Alaska To Stop Casino Project In Chugiak
The state of Alaska is taking a strong stance against the development of a casino in Chugiak. The state is trying to stop the Native Village of Eklutna from fulfilling its wish to open a casino within its shores.
The Eklutna tribe was quick to file a lawsuit to a U.S Interior Department on its decision prohibiting it from developing a Class II casino under the Indian Gaming Regulatory Act.
“The state wants to be involved because this case has the potential to impact the state’s sovereign jurisdictional, regulatory, and taxing authority interests,” Assistant Attorney General Maria Bahr said. “Only the state can adequately protect those interests.”
Should the tribe succeed in its pursuit, the Alaska Department of Law says the casino would compete with state-licensed gaming. The state still sees gambling as an illegal act; however it allows charitable gaming that is advantageous to nonprofit organizations.
Records from the state Department of Revenue showed that close to $3 million was collected from charitable gaming in 2018, with non-profits raising close to $40 million.
Nonprofits Benefits
Some of the nonprofits have seriously benefited from charitable gaming in the state, and a bulk of these nonprofits are tribes. However, the Indian gaming rules allow tribes to set up bingo parlors. The revenue from these parlors are higher because the state cannot impose certain taxes on them.
A Class II casino allows electronic forms of bingo along with standard bingo, lotto, and pull tabs.
The tribe is hoping to develop a casino on a piece of land it leases from tribal members. The tribe argues that it has sovereignty over the land. However, the state Department of Interior insists that the land doesn’t fall under the confines of “Indian lands,” and as such, it is not eligible for Indian gaming.
