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ARIZONA: Group files fair gaming initiative

Friday, December 16, 2011 By CAROLYN DRYER, Editor The Peoria Times Reaction of off reservation gaming

West Valley resident Carl Nicholson has filed an application for an initiative petition to circulate among Arizona voters that would allow racetrack and corporate casinos to operate in Arizona. Nicholson said he is retired, but had worked in a regulatory position for one of the casinos in the Valley. He did not disclose which casino.

However, he said it was not personal and his reason for filing for the petition was "in the best interest of the state."

Originally filed Dec. 9 under "Arizonans for Fair Gaming," Nicholson refiled Tuesday under the name "Citizens for Fair Gaming." And instead of 50 pages of legalese, the new filing is 47 pages in length.

"We've touched it up a bit," Nicholson said. "It's more succinct."

He said he and others in his group began soliciting opinions nine months ago from people at Turf Paradise in informal meetings. From those meetings, Nicholson said Turf Paradise people said they were gong a different route than the initiative process.

"As far as receiving money from them, not one dime, just opinions," he said. "They told us what they preferred.

"We asked if they would give up 5 percent (racetracks) and 10 percent (corporate) of their net profits, and they said they'd have to take a look at the initiative."

He said he and his group also talked to corporate casinos in Las Vegas, and with the exception of one, they said, yes, they would give up 10 percent of their profits on everything, every aspect of gaming, including bars and blackjack. At Native American casinos in Arizona, Nicholson said as it stands now, very little money is going to state coffers. He said they pay 3 percent on their profits, and that is primarily on slot machines.

Corporate casinos, on the other hand, would pay not only 16 percent of slot revenues, but all the ancillary cost, property and state income taxes.

"It's one of those things where we're not getting our fair share," Nicholson said. "The way it stands now is a monopoly and no monopoly is never fair."

Nicholson said there would be more money in state coffers for agencies and services that are experiencing shortages, such as Child Protective Services and aid for war veterans.

"The time for change is now. We need to get more money in the coffers of the state," Nicholson said.

What the initiative would do is restrict Native American casino operations to the borders of the original reservations.

"In this initiative," Nicholson said, "the Tohono O'odham would have to pack up their shovels and go home. No way voters would allow it.

"I agree with (Sen.) Jon Kyl on this. They should not be permitted to do that.

President Obama has come along and said they can have them wherever they want.

"Tohono O'odham has said, ‘We don't care about Prop 202. President Obama tells us we can, and Department of Interior has said we can.' It's legal what they're doing right now in Glendale, unfortunately. But it's not ethical, not moral.

"I believe Tohono O'odham is a test case in Arizona."

Nicholson said it is not just about legalizing gaming statewide, it's about ancillary issues, such as getting rid of a monopoly and bringing more money into state coffers.

"I believe within their borders, do what you want to do," Nicholson said. "I respect the Native communities. But fair is fair. You cannot have one sector of society doing something others cannot do. That's why they gave us the initiative process."

Putting aside fears that racetrack and corporate gaming would attract organized crime, Nicholson said the Arizona Department of Gaming officials are like pit bulls, but always fair, and they will put you out of business if you try anything illegal.

Nicholson said his experience with ADG, "They'll give you a break once, but if they comeback and see something bad, they'll come after you. Voters have nothing to fear."

Under his initiative, Nicholson said, Arizona's gaming agencies have carte blanche to come into casinos anytime.

Citizens for Fair Gaming organizers have until July 5 to obtain 173,000 valid signatures on their petition.

"We want to double that," Nicholson said. "We want to send a clear message that voters want this ... Every single city will get money from this, whether they have a casino or not."

Why corporate casinos?

Because corporate rules and regulations would apply, Nicholson said.

As an example. Nicholson said, "Let's say Wigwam owner Jerry Colangelo. He would have the right to open a casino, if he is willing to give 10 percent of his profits to the state. They don't have to have anyone from Arizona running it, but owned by the Wigwam."

Nicholson said, "We're not taking anything away from the Indian community," and that casinos on the Native American reservations could invest in corporate casinos.

He does foresee down the road a Native American casino suffering from the effects of statewide gaming. But he said, a corporate casino could pay for the Native American casino's slot rights and switch them to a corporate casino.

"Some will be adversely affected," Nicholson said. "But it's competition. That's what America is based on."

His final words: "I think we'll have enough signatures by February or March."

Go to the following link to download a PDF file with the complete initiative. http://www.azsos.gov/election/2012/General/Initiatives.htm.

 


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