Casinos, gambling and taxes

By now, most Minnesotans probably know that the state does not collect gambling taxes from the 18 casinos operated by Minnesota's Indian tribes.

It's not that way in other states with Indian gaming.

In Michigan, tribal casinos paid $61 million to state and local governments. In Connecticut, the Mashantucket Pequot Tribal Nation has paid $3.12 billion since bringing slots to its Foxwoods resort in 1993.

The difference: Some states negotiated taxes or payments-in-lieu of taxes in their original gaming compacts with tribes. Or some of those states negotiated gaming compacts that included expiration dates. So, when it came time to renegotiate, states could insist on a cut of the spoils.

In Minnesota, however, the enabling legislation said that gaming compacts would have no fixed expiration date. They can only be renegotiated by mutual agreement.

As Minnesota's gambling industry grew, republican lawmakers, especially, began angling for a share of the cut. In 2004, Gov. Tim Pawlenty pushed aggressively for a state share of gambling revenue. Some tribal leaders initially suggested they were open to negotiating a new fee arrangement, but dropped their willingness once it seemed clear to them that Pawlenty wanted to end their monopoly outright.

Minnesota Democrats have, for the most part, been reliable defenders of Indian gaming, and the tribes have rewarded them for their loyalty. In 2010, for example, the Mdewanketon Sioux Community donated $543,550 to state candidates or political parties. Less than $5,000 went to Republicans.