Tribe claims operating loss at Marksville casino, misses fund distribution dates

MARKSVILLE – Quarterly distributions to the parish under the compact between the Tunica-Biloxi Tribe and state have been suspended since the third quarter of 2013 because the tribe claims it has been operating Paragon Casino at a net loss, Avoyelles District Attorney Charles Riddle said.
Riddle admitted to being “hot and bothered” about the distribution issue. He was instrumental in drafting the compact when he was a state legislator for Avoyelles Parish.
The issue became a public concern when the Avoyelles Police Jury discussed the possible impact the elimination of that revenue source might have on its operating funds.
The Jury had budgeted $45,000 in expected revenues from the gaming distribution. Calls to other local governing agencies found similar stories -- the last payment was received in November for the quarter ending Sept. 30, 2013.
The last payment received by the city of Marksville was $1,103, according to Marksville Secretary/Treasurer Heather Dauzat. Bunkie Mayor Mike Robertson said that city received $701.48 for the third quarter of 2013. That compares to $12,783 the city received for the same quarter in 2006.
Other local government officials also confirmed that gaming distributions have been decreasing over the years.
Tribe spokesperson Richella Malveaux said she had no information on the issue in her office, but said she would contact tribe and casino officials to try to answer the newspaper’s questions on the matter.
“The original compact with the tribe was an agreement to distribute 6 percent of the net profits from the casino,” Riddle said. “How ‘net profits’ is being defined is what is at issue.”
That 6 percent is to be paid to local governments. Originally, those were defined as the police jury, sheriff, school board, district attorney and municipalities.
“A committee was established by statute to set the percentages for each entity,” Riddle said. “The D.A. is to receive 4 percent, the Police Jury receives 30 percent, the School Board receives 25 percent, the sheriff receives 25 percent and the municipalities were to divide up the remainder.”
There were some revisions over the year, with the 12th Judicial District Court to get a half-percent of the distribution and the Avoyelles Commission of Tourism to receive $12,000 per quarter off the top of the total amount to be distributed.
“For the first time in 20 years, they claimed that in the last quarter they operated at a net loss,” Riddle said.
Riddle said the tribe’s accounts can be audited by the State Police to verify the casino lost money in that quarter. However, the governor has to instruct the State Police to do the audit.
The compact is to be renewed every seven years, he said. The compact was renewed under Gov. Mike Foster in 2001. When it came up for renewal in 2008, Gov. Bobby Jindal didn’t want to renew the compact but did agree to extend it. Both parties agreed to the extension.
The compact should be up for renewal again in 2015 or soon after that, he said.
Riddle said that the federal Indian Gaming Act authorizes federally recognized tribes to operate casinos with the approval of the state through a local compact.
“If the state does not approve a compact, the tribe can apply directly to the federal Bureau of Indian Affairs and claim a hardship,” Riddle said. “If the state does not sign a compact and it goes to the BIA for approval, there would be no local payments from the tribe.”
However, in this case, the state did give its approval for the tribe to operate the casino and did enter into a compact with the tribe. The state Office of Indian Affairs notes on its website that it “acts as a pass through agent as it distributes funding to various local government entities in Avoyelles Parish from the Tunica-Biloxi Casino to be used for infrastructure and awards scholarships to American Indian students.”