Terri Cole, executive director of the
greater Albuquerque Chamber of
Commerce. Our focus is on managing it well.
For example, the state Department of Tourism joined forces with
Indian casinos at the Texas State
Fair last year to promote New Mexico as a tourist destination.
The New Mexico Indian Gaming
Association plans a major economic
impact study this spring, but no
government agency in New Mexico
has attempted a cost-benefit analysis of the state gaming industry
since 1998.
Elsewhere:
One national study of Indian
gaming showed increased employment and lower mortality rates in
counties with casinos. The study
also found that bankruptcy rates,
violent crime, auto thefts and larceny were up 10 percent four years
after a casino opened.
A study in California showed
lower unemployment rates in counties with casinos, high tax revenues
and somewhat higher crime rates
and individual bankruptcy filings.
The National Research Council
reported that while gambling
appears to have net economic benefits for economically depressed
communities, the available data are
insufficient to determine with accuracy the overall costs and benefits
of legal gambling.
National Indian Gaming Association chairman Richard G. Hill has
addressed the critics.
The NIGA encourages all those
who would disparage Indian governmental gaming to, first, add up all
the benefits to their own communities from Indian gaming and what
would happen to the jobs and businesses if Indian Nations and their
economic development were no
longer there.
Thousands of jobs
In 2000, employment in New Mexico Indian casinos was estimated at
5,000 to 6,000, according to the University of New Mexico Bureau of
Convenience stores like this one at Laguna Pueblo dont pay state gross-receipts taxes. But without gaming revenues it is unlikely these small markets would exist.
ROBERTO E. ROSALES/JOURNAL
Defenders of tribal casinos say multimillion-dollar construction projects like the hotel project at Sandia Pueblos
casino fuel the states economy even if they are exempt from gross-receipts taxes.
15
ALBUQUERQUE JOURNAL
Don Padilla
Laguna Pueblos Fire and Rescue units respond to all accidents on I-40 from
Grants to the Bernalillo County line. A new emergency response center is
planned as gaming revenues become available.
Win-win situation
Ten years ago, Gov. Gary Johnson
signed the first compacts to legalize
Indian casino gaming in New Mexico,
saying they were beneficial to
everybody in the state of New Mexico.
He called the agreements a winwin situation.
But not everybody is a winner.
The Maryland study found that four
years after a casino opens, bankruptcy rates, violent crime, auto thefts
and larceny are up 10 percent in
counties with a casino.
Evans study, which was based on
data from the 1980s and 1990s,
included New Mexico.
We dont know why theres an
increase in crime, Evans said
recently. It could be that a lot of the
increase is just the congregation of
people together. Its not problem gamblers going out and mugging people
for money.
New Mexico legislators have introduced bills seeking a portion of state
revenue sharing money to bolster
emergency services in areas near
casinos in Espaola and Grants. So
far, none of that legislation has
passed.
The town of Espaola is also seeking funding to build a bypass around
its main street because of traffic congestion related to the four casinos in
the area.
PAT VELASQUEZ-CUNNINGHAM/JOURNAL
Don Padilla, owner of Frame City and Gallery, and manager Tiffany
Marvel build a picture frame at the shop, which has supplied frames
to Sandia Pueblos casino and government offices.
jobs, and on the other, there are people with gambling problems.
Sessions said gambling may also be
only one factor in a bankruptcy petition.
Brad Wallin, director of education
for Consumer Credit Counseling in
Arizona and New Mexico, said gambling is a factor in about 10 percent of
the cases his agency handles.
Some clients dont always disclose
that they are gamblers, he said, but
credit counselors see the evidence on
their clients financial statements.
You see an ATM charge at Isleta,
and then another and another. Were
presuming thats not at the golf
course, Wallin said.
As executive director of
Espaola public housing,
Leroy Salazar sees the underbelly of gambling.
I deal with that all the
time, Salazar said. Its sad
when I have to go and evict a
family because the single
parent who lives in the home
has spent all the family
income at the casino and they
dont have any food and they
cant pay their utilities, much
less their rent.
Its kind of hard for me to
EDITORIAL
ALBUQUERQUE JOURNAL
T.M. PEPPERDAY, Publisher 1926-1956
A10
16
ALBUQUERQUE JOURNAL
HOME-OWNED
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102 PAGES
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13 SECTIONS
PART 7
Daily 50 cents
MARLA BROSE/JOURNAL
Maxine Velasquez, an Albuquerque lawyer and Laguna Pueblo member, is acting head of the pueblos gaming
control board. She believes the tribes casinos, including Route 66 Casino off Interstate 40 west of Albuquerque, are subject to solid oversight from the tribe, state and federal government.
Solid oversight
Della Meness, left, a gaming inspector for the Salt River Pima-Maricopa
Indian Community, and Jose Rivera, an inspector with the Arizona Department of Gaming, check slot-machine paperwork recently inside the tribal
Casino Arizona outside of Scottsdale. Arizona believes such dual regulation is the best way to oversee that states 22 tribal casinos.
RICHARD PIPES/JOURNAL
The bright lights of the Casino Apache Travel Center outside of Ruidoso beckon passing travelers on U.S. 70. The travel center is one of two casinos operated by the Mescalero Apache
Tribe, and both of the tribal casinos up until recently had been serving alcohol on their gambling floors.
17
ALBUQUERQUE JOURNAL
N.M.s rules
Under federal law, tribes
themselves are the primary
regulators of their own casinos, and most casino-operating
tribes around the United States
have gaming commissions.
The New Mexico compacts
specify that the tribes are primarily responsible for enforcing regulatory sections of the
compacts.
Among other things, the compacts require tribes to establish
laws and provisions that:
Require all slot machines
to pay out at least 80 percent of
what is pumped into them over
the lifetime of the machine.
Prevent their casinos from
serving alcohol on the gambling floor or to intoxicated
patrons.
Mandate that all slots in a
casino be connected to a computerized reporting and auditing system.
Limit the number of hours
a casino can be open to no
more than 20 hours a day during the week.
Require tribes to keep all
gambling books and records
in accordance with generally
accepted accounting principles.
In exchange for a promise
that the state will limit nontribal gambling competition, the
compacts require the tribes to
pay the state up to 8 percent of
their net slot revenues an
arrangement that pumped
more than $9.5 million into the
states coffers in the third
quarter of last year alone.
The New Mexico compacts
also give the state the right to
inspect Indian casinos, all
gambling that takes place
inside and all on-site tribal
gambling records to ensure
the tribes are holding up their
share of the bargain.
The Gaming Control Board
said it has access to wager and
payout data from the tribal
slots. The data is used to reconcile tribal quarterly report
information that also is provided to the state.
The compacts also specify
that tribal casinos at least once
a year must undergo an independent audit, with the results
going to the state.
Board chairwoman Lopez
asked that all questions concerning the boards compliance work with tribal casinos
be submitted in writing.
Basically meaningless
While the board refused to
say whether investigators routinely checked tribal casinos
because it would violate the
integrity of the investigative
process, it doesnt appear an
answer would tip off the tribal
casinos to any surprise visits:
Under the compacts, state
investigators must announce
themselves when entering the
casinos.
The state either doesnt ask
or cannot get straight
answers to questions, said
Victor Marshall, an Albuquerque lawyer, former state
senator and opponent of casino
gambling.
On paper, theres an elabo-
MARLA BROSE/JOURNAL
Jay Bautista, a Laguna Pueblo tribal gaming regulator, watches over the table games recently at Route 66 Casino.
said.
Alan Fedman, National Indian Gaming Commission director of enforcement, said his
agency has about 70 employees nationwide working with
tribes to ensure casinos are
following federal rules.
Five of the federal investigators are assigned to a region
that includes New Mexico, Arizona, Colorado and a portion of
Nevada. Additional federal
auditors make routine visits to
New Mexico as well, Fedman
said.
There are 400-plus tribal
casinos nationwide.
Fedman said federal regulators work primarily to make
sure tribal casinos are complying with federal rules such as
internal accounting standards,
licensing of key employees
and the filing of the required
financial information.
The compliance of the
terms of the compact are, as a
general matter, left between
the tribes and the state, Fedman said.
They walk around the floor. Primarily, theyre looking at surveillance tapes
to see if anything has gone on. For
instance, if we did a money drop and we
didnt follow all (of the boards) internal
controls, we would get a citation, Rimbo said.
Theyll tell us the littlest things you
can imagine (like) Make sure your
tellers show their hands on the cameras
before they count out money, Rimbo
added.
Every I and every T is dotted or
crossed. It creates an environment
where the public can be safe. The public
can be really confident theyre getting
the payback theyre supposed to get.
Secret documents
The Gaming Control Board
has initiated a dozen noncriminal cases against various nonprofit clubs since January
2003. It also has pursued nine
noncriminal cases against the
tracks.
ABOUT THIS
SERIES
DAY ONE: Gambling explodes
after New Mexico takes a
chance.
DAY TWO: Lottery sales are
booming.
DAY THREE: A slot subsidy revs
up horse racing.
DAY FOUR: Casino barons hit
the jackpot.
DAY FIVE: Problem gamblers are
left largely to chance.
DAY SIX: The economic winners
and losers of gambling.
TODAY: Regulation, New Mexicostyle: Casinos, hot dogs and pizza parlors.
DAY EIGHT: Another crossroads.
Find this series on the Web
at abqjournal.com.
18
ALBUQUERQUE JOURNAL
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HOME-OPERATED
252 PAGES
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PART 8
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ew Mexico is at a gambling
crossroads, facing its biggest
public-policy questions since
approving casino gaming and a
lottery.
There are more questions than
answers.
Will New Mexico allow Indian
tribes to build off-reservation casinos? Will tribes with relatively
remote locations be able to put casinos in populated areas, like the corridor connecting El Paso and Las
Cruces?
Will the state expand the number
of horse tracks with casinos? Will
the economic-development needs of
towns like Raton and Tucumari
trump the interests of the racing
industry?
New Mexico also faces less
meaty, but nonetheless important,
questions about gambling expansion.
Should bars and restaurants,
which say their cash registers
arent ringing like they did before
casino gambling, get a chance to
compete with their own slots?
How about allowing track casinos
to be open more hours or having the
state Fair Commission build a new
casino for the operators of the fairgrounds track?
The state lottery also may renew
efforts to add a fast-paced keno
game to its menu.
The continuing push to expand
the gambling industry is no surprise, given the money at stake.
New Mexicos 13 gaming tribes
are raking in an estimated $592 million a year from gamblers. Racetracks will take in close to $175 million from slots.
Former state Rep. Max Coll, a
Santa Fe Democrat who helped lead
the effort to prevent casino gambling in New Mexico, says the gambling industry is a greedy business
that has the money to pursue its
interests.
They have the ability to protect
themselves, expand, get bigger and
bigger, Coll says.
State government, a benefactor of
casino gambling and its biggest
beneficiary, is projected to take in
about $84.4 million this year from
gambling. That figure includes revenue-sharing payments from tribes
PAT VASQUEZ-CUNNINGHAM/JOURNAL
Dealer Raelene Henry, center, and pit manager Paul Lamb are among the workers at Sandia Casino near Albuquerque, the most successful Indian casino
in New Mexico. Thirteen tribes operate casinos in the state and at least five more are considering getting into the business.
Location matters
As in real estate, location is just
about everything when it comes to
casino gambling.
In large part because of their
locations, some New Mexico tribes
have benefited greatly, others less
so and some not at all from federal
and state law legalizing tribal casinos.
For example, Sandia Pueblo,
BY MIKE GALLAGHER
Journal Investigative Reporter
ROBERTO E. ROSALES/JOURNAL
PAT VASQUEZ-CUNNINGHAM/JOURNAL
Sandia Pueblo Gov. Stuwart Paisano and the Tribal Council Santa Ana Pueblo Gov. Leonard Armijo expects off-reservation
stress the importance of traditional values.
gaming to expand in the future. Whats important, he says, is
how the tribe will benefit before that happens.
what they see as a bonanza.
The current gaming tribes
are preparing for this and
expect it to happen in the nottoo-distant future but not
without a fight.
Maybe it is what they see as
the history of broken government promises that makes
tribal leaders fatalistic about
the future of Indian gaming.
Or maybe it is the simple
wisdom that acknowledges
that when it comes to money,
everyone wants some.
We have to diversify our
economy. Whos to say offreservation gaming wont
Much uncertainty
Sandia Pueblo Gov. Stuwart
Paisano said, We have to
move away from relying on
gaming revenues. There is too
much uncertainty. The compacts expire in 2014 but we
expect an increase in off-
hole.
Dorame said he expects
efforts to expand gambling to
grow stronger in the coming
years but warns that any
expansion of off-reservation
gaming will violate the compacts.
We may have to look at
whether another racino (racetrack casino) will result in a
reduction in what we pay the
state, Dorame said.
That expansion includes
plans that Pojoaque Pueblo has
kicked around for several
years to reopen the Santa Fe
Downs racetrack just south of
Santa Fe.
Pojoaque is locked in a civil
lawsuit with the state over
whether the 8 percent payment portion of the compact is
legal. The lawsuit had held up
Pojoaques expansion efforts.
19
ALBUQUERQUE JOURNAL
The tracks
Raton has a history of horse
racing. The towns La Mesa
Park opened in 1946 but went
out of business in 1992. The
track had been the oldest in
New Mexico.
Farmington
Navajo
Jicarilla Apache
SunRay Park
Taos
San Juan
Santa Clara
Pojoaque
Gallup
San Felipe
Santa Ana
Navajo
5
Horse-racing tracks
with slot machines
in New Mexico.
Nambe
Tesuque
Santa Fe
13
Tucumcari
Sandia
Tohajiilee
Laguna
Acoma
BY THE
NUMBERS
Raton
40
Albuquerque
Downs
Isleta
NEW MEXICOS
CURRENT AND
PROPOSED CASINOS
AND RACETRACKS
Current tribal
casino sites
Possible new
tribal casinos
Current
racetracks
with casinos
Possible new
racetracks
with casinos
Ruidoso Downs
Mescalero
Apache
Zia Park
Hobbs
Las Cruces
Picuris Pueblo
El Paso
NEW MEXICO
TEXAS
MEXICO
CATHRYN CUNNINGHAM/JOURNAL
$43.9
million
$39.3
million
25
Commission approval to
reopen the Santa Fe track,
closed since 1997. Approval
for additional tracks appears,
at best, less certain.
Any additional track would
have to wait a couple years,
commission Chairman Jack
Cole says.
Cole says he understands
that Raton and Tucumcari
need economic development
but that his job is to protect
the health of the horse-racing
industry, not pave the way for
the profitable casinos that now
go along with tracks.
Im not an advocate for proliferation of casinos, Cole
says.
The concern of Cole and others is that the industry doesnt
THE TRIBE
Jemez Pueblo
Barbara Solano
Guy Clark
ADOLPHE PIERRE-LOUIS/JOURNAL
RICHARD PIPES/JOURNAL
ADOLPHE PIERRE-LOUIS/JOURNAL
Barbara Solano, a part-time bartender at the Veterans of Foreign Wars post in Raton, says a horse-racing track and casino in Raton would provide much-needed entertainment for
the area. The VFW post has just four slot machines.
Guy Clark, an Albuquerque-area dentist and longtime antigambling activist, says he believes the gambling industry will
eventually collapse in New Mexico because of its social and
economic costs.
20
ALBUQUERQUE JOURNAL
BY THOMAS J. COLE
Journal Investigative Reporter
The ears
of lawmakers
Gambling interests also have
done well with the Legislature.
Lawmakers passed a law in
truth, he says.
Clark says he isnt above siding with one gambling interest
who feels its business is
threatened by a expansion proposal by another segment of
the industry.
Gambling interests have
about two dozen lobbyists
working policy makers.
They are among the most
experienced lobbyists in Santa
Fe, with some having served in
the Legislature. Those lobbyists have made many friends
over the years.
The gambling industry has
the money to hire the ones who
are well liked, says former
Rep. Max Coll, a Santa Fe
Democrat.
Effective lobbying
Many of the lobbyists make
political contributions in addition to those by their clients.
Also, some of the lobbyists
have major clients outside the
gambling industry, giving
them even more credibility
and leverage.
Theyre tough; theyre
effective, says Rep. Luciano
Lucky Varela, D-Santa Fe.
The lobbyists for gambling
interests include:
Mickey Barnett, a former
Republican national committeeman who represents Santa
Ana Pueblo. His other clients
include El Paso Electric and
Corrections Corporation of
America.
Odis Echols, a former senator who represents Sandia
Pueblo and the New Mexico
Indian Gaming Association.
His other clients include insurance giant AFLAC and Wells
series.
Dorame also said proposals
for an off-reservation casino
south of Las Cruces would
violate the gaming compacts
and require re-examination
of the revenue sharing agreement.
One of those casino proposals involves Santa Fe businessman Jerry Peters in
partnership with Jemez
Pueblo. Peters is a close associate of the governor and a
major financial campaign
supporter.
Jemez Pueblo is geographically isolated from any major
urban center or interstate
highway. It has no casino and
is desperately poor. It makes
the same arguments the gaming tribes have made for why
it needs a casino.
While sympathetic to
A quick fix
Most of the tribal casinos in
the state are located in two
areas.
Around the Albuquerque
metropolitan area are Sandia,
Santa Ana, Isleta, Laguna and
San Felipe casinos.
In the Espaola Valley
north of Santa Fe are
Pojoaque, Tesuque, Santa
Clara and San Juan casinos.
Leaders in both areas are
concerned that they are running out of gamblers.
Our population growth in
New Mexico cannot keep up
with the growth in gaming,
Paisano said. We dont have
EDITORIAL
ing (sic).
Griegos story is one powerful testament to the
downside of this age-old
vice.
Self-inflicted
wounds?
Perhaps.
But
wounds nonetheless.
The Journals eight-day
series on the rise of gambling in New Mexico
explored this and more.
There are some easy conclusions. For example, the
states efforts to combat
the ills of gambling are
woefully inadequate, and
state regulation of Indian
casinos is cloaked in secrecy.
But questions emerge
with equal prominence.
The state doesnt know
much about the scope of
the social problems, nor
does it have a handle on the
relative economic impact.
In 2003, Gov. Bill Richardson vetoed a study that
would have asked the right
questions which hasnt
been done since the mid1990s.
That was a mistake that
should be rectified, even if
many dont want to know
the answers.
Among the winners, the
states general fund is
healthier to the tune of $84
million this year alone.
Thousands of jobs have
been added to some sectors
of the economy, although
we dont know how many
were lost in others. More
than 30,000 students have
benefited from the states
lottery scholarship.
Some of the most persis-
ALBUQUERQUE JOURNAL
T.M. PEPPERDAY, Publisher 1926-1956
C. THOMPSON LANG, Publisher 1956-1971
B2
Concerns Racing
from PAGE 19
The bars
In addition to new Indian
casinos and tracks, gambling
could expand in other ways in
New Mexico.
One of those is the introduction of slot machines at bars
and restaurants.
The liquor retail industry
has lobbied for years for the
machines and it may make
another push in the legislative
session beginning this month.
Billy Baldwin, an Albuquerque bar owner and president of the New Mexico Hospitality Association, says
liquor licensees cant compete
with casinos.
The last two years have
been pretty tough, Baldwin
says. I dont know if its terrorism or casinos putting
more of a hurt on us.
Baldwin says the association
supports a proposal for five
slot machines per liquor
licensee.
We hope to get somebody to
carry the bill for us in the
session, he says. A lot of the
legislators have seen whats
occurred.
Some legislators in the past
also have pushed proposals
for casino gaming in resort
areas, such as Angel Fire near
Taos.
The National Gambling
Impact Study Commission
found destination resorts create more and better quality
jobs than casinos catering to a
local clientele.
ABOUT THIS
SERIES
DAY ONE: Gambling explodes
after New Mexico takes a
chance.
DAY TWO: Lottery sales are
booming.
DAY THREE: A slot subsidy revs
up horse racing.
DAY FOUR: Casino barons hit
the jackpot.
DAY FIVE: Problem gamblers are
left largely to chance.
DAY SIX: The economic winners
and losers of gambling.
DAY SEVEN: Regulation, New
Mexico-style: Casinos, hot dogs
and pizza parlors.
TODAY: Another crossroads.
Find this series on the Web
at abqjournal.com.