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Santee bingo bill dealt setback

The Catawba Indian Nation has been dealt a setback in its bid to establish a multimillion-dollar, high-stakes bingo operation just outside Santee.

Nevada Republican Sen. John Ensign has placed a hold on a bill in Congress that would have placed the tribe under the jurisdiction of the Indian Gaming Regulatory Act.

"He did that at my request," U.S. Sen. Lindsey Graham, R-S.C., said in an interview Thursday. "I went to Sen. Ensign. We were classmates in the (U.S.) House -- me, him and Mark." Mark Sanford is now governor of South Carolina.

"His family is in the casino business," Graham said. "Las Vegas has no interest in allowing other people to get into the casino business unless they have to."

The bill was introduced by U.S. Sen. Ben Nighthorse Campbell, a Democrat from Colorado, and supported by a majority of South Carolina's congressional delegation, said Jay Bender, a lawyer for the Catawbas.

"There was concern that the Nevada senators would be opposed to the bill because they thought it would lead to casino gaming," Bender said in an interview. "Their role in life is to preserve to the extent possible the Nevada gaming industry."

Nevada Democrat Harry Reid's concerns were allayed when Catawba officials offered ironclad assurances they would not seek authorization for class 3 (casino) gaming, Bender said.

But Graham and Sanford, like Ensign, remain unconvinced.

"My concern is that I don't want to do anything at the federal level that would allow an expansion of gambling into the area of casinos," Graham said.

"We have drafted a statute that would prohibit class 3 casino gambling at the federal level, and I need to look and make sure that statute, because it is so strongly worded, will withstand scrutiny," he said.

Putting the Catawbas' request on the shelf until after Congress' summer recess buys more time for Graham and others to consider all the "consequences," Graham said.

"I am working with Gov. Sanford to ensure that whatever decision is made ... is fair to the Catawbas and protects the state from having another form of gambling not originally allowed in 1993," he said.

"Mark and I need to sit down and figure out what's the best route for the state, whether it's best to have state regulation through the (1993) agreement or federal regulations. The state has to decide what's the best way to regulate gambling," Graham said.

Disagreeing, 6th District U.S. Rep. James E. Clyburn pointed out Thursday that "there are over 500 tribes recognized in this country and only four aren't under the gaming act."

"I've always felt that the Catawbas ought to be brought under IGRA," Clyburn said. "South Carolina now has a lottery and they (the Catawbas) are really suffering, income-wise."

"I would really love to see the Senate pass this thing," Clyburn said. But will they? "Over the years, I've learned not to second-guess the Senate," he replied.

Clyburn cited the Catawbas' willingness to forsake the opportunity to request casino gaming. "That ought to satisfy all the people who seem to have this problem (with casino gaming) but they seem to once again dump on the Catawbas," Clyburn said.

U.S. Sen. Fritz Hollings, D-S.C., was not available Thursday for an interview.

IGRA status would allow the Catawbas to offer Class 2 bingo gaming at Santee, freeing them from the restrictions imposed in a 1993 agreement with the state of South Carolina.

That means they could operate around the clock instead of 12 hours a day. They could use bingo machines as well as traditional cards. They could "network" with bingo operations in other states and offer jackpots above the present $100,000 limit.

That's the only way the Santee operation could be profitable, Catawba Chief Gilbert Blue and two others explained to Sanford during a meeting in his Statehouse office Thursday morning.

"I thought if we could talk to the governor, we could get his support to get it through the Senate," Blue said in an interview later in the day.

"We talked with him for 35 to 40 minutes. He was very cordial and friendly, but cordiality does not get bills passed, unfortunately," Blue said.

"We told him about the (economic) impact to Santee and what it would mean to the Catawbas. We told him if this thing doesn't go through, there are going to be a lot of upset people in Santee."

"He doesn't seem to understand what class 2 gaming is, compared to what we're doing now" at a bingo operation in a former mall in Rock Hill. "Right now all we can do is regular bingo," Blue said.

"We told him about the language we'd agreed upon. We would be prohibited from class 2 gaming in order to get the class 2 facility down there in Santee. We think we can do well enough with that," Blue said.

"We told the governor, 'I don't think you should have any concerns now about class 3 gaming because it's off the table,'" Blue said. "He kind of hedged around."

In a conversation much earlier, the Catawbas had laid out their plans for the governor and had gotten the impression that, while he wasn't about to support them, he would at least "stay out of the way" and let Congress decide, Blue said.

"Now that's changed, for whatever reason," Blue said. "He said the atmosphere had changed a little bit."

Sanford's spokesman, Chris Drummond, said Thursday the governor did not precipitate action by Ensign, who has a track record of opposing expansion of gambling outside his state.

Sanford contacted Ensign after reading in a newspaper report that Nevada lawmakers formally objected to the enabling legislation for the Catawbas, Drummond said.

The governor told him about the state agreement with the Catawbas and that Sanford is opposed to federal legislation undermining the 1993 pact.

"From the conversation with Ensign, the governor indicated that he, too, did not like this legislation,'' Drummond said. "The governor supports the original agreement.''

"Sen. Ensign was unaware of the Catawba agreement. Once he heard that, he understood. The governor has serious concerns that (the federal legislation) undermines the agreement.''

Drummond said federal status for a Santee operation raises questions about the Catawbas' "original intent."

They made an agreement with the state and operate a facility in Rock Hill without federal legislation, he noted. They unsuccessfully pursued a second facility in Horry County, where again they did not seek federal status.

"Our concern is that this legislation could be creating a federal loophole used to bring casino gambling to this state,'' Drummond said, saying the state agreement forbids such but federal status ultimately could lead to the Catawbas operating casinos similar to those run by tribes in other states.

"Indian policy for the country is to be set by Congress, not by the governor of South Carolina," Bender said, adding that every time one of Sanford's objections has been discredited, the governor has come up with a new objection.

"It seems beyond belief that a governor of the state would go to a senator from another state to block legislation that is favored by both senators and most of the congressmen" from South Carolina, Bender said.

"The governor would fall all over himself to get an industry in the Santee area that would provide the economic benefits of the Catawbas' project but for whatever reason he has decided that he is opposed to the tribe's effort to make money for itself and bring jobs and money to an area of high unemployment," Bender said. "I find the actions of the governor to be very callous."

"The tribe is going to be highly suspicious of his actions when he first uses an objection that's unfounded in fact and then, second, uses a suspect political philosophy to justify opposition to economic development that will benefit a substantial population of South Carolina," Bender added.

Meanwhile, Orangeburg County officials mobilized Thursday to let the governor know there is support here for the Catawbas' plans in Santee.

Development Commission Executive Director Harold "Hal" Johnson said he sent messages all day urging officials from plant managers to business owners to contact the governor's office.

"Local support exists for federal status and we support the Catawbas 100 percent,'' Johnson said.

"We are telling them (local leaders) that this is a great development opportunity for the county, a chance to diversify and that we think we need the support not only of the local community but of our governor. We're asking them to contact the governor.''

T&D Editor Lee Harter contributed to this story.