Don't Be Fooled by Claims of the Off-Reservation Casino

When you peel away the disguises, clear out the smoke screens, and work only with facts, the Jemez Pueblo's off-reservation casino proposal is simply a taxpayer-subsidized scheme that is sure to take millions of dollars and thousands of jobs away from taxpaying entities in Southern New Mexico. This scheme will completely devastate the City of Sunland Park. Other important entities that are certain to lose millions of dollars are Dona Ana County and equine farms and related operations all over the state. The State of New Mexico revenue coffers are certain to suffer catastrophic losses in tax revenues if this scheme slides by. We are talking tens of millions of dollars every year.

Unfortunately, there have been volumes of misinformation, half-truths, and outright deceptions associated with the public relation effort to advance the off-reservation application at the U.S. Department of Interior. Make no mistake. These are slick marketing efforts backed by deep pockets. And they have understandably duped more than a few people into avoiding the serious discussions necessary to expose the terribly negative impacts of this scheme. Below are the inescapable facts. (1) The intent of the Indian Gaming Regulatory Act was to support economic development and job creation for Native Americans. This scheme violates the very intent of the Indian Gaming Regulatory Act because it will not create jobs for tribe members. (2) If the Jemez tribe’s tax-free status is permitted to be effectively “leased” to non-tribal entities and expanded beyond its reservation boundaries, countless businesses such as restaurants, gas stations, convenience stores, retailers, and many others THAT ACTUALLY PAY ALL THE TAXES TRIBAL CASINOS DON’T PAY, will suffer from an astonishing competitive disadvantage. Many good faith business operations are sure to cease operations and file for bankruptcy protection.

(3) Governments at all levels will lose millions of dollars in tax revenue:
• Since tribe-owned businesses pay no gross receipts taxes, various municipalities and Dona Ana County will experience significant declines in revenue from gross receipts tax as the non-taxpaying off-reservation casino is able to capture business from operations that do pay those taxes.

• Since tribe-owned businesses do not pay excise taxes on gasoline, the revenue losses to New Mexico’s road funds will amount to tens of millions of dollars each year.
• Since tribe-owned businesses do not pay excise taxes on alcohol or tobacco products, all taxpaying entities selling tobacco and alcohol products will be at severe cost disadvantage. Government revenue coffers that normally receive tens of millions of dollars in so-called “sin tax” revenues will suffer significant shortfalls.

• Since tribes pay no property taxes, the State of New Mexico, Dona Ana County, and surrounding municipalities will experience significant declines in property tax revenue as property taxes paid by surrounding businesses fall.

• Hundreds of millions of dollars are already invested in farm land and facilities for horse training and breeding operations all over the state. Each season Sunland Park alone pumps over $17 million in taxable purse money into this industry to support these farms and breeding operations. Reductions in investment in farms and breeding facilities will be immediate if a casino with outrageous tax advantages is allowed. Reductions will be followed by disinvestment. The permanent loss of jobs in this large long standing employer and member of the New Mexico-based tax paying community will run into the thousands.

• Scholarship funds available from the state lottery will decline following an approval of the off-reservation casino application.
• State tax revenue collections from Sunland Park Racetrack & Casino are nearly 30% of their gross. These revenues will fall dramatically in favor of an off-reservation casino that pays roughly 6% of their unaudited net.

(4) The social damages caused by increased access to gambling are well known. The incidences of bankruptcies, domestic violence, child abuse, and drunken driving can be expected to rise significantly in Anthony and surrounding areas if the application for an off-reservation casino is approved.

(5)  Mr. Stan Fulton has earmarked a permanent 50% ownership stake in Sunland Park Racetrack & Casino to New Mexico State University upon his death. The annual revenue from this bequest to NMSU is estimated to be well in excess of $12 million per year. Approval of the Jemez off-reservation casino application would effectively destroy a substantial portion if not all of the value of the largest bequest in the history of NMSU.
(6) Scientific studies have shown that this off-reservation casino proposal is nothing more than a one time offer to build a facility that will be engaged in legalized wealth transfers from all the sources named above. It has absolutely nothing to do with creating jobs for Native Americans or adding sustainable new jobs for Southern New Mexico.

New Mexico Economic Consultants (NMEC) did a study that can be read here: The analysis contained in the NMEC study shows: "the positive impacts of the proposed Anthony casino could be negligible once its effect on other businesses is considered. Under reasonable assumptions, the loss of revenue by existing business could significantly offset the benefits of the new casino on local economic activity. Moreover, the loss of gross receipts tax revenue to the state and local governments could total up to $6,500,000 per year."

(7) Finally this scheme involves non-tribal businesses attempting to “franchise” or replicate the Jemez tribe’s unique tax-free status, which because it is so POWERFUL, it was meant to only be available on the reservation. If this enormous economic advantage is allowed to be used off-reservations, it will establish a horrific precedent. This scheme should be treated like an economic malignancy and halted before it spreads like an economic cancer in New Mexico and then elsewhere. Taxpaying citizens everywhere can make their voices heard by writing Secretary Ken Salazar, U.S. Department of the Interior, 1849 C Street, NW, Washington, DC 20240 and Governor Susana Martinez, 490 Old Santa Fe Trail, Room 400, Santa Fe, NM 87501.

Don't Be Fooled by Claims of the Off-Reservation Casino