You want a description of the Indian-state slot machine agreements. You also want to know what types of agents are assigned to the casinos and who pays for their services.

SUMMARY 

The Mashantucket Pequots and Mohegans have identical slot machine agreements (memorandum of understanding) with the state. The agreements give the tribes the exclusive right to operate slot machines. In return, each tribe must contribute 25% of gross slot machine revenue to the state monthly. If either tribe's contribution falls below $80 million in any year, its rate increases to 30% in order to ensure a combined $160 million minimum annual contribution. From FY 1992-93 through FY 2000-01, the tribes contributed a combined $1.8 billion approximately.

The state performs certain review, licensing, and law enforcement functions at the casinos through the Department of Consumer Protection (DCP), Division of Special Revenue (DSR), and State Police. As part of the process, DCP stations liaisons and DSR and the State Police station agents at the casinos. Some off-site agency employees perform casino-related functions (direct and indirect) as well. The state assesses the tribes and the tribes reimburse it for all the direct and indirect costs associated with the casino-related functions the agencies provide.

Currently stationed at the casinos are: (1) 13 DSR liaison officers (eight at Foxwoods and five at Mohegan Sun), (2) nine liquor control agents (five at Foxwoods and four at Mohegan Sun), and (3) 29 state police officers (14.5 at Foxwoods and 14.5 at Mohegan Sun).

The assessment for the last fiscal year was as follows: DSR, $2,672,805.43; DCP, $763,685; and State Police, $4,597,188.11.

MEMORANDUM OF UNDERSTANDING

The original Pequot memorandum of understanding with the state was negotiated and designed to suspend the moratorium imposed on slot machines by the federal procedures governing casino gaming at Foxwoods. Section 3 of the procedures authorizes slot machines, but Section 15(a) places a moratorium on them until:

1. it is determined by agreement between the Tribe and the State or by a court of competent jurisdiction, that by virtue of the existing laws and regulations of the State the operation of video facsimiles of games of chance would not be unlawful on the ground that the Tribe is not located in a State that permits such gaming... or

2. the existing laws or regulations of the State are expressly amended to authorize the operation of any video games of chance for any purpose by any person, organization or entity (Mashantucket Pequot Gaming Procedures, p. 53).

The Pequots negotiated the first memorandum on January 13, 1993. It gave them the exclusive right to operate slot machines in return for a monthly contribution of 25% of gross slot machine revenue. If the tribe's contribution fell below $100 million in any year, the rate would increase to 30% in order to reach a minimum $100 million.

When the Mohegans won federal recognition, the Pequots renegotiated their agreement. The result is that both the Mohegans and Pequots have identical slot agreements with the state. Each tribe must contribute 25% of gross slot machine revenue to the state monthly. If either tribe's contribution falls below $80 million in any year, its rate increases to 30% in order to ensure a combined $160 million minimum annual contribution. Each tribe agrees to continue the payments "so long as no change in State law is enacted to permit the operation of video facsimiles [slot machines] or other commercial casino games by any other person and no other person within the state lawfully operates video facsimiles or other commercial casino games...."

In the event that any change in State law is enacted to permit the operation of video facsimiles or other commercial casino games by any other person or any other person within the State lawfully operates video facsimile games or other commercial casino games, the Tribe shall not be bound by the provisions of the Memorandum of Understanding so long as it does not claim any right to operate video facsimile games by virtue of this Memorandum of Understanding, but the Tribe may thereupon assert any rights which it may otherwise have under the Procedures; provided, however, that in such event neither party shall be bound by any of the provisions hereof nor shall either party be barred from taking any position inconsistent with the Memorandum of Understanding (p. 3).

THE FEDERAL GAMING PROCEDURES AND COMPACT

The federal gaming procedures and an Indian-state compact govern casino gaming at the Foxwoods and Mohegan Sun casinos, respectively. Pursuant to these, the state performs certain review, licensing, and law enforcement functions and assesses the tribes annually an amount "sufficient to compensate for the reasonable costs of regulating gaming operations and conducting law enforcement investigations." The tribes must make payments based on a specified schedule. If aggrieved by any assessment, they may appeal to Superior Court (Section 11). 

 DEPARTMENT OF CONSUMER PROTECTION 

The tribe must comply with the Liquor Control Act. The state's authority to enforce compliance is found in a federal statute, a U.S. Supreme Court decision, and the procedures and compact. Under federal law, liquor transactions on Indian lands must conform to both state liquor laws and local tribal ordinances (18 USC § 1161). In 1983, the U.S. Supreme Court ruled that Congress intended to remove the federal prohibition against liquor sales imposed on Indians and simultaneously authorize state regulation (Rice v. Rehner, 463 U.S. SupCt. 713). The gaming procedures and compact state that "serving liquor within any gaming facility shall be subject to the laws and regulations of the State applicable to sale or distribution of alcoholic beverages." 

DIVISION OF SPECIAL REVENUE 

 DSR has review authority over gaming at the casinos. It must review (1) changes in the casinos' management and operating standards, (2) required records of any complimentary services the casinos give to patrons, (3) changes in the casinos' floor plans or closed circuit television system, and (4) required casino logs. DSR may audit the gaming operations without notice and investigate violations of the procedures and compact. It must license gaming employees and register businesses that provide gaming services or gaming equipment to the casinos. It may also investigate nongaming employee misconduct. 

 STATE POLICE 

The Division of State Police has jurisdiction to enforce (1) all criminal laws prohibiting casino-type gaming against anyone on the reservations engaged in any form of such gaming not authorized by the procedures or compact and (2) all other criminal laws of the state that are consistent with the procedures and compact (Section 4). The tribes must give law enforcement officials free access to the gaming facilities to maintain public order and public safety and enforce applicable criminal laws. 

The division also conducts background investigations, where required.

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