State Relaxes Start Up For Tribes’ Slotlike Machines Charitable Bingos Angered By Change From Locke’S Office

With the blessing of the governor’s office, the Washington Gambling Commission is taking a liberal view on how quickly Indian tribes can acquire a slotlike machine recently legalized in the state.

The decision has irked some operators of the state’s charitable bingo halls, who complain that they are losing customers and revenue to tribal casinos with the new machines.

The move comes after Gov. Gary Locke took a hard line in 1998 to cap at 1,500 the number of machines each tribe could operate. The original negotiations had no limit.

The agreement also limited how quickly the tribes could acquire the machines. Each tribe can start with 425; after a year of operation, they can add 250. Under the agreement, tribes could sell or lease their machines to other tribes as long as no one goes beyond 1,500. The agreement had no specific language on when that can happen.

“It has been conventional wisdom that tribes would have to wait 12 months before they start leasing machines,” said Ed Fleisher, deputy director of the Gambling Commission.

That was also the understanding of the Washington Civic and Charitable Gaming Association, according to board member Stephen Strand, manager of the Big Brothers and Big Sisters of King County bingo hall.

But earlier this year, that provision was questioned by several small tribes wishing to lease their machines away.

“We looked at it and found that the compact language wasn’t clear,” Fleisher said.

Fleisher discussed the issue with Everett Billingslea, Locke’s general counsel, who didn’t oppose letting tribes lease machines in less than 12 months.

“The position from the governor’s office was this was good public policy. We were comfortable with it, if it meant helping smaller tribes get revenues,” Fleisher said.

“This is just allowing the small tribes to benefit from machine gaming a little sooner. Nobody is getting more machines under this,” Billingslea said. “It is good, efficient government to react to constituents’ needs and not be a roadblock.”

But the state’s beleaguered charitable bingo industry isn’t happy. It’s not the tribes they’re mad at, bingo managers say, it’s a governor’s office and Legislature that seems to expand gambling in every sector but theirs.

“If the tribes were able to get this, more power to them. What the tribes do with their gambling revenues is the same thing we do - provide services,” said Rick Newgard, manager of the Seattle Jr. Hockey Association’s bingo hall in Mountlake Terrace.

“Our frustration is that when we go to the Legislature and ask for something we’re told no, because it’s an expansion of gambling,” Newgard said. “The industry has changed, yet we are being told to operate the same way we did 27 years ago.”

The state’s charitable bingo halls have seen a steady decline in their revenues since 1994. Big Brothers and Big Sisters of Spokane County has seen its gambling net drop from $690,000 to $319,000 from 1992 to 1999.

“There are three basic sectors of the industry - card rooms, charitables and tribal. They are always trying to play catchup,” Billingslea said. “If changes are made to one sector, the others feel that. There is no easy way to address that problem. Not that this is necessarily a big change - I see this as common-sense government.”

For two legislative sessions in a row, charitable bingo operators have tried unsuccessfully to get the Legislature to approve an electronic bingo game for their use. Tribes have used the game for several years.

“Basically we are legislated as a dinosaur. We want to compete and there are some things that could help us compete, but they are denied consistently,” Strand said.

The hall Strand manages has seen its profits drop from $775,000 in 1997 to $550,000 in 1999, he said.

“We are getting hardest hit by these (tribal slotlike) games. We get statements by politicians of support, but not actions of support,” he said.

“I am sympathetic to charitable bingos - absolutely,” said Jerry Allen, secretary of the Washington Indian Gaming Association. “I fully expect something is going to happen for them, electronic bingo or something.”