Casino pitch seems like a bad bet for NC
Published August 26, 2013
Editorial by Asheville Citizen-Time, August 21, 2013.
The administration of Gov. Pat McCrory should say “no deal” to a proposal that would allow the Catawba Indian Nation, a tribe based in Rock Hill, S.C., to build a casino just across the state line near Kings Mountain. It’s simply too big of a gamble to take right now.
The Associated Press reports that McCrory’s senior economic adviser met last month with officials from Cleveland County to discuss a potential casino along Interstate 85. The project could include a hotel and retail operations in addition to slot machines, electronic games and live table games, such as blackjack and poker, permitted by state law.
Much remains unclear about the idea. This we do know: The Catawba Nation is federally recognized, with a membership of about 2,800 and a service area that includes the North Carolina counties of Cabarrus, Cleveland, Gaston, Mecklenburg, Rutherford and Union. However, North Carolina does not officially recognize the tribe. The Catawbas applied for recognition in 2012, and the application is awaiting N.C. Commission on Indian Affairs review after an unsuccessful effort to achieve recognition through special legislation.
Neither McCrory’s administration nor the Catawba tribe seems eager to show their cards at this stage of the game. A spokesman for the governor declined to comment, saying that the proposal is an ongoing economic development project requiring confidentiality, while a spokeswoman for the Catawba Nation says the tribe, which does not own land in North Carolina, is not currently seeking permission for a gambling operation in the state.
On the other hand, Ronnie Hawkins, chairman of the Cleveland County Commission, says commissioners have written a letter to the governor in support of the project, and local economic development officials point to the success of Harrah’s Cherokee Casino Resort as one of the biggest arguments for bringing gambling enterprises to Cleveland County. As we’ll explain momentarily, it’s also one of the biggest arguments against the idea.
Under North Carolina’s compact with the Eastern Band of Cherokee Indians, the state receives a small percentage of revenue from the games and slot machines at Harrah’s casino, to the tune of up to $3 million a year. That’s not exactly penny-ante stakes during a time of deep budget cuts, damaging changes to education and stagnant state employee salaries and benefits.
And supporters of the Catawba casino say the Cleveland County project could net North Carolina millions of dollars under a similar revenue-sharing agreement. Even opponents of the proposal, including members of McCrory’s own political party, acknowledge that its location on a major interstate would generate “10 times as much gambling” as the Cherokee resort.
Yet, they remain opposed. “We don’t need an out-of-state tribe coming into North Carolina and opening a casino,” says Republican Sen. Tom Apodaca, of Hendersonville. “I can tell you I haven’t heard of one person yet who was excited about the idea.”
Steve Morse, who recently joined Western Carolina University’s College of Business as director of the Hospitality and Tourism Program, is among those who are not excited. Morse is concerned with the possible negative impact an additional casino could have on the Western North Carolina economy, and not just by simply siphoning business from Cherokee.
“Many western U.S. states have experienced an oversupply of Native American casinos. As a result, several of them have not succeeded, while others have struggled, with the quality of the tourism product eroding over time. Harrah’s Cherokee Casino Resort has set the bar very high for quality guest services,” Morse says. The introduction of new establishments not meeting a high standard of guest service could inadvertently damage the public’s reputation of the product offered in Cherokee, he says.
As Kenny Rogers used to sing in his hit “The Gambler,” you’ve got know when to hold them, know when to fold them and know when to walk away. When it comes to a potential casino of unknown quality built by a South Carolina-based tribe not even recognized by the state of North Carolina, McCrory and his team would be wise to heed that advice and walk away from the table on this proposal, at least until supporters of the project can ante up additional information.
August 26, 2013 at 9:55 am
TP Wohlford says:
Uh, why bother to regulate this? Didn't this ship sail sometime in the 1980's? Isn't gambling -- akin to porn, divorce, prohibition (of alcohol, and soon pot) and a few other subjects -- one of those things morals changed and people simply accepted it, even if they didn't agree with it?
The startling thing is that politicians and casino investors always claim that they'll bring prosperity, peace, jobs, Harmonic Convergence, the Kingdom of God, and put the dog out at night. While those claims might be true in Vegas (where the current unemployment rate is 9.8%) or Atlantic City (currently at 18.2%) or Detroit... uh, yeah, well, there is lots of evidence here to the contrary, isn't there?
Finally... the laws of supply and demand apply to casinos. The existence of gambling doesn't negate the rules that apply to any tourist destination, such as convention centers and halls of fame. Ahem.
