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Published - Thursday, September 18, 2008

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Ho-Chunk, state settle dispute over gambling compact


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MADISON — The Ho-Chunk tribe agreed Wednesday to pay the state $60 million immediately to resolve a gambling compact dispute that left a huge hole in the state budget.

That payment is $12 million less than the state said it was owed, but the deal was praised as the end of a long court fight that left lingering questions about the health of the budget.
“With this compact, we can now put these disputes behind us and work together in the future,” said Department of Administration Secretary Michael Morgan.

Included in the $60 million payment is $1.5 million in attorneys’ fees owed to the firm that worked the case for the state. Going forward, the tribe agreed to pay the state 5 percent on winnings — or revenue after payout — at its casinos that are below $350 million. Anything above that and payment to the state will be 5.5 percent.

Under the old compact, the tribe would have paid a 6 percent tax on its winnings. Under deals the state has with other tribes operating casinos, the Potawatomi make payments at 6.5 percent of winnings and the Oneida pay 4.5 percent, increasing to 5.5 percent when winnings are above $350 million.

The Ho-Chunk operates casinos offering Las Vegas-style games in Baraboo, Black River Falls, Nekoosa and Tomah. A new casino is opening next month in Wittenberg.

It also runs a bingo parlor in Madison.

Its new deal can be renegotiated after 25 years.

“While neither the Ho-Chunk Nation nor the state got everything we asked for, we are happy that this matter has come to a long anticipated conclusion,” said Ho-Chunk Nation President Wilfrid Cleveland.

The deal was finalized after both sides worked with an arbitrator as ordered by a federal judge in June.

“The federal arbitration was thorough and let both parties work toward this conclusion,” Gov. Jim Doyle said in a statement. “The agreement is in line with other gaming compacts we have in Wisconsin and allows us all to move forward.”

The co-chair of the Legislature’s budget-writing committee, Rep. Kitty Rhoades of Hudson, said it was good to have the dispute resolved.

“Now we know where we’re at,” she said. “It’s somewhat predictable. It’s not the ongoing question of ‘Are we going to lose even more.’ Resolution is good.”

The state sought payment from the Ho-Chunk under a gambling compact Doyle signed with the tribe in 2003. The compact gives the tribe perpetual gambling rights and additional games in exchange for much larger payments to the state.

The tribe argued that it owed nothing following a state Supreme Court ruling in 2004 invalidating a similar compact with the Forest County Potawatomi that expanded gaming.

The Ho-Chunk stopped paying the state annually in 2004, though it made a one-time $30 million payment in 2006 that it said was done to show it was negotiating in good faith.

There was more good news for the budget on Wednesday. The state Department of Revenue reported that preliminary tax collections for the last fiscal year were $173.1 million more than originally projected, but about half of that was due to tax returns being processed faster than in the past.

How those numbers, along with the new Ho-Chunk deal, affect the budget will be outlined in a report due Oct. 15 from the state Department of Administration.
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kayoz wrote on Sep 19, 2008 12:26 AM:

" why do you people care so much about the american bison? dont you realize that the government paid people to try and kill all of them off as a way of controlling the Native Tribes? especially the Lakota of south dakota and other plains Tribes? they SHOULD be paying OUR money to try and preserve some part of a culture that we AMERICANS more effectively eradicated than hitler did..... "

Myturn wrote on Sep 18, 2008 9:57 PM:

" Senior Advocate- Unlike many of our local leaders. My thought has always been to place everything up on the table, everything! Don't worry if I come at you or anybody else with a bar of soap I will give everybody notice first. Schemes? LOL. Bring out all the information, advertise it availability, share it, now ask for show of hands? Wow, what a concept. "

Myturn wrote on Sep 18, 2008 9:14 PM:

" Oh, I forgot Wild Rice up at the Lake. "

Myturn wrote on Sep 18, 2008 9:13 PM:

" Senior Advocate-
I am sorry but I do, and did not feel that we should hand a 'Turn-key' business over to the Tribes. I also will bother you some more and do not like the idea of Casinos at all. Filled with the elederly and those that least afford to gamble what little money they have. We don't agree, handle it! There are other issues I do not agree with, and they are in regard to fishing and hunting rights. "

hemipowered wrote on Sep 18, 2008 3:15 PM:

" sixth inning rox 4-2 crew "

packer backer wrote on Sep 18, 2008 1:55 PM:

" Hemi, that is ok with me and I hope the State gets theres. It is through a federal grant to feed the buffalo. I would not have a problem with-it if they were building a new school, getting a firetruck, something for the community. But we need to start prioritizing these grants. I still feel the Ho-Chunk have enough money to feed their buffalo, if not get rid of them! No matter how you spell "grant" it is still our money they are giving away! Go Brew Crew!! "

hemipowered wrote on Sep 18, 2008 1:40 PM:

" Packerbacker, bigspender, myturn the State is gonna get their $$ no matter how much you express your veiws. The State and the HCN I think want to put this behind them and move on to more important things. I that ok with you. G2G Brewers just tied it up. "

packer backer wrote on Sep 18, 2008 1:09 PM:

" Hey senior go take your Geritol, your getting light headed again! So you think a million dollar operation as the Sovereign Nation of the Ho-Chunk should get ARE tax dollars to put fertilizer on pasture land? Alrighty then! This NATION (US of A) is BROKE! Give, give, give who's paying for it? The well is dry there pops, plain and simple, and we are giving it away to feed a buffalo, gezz! The Ho-Chunk are the only ones that can yell JACK-POT on this one! "

Senior Advocate wrote on Sep 18, 2008 1:00 PM:

" Well "Myturn" Once again I was reminded that no matter how long you have been around their are on occation some people that can fool you. Sometimes it takes issues such as this one to bring out the true person. The likes of you an Packer Backer really shows off your true human characteristic, either you two have no clue, which is a bit hard to swallow, or this is really your true selves. How Sad. I hope you do not get on the council, who knows what hair-brained schemes may come out of that. "

hemipowered wrote on Sep 18, 2008 11:49 AM:

" Ho-Chunk Nation Gaming....Where The Winners Are!!!
Another 25 years of Winners!!!
Have a Lucky Day!! "

Myturn wrote on Sep 18, 2008 11:45 AM:

" Hey wiseup- Didn't we just have the Governor of Kansas up here in Lacrosse stumping for Democrats as well. Native Americans hollering about the good things this money can do. Well when you 'spoon feed' a monopoly it is not hard to accomplish, or even fair. "

wiseup wrote on Sep 18, 2008 11:30 AM:

" How about all the contributions the native tribes made to the Kansas Democrat party that was funnelled back to DOYLE's campaign? No wonder Doyle signed an illegal LIFETIME compact with the tribes~ the 1st thing he did as governor! Doyle's 2nd thing was to ban gambling in taverns because they compete with DOYLE'S tribes! Doyle wants to ban smoking/cigarettes EXCEPT in the TRIBES CASINOS! Bars with gambling are forced to pay Wis sale tax 5.5% on EVERY GROSS DOLLAR and income tax on ANY profit and the tribes DON'T pay either! The very least Doyle should get 5.5% from his tribes gross revenue! "

packer backer wrote on Sep 18, 2008 11:06 AM:

" I am with myturn. Those P.R. or whatever radio spots get my blood to boil. Someone explain to a dumb dumb like me, how a sovereign nation of Ho-Chunk can get a federal grant of $120,000 buck-a-roos to fertilize the pasture of a buffalo farm? You mean the Ho-Chunk Nation does not have enough money of their own to call up the local co-op and spread some fertilizer on the buffalo pasture. So if I raised a couple buffalo I can get a federal grant to spread fertilizer on it? Again this one is flying about 30,000 feet over my head! Tighten those machines down boys, we need to spread some hmmm well fertilizer. "

nana3 wrote on Sep 18, 2008 9:27 AM:

" Sorry it was Majestic Pines, not Treasure Island. "

nana3 wrote on Sep 18, 2008 9:26 AM:

" The casinos provide entertainment for many people. I love to go, and I don't spend much, just the money I set aside for that purpose. The government is always trying to get money from any source they can! My friend and I went to Treasure Island yesterday, we just happened to be very close to a woman who won $595,000.00, that was so exciting. It is a thrill to think you might win. I know that kind of winnings seldom comes along, but even small wins are fun. "

Senior Advocate wrote on Sep 18, 2008 9:20 AM:

" To Big Spender:The gov. takes our money for taxes, now you want them to control how we spend what we have left. You cannot stop gambling, you cannot stop drinking, its been tried and millions in tax dollars went down the drain for this. I do not gamble but will not tell others how to spend their money, you and I have not the right to do this. considering the documented genocide attempt againts the native americans in the past, this has been a great benefit and help to them. Perhaps you want to increase taxes to cover the good things they now do with the money from the casinos? or do want to see if this time we can starve them out of existance alltogether? You Clown! "

hochunkguy wrote on Sep 18, 2008 9:16 AM:

" Alas, the Ho-Chunk nation and state agree on wha the tribe offered five years ago! Great job for the Democrat party Doyle-folks on this one. "

Nizuminageiga wrote on Sep 18, 2008 9:06 AM:

" Ho-Chunk Nation local economic impact facts (2007):
Jackson County: Vendor payments $3,709,251.24; property taxes paid $203,654.57; payroll paid to residents $18,868,046.23.
Monroe County: Vendor payments $1,607,400.23; property taxes paid $98,754.19; payroll paid to residents- $98,754.19.
The Ho-Chunk Nation currently has 3195 employees (including non-gaming)throughout the state of Wisconsin. Imagine each of them drawing a weekly paycheck, having significant benefit packages and investing their money back in their local economies and tell me gaming has "no net real economic productivity".
I haven't even given you the numbers for Sauk County... "

Myturn wrote on Sep 18, 2008 8:49 AM:

" Here is the question. Will the 'Ho-Chunk News' spots end now? Bad PR at best. "

groucho wrote on Sep 18, 2008 8:44 AM:

" Definition of "lottery" - a tax on those who are bad at math. "

hemipowered wrote on Sep 18, 2008 8:07 AM:

" Tobacco use, Gas, Food and alcohol are all cost but Casinos offer so much more for you money. Employment, social settings, the thrill of gambling and working to not be a burden to other Wisconsin Taxpayers. Honest hard working non-native work for all of Wisconsins Sovereign Nations, paying income tax, property tax and sales taxes. By the way lets argue about this in 25 years when it matters again. Have a Lucky Day. :-) "

Big Spender wrote on Sep 18, 2008 7:53 AM:

" To hemi, re: "To: Big Spender, lotteries are a separate kind of gaming. The casinos are great economic fit for the Wisconsin Taxpayer."

Not at all: the lotteries, the casinos, and gambling in general, are a net drain on the Wisconsin economy and on the Wisconsin taxpayer.

"Gambling is a cost, even to those who do not gamble!. "

http://www.ncalg.org/economics.htm "

hemipowered wrote on Sep 18, 2008 7:44 AM:

" To: Big Spender, lotteries are a separate kind of gaming. The casinos are great economic fit for the Wisconsin Taxpayer. "

Big Spender wrote on Sep 18, 2008 7:43 AM:

" To Jaxx, re: " The revenue ...pays for many different services for tribal members,...think of the impact that the revenue from casino dollars has on ...Wisconsin."

The casinos (and gambling in general) generate no net real economic productivity; they're net absorbers of wealth. What they take in is lost elsewhere in the economy. They produce nothing. This nation needs to get back to basics: bring the factories back to American shores. Do that, and the Ho Chunk tribe won't need casinos to provide for their own. The productivity question is extensible to other sectors of the economy too, I don't want to lay all this on the Ho Chunk community.

"Opponents say they worry a casino would drain money from the already struggling Buffalo economy, cause a net loss in jobs and a host of social ills"

http://www.forbes.com/feeds/ap/2008/08/26/ap5359433.html "

Jaxx wrote on Sep 18, 2008 6:00 AM:

" I don't know if people realize this but the Ho-Chunk Nation employs a lot of people, including non-tribal members. Big Spender, the effects of closing down casinos would be disasterous to the small communities that the casinos are located in. The revenue from the casinos pays for many different services for tribal members, such as youth programs, health care, child care, social services, land upkeep and MANY other things. Before you say a blanket statement like "Just shut it all down," think of the impact that the revenue from casino dollars has on the state of Wisconsin. "

Big Spender wrote on Sep 18, 2008 2:43 AM:

" One positive aspect to the Republican downturn in the economy is that the suckers will have less money to chuck away in the casinos. It's not the state's proper role to be involved in this nefarious and destructive activity: ban casinos, lotteries, off-track betting and the whole sordid racket we call gambling.

Gambling destroys families and it destroys lives. Just shut it all down now! "


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