Posted on Wed, Sep. 24, 2003


Catawbas play video poker card
Tribe says it might sue S.C., start video poker operation if I-95 bingo blocked

Staff Writer

An attorney for the Catawba Indian tribe said Tuesday the tribe might sue the state of South Carolina and introduce video poker machines on its York County reservation if it is not allowed to set up a federally approved bingo operation near I-95.

"The tribe will explore all its options, including legal action, to get back to its status in 1993, when it was the lead gaming operation in South Carolina," said attorney Jay Bender.

Bender's remarks represent a serious escalation of the Catawbas' mostly behind-the-scenes efforts to launch high-jackpot bingo in Orangeburg County.

Under a 1993 agreement made with the state and federal governments, the Catawbas run a low-stakes bingo operation in York County. They need congressional approval to move to a more sophisticated, higher-payoff bingo.

In Santee, in southern Orangeburg County, the Catawbas believe they have found a desirable location because of the thousands of cars that pass daily near the intersection of I-95 and I-26. The Catawbas need federal legislation to allow them to electronically link Santee bingo operations to those of other Indian tribes. That way, they could offer jackpots of more than $100,000.

So far, the Catawbas' efforts have stalled in the U.S. Senate, largely because of opposition by U.S. Sen. Lindsey Graham, R-S.C. He fears the Catawbas might use any congressional approval for a higher-stakes bingo operation to move toward hard-core casino-type gambling like blackjack and slot machines.

In the Senate, one senator can in most circumstances block a bill. So although Sen. Fritz Hollings, D-S.C., favors the Catawba bingo expansion, Graham's lone opposition is likely to kill it.

Graham said Tuesday he believes it is likely the Catawbas will file a lawsuit against South Carolina if they can't get Congress to pass a law allowing them to link their bingo operations to those in other states.

"You don't have to be a rocket scientist to figure this is going to go to court eventually if something's not resolved," Graham said.

The senator called the situation a "mess" and indicated the state might be vulnerable to such a lawsuit. He questioned the 1993 agreement the state made with the Catawbas, and wondered aloud whether it could stand legal scrutiny.

"The day we got in the lottery business, we became a competitor (of the Catawbas). We got no one to blame in South Carolina but ourselves," Graham said.

Under the 1993 agreement, the Catawbas claim, they -- not the state -- are supposed to be South Carolina's leading gambling business. But competition from the state-operated lottery, which began in January 2002, has cut their Rock Hill bingo revenues in half, Bender said. In 2001, before the lottery, the tribe earned $1.9 million. But in 2002, in competition with the lottery, the tribe earned only $911,000, he said.

Graham also said it is "settled federal law" that Indians can engage in any form of gambling permitted under state law.

"So the Indians could go into the lottery business if they wanted to," said Graham, an attorney.

Graham said his first goal is to prevent the Catawbas from going into "the casino business" -- meaning the operation of a Las Vegas-style casino offering slot machines and such games as blackjack and roulette.

Graham said he would listen to the wishes of Gov. Mark Sanford and state lawmakers, many of whom oppose the Catawbas' expansion plans.

"I am not going to vote for any federal statute until there's a consensus at home as to what is the best course to deal with the Indian gaming problem," Graham said.

"And in fairness to the Catawbas, the state of South Carolina created this mess," he said, referring to the state's decision to allow the Catawbas to go into the gambling business.

"Things come back to bite you."

The Catawbas have promised that if they get congressional approval to offer high-stakes bingo games in Santee, they won't try to set up a Las Vegas-style casino anywhere in South Carolina.

The Catawbas originally filed suit in 1980, seeking compensation for 144,000 acres they claimed South Carolina stole from them in 1840. In 1993, the state settled the claim by agreeing to pay the Catawbas $12.5 million and to let the tribe set up two limited bingo operations. Bingo games were supposed to assure the tribe a steady income.

Bender now says that agreement also would allow the Catawbas to operate video poker machines.

A Columbia attorney, Bender specializes in media law and First Amendment issues. Among his clients are The State newspaper and the S.C. Press Association.

Meanwhile, representatives of the Southern Baptist Convention and the United Methodists plan a press conference today at the State House to speak against the Catawbas' plans in Santee.

S.C. House Speaker David Wilkins, R-Greenville, will be on hand.


Reach Monk at (803) 771-8344 or jmonk@thestate.com.




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