Negotiations are underway between the government of North Carolina and the Cherokee regarding the allowing of live dealers at tribal casinos in exchange for a slice of the revenue generated by these gambling establishments.
Several years ago, negotiations began between then Governor Mike Easley who demanded a significant part of the revenue, but no agreement was ever reached. Talks, however, were rekindled between the Cherokee and Governor Bev Perdue in recent months.
Federal law states that the state is not allowed to tax casino profits since the tribes enjoy sovereignty. However, the state is allowed to demand that the tribe hand over a percentage of their gaming revenue in exchange for certain privileges. In this case, the tribe wants live dealers at its casinos – something critical for its financial wellbeing in these hard economic times.
The state initially wanted a cut of all revenue coming out of resorts, including restaurants, spas and retail shops. This, however, was deemed unreasonable and now the sides are back at the table discussing just what can be deemed reasonable. The state wants a cut of all gaming revenue, including existing gaming machines, while the Cherokees want to pay revenue on the newly introduced table games only. A third option is paying the state a flat payment each year, regardless of the revenue brought in.
The editor of Casino City Press in AC, Vin Narayanan noted that “young players play table games” and less slots. “Casinos know they have an aging demographic that is attracted to slots,” he said. “If you have 4,000 seats of all slots your demographics isn’t going to get any younger.”
The negotiations between the two sides continue.
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