Our View: Did Arizona win in Glendale casino deal? It's up to Ducey

The deal that ended a lawsuit over a West Valley casino is being called a “win-win.”

Clearly, the Tohono O’odham won their full-blown casino in Glendale.

Gov. Doug Ducey’s negotiating skills will ultimately determine exactly what Arizona won.

No matter what comes next, Arizona will benefit from ending this long-running legal battle.

The settlement ends all lawsuits over the Tohono O’Odham’s casino in Glendale.

This avoids a legal battle that could have continued for years, racking up billable hours on both sides, using precious resources and prolonging an atmosphere of acrimony that serves no one.

The settlement provides closure. It creates the environment in which tribes that had differences can begin healing the rifts that had developed.

Tohono O’Odham Chairman Edward Manuel said Arizona gets more entertainment, more business and more jobs as a result of allowing the tribe to proceed with plans he says they had every right to pursue.

These are good things.

Did the state really win any concessions?

But it’s hard to shake the feeling that Arizona picked a fight, lost and got few concessions.

The state opposed the Tohono O’Odham casino in the West Valley, arguing the tribe had not been upfront about why it quietly acquired land in metro Phoenix on which it intended to build a casino.

In response, the state withheld permission to operate the kind of Class 3 gaming activities available at other tribal casinos.

While legal challenges played out, the Tohono O’Odham’s West Valley casino near Glendale opened in 2015 with limited bingo-based slot machines.

The settlement announced last week smooths the way for Class 3 gaming – that is, with slot machines, blackjack and house-banked poker – and a liquor license, which is what the Tohono O’Odham wanted all along.

The tribe has been running the limited Glendale operation in a 60,000 square-foot building that was meant as a warehouse. Once the secretary of the Interior signs off on the settlement, the Tohono O’Odham can begin construction on 2-million square foot casino, resort and hotel.

In return, the tribe agreed not to build another metro Phoenix casino in the near term.

The bigger issue: More school funding

There could be additional benefits for Arizona.

This is where Ducey’s negotiating skills come in.

Sixteen Native American tribes operate 23 Class 3 casinos in Arizona. Through revenue sharing agreements with the state, tribal gaming has contributed about $1 billion to Arizona from 2003 to May of 2014, according to the Arizona Department of Gaming.

Ducey has been working with some of those tribes on agreements to renegotiate gaming compacts. He calls this an effort to “modernize” the compacts and “create positive economic opportunities for all Arizonans.”

Because of the ongoing legal challenge, the Tohono O’Odham Nation was not part of those discussions. Now they will take a seat at the table, says Manuel.

Under the current revenue-sharing formula, a large portion of gaming revenue from all the tribes goes to Arizona schools, which need all the help they can get.

K-12 public schools were cut deeply during the recession. A lawsuit on behalf of K-12 alleges the state cut K-12 schools $2 billion in capital improvement and building repair funding in this area along since 2009.

A different lawsuit on behalf of schools was settled last year when voters approved Prop. 123. That settlement gave schools less than voters had previously authorized for inflation funding.

What price is Arizona willing to pay?

Republican lawmakers and Ducey, who vow not to raise taxes, increased funding for schools within the limits of Arizona’s current revenue. Increasing revenue sharing from tribal gaming could be a way to put more money into our schools.

But at what price?

Tribes will argue that they cannot give more to the state unless they increase their own revenue streams. That could happen by changing mandated payouts at the casinos and/or allowing increased numbers of gaming machines, blackjack and poker tables.

EDITORIAL:Casino deal seems like a win-win, but will tribe accept it?

Another way to increase tribal gaming revenues is to allow expanded Las Vegas-style gaming that is now prohibited, such as dice, baccarat and roulette games.

Is Arizona ready for that?

Ironically, the arguments against the Tohono O’Odham’s West Valley casino included concerns about importing more of a Vegas vibe into our Valley.

Tribes that witnessed the Tohono O’Odham battle with the state may think they can drive a hard bargain.

Ducey needs to be a skilled negotiator. He also needs to understand that this is not just about increasing revenue from tribal gaming. It is also about maintaining Arizona’s very un-Vegas character.

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