Is Branson Holding a Deadman's Hand?
Area residents may be forced to deal with gambling, whether they want to or not.
Is Branson Holding a Deadman's Hand?Area residents may be forced to deal with gambling, whether they want to or not.
Wild Bill Hickok, notorious gambler and gunslinger, was shot in the back of the head during a poker game at the Number Ten Saloon in Deadwood, SD. His killer, Jack McCall, was himself motivated by a desire for fame: he coveted Hickok's cool-handed, strong-armed reputation. Ironically, McCall never achieved the wholesale notoriety he sought. And Hickok died holding a pair of aces and a pair of eights--hardly a hand worth dying for.
This 1876 scenario could offer an instructive parallel for Branson-area residents and business owners. In fact, Missourians' November endorsement of Amendment 6 may have been the "shot in the back of the head" that will snuff out the Branson's wholesome reputation and prosperous economic growth.
Proponents of the amendment argued that the passing of Class III riverboat gambling would legalize gambling only on the Missouri and Mississippi Rivers, thereby affecting only those areas along the riverways. Downplaying the economic impact for the rest of Missouri, supporters pointed toward the alleged $30 million that would be generated for Missouri schools, failing to mention altogether the monolithic costs of gambling--economic, social, psychological, and environmental--that far outweigh the meager $30 million "voluntary tax" for education ("Vote Yes").
Proponents also failed to mention that passing Amendment 6 could force gambling into other parts of the state, whether those communities want it or not. The Branson area could be one of those communities in which local autonomy is forfeited to federal mandates. Peter Herschend, Vice Chairman for Silver Dollar City, Inc. and President of the Ozarks Marketing Council, portends that the passage of Amendment 6 could be "unending disaster for economic lifestyles and personal lifestyles" in the area.
Creative Learning Products, Inc., a New Jersey-based company, has already publicly announced its plans for building a gaming facility in the region. Spokesman Peter Jegou stated that the company's three-phase development plan, the Branson project, is already underway. The plan includes the purchase of Branson's Five-Star Theater and 800 acres ten miles north of Branson in Christian County (Ingram 1A).
A portion of this land is set aside for a Class II and III gaming facility, allegedly placed in a trust for the Eastern Shawnee tribe and managed by Creative Gaming International, a subsidiary of CLPI. According to the Indian Gaming Regulatory Act (IGRA) of 1988, which delineates Class I, II, and III gaming, any class of gaming legal anywhere in the state must also be legal on Native American lands. In addition, revenue raised on Native American soil is exempt from local, state, and federal taxes.
IGRA does require tribes to negotiate "compacts" with state governments before opening gaming facilities. The compact is to be ratified first by the state governor and then by the U.S. Secretary of the Interior. Gary Groman, a Hollister resident and former criminal investigator for the U.S. Treasury Department, drew attention to Subsection 2719 of IGRA as a potential loophole for the Branson region. This subsection guards against gambling on trust lands acquired after Oct. 17, 1988, unless "The lands are within or contiguous to the boundaries of a reservation and those lands are located in Oklahoma." (McGee 3A). As IGRA now reads, the Secretary of the Interior must gain consent of local and state officials and must rule that gaming will be beneficial to the tribe and "not detrimental" to the surrounding community.
Springfield attorney Sam F. Hamra, Jr., issued a similar statement to Branson Mayor Wade Meadows on Oct. 13. After speaking with Emily Ramirez, Acting Director of the Indian Gaming Management Staff, Hamra indicated that without consent of the governor, the Secretary of the Interior cannot put land in trust for gaming purposes, according to Section 20 of IGRA.
But this clause of the act is under attack. Critics argue that IGRA violates tribal sovereignty, secured by the 1987 ruling in California v. Cabazon Band of Mission Indians. Congressional bills amending IGRA are pending.
Local opposition to Indian gaming is strong: oppositional statements were issued by the Branson and Ozark Boards of Aldermen; Taney, Christian, and Stone County Commissioners; the Branson Chamber of Commerce; the Ozark Marketing Council; the Branson/Lakes Area Motel and Resort Association, Receptive Operators of Branson, Citizens for Life and Liberty, and Entertainers of Branson. Even Governor Mel Carnahan issued a formal statement opposing "extending legalized gaming activities beyond those authorized by voters for riverboat gambling . . . . This opposition certainly applies to any efforts to extend Indian Gaming activities to the Branson area" ("Statement from Governor Carnahan").
Still, such vocal opposition does not solve the problem. Missouri's Attorney General Jay Nixon can offer no guarantee that local control will be protected: "The Indian Gaming Regulatory Act of 1988 allows the governor of any state to have what amounts to a veto in the process of new Indian lands being taken into trust by the federal government for the purpose of gaming. This authority given to the governors has been challenged and is now in litigation. As Attorney General of Missouri, I have joined at least 22 other state attorneys general in a friend of the court brief arguing for the protection of the governor's authority," Nixon said ("Statement from Attorney General").
Other objections to IGRA also abound. Several states have argued that IGRA gives Native American trusts an unfair economic advantage: while the trusts are exempt from taxes, the gaming facilities make use of local resources and drain business from other attractions in the surrounding areas, severely thwarting local economy.
Of course, proponents of IGRA argue that nothing could be farther from the truth. Leonard Prescott, former NIGA chair, asserts that "Indian casinos and bingo halls have created more than 30,000 taxpaying jobs in five states alone--Minnesota, Wisconsin, Michigan, California, and Washington. The majority of those jobs are held by non-Indians" ("Stop Picking" 11A).
And certainly success stories for tribal economy have attracted publicity. Eighty-eight federally recognized tribes in 19 states operated 150-175 gaming facilities in 1993. Most notable is the Foxwoods High Stakes Bingo and Casino in Ledyard, Conn., which opened in Feb. 1992 (Clines 51). Owned by the 280-member Mashantucket Pequot tribe, the casino yielded $600 million in profits in 1993. And there is the Shakopee Mdewanton Dakota Reservation near Minneapolis, whose Mystic Lake Casino netted tribal members $20,000 per person per month last year (Popkin 30). Even the Oenida Indians' Turningstone Casino in Syracuse, NY, has given Atlantic City a run for its gambling money.
Mentioned less frequently are the miserable disappointments--the instances in which neither the tribe nor the local economy profits from the gaming industry. Consider, for instance, the Seneca-Cayuga tribe of Miami, Okla., who hired Wayne Newton Enterprises to manage their "high-stakes bingo parlor" in October 1990. According to David Segal, the tribe entered into the managerial contract after another firm had failed to net substantial income. The tribe allocated $ 224,000 to jumpstart the operation, while Newton promised $ 125,000 and his best people to run the parlor. By December of 1991, Newton's accountants reported $ 12.5 million gross income, sucked up by exorbitant expenses with a remaining debt of $ 360,000. The tribe was asked to cover the expenses, even though it had received only $13,000 that year--"barely a seventh of the salary of Newton Enterprises' on-site manager," according to Segal (26).
Gambling ventures for the Barona reservation near San Diego, the Seminole tribe in Florida, the Mohawk reservation, the Winnebagos of Wisconsin, and the Santa Ynez and the Cabazons of California were marred by similar taints--running the gamut from mere bankruptcy to mysterious, "unsolved" murders.
Some advocates of gaming believe objections are overexaggerated. In fact, they argue, Amendment 6 may well open the door for commercialized gaming in the Tri-Lakes area, providing expanded economic and investment opportunities for the state. However, no state has found legalized gambling to be the miracle-cure for its economic woes; in fact, most once-hopeful communities now consider gaming to be nothing more than snake-oil--a remedy that not only failed to cure, but also created its own adverse side-effects.
Some supporters cite economic revitalization in three Colorado mining towns--Central City, Black Hawk, and Cripple Creek--following a 1990 state referendum legalizing limited-stakes gambling as evidence of gaming's "benefits." Such a comparison is suspect on several counts. First, Branson's economy does not need revitalization. The local figures economy hardly compares with the economic condition of the near-defunct mining towns prior to 1990.
Furthermore, gaming in these Colorado towns brought many more problems than it cured, according to several residents. Located an hour outside of Denver, Central City and Black Hawk share a continuous border, but have separate municipal governments. They have been tourist oriented since 1931, though economic conditions prior to 1990 were dismal.
Former Central City city manager, Jack Hidahl, said that the city saw gaming as one of its only hopes to solve infrastructure problems. And he readily agrees that gambling has meant increased revenue: the general operating fund soared from $ 350,000 in 1990 to $ 6.1 million for 1995. But this increase in budget has hardly kept pace with the city's debt, escalating from $ 550,000 in 1990 to $ 20 million for 1995.
In addition, gaming has destroyed opportunities for other businesses: "We wanted gambling as a supplement to tourism, but instead it took over and replaced much of what already existed. In 1990, we had 45 businesses that were tourist-related," Hidahl said. "Today we have 10." Even gambling facilities have had difficulty surviving, Hidahl said: "A number of investors built casinos and could not service their debts, so they bankrupted." There are currently seven vacant buildings that once housed slot machines, and "three or four projects were begun and never completed . . . . The 'Halo Period' of gambling is over in Colorado."
Neighboring Black Hawk experienced the same sort of economic boon, as its budget grew from $ 165,000 in 1990 to $ 8 million in 1993. And like Central City, the town has experienced dramatic increases in crime and overcrowding, as well as a decrease in a balanced economy. "Aside from the post office and the bank, gambling is the only enterprise in town," writes Carroll Bogert. "Properties have become too valuable for any other business to afford the rents" (22).
Similar trouble is brewing down in Cripple Creek, three-hours south of Central City and Black Hawk. Gambling revenue did breathe life into the dying economy of this 100-year-old mining town, according to Mayor Henry Hack, who has lived in the community for 58 years. The town's operating budget has risen from $ 100,000 in 1990 to $ 9.5 million in 1994. Along with other municipal improvements, the new monies financed a $ 3 million sewage treatment plant.
But, Mayor Hack said that while gambling generated 700 new jobs, Cripple Creek's population has decreased from its 800 pre-gaming residents. Rising property taxes and housing shortages have forced permanent residents out of the area, according to Sergeant Al Quintana of the Cripple Creek police department.
Quintana said that a two or three bedroom, 500-700 square feet cabin selling for $20,000 in Colorado Springs would cost $ 85,000 in Cripple Creek. Merchant Sue Young underscored that claim, stating that a home assessed for $ 61,000 in 1991 now assesses at $ 1.8 million. "Fifty percent of the community locals have fled," said Young.
And with increased property value comes increased taxes. According to interim-Assessor Arlo Baumgarn, property taxes for that same home cited by Young have risen from $ 650 in 1991 to $8,240 in 1994. Because property is taxed according to market value, the entire Main Street area is taxed as casinos, whether or not casinos are on the property.
Increased taxes and housing shortages are not the only problems Cripple Creek has experienced. According to Quintana, the town has seen a dramatic increase in crime. Three-year veteran of the department, Quintana said he was hired as the police force grew from a 3- to 24-man department in twelve months. "We went from a sleepy little town to 7 casinos almost overnight."
Before gaming was operational in Oct. 1991, the force had received a total of 86 calls from Jan. to Oct. During the Oct. alone, calls for service increased to 1,200-1,500. Now, the department averages 1,300 to 1,500 calls each month, dealing most frequently with such crimes as domestic violence, drunk and disorderly conduct, Driving Under the Influence, and theft.
Quintana said that the casino industry has opened the area to other types of activity as well: sexual assault, stabbings, shootings, narcotics, prostitution, and one homicide. In addition, juvenile crime has increased by 300%. "I wouldn't want to raise my kids here," Quintana declared.
In spite of earnings for the out-of-state casino owners and the increased state taxes from gambling, Quintana is not convinced that the industry was a good idea. "I know what it's brought to Cripple Creek. The oldtimers say its ruined forever."
Young offered a similar caution: "People need to know the reality of gaming," said the owner of the Golden Palette art gallery and novelty shop. "I hope Branson doesn't get gambling because people love that place! I hear nothing but good things about Branson."
If Missourians can learn nothing from Colorado's gambling woes, they might look at other gambling meccas for further evidence. Most notorious in Atlantic City's urban blight following its 1976 legalized gambling. Robert Goodman, professor of urban planning at the University of Massachusetts at Amherst, wrote in his 1994 study that in spite of revenues of $ 44 billion in 16 years, Atlantic City lost 26% of its population and has the highest unemployment rate in New Jersey. 100 of the 250 restaurants in the city before gambling have been forced out of business (Corelli 27).
In addition, the city's homeless problem exploded since 1978. Prior to gaming, the Atlantic City rescue mission housed about 25 people; now the shelter houses nearly 300, and an estimated 800-900 homeless are on the streets. Nor did Atlantic City gambling generate jobs for residents, as the casinos are operated by workers and the remainder of the city consists of condemned buildings and "a minority population that suffers large-scale unemployment . . . " (Goodman 59).
Las Vegas, the gambling prototype which other cities attempted to emulate, boasts no economic windfall for residents. In fact, the number of welfare recipients is rising twice as fast as the national rate, in spite of the fact that casinos made $ 4.4 billion in 1993 ("Fifty Ways" 31).
Increased poverty frequently means increased crime. Since the legalization of gambling, Illinois has seen a 56% increase in rapes; a 159% increase in robberies; a 316% increase in aggravated assaults; and a 451% increase in larceny, according to the Illinois State Police Division of Criminal Investigations and Intelligence Bureau. Other states also report higher numbers of child abuse and neglect cases, not to mention homicides and suicides.
Many Branson residents are not eager to gamble with the prosperity they've been enjoying. Like Mike Zirbel of Ozark Mountain Tour and Travel, they are skeptical. If gaming comes to Branson, Zirbel predicts an "economic upsurge, then settling, then a drain. We see it as not another attraction for folks to enjoy, but it would instead be a magnet to repel families," he added.
Like it or not, though, the area could have gambling forced upon it. Even if Creative Learning, Inc., is unsuccessful in establishing a federal trust for the Eastern Shawnee tribe and does not open its casino, Creative Learning is only the first of many outside attempts to get at the high-stakes tourist boom. Gambling will be an "ongoing threat," as Peter Herschend said. "We have become a very attractive enterprise for gambling interests."
The fate of this family tourist and residential haven may ultimately lie in the hands of two men, the governor of Missouri and the Secretary of the Interior, now Bruce Babbitt. Undoubltedly, gambling interests will attempt to influence their decisions. Residents and visitors who love the region may soon be called upon to let the Department of the Interior know where they stand on gambling. However, if these voices remain silent, we may already be holding a dead man's hand.
Works Cited
Baumgarn, Arlo. Personal Interview. Oct. 1994.
Bogert, Carroll. "Fool's Gold in Blackhawk?" Newsweek 28 March 1994, pp. 22-23.
Carnahan, Mel. "Statement from Governor Carnahan Regarding Gaming in the Branson Area." 23 Sept. 1994.
Clines, Francis X. "The Pequots." The New York Times Magazine 27 Feb. 1994, p. 51.
Corelli, Rae. "Betting on Casinos." Macleans 30 May 1994, p. 27.
"Fifty Ways to Lose Your Wallet." The Economist 26 March 1994, p. 31.
Goodman, Robert. Legalized Gambling as a Strategy for Economic Growth. University of Massachusetts, Amherst: Center for Economic Growth Development, March 1994, p. 59.
Herschend, Peter. Personal Interview. Oct. 1994.
Hidahl, Jack. Personal Interview. Oct. 1994.
Images from http://www.arttoday.com, member page, June 1999.
Ingram, Rick. "Company Committed to Casino Project." The Branson Tri-Lakes Daily News 4 Oct. 1994, p. 1A.
McGee, Mike. "Resident Finds Safeguard Against Gaming." The Branson Tri-Lakes Daily News 16 Nov. 1994, p. 3A.
Nixon, Jay. "Statement by Attorney General Jay Nixon on Indian Gaming." 21 Oct. 1994.
Popkin, James. "Gambling with the Mob." U.S. News and World Report 23 Aug. 1993, p. 30.
Quintana, Al. Personal Interview. Oct. 1994
Segal, David. "Dances with Sharks: Why the Indian Gaming Experiment's Gone Bust." The Washington Monthly March 1992, p. 26-27.
"Stop Picking on Indian Gaming." USA Today 6 Dec. 1993, p. 11A.
"Vote Yes on Amendment 6." Committee flier. October 1994.
Young, Sue. Personal Interview. Oct. 1994.
Zirbel, Mike. Personal Interview. Oct. 1994.
Article and first photograph provided by Gaye Lisby, Branson Living Magazine
