Expanded sports betting could add to EBCI per cap

BY HOLLY KAYS STAFF W RITER

Tribal members could see their per capita checks grow after the Eastern Band of Cherokee Indians expands its gaming business in accordance with a new state law authorizing sports wagering in North Carolina.

During the Tribal Council session

Thursday, July 13, Principal Chief Richard Sneed introduced a resolution directing the tribe’s Attorney General Office to work with the Tribal Casino Gaming Enterprise and EBCI Holdings LLC to draft an ordinance had maintained that Qualla Enterprises was not subject to that requirement.

Finally, the ordinance requires that LLCs state in their “operating agreement or other writing when, how and in what amount or percentage distributions of cash or other assets of the LLC shall be made to members.” Such a statement must be approved by Tribal Council and ratified by the chief or allowed to pass into law without a signature. The current law does not require that the allocation be expressed in writing or that the tribe’s elected leaders concur with the plan. Should the operating agreement be silent on the matter, it states, distributions will be made based on the value of contributions made by each member.

Forrest Parker, general manager for Qualla Enterprises, said that he had “no problem” with the proposed ordinance change but took issue with what he termed “misinformation” regarding transparency at the LLC. Parker said the law is “very clear” on who can and cannot receive information, and that Qualla Enterprises has merely been following that law.

“If the body wants to change the law, no problem, but we can’t be hating on the board and Qualla for just adhering to [Cherokee Code] 55B as it stands now,” Parker said. “The only thing I do want to say here, chief, and the one thing that’s factually and any company agreements necessary to distribute 75% of the proceeds from commercial sports wagering as per capita payments. untrue is that there’s no information. You guys know. You’ve seen it. There’s binders and binders.”

Currently, half of the profits from the tribe’s casinos in Murphy and Cherokee are distributed as per capita payments. Sneed proposed distributing a larger share of commercial sports betting revenue in light of the fact that state regulators in Indiana prevented any profits from Caesars Southern Indiana Casino, whose operations the tribe owns, from being directly distributed to tribal members.

“If all of that has been provided, it has not been provided to my office,” Sneed responded. “I can’t speak for the vice chief’s office. But if I’m being asked to ratify resolutions for appropriations in the tens of millions of dollars, then I need that information to inform my decision-making.”

Vice Chairman Albert Rose said that it’s not Qualla’s fault that the current law does not name the chief as a person with whom it is required to share records. However, that information was shared and discussed during a recent meeting, Rose said, but Sneed wasn’t there to hear it.

“I can’t help it if you don’t show up,” Rose said.

“I was not invited,” Sneed said. “I can’t help it if I’m not invited.”

“I invited you by text message,” Rose replied.

“I already have a schedule,” said Sneed. “So you call me on the day that it’s going on.”

Meanwhile, David Forester, a certified public accountant representing Tribal Council, said that his goal in this has been to “make sure there’s full transparency and full communication to the best of my ability.” To that end, he said, he provided a zip

“Rather than go with the traditional 5050 split, I went with 75-25 because it is a smaller pot of money, but it will make a larger impact on the overall per capita distribution,” Sneed said.

Commercial gaming is distinct from tribal gaming in that it falls under regulation from the state rather than from the National Indian Gaming Commission. North Carolina’s new sports betting law, which guarantees the tribe a license to offer mobile sports betting statewide, is expected to allow the EBCI to bring in an additional $2-$4 million each year — a lot of money for an individual pocket, but a drop in the bucket for a tribe whose current casino enterprise brings in over half a billion each year. If 75% of the anticipated $2-$4 million profit were divided among the tribe’s approximately 16,000 members, each person would receive between $90 and $190 each year.

“Sports betting is not a huge moneymaker here on property,” Sneed said. “So the inperson sportsbook is more an experience. It’s a different kind of player. It’s just another amenity. The hold for the house is like 10%. It’s not a huge win for the house.”

Under the new law, patrons will be able to place bets online without actually visiting casino property — but with a dozen licenses available, there will be more competition for those revenues.

While Tribal Council was amenable to Sneed’s concept, members were hesitant about taking decisive action without first taking a closer look at tribal finances. Yellowhill Rep. T.W. Saunooke moved to amend Sneed’s resolution so that it no longer specified the intent to distribute 75% of the proceeds. An exact number could be discussed after considering the matter more closely with the tribe’s gaming entities, he drive containing 14 files of documents Qualla Enterprises shared ahead of its meeting with Tribal Council to elected officials, including the executive branch, and also provided Sneed’s office with hard copies. said.

Earlier in the discussion, Wolfetown Rep. Mike Parker said he “love(d) the intent” of the resolution but requested that it be tabled.

“The reason for my request is just thinking through our current financial situation and everything,” he said. “I think we still have not had an opportunity to sit down and discuss prioritizing tribal projects, outside projects. We all sitting around the table know we’re trying to figure out how we’re going to fund some of these things.”

He suggested holding a work session on the bigger picture of tribal finances before passing the resolution.

“I think if we try to do this too quickly, it could cause some controversy down the road,” concurred Painttown Rep. Michael Stamper.

Sneed agreed the matter needed careful consideration and pointed out that passing the resolution would not change tribal law. Rather, it would direct the TCGE and EBCI Holdings to work with the tribe to draft proposed legislation, which Tribal Council could then either pass or kill.

“All this does is authorize the Attorney General to work with EBCI Holdings to work on an ordinance to create the revenue allocation,” he said. “I appreciate what you’re bringing to the conversation, Rep. Parker. The bigger issue if we’re going to talk about projects and funding projects is there’s a need for a process on this [Tribal Council] side. Because currently there is no process.”

However, Sneed did not object to Saunooke’s move to remove the 75% figure from the document. Tribal Council unanimously approved both that amendment and the resolution itself, which awaits Sneed’s signature.

Though Sneed’s issues with Qualla Enterprises were the impetus for his drafting the legislation, the ordinance does not mention Qualla Enterprises specifically and applies to all tribal LLCs.