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Spokane, Washington  Est. May 19, 1883

Babbitt Prepares Regulations To Ease Tribal Casino Approval New Rules Would Allow Gambling Over Objection Of State Officials

Associated Press

Interior Secretary Bruce Babbitt is preparing regulations that would let him approve Indian casinos over the objection of governors and other elected officials who don’t want tribal gaming in their states.

The plan, not yet published as a formal proposal, has infuriated governors and lawmakers and is certain to provoke critics who have accused Babbitt of playing campaign politics with Indian casinos in the Midwest.

Sen. Richard Bryan, D-Nev., said that if Babbitt succeeds, he could open the floodgates for tribal casinos in California, which could pose a significant threat to the gaming industry in Las Vegas.

Bryan called Babbitt on Thursday to protest the secretary’s efforts.

Gov. Bob Miller said Babbitt’s proposal would be disastrous for Nevada. “The fact that California provides a majority of the Nevada market speaks for itself,” he said.

Sen. Harry Reid, D-Nev., said through a spokeswoman that he is concerned about any effort to force states to defy their own laws, but he wants a chance to study the proposed rules in detail.

Babbitt is under investigation by Justice Department prosecutors in connection with allegations that he denied an Indian casino license to a group of Wisconsin tribes after rival tribes donated almost $500,000 to the Democratic party.

Three Chippewa tribes sought permission to build a casino in Hudson, Wis., in 1995, a plan that was opposed by neighboring tribes that were afraid they would lose business at their own casinos.

An Interior Department official initially approved the application, but Babbitt overturned the decision, even after the Chippewas hired his former law partner, Arizona attorney Paul Eckstein, to lobby on their behalf.

Testifying earlier this year before the Senate Government Affairs Committee, Babbitt vehemently denied that campaign contributions influenced his decision, but he acknowledged that three of his aides were contacted in the days before he made his ruling by the office of White House official Harold Ickes, a key fund-raiser for President Clinton in 1996.

Attorney General Janet Reno last month extended to 90 days the probe of Babbitt’s involvement with the casino license.

Interior Department spokeswoman Stephanie Hanna said with the proposed rule changes, Babbitt is trying to provide an option to tribes frustrated by states that refuse to negotiate gaming compacts.

The Supreme Court ruled last year that tribes cannot sue states to force them to negotiate. Tribes immediately turned to Babbitt for help, arguing he has the authority to approve gaming operations if states won’t.