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...capital's premier lobbyists, Jack Abramoff, a top Republican Party fund raiser. It was money well spent. In the 1997 legislative caper, Thad Cochran, Mississippi's five-term Republican Senator, slipped into a 40,000-word appropriations bill a 19-word sentence that exempts the tribe from oversight by the National Indian Gaming Commission (NIGC), the regulatory body created by Congress to oversee Indian gambling. The sentence also excuses the Choctaw from paying the fees levied on all other Indian gaming establishments, which are the NIGC's sole source of revenue. The savings for the tribe amount to about...

Author: /time Magazine | Title: Indian Casinos: Playing The Political Slots | 12/23/2002 | See Source »

Instead of regulating Indian gambling, the act has created chaos and a system tailor-made for abuse. It set up a powerless and underfunded watchdog and dispersed oversight responsibilities among a hopelessly conflicting hierarchy of local, state and federal agencies. It created a system so skewed--only a few small tribes and their backers are getting rich--that it has changed the face of Indian country. Some long-dispersed tribes, aided by new, non-Indian financial godfathers, are regrouping to benefit from the gaming windfall. Others are seeking new reservations--some in areas where they never lived, occasionally even...

Author: /time Magazine | Title: Indian Casinos: Wheel Of Misfortune | 12/16/2002 | See Source »

...IMPOTENT ENFORCER. Congress created the National Indian Gaming Commission (NIGC) to be the Federal Government's principal oversight-and-enforcement agency for Indian gaming--and then guaranteed that it could do neither. With a budget capped at $8 million, the agency has 63 employees to monitor the $12.7 billion all-cash business in more than 300 casinos and small gaming establishments nationwide. The New Jersey Casino Control Commission, by contrast, has a $59 million budget and a staff of 720 to monitor 12 casinos in Atlantic City that produce one-third the revenue. The NIGC has yet to discover...

Author: /time Magazine | Title: Indian Casinos: Wheel Of Misfortune | 12/16/2002 | See Source »

...many non-Indian investors are extracting hundreds of millions of dollars--sometimes in violation of legal limits--from casinos they helped establish, either by taking advantage of regulatory loopholes or cutting backroom deals. More than 90% of the contracts between tribes and outside gaming-management companies operate with no oversight. That means investors' identities are often secret, as are their financial arrangements and their share of the revenue. Whatever else Congress had in mind when it passed the regulatory act, presumably the idea was not to line the pockets of a Malaysian gambling magnate, a South African millionaire...

Author: /time Magazine | Title: Indian Casinos: Wheel Of Misfortune | 12/16/2002 | See Source »

FRAUD, CORRUPTION, INTIMIDATION. The tribes' secrecy about financial affairs--and the complicity of government oversight agencies--has guaranteed that abuses in Indian country growing out of the surge in gaming riches go undetected, unreported and unprosecuted. Tribal leaders sometimes rule with an iron fist. Dissent is crushed. Cronyism flourishes. Those who question how much the casinos really make, where the money goes or even tribal operations in general may be banished. Indians who challenge the system are often intimidated, harassed and threatened with reprisals or physical harm. They risk the loss of their jobs, homes and income. Margarite Faras...

Author: /time Magazine | Title: Indian Casinos: Wheel Of Misfortune | 12/16/2002 | See Source »

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