I am including a copy of my most recent "Gambling and the Law®: Status of Casino Enabling Laws." With the help of my Research Assistant, Grey Zimmerman, I am now trying to keep this current, updating it about three times a week. I hope you will find it of interest. Feel free to pass it on.

If you see anything in it which strikes you as being wrong (or a typo), please let me know.

Thanks,

Nelson

I. Nelson Rose

Professor of Law, Whittier Law School

Internet: GamblingAndTheLaw.com

Email: rose@sprintmail.com

Gambling and the Law®: Status of Casino Enabling Laws

©Copyright by Professor I. Nelson Rose. All rights reserved worldwide. This paper may be reproduced so long as this copyright notice is attached. Gambling and the Law® is a registered trademark of Professor I. Nelson Rose.

The following are American jurisdictions having recent legal activity concerning casino gambling. States and territories with legal gaming devices are marked with an asterisk: *; while states allowing, by law or compact, at least one casino (defined as having both banking card games and slot-like machines) are marked with a exclamation point: !, even if the casino is not yet open.

UNITED STATES - The National Gambling Impact Study Commission, created by Congress, is due to produce a "comprehensive study of the social and economic impacts of gambling in the United States" in June 1999. Sen. Jon Kyl has reintroduced his Internet Gambling Prohibition Act, without the provision making betting a crime.

ALABAMA - The Poarch Band of Creek Indians sued the state under the Indian Gaming Regulatory Act ("IGRA") when the Governor refused to negotiate for casinos. The 11th Circuit ruled: 1) a state could not be sued without its consent; but, 2) then the tribe could get gaming regulations directly from the Secretary of the Interior. The U.S. Supreme Court, in Seminole v. Florida, affirmed the first and refused to decide any other issue. Congress has temporarily blocked the Secretary from issuing casino regulations. The state s four dog tracks may finally get video poker machines; in January 1999 the Legislature changed its rules, allowing bills affecting tracks to be treated as "local" bills, usually voted on only by legislators representing the affected county. In March, Atty. Gen. Bill Pryor declared a pending bill by Rep. John Knight would unintentionally legalize "almost every form of electronic gaming."

ALASKA - Casinos are prohibited by state law; yet, the Governor was negotiating to allow the Klawock band of Tlingit Indians to open a full casino on remote Prince of Wales Island.

!*ARIZONA - Charities may have occasional casino nights with slot machines; Indian tribes can, and do, operate slots year-round. Gov. Symington signed compacts with 16 tribes, but, misreading the federal Ninth Circuit's opinion in Rumsey, refused to sign any more. In November 1996 voters approved the "Fairness Initiative" 64% to 36%, requiring the state to negotiate compacts with the five tribes that had been left out -- the first time in American history a state voted to allow new high-stakes casinos in the face of active opposition. See MICHIGAN. The House of Representative approved raising the gambling age from 18 to 21; the measure is pending in the Senate.

ARKANSAS - Competing proposed constitutional amendments gathered enough signatures to be on the November 1996 ballot. But the state Supreme Court found all but one misleading. The remaining initiative to legalize casinos lost by a landslide, due in part to the state's active religious organizations and opposition from Mississippi's casinos.

!* CALIFORNIA - By spending $70 million, tribes won voter approval of Prop. 5, which would make legal their now-illegal slot machines and banking blackjack. The state Supreme Court issued a stay, because Prop. 5 seems to violate the state Constitutional prohibition on Nevada- and New Jersey-style casinos. Then-Gov. Pete Wilson, signed compacts with the Pala Band and ten other tribes, allowing them to have limited numbers of slot-like lottery terminals. But, the "Pala compacts" have been stalled by a referendum set for the March, 2000 election. Meanwhile, the Indian casinos stay open.

!*COLORADO - Five dollar maximum blackjack, poker and slot machines are in casinos in three mountain towns and on two Indian reservations. Widespread gray market video gaming devices pay off, when police aren't around. In November 1994 voters overwhelmingly rejected adding new towns and slot machines in every airport. In November 1996 voters again rejected expansion, voting against adding a fourth town.

!*CONNECTICUT - Then-Gov. Weicker signed compacts giving an oligopoly on slots to two tribes, for a guaranteed minimum payment of $80 million, each. Foxwoods is the largest, most profitable casino in the world, with over 4,000 slot machines. The two Indian casinos will win more than $1.5 billion this year, making them the third largest casino market in the U.S.

*DELAWARE - A bill became law in 1994, without the Governor's signature, allowing each racetrack to have up to 1,000 video lottery machines. Dover Downs opened with 500 and Delaware Park with 715 over the 1996 New Year's Eve weekend.

FLORIDA - Following the U.S. Supreme Court decision in Seminole (see discussion under ALABAMA), U.S. Interior Secretary Bruce Babbitt proposed issuing casino regulations for tribes, despite state opposition. Congress put Babbitt s controversial proposal on hold until April 1, 1999. Gov. Jeb Bush is threatening to sue the federal government to prevent tribal casinos. Separately, a November 1994 casino initiative lost big at the ballot box. Proponents have temporarily given up gathering signatures for another attempt; though, powerful legislators want to put a constitutional amendment on the ballot that, if approved, would give voters in large counties the right to vote on legalizing casinos. In March 1999 the House Regulated Services Committee approved, by a vote of 8 to 0, permitting electronic poker and slot machines at tracks and jai-alai frontons. Casino cruises to nowhere operate out of Florida's ports.

GEORGIA - Nothing beyond a lottery and charity bingo and raffles.

HAWAII - All gambling outlawed; but, over 30 bills have been introduced in the State Legislature to legalize gambling.

IDAHO - The state constitution was amended in 1992 to specifically prohibit casinos, with one target in mind: Indian casinos. Tribes are operating gaming devices anyway, without compacts. The Coeur d Alenes, losing court battles, closed their Internet lottery.

!*ILLINOIS - Under a 1990 constitutional amendment, the Legislature authorized up to ten riverboat casinos, but not in Cook County or on Lake Michigan (Chicago). Currently, there are only nine riverboats and none have the maximum allowed 1,200 slots. There is constant political pressure to expand: The most recent proposal would put the 3,500 unused slots on brand-new riverboats, let casinos operate in Chicago, allow existing riverboats to relocate to new cities and permit gambling when the boats are not cruising.

!*INDIANA - In November 1995 the state Supreme Court reversed a trial court and held the riverboat casino law constitutional. Nine now sail; soon, there will be 11. The Pokagon band of Potawatomi Indians is trying to open a land-based casino in north-central Indiana. A study released in 1999 found gambling is the state s fifth largest source of revenue.

!*IOWA - Slots are legal on nine riverboat casinos, at two racetracks and in three Indian casinos. In March 1999 a House committee approved a pending bill that would ban new casino licenses for five years, but would allow existing casinos to expand.

!* KANSAS - Gov. Graves signed and the State Legislature approved casino compacts with four tribes. Although the compacts were reported to exclude electronic gaming devices, tribal casinos have slot and video poker machines, as well as table games. In February 1999 a bill was introduced to let the State Lottery operate the same machines at dog and horse tracks; a similar proposal passed the House in 1996 but died in the Senate. The governor and legislative leaders seem open to the idea.

KENTUCKY - In January 1997 Gov. Paul Patton said he will consider supporting VLTs for racetracks, given the competition from neighboring states riverboats. There is little chance of full casinos clearing legislative hurdles.

!*LOUISIANA - A flood of gaming bills are expected to be introduced when the Legislature convenes March 29, 1999. A fight is brewing over "phantom cruises," where casinos have to close their doors when they are docked. Gaming machines and casinos are virtually everywhere. Truck stops now are limited to 50 video poker machines, and they have to sell gasoline! Casinos: 15 on riverboats, three on Indian land and one in New Orleans (presently bankrupt). Then newly-elected Gov. Mike Foster put gaming on local ballots in November 1996, but parishes with casinos voted overwhelmingly to keep their casinos and 23 parishes voted to invite casinos in. Video poker was rejected in 35 parishes, while 29 voted to keep their gaming devices.

MAINE - The federal court ruled the Maine Land Settlement Act preempts IGRA, so, the state will not be forced to negotiate for Indian casinos. Charities can offer blackjack.

MARYLAND - Charities are pushing to regain the right to run casino gaming, including slot machines. Bills to allow riverboat and land-based casinos have been introduced, but cannot overcome Gov. Glendening. He appointed a task force, which voted unanimously against casinos for Maryland. Tracks have a statute allowing phone wagers and now want implementing regulations. They would also like slots, but know they cannot win.

MASSACHUSETTS - Top lawmakers, led by newly elected Atty. Gen. Thomas Reilly, have abruptly turned against casinos. Gov. Paul Cellucci now says he will negotiate only Class II gaming with the Wampanoag Indians. Four pending casino bills thus will fail. The state s horse and dog tracks need slots to survive, but they will not get them this session. A deal between then-Gov. Weld and for a casino in New Bedford, rather than on their inaccessible reservation, was killed by the Legislature in 1997.

!*MICHIGAN - Eleven Indian casinos, with slots, all but two are in the Upper Peninsula. Gov. John Engler negotiated new compacts with most tribes in 1998. In November 1996 voters approved three casinos for Detroit, despite the strong opposition of Gov. Engler -- the first time in American history that citizens of a state voted to allow new high-stakes commercial casinos in the face of active opposition. Atty. Gen. Jennifer Granholm has approved temporary casinos for Detroit. The state's racetracks now say they need slot machines to survive. Charities are also asking the Legislature for help: bingo revenue in 1998 was down 26% from 1992.

!*MINNESOTA - Seventeen Indian casinos (more than in Atlantic City) with slots. The House Committee on Government Operations passed bills to allow: 1) the State Lottery to run a casino with blackjack and slots at Canterbury Park in Shakopee in direct competition with Mystic Lake Casino; 2) a card club at the track; and 3) dice games in bars. Jesse Ventura s surprise win in November breathed new life into the Canterbury proposals, which he has said he would sign.

!*MISSISSIPPI - State law allows an unlimited number of dockside and riverboat casinos with slots; there are now 30. Mississippi has become the third largest (non-Indian) casino state. In November 1996 voters in DeSoto County, between Tunica and Memphis, again turned down casinos. Casino opponent Elizabeth Stoner has filed her third initiative attempt to ban gambling. She needs to get 98,336 signatures.

!*MISSOURI - It has taken four elections to make casinos legal. In early 1994 the state Supreme Court nearly destroyed the state's new riverboat casino industry by limiting the boats to games with some skill. The November 1994 election amended the state constitution to allow slot machines, keno, bingo and other games of pure chance. The Court then outlawed boats-in-a-moat, but the voters made them legal, again. A $500 limit on gambling losses remains, despite repeated attempts to raise it.

*MONTANA - Video poker and keno machines, without coin drops, are everywhere. Indian tribes have signed compacts allowing them also to have these limited machines, but negotiations over true casinos have broken down. State law allows card clubs and limited forms of sports betting.

NEBRASKA - Tribes would like to negotiate for full casinos, but the Santee Sioux's lawsuit against the state was dismissed following Seminole. The tribe opened a casino anyway. A U.S. district judge ordered the Tribe to pay a $3,000 fine for each day it keeps its northeast casino open after Feb. 2, 1999 and even commented that he might start imprisoning tribal leaders if his ruling is not taken seriously. Slot machine bills are under consideration in the State Legislature. Casino initiatives did not make the November 1996 ballot, because many signatures were for people who were dead.

!*NEVADA - Casinos range from tiny to gargantuan. "Limited licenses" allow retail establishments throughout the state to have up to 15 slot machines, but a political movement against them is growing. A movement to raise the gross gaming tax from 6.25%, the lowest in the country, to 8.25% seems to be dying.

NEW HAMPSHIRE - A key legislative committee rejected Gov. Jeanne Shaheen s plan to install up to 3,750 video gaming machines at the state s four racetracks to help fund public education. Senate President Clesson Blaisdell supports the bill, but House Speaker Donna Sytek said she would work to defeat any plan to legalize slots at tracks. The latest proposal would allow four hotels and resorts to have up to 500 slots each.

!*NEW JERSEY - The 12 casinos in Atlantic City will win over $4 billion this year, making them the largest gaming market in the U.S., just ahead of the Las Vegas strip. The State Lottery would like to put in video lottery terminals statewide. Given the casinos' political power, the proposal seems doubtful.

!* NEW MEXICO - Gov. Johnson, elected and re-elected with major tribal contributions, signed compacts for tribal casinos, which were declared illegal. The Legislature passed a statute in 1997 legalizing them, but imposed a high (16%) tax. Only four of the 11 tribes with casinos are paying in full. The compacts are being challenged in court by both tribes and gaming opponents. To get the bill through, tracks and fraternal organizations had to be given slots, too. In March 1999 the Legislature approved a bill allowing tribes to renegotiate with a committee of 16 legislators. Opponents are threatening suit, because the full Legislature would only have the power to vote yes or no on new compacts, amendments would be prohibited.

!* NEW YORK - One Indian casino is open; the Oneida tribe is fudging with gaming devices designed to circumvent the restriction against slot machines. In 1996 a casino cruise ship began sailing twice-daily out of Sheepshead Bay in Brooklyn. A constitutional amendment to allow statewide casinos and slots at upstate racetracks was soundly defeated by the State Senate on January 28, 1997. The issue will not be put on the ballot before 2001 at the earliest, if at all. The Off-Track Betting Corp. announced that it plans in 1997 to set up the first state-sponsored Internet betting site.

!*NORTH CAROLINA - In August 1994 the Governor signed a compact allowing the Cherokees to offer video gaming at one bingo hall. A subsequent decision of the state Court of Appeals raises questions about the legality of video poker; but, the tribe is continuing to operate its 2,300 machines. State Rep. David Redwine has introduced a bill to virtually outlaw offshore gambling cruises from the North Carolina coast.

!*NORTH DAKOTA - In July 1996 voters defeated a proposal for video gaming; earlier, they voted against establishing a State Lottery -- possibly the only state to do so this century. Voters are not necessarily anti-gambling. They may feel the state has too much already, with low-stakes charity blackjack in hotels and four Indian casinos with slots.

OHIO - In November 1996 a riverboat casino initiative was defeated 62% to 38%. Casino bills and initiatives have been attempted every other year for decades and always failed.

OKLAHOMA - Voters resoundingly defeated a casino initiative. The state had been ordered by a federal Court of Appeals to negotiate for tribal Class III gambling, but the case was dismissed following Seminole.

!*OREGON - The State Lottery runs video poker machines, maximum of five per location; Indian tribes have full casinos. Charities can run casino nights. The State Lottery takes bets on professional sports events.

PENNSYLVANIA - On March 8, 1999, a proposed non-binding referendum for riverboat casinos and slots at bars and tracks was declared to be unconstitutional by the State Senate. Although only a court has the power to decide whether something is constitutional, politically, the issue is over: The Senate vote was 28 to 21. Tracks are desperately attempting to revive the issue, but slots and casinos are dead, until at least the end of Gov. Tom Ridge s term in 2003.

*RHODE ISLAND - The state runs video lottery terminals (slot machines) at racetracks. The Governor signed a compact for an Indian casino, but local voters disapproved of casinos in their cities in a November 1994 referendum by margins as high as 84% against. U.S. Senator John Chaffee pushed through a bill requiring statewide voter approval of any Narragansett casino. Two competing bills were introduced in the General Assembly to regulate proposed casinos.

*SOUTH CAROLINA - Video poker machines are legal, under strange laws. Voters approved cash payouts in 30 of 46 counties in November 1994. The Republican incumbent lost the 1998 election, due to his opposition to a state lottery and slots. Newly elected Gov. Jim Hodges is considering lifting the $125-a-day cap on machine payouts. A bill to create a lottery and video gambling referendum for the year 2000 has received overwhelming preliminary approval in the Senate. The House approved a ban on gambling cruises-to-nowhere; but the bill is held up in the Senate over the question of whether cities and counties should be given a local option to allow boats.

!*SOUTH DAKOTA - Casinos ($5 maximum bet) in one city, Deadwood, and on ten Indian reservations, with true slots. The State Lottery's 7,959 VLTs were declared unconstitutional by the state Supreme Court on June 22, 1994; but, voters reinstated the gaming devices by amending the state constitution in the November 1994 election. In February 1999 the House rejected bills that would have outlawed or restricted VLTs.

TENNESSEE - Lots of talk, but no chance of casinos until 2000, at the earliest.

TEXAS - A federal trial court had ruled the Ysleta del Sur Pueblo near El Paso could have a full casino, with slots; but, the Fifth Circuit reversed, ruling the federal act recognizing the tribe controlled. Now, no one knows what games are allowed. The Kickipoos recently lost a case over gaming devices. Elsewhere, the Texas Attorney General ruled casinos would require amending the constitution; which won t happen this century.

VERMONT - A bill to allow casinos on railroads didn't leave the station. A racetrack in the southern part of the state is campaigning hard for slot machines and a bill to allow full casinos is pending.

VIRGINIA - In 1994 a riverboat casino bill sank under the weight of excess baggage: Disney's proposed historic theme park got tacked on. The bills were reintroduced in 1995, for the third time, and have already been defeated.

!* WASHINGTON - Tribes have table-only casinos under compacts (with one with slots grandfathered-in under IGRA). The tribes sued the state to force negotiations, but the Ninth Circuit dismissed the suit after the U.S. Supreme Court's Seminole decision. Voters turned down proposals for tribal slots in 1995 and 1996. But the tribes are getting them anyway, in the form of video lottery machines. Privately owned card clubs can now deal banking blackjack, as well as poker.

*WEST VIRGINIA - State law allows VLTs at five tracks. Jefferson County voted in November 1996 to permit slots at Charles Town Races; the voters had turned the track down in 1994. Gov. Cecil Underwood will let a bill become law without his signature, allowing VLTs to accept coins. In March 1999 the Legislature approved a unique bill: Greenbrier County voters will decide whether to permit a casino at Greenbrier Resort, in White Sulphur Springs, open only to registered overnight guests of the hotel.

!*WISCONSIN - Fifteen Indian casinos with slots. The legislature voted in 1993 to prohibited further casino expansion, but proposals for massive new casinos still pop up. The original compacts began expiring in 1998, but were mostly renewed when tribes agreed to raise the gambling age to 21 and make larger payments to the state.

WYOMING - An initiative to allow full casinos was defeated by a two-to-one margin on November 8, 1994. The electoral defeat means fewer jobs for lawyers: The initiative was so poorly written that it was legally unclear whether bets would have been limited to $25 maximum or whether there would have been no limits. State law allows limited sports betting.

American Possessions:

DISTRICT OF COLUMBIA - Riverboat casino initiative failed to get enough legitimate signatures: of 45,000 signatures gathered, fewer than 15,000 were from voters.

!*COMMONWEALTH OF THE NORTHERN MARIANAS - Casinos with slots are allowed.

*GUAM - Gaming devices are legal. In November 1996 an initiative to allow full casinos to compete with those on the nearby island of Saipan in the Northern Marianas was defeated at the polls.

!*PUERTO RICO - Full casinos with a strange twist: The government used to own the slot machines. A movement to privatize developed in 1996.

!* VIRGIN ISLANDS - Local voters approved the concept of legalized casinos in a non-binding referendum in November 1994. Legislation for casinos has been approved, and the first license issued.

Gambling and the Law® is a registered trademark of Professor I. Nelson Rose, Whittier Law School, Costa Mesa, CA. © Copyright 1999 by I. Nelson Rose. All rights reserved worldwide. I. Nelson Rose is a professor of law at Whittier Law School in Costa Mesa, California and is recognized as one of the world’s leading experts on gambling law.