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Casino Grosses $3 Million A Week May 17, 2003
NEVADA:- A Meskwaki tribal financial officer testified here Wednesday that the tribe's casino operations grossed an average of $3 million a week. The number was the first public disclosure of the extent of the casino's business, which has been guarded by the 1,293-member tribe and publicly unavailable.
Ram Dhanwada, the Meskwaki comptroller, made the disclosure at a public hearing at the Story County Courthouse. The hearing considered a request by elected tribal officers for a court order to boot dissident tribal members who seized control of operations and the casino. Dhanwada's testimony places the Tama casino at the top or near the top of the list of the state's most lucrative gambling operations.
Prairie Meadows Racetrack and Casino in Altoona, for instance, reported gross revenues of $146 million in the fiscal year that ended June 30, which was the highest of any state-regulated casino. A Casino in Council Bluffs, the state's top-performing riverboat, generated $138 million in the same year.
Unlike non-Indian gambling operations, the Tama casino is immune from some taxes. None of Iowa's three American Indian casinos - including those run by the Omaha and Winnebago tribes - pays any state gambling taxes because the tribes are considered sovereign nations.
The Meskwaki casino and its revenue are at the heart of an ongoing power struggle on the settlement that began in March after appointed council members took over, claiming their petitions for a recall election were not granted by the elected council. The appointed council, led by Homer Bear Jr., says it was given control by the tribe's hereditary chief, Charles Old Bear.
At the hearing Wednesday, elected Meskwaki leaders, who are led by Alex Walker Jr., asked a state judge to remove the appointed council from the casino and other operations. Dennis Johnson, a Des Moines lawyer for the elected leaders, said the state had jurisdiction to move against the dissident council although a federal judge refused last month to intervene.
Johnson said a delay would cause "devastation" to the tribe and "open the door to any group of dissidents to seize" tribal operations. District Judge Timothy Finn, who heard arguments in the escalating battle, said he might rule Friday.
The hearing was packed with lawyers from both sides and lawyers from the Marshalltown branch of Wells Fargo Bank, the repository of the tribe's $150 million. Charles Gribble, lawyer for the appointed council, asked Finn to freeze the money at the bank so elected tribal members couldn't have access.
The bank had agreed not to dispense any money unless both sides agreed, he said. But on May 6, Wells Fargo relented and gave $333,838 to elected leaders to pay legal fees. Any more "unchecked" disbursements would put the tribe at considerable risk, he said.
Johnson countered that the appointed leaders were now taking casino income - which testimony placed at $20 million - and putting it into Home Federal Savings bank. "The tribal council has not authorized the opening of any bank account for the tribe at Home Federal Savings bank," he said.
Johnson said the elected council was the legal council for the tribe, recognized by the U.S. Bureau of Indian Affairs and by the National Indian Gaming Commission. Johnson urged Finn to issue a no-trespass order against appointed council members.
Cedar Rapids Lawyer Roger Stone, who represented Wells Fargo, said the bank had done business with the tribe since 1993. He said bank officials hadn't taken sides in the dispute.
Under the advice of the bank's own lawyers, it was the "prudent
thing" to release money to elected officials, Stone said. Bank lawyers
said the federal government recognized elected officials as the true leaders,
he said.
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