Tribes to build casinos large and small
By: EDWARD SIFUENTES - Staff Writer | ∞
Mo Parviz plays Texas Hold 'Em Pokerat the Ocean's Eleven Casino in Oceanside two years ago. Since casinos first opened in North County five years ago, expansion has been swift and significant.
North County Times File Photo
SANTA YSABEL ---- Five years after the first American Indian casino opened its doors in North County, tribal gambling continues grow taller, larger and farther into the region's backcountry.
Remote wilderness where sage and grass once grew is now covered with grand palaces nurturing a different kind of harvest. Casinos filled to capacity with slot machines and Las Vegas-style table games have sprung up like poppies along the San Luis Rey River corridor up to Palomar Mountain and Lake Henshaw ---- the traditional home of several San Diego County bands of American Indians.
About 30 miles east of Escondido, the Santa Ysabel Band of Diegueno Indians is putting the finishing touches on its casino near the northern tip of its rocky reservation overlooking Lake Henshaw.
"You are going to be amazed when you look at it," Santa Ysabel Chairman Johnny Hernandez said proudly about the casino. "It's a great view."
The 700-member tribe plans to open its casino in March. When it opens, it will join four others in the area north of State Route 78 and east of Interstate 15 at the Pala, Pauma, Rincon and San Pasqual Indian reservations. The La Jolla Band of Luiseno Indians, which opened in 2002 a small "slot arcade," closed it two years ago while it plans a larger facility.
Late start
North County casinos now attract thousands of visitors to the area. They have become economic engines for local Indian communities that were mired in poverty and whose residents were increasingly leaving them in search of better opportunities elsewhere.
Santa Ysabel tribal leaders said they hope their casino will generate enough revenue to provide health care for their elders, education for their young and better infrastructure for their community.
The casino will compete for customers with others closer to major highways. That's why the tribe intentionally kept it small, at about 35,000 square feet and 349 revenue-generating slot machines. Keeping the number of machines under 350 will allow the tribe to continue to receive stipends from the revenue-sharing trust fund from wealthier tribes' casinos.
Hernandez said they chose the spot perched on the hill for its scenic beauty. His tribe hopes to capture some of the thousands of travelers who visit Julian and the surrounding countryside looking to get away from "city life," Hernandez said.
"We made it our casino," Hernandez said. "We didn't want to make it Harrah's."
Harrah's, the Las Vegas casino entertainment giant, is a partner with the neighboring Rincon Band of San Luiseno Indians in a huge resort casino with a high-rise hotel near Valley Center.
Residents and some county officials have raised concerns over increased traffic accidents and crime as a result of the casinos.
"We have many people call us about the accidents there," on State Route 76, said Sheila Walson. She and her husband, Gerald Walson, are Bonsall residents and community activists on traffic issues related to State Route 76.
Last year, San Diego County sheriff's Lt. Sean Gerrity, commander of the Valley Center-Pauma substation, released a report that said the influx of casino customers was the most reasonable explanation of why crime figures more than doubled from 1999 ---- when there were no casinos in the area ---- to 2005.
But tribal leaders say they have contributed money to the county, as part of their state agreement, for law enforcement, emergency and fire services to help offset some of the problems.
New players
While Santa Ysabel begins its venture into gambling, two other tribes in the area have already negotiated deals with the state, allowing them to build larger casinos with more than 2,000 slot machines each. The Pala Band of Mission Indians owns a large-scale casino hotel and resort 15 miles north of Escondido.
The Pauma Band of Mission Indians a few miles east of the Pala Indian Reservation announced last year that it will build a $300 million casino and hotel with the help of its partners, the Mashantucket Pequots' Foxwoods Development Co.
Hernandez said he's not worried about competition. Most tribal leaders say that having a cluster of casinos attracts visitors to the area, benefiting all.
Alan Meister, an economist with the financial consulting firm Analysis Group, said that San Diego County tribes have reason to be optimistic. San Diego, Riverside, Orange and Los Angeles counties have a combined population of about 18 million.
"There are definitely going to be competition effects," Meister said. "That's why you see all the advertising. They want you to choose one over the other, but there are a lot of customers to go around."
In his annual Indian Gaming Industry Report, Meister estimated that Indian gambling revenues grew about 24 percent, from $5.8 billion in 2004 to $7 billion in 2005. There are 57 Indian casinos in California ---- including eight in San Diego County ---- with about 60,000 slot machines.
"Based upon the continued statewide growth of Indian gaming, California does not seem to be near its saturation point," Meister wrote in his report. "Thus, an increase in the supply of gaming may continue to yield positive returns."
San Pasqual
Leaders with the San Pasqual Band of Mission Indians seem to agree. The tribe's casino is expanding to more than double its size, from 43,000 to 110,000 square feet. In November, casino officials unveiled a new six-story parking structure.
The $114 million project will also add a larger buffet area, a steak house, lounge, three bars and other amenities. When completed, the larger casino will accommodate 2,000 slot machines, said Joe Navarro, president of the tribe's casino development group.
Navarro said business is good and the expansion will meet growing customer demands.
"Our expansion is 100 percent guest-driven," he said. "We are bursting at the seams. We set records on our small facility. It's definitely a need-based expansion."
Navarro said the tribe abandoned a plan to build a larger casino and resort overlooking Lake Wohlford on the southern end of the reservation due to road access problems and other hurdles. He said the tribe instead plans to build on the current site, possibly adding a hotel later on.
Plans big and small
A few miles north of the San Pasqual reservation, the Pauma tribe's project is undergoing an environmental impact review ---- a requirement under agreements that tribes sign with the state. A new deal signed with Gov. Arnold Schwarzenegger in 2004 allows the tribe to operate more than 2,000 slot machines in exchange for paying the state more money.
For the project, Pauma originally struck a management deal with Las Vegas-based Caesars Entertainment. But the deal fell through after the company announced it would be sold to Harrah's, which is a partner with the neighboring Rincon tribe. A deal with Hard Rock Hotel & Casino also failed due to disagreements over the terms of the contract, tribal leaders said.
The new partnership announced last year with Foxwoods is expected to produce a 171,000-square-foot casino with about 90,000 square feet of gambling space and up to 2,500 slot machines. The complex would also include a 400-room hotel, a 1,500-seat event center, 2,500-seat outdoor amphitheater, and multiple retail and restaurant facilities.
The Mashantucket Pequots' Foxwoods Development Co. operates Foxwoods casino, one of the largest casinos in the country with 7,100 slot machines and a 1,400-room hotel in eastern Connecticut.
"Our reasons for partnering with the Pequots on this project involves more than the fact that they bring with them a spectacularly successful track record," Pauma Chairman Chris Devers said in a statement announcing the project. "The Pequots respect native sovereignty and have a long history of struggle and perseverance, and we can relate to that."
Farther east of Pauma, the La Jolla band unveiled a plan last year to build a 35,000-square-foot casino with 500 slot machines, a 5,000-square-foot restaurant and a 150-room hotel. The tribe's Web site describes the first phase of the project as having a casino with 349 slot machines, and subsequent plans include a golf course, expanded casino and other entertainment.
At Santa Ysabel, Chairman Hernandez said the casino is attracting tribal members back to their ancestral home. His tribal government is already working to provide electricity to reservation homes that did not have it before.
"This is a springboard for economic development, to get electricity, bring water, build better homes and roads on the reservation," he said.
Contact staff writer Edward Sifuentes at (760) 740-3511 or esifuentes@nctimes.com.
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L in C wrote on Jan 28, 2007 1:44 AM:It is sad that the people who gamble just dont get it. These casinos, especially San Pasqual, are less then honest places. There are so many ways for these tribes to skirt the law and many are doing it. The casinos regulate themselves. Talk about the fox & the hen house. People of California, WAKE UP TO THE TRUE THEIVES AMONGST US!! Sacramento stop giving the ok for these casinos to rip off the people. Isnt it enough government is already doing that to us?
morty wrote on Jan 28, 2007 8:56 AM:DO YOU REMEMBER VOTING ON THESE ISUES? I DO THE TRIBES HAD TO BUILD ON RES PROPERTY.THEN A BIG FIRE BURNEDA ALONG LAKE WOLFERD THEN THE TRIBE BOUGHT LAND. BECAUSE NO ONE HAD INS.TO REBUILT.WHERE V.V.IS NOW WAS NOT ALL RES.I LIVED THERE BEFORE THE LAST FIRE.I REMEMBER. I THINK THIS IS OUT OF HAND.SOON WE WILL HAVE CASINOS IN TOWN ON VALLY PARKWAY.
Roberto wrote on Jan 28, 2007 9:41 AM:I agree with morty. This is way out of control.
$$$$$$$$$ wrote on Jan 28, 2007 12:21 PM:Put a casino at the new Marriot downtown Escondido . Have the tribes run it.....we lower our taxes... win win
American woman wrote on Jan 28, 2007 12:47 PM:This is ridiculous. I wonder if the rules for Native Americans will be the same when the United States of America becomes the North American Union (by 2010)? I'm sure the Indians will have to make some changes...such as referring to themselves as Native North Americanists. Gamble-on folks. That's what life is all about, isn't it? Unfortunately, America is losing, big-time!
Mike wrote on Jan 28, 2007 1:19 PM:Bad idea. Where is the outrage on this issue?
Lauri A. wrote on Jan 28, 2007 2:12 PM:Tribal casinos provide over 50,000 jobs in California alone; not to mention all the local businesses they support - Food & Beverage companies, Coke, Pepsi, cleaning supplies, business supplies ,etc. How many of have family members that would not have a job if it wasn't for the casinos?
Tinkerbell wrote on Jan 28, 2007 2:20 PM:L in C you could not be more wrong regarding the regulation of Tribal Casinos. They are much more strictly regulated than any Las Vegas casino; each casino is regulated by the following: internal auditors, outside independent external auditors,the National Indian Gaming Commission, the California Gaming Control Commission and then finally each Tribe must provide their own regulatory agency known as the Gaming Commission to assure these requirements are met. This translates to fair games with more payouts.
Clear View wrote on Jan 28, 2007 3:51 PM:Mr. Hernandez has got to be kidding about leaving the "city life" behind when one visits one of the many backcountry casinos. Dim the lights and get out and experience nature as it should be enjoyed. Avoid the losers who frequent these places and quit padding the wallets of large corporations in cahoots with local tribes who are ruining what's left of rural San Diego County. Boycott Tribal Casinos!
Revenge wrote on Jan 28, 2007 5:09 PM:This is the Indian's revenge. Think about it. The white man comes and literally throws money at the Indians. I see the delicious irony of the Indian casinos in our county. Glad I"m not stupid enough to throw away my hard earned money gambling. Can't make up for losing their land and their dignity, but they're making up for it in spades. (pun totally intended).
L in C wrote on Jan 28, 2007 5:42 PM:Well Tinkerbell, listen to the news sometime. Arnie in Sacramento is removing the so called regulators and letting the casinos do their own regulating. And another thing to give the indians this money income for ever is in no way a reconciliation of anything the US did in the early years of our country. Let the white man have their own casinos for the fathers and brothers who died in those wars. HELL LETS GIVE EVERY RACE A CASINO. SHeeesh!
John wrote on Jan 28, 2007 6:56 PM:WooHoo, more casinos, Just what we need.I get a feeling when Im walking into or playing the Natives cassinos Im getting screwed royally,Who is really doing oversite of those places? Give me Vegas or Reno anyday.Anyway, build them and they will come.
native wrote on Jan 28, 2007 7:08 PM:first of all, our casinos are built on OUR reservations. so what the heck are you people complaining about?? quit getting all worked up because people throw THEIR money away at the casino. and its not like people dont win hundreds of thousands of dollars everyday! you dont gamble, u dont loose your money so whats the problem? jelousy maybe??
TC in Pauma wrote on Jan 28, 2007 8:25 PM:The native americans build their casinos on their land. That is fine by me. I only wish they would contribute to the road conditions in the area as these roads are not made for this type of traffic. How come they do not contribute to fixed the roads? If someone wanted to build a shopping center and housing in the area, you can bet that they would be required to pay for road improvements through (property) taxes or fees. To the best of my knowledge, the tribes do not contribute. That is my beef with all of the new ventures.
In VC wrote on Jan 29, 2007 11:37 AM:It is sad how naive people are and so quick to judge. Obviously all the people complaining don't do their homework before making accusations. The casinos are very regulated by many entities. And as for the roads, you need to pay attention to the road signs listing San Pasqual and Rincon donating MILLIONS to these roadway improvment projects. MILLIONS and they don't HAVE to. There are lots of jobs as a result of these casinos....
Verifiable wrote on Jan 29, 2007 3:11 PM:This is contrary to the stories being told by Los Coyotes' tribal Elder Katherine Saubel and her Michgian PR machine. They've said that northeastern San Diego County is too remote, undevelopable and desperate to build a casino on their Reservation. They've pointed the fingers at the established tribes and said, they are just afraid of competition. It seems Los Coyotes and their high rolling casino maven from Detroit is afraid of competition and that's why they haven't even considered building a casino on their own reservation!!!
Worker BE wrote on Jan 29, 2007 8:17 PM:Tribal Casino's are given us White man a job, but not for fair Wage. When you work for the Tribe, they pay you as little as possible and they think you are stealing from them. Just ask any Casino worker or any white man who works for the tribe.
Native Girl in Pechanga wrote on Jan 29, 2007 9:22 PM:all of you people are just judging us native americans i think there is a lot of jealousy because we were strong enough to better our lives after the white man threw us to the curb and yes there is a lot that we have to do still for the american government (or should i say PAY) to the united states when i was growing up all the government would give us was commodities and maybe a welfare check here or there but no matter how other people treat us we still DONATE money to boys & girls clubs, we still DONATE money for road improvements, we still OFFER hundreds of jobs to those in need so quit hating on the tribal casinos who knows when you will be asking for help too
howdy wrote on Feb 15, 2007 5:22 PM:I would just like to state one thing, and one thing only.....L in C if your gonna call them thieves spell it right my brother!
jmc wrote on Mar 19, 2007 12:00 PM:GAME ON! THE TRIBE HAS NEEDS THAT THIS CASINO CAN FULFILL. GOOD FOR THEM AND ALL THAT WILL ENJOY THE ENTERTAINMENT AND EMPLOYMENT THIS WILL PROVIDE...STOP ALL THE BITCHING...GROWTH HAS ALWAYS, AND WILL ALWAYS BE INEVITABLE...WE ALL ARE RESPONSIBLE FOR ALL GROWTH OCCURRING RIGHT NOW IN THIS CENTURY...FACE THE TRUTHS...THEN BITCH THE DAY YOU, YOURSELF ARE INNOCENT...
Elaine wrote on Mar 19, 2007 12:50 PM:I see the casinos are a form of recreation. If I'm going to spend $60 plus to go to Disneyland, why not give it to the slots. We have a choice. If you don't agree with the casinos, you don't have to go. I see nothing wrong with this fun activity as long as you're in control and you pay your bills. Furthermore, it doesn't matter what race we are. We all have hearts. Be kind to one another.
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