Federal signal of approval for Medford casino raises local concerns

By Nicole Montesano

Smoke Signals staff writer

A signal by the Bureau of Indian Affairs that it intends to allow the Coquille Indian Tribe in Medford to build a second, off-reservation casino, is raising concerns in Grand Ronde. The decision could make it easier for the Confederated Tribes of Siletz to obtain approval to open a second casino of its own in Salem.

There are 10 casinos in Oregon, operated by eight of the state’s nine federally recognized Tribes, but some Tribes have been seeking for years to increase that number. Of the 10, all but two are larger Class III casinos. The other two are Class II, which offer bingo-based electronic games, according to the state Legislative Policy and Research Office. They are owned by the two Tribes -- Warm Springs and Coos, Lower Umpqua and Siuslaw -- that operate two casinos each.

Tribal casino building began after the federal Indian Gaming Regulatory Act was passed in 1988, providing Tribes nationwide with a means for economic recovery. In Oregon, privately-owned casinos are barred, and despite its two exceptions, the state has long maintained a policy of one casino per Tribe, to be operated on reservation land. Gov. Tina Kotek has said she supports maintaining that policy.

But in late November of this year, the Bureau of Indian Affairs approved an environmental impact statement to allow a proposal by the Coquille Tribe to build a Class II casino in Medford, something the Coquille Tribe has been seeking for more than a decade.

The Environmental Protection Agency published a notice about the impact statement in the federal register on Friday, Nov. 22. The public now has until Monday, Dec. 23, to submit comments before the BIA makes a final decision.

Comments may be submitted by email to Tobiah Mogavero, NEPA Coordinator, Bureau of Indian Affairs, at tobiah.mogavero@bia.gov, using “FEIS Comments, Coquille Indian Tribe Fee-to-Trust and Casino Project,” in the subject line.

They may be mailed or hand delivered to Rudy Peone, Acting Northwest Regional Director, Bureau of Indian Affairs, Northwest Region, 911 N.E. 11^th Ave. Portland, OR 97232. Comments should include the commenter’s name, return address, and “FEIS Comments, Coquille Indian Tribe Fee-to-Trust and Casino Project,” on the first page of the comments.

The approval raised shock waves across the state, in part because the Confederated Tribes of Siletz is also seeking to build a second casino, this one in north Salem. Like its Chinook Winds Casino in Lincoln City, the north Salem operation would be a Class III casino. Unlike the Coquille’s project, however, the Siletz proposal requires state, as well as federal, approval.

The Siletz proposal could have a direct effect on Spirit Mountain Casino, as Grand Ronde fears it could draw away both customers and staff to the Salem location. The proposal also raises fears of an explosion of new casinos throughout the state and of significantly worsened traffic.

Both the Siletz and Coquille Tribes have said they reject the “one Tribe, one casino” policy. They argue that the policy disadvantages Tribes in more remote areas that draw less tourism traffic.

 In 2022, Siletz Tribal Attorney Craig Dorsay alleged in a memorandum to the Oregon Legislature’s Joint Committee on Gaming Regulation that the policy “was created by the Confederated Tribes of the Grand Ronde Community of Oregon … to oppose other Tribes’ gaming proposals and to protect the Grand Ronde Tribe’s competitive position as the closest Tribal casino to the Portland and Salem markets.”

Dorsay wrote that “The Cow Creek Band of Umpqua Tribe of Indians … adopted this alleged policy as a means of opposing the Coquille Tribe’s proposal to locate a Class II gaming operation in Medford.” He argued that “The Oregon Legislature should not get involved in interTribal disputes about protecting one Tribe’s market share vis-à-vis other Oregon Tribes.”

Tribal Council Member Kathleen George told members during the weekly Legislative Action Committee on Tuesday, Dec. 3, “We want you to know that Tribal Council continues to work with our legal team and our government-to-government experts and our gaming group to explore how it is that Spirit Mountain is going to maintain and expand our business wherever we can. We remain in close communication with the governor’s office about these developments and we hope that before too long we’ll have more information to share about that, but we want to just assure everyone that we are very closely monitoring things as they happen, both in Washington, D.C. and here in Oregon, and it’s kind of a day-by-day situation right now.”

Oregon’s U.S. senators have joined Kotek in opposing the BIA’s decision and called on Oregonians to express their opposition to the Biden administration.

“This appears to set Oregon up on a path where decisionmakers 3,000 miles away spawn a gambling arms race, changing our state forever and thoughtlessly toss out the longstanding agreement come to in Oregon by Oregonians that all Tribes should share an equal opportunity at success rather than an endless effort of one-up-manship,” Sen. Ron Wyden said in an email. “This recklessly risky route would lead to real harm, and I encourage everybody to weigh in during this comment period so Oregon and Tribes can maintain the historic and balanced approach that’s fair for all.”

Sen. Jeff Merkley concurred.

“I am disappointed by the Biden administration’s decision to move the Coquille Indian Tribe’s Medford casino application forward in the approval process,” Merkley said in an email. “Senator Wyden and I have opposed the application for years out of deep concern for the new and likely damaging gaming precedent it would set in the state. I also remain concerned about the opposition voiced about this application by several of Oregon’s federally recognized Tribes. During the 30-day comment period, I encourage everyone to share their views.”

Oregon bans privately-owned casinos but relies on income from state-sanctioned Oregon Lottery machines. Expanded Tribal gaming could threaten the state’s income from the Oregon Lottery, which, according to the 2023 lottery financial report, brings $1.7 billion in revenue to the state per fiscal year.

The Siletz Tribe says that it plans to share the proceeds from its new casino with both the state and other Tribes, and to invest millions of dollars in improving roads and public transportation in the area. However, Grand Ronde Tribal Council members have said previously that the promised share would not come close to making up for damage caused to the Tribe’s economy by the increased competition.

Grand Ronde does have a backup plan in place should the Siletz Tribe win approval for a Salem casino. The Tribe owns land in Wood Village, just east of Portland at the site of the former Multnomah Greyhound Park site.

If the Salem casino is approved, the Tribe has said it plans to seek approval to build a second casino at the Wood Village site, to offset expected losses to Spirit Mountain Casino.

However, Communications Director Sara Thompson said that the Tribe is committed to the current policy.

“Grand Ronde remains steadfast in our belief that the one casino per Tribe on reservation remains the best policy and path forward for Oregon,” she said. “Our hope is that the state of Oregon recognizes that as well.”