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Senator John McCain, chairman of the Senate Indian Affairs Committee, said on Wednesday that he plans to consider whether Indian casino gaming tribes should be subject to restrictions on their political giving.

Indian casino gaming tribes have, in the past decade or so, emerged as a powerful force in the campaign finance game, buying, some say, a considerable amount of influence with lawmakers. Casino gaming tribes game $7.2 million in donations to political campaigns on the local, state, and federal level during the 2004 cycle of elections.

Since the Indian nations are sovereign entities under U.S. law, they are not subject to the regulations that corporations must follow in regards to campaign finance. Instead of forming Political Action Committees with strict governing rules, as regular corporations that want to donate to political campaigns are required to do, Indian nations may give as they please.

However, many say that this unlimited giving gives the Indian casino gaming tribes undue influence, especially on Congressional members.
“Indian tribes have become a political force, and they have to be looked at that way with regard to political contributions,” said Larry Noble, executive director of the Center for Responsive Politics.

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Residents of cities and towns across South Dakota have recently expressed some qualms about the way in which the city of Deadwood’s take of profits from a nearby casino are being spent.

According to legislation passed in 1995, the city of Deadwood may receive a maximum of $6.8 in casino- derived funds, and the remainder is to be divided among state and local governments. Three years later, in 1998, the voters of Deadwood approved a constitutional amendment which said that all of the city’s casino proceeds that would be allocated to Deadwood had to be used for the historical preservation and restoration of the city. The city’s historical committee is expected to see almost $7 million in casino revenue in 2006- 2007.

However, many Deadwood residents say that the coffers of the state’s historical preservation society should see a greater amount of revenue from the casino. Instead of being used for historical preservation, they say, many of the profits from the casinos are used for regular city projects in Deadwood which should, they contend, be paid for by property taxes.

Bob Kolbe, which is the owner of a clock store and a member of the State Historical Society Board, said that it is unfair that Deadwood uses casino revenues for services that other cities have to pay for with property taxes, such as police and fire department services. That money, he said, was intended to be allocated to historical preservation projects around the state.

Mark Meierhenry, a Sioux Falls lawyer and member of the South Dakota Historical Society board for the past six years, said that he has looked into the issue and agreed with Kolbe.

“I felt that they weren’t spending enough money on what I call true history,” he said. Deadwood was “spending (casino- derived) money on what I thought should be city costs.”

“It was the intention, I think, of the state voters … that part of those funds would go for history. I don’t think the rest of the state is getting their share,” he said.

Meierhenry expressed the hope that the State Legislature would reconsider the issue, since there’s a lot of history to spend their money on” in South Dakota.

Deadwood mayor Francis Toscana defended the city’s use of funds, saying that casino revenues are used to defray the cost of providing police and fire department services for the 1 or 2 million visitors who visit the town’s neighboring casino every year.

“Those are what we call impact funds, and we have presented that to the state historic commission yearly. It’s been approved every year,” he said.

“We’re not a town of 1,300 people - we have to have a larger Police Department,” Toscana said.

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Key lawmakers on Capital Hill are leading a drive to force Native American tribes to limit their casino sites to their reservations. Native American tribes, they say, should only be able to build casinos on land to which they have proven geographical and historical ties.

Bills by Senate Indian Affairs Committee Chairman John McCain, R-Ariz. and House Resources Committee Chairman Richard Pombo, R-Calif., seek to eliminate a loophole in the current law which allows native American tribes to locate their casino sites in locations other than on their reservations, and even in other states.

Most of the United States’ more than 400 tribal casino sites are located on reservations. Around 30 tribes, however, have built casino sites on non- reservation land.

Tribes sometimes seek to build casino sites on non- reservation land because their reservations are not desirable locations for casinos. For example, many reservations are located too far from major highways or tourist destinations to be able to attract enough patrons to make the enterprise worthwhile.

Tribes, however, oppose the move since it will narrow their ability to build casinos. Casinos, say Native American tribe leaders, provide important revenue for their members and redress historical wrongs.

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