Sunday, February 18, 2007

Eastern casino syndicator fears competition & seeks protections; not tribes

If SoCal Tribes feared competition, they would be endorsing plans to move Los Coyotes’ Casino to Barstow


If fear of competition was the primary motivator, Southern California’s established gaming tribes would be endorsing plans to relocate two tribes and their casinos to Barstow, in the middle of the Mohave Desert but they aren't.


Spokesmen and lobbyists for Detroit-based casino syndicators say established gaming tribes in Southern California oppose their plan to build and manage dual Indian Casinos in Barstow simply because the established tribes are afraid of competition.


However, a look at a map suggests if “fear of competition” was motivating the established gaming tribes, those tribes would be endorsing any plans that might move a Los Coyotes casino to Barstow; and out of the San Diego/Riverside County area.


There are seven casinos located along the Hwy 76 corridor primarily in northern San Diego County and including the Pechanga Casino in Riverside County. Those casinos are within 30 miles of the Los Coyotes Reservation with the closest being less than 10 miles away. And most of those seven casinos are within 5 miles of one or two other casinos. If fear of competition was the primary motivator for the established tribes, casinos at Pechanga, Pala and Harrah’s Rincon among others would be endorsing a plan to re-locate the Los Coyotes' casino outside their territory, but they are not.




More likely, it’s Barwest’s fear of competition that resulted in abandoning any plans the tribe might have had for a casino on their San Diego County reservation. Barwest would have to compete with those seven casino and a dozen more.


In Barstow, the Detroit casino syndicators are virtually guaranteed there won’t be another casino within 50 miles (or an hours drive) of their dual casinos mega resort.


At home in Detroit, the people behind Barwest bankrolled a 1996 statewide ballot measure that voters narrowly approved, which ensured they would be given preferences in a competition to see who would build and own one of three commercial Las Vegas-style casinos in Detroit. As soon as they had things up and running, they helped bankroll another ballot measure to protect their casinos by virtually prohibiting any new competition from entering into the Michigan marketplace without statewide voter approval; casinos, racetracks, lotteries or otherwise.

Governor Schwarzenegger's negotiators confirmed last March (2006) that it was Barwest's interests and not the state who pushed for the unprecedented 5,044 square mile competition-free zone around a future Barwest casinos mega resort included in the Barstow gaming agreements the Governor negotiated in 2005..



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