The state of New Mexico has five privately operated racinos and twenty-one tribal casinos. In 1996 New Mexico introduced gambling products such as scratch cards and lottery games and one year later legalised tribal casinos with the first signing of compacts. The legislature is now being urged to approve changes to the compacts to give the state a larger share of revenue in return for 30-year contracts. Whereas the racinos keep 54.7% of their gambling revenue, the 2001 compacts pay the state no more than 8% of tribal casino profits.

Described as an exercise in compromise, the compact negotiations would give the tribes long-term financial security and the state additional revenue. Last Sunday legislators listened to almost four hours of testimony from both supporters and opponents of the new measures, but postponed taking a vote on the compact amendments. The current compacts are due to expire in 2015 but the new terms would run until 2037, should negotiations be successful. Thirteen tribes operate casinos in New Mexico and so far ten have backed the new compacts.

Additional state revenue to 2037 has been estimated at US$650 million. The number of casinos each tribe can operate would be capped, as would the number of racinos. If agreement is reached, the compacts must be endorsed by the New Mexico Legislature and signed by the Governor. Final approval would have to be obtained from the US Interior Department. (E-03.13.07)

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