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Navajo casino opens doors amid mixed emotions (The Daily Times, Farmington, N.M.)

By Alysa Landry, The Daily Times, Farmington, N.M.McClatchy-Tribune Regional News

Nov. 21--GALLUP -- The Navajo Nation opened its first casino Wednesday to a crowd that more than doubled the building's capacity.

As many as 4,000 visitors waited in line outside the Fire Rock Navajo Casino, which opened for business at 4 p.m. and didn't close until 4 a.m. Thursday, said LoRenzo Bates, Upper Fruitland council delegate.

"The building has a capacity of 1,800 people," he said. "Judging from the lines around the building, they met capacity as soon as they opened. There were way too many people to get in."

Bates didn't get into the casino Wednesday, but he attended a private opening Monday, during which he tried his luck at blackjack, he said.

"It was a little tough on me," he said. "I was glad it was play money."

The casino is expected to generate $32 million a year for the Navajo Nation, and 92 percent of its employees are Navajo, tribal spokesman George Hardeen said.

The 64,000-square-foot casino includes 472 slot machines, 10 table games, a poker room and a bingo room that seats 400 people. The structure is temporary, however, and gaming officials are looking for a site to place a permanent building, along with a hotel and truck stop near Church Rock.

The casino also is one of two places on the reservation where alcohol is served, but sales are limited to the casino's restaurant.

Located on the historic Route 66 just east of Gallup, the Fire Rock Navajo Casino represents more than an expected jolt in income. The tribe, which joined the industry

late in the game, has envisioned the casino since Route 66 was the main thoroughfare.

The highway officially was removed from the United States Highway System in 1985, just three years before Indian gaming was legalized. Yet the Navajo Nation resisted joining the gaming industry, voting against the measure in 1994 and 1997 before legalizing it in 2004.

It took four more years to secure funding, decide on a location and construct the temporary casino, but Bates said the efforts paid off.

"There were smiling faces everywhere," he said of the grand opening. "We've been waiting for this casino to come up for a long time. We're really proud that the Nation finally achieved something of this magnitude."

Not all Navajo people are smiling, however. State Rep. Ray Begaye, D-Shiprock, fought legalization and said he still does not support gaming on the Navajo Nation.

Begaye was not invited to the grand opening ceremony, he said. He is vocal about the social ills that sometimes accompany gaming and what he believes is poor planning in the Navajo government.

Begaye faulted the Tribal Council for its referendum vote in 2004 that led to the legalization of gaming. He said the wording was confusing and the ballot tricked voters into approving the measure.

"I don't like gaming on the Navajo Nation," he said. "I think the people have spoken clearly on that in two votes, but the council overrode the people's voice."

Funding proved to be another sore point among lawmakers and Navajo citizens. The council initially partnered with JP Morgan Chase to back the casino, but lawmakers backed out when the bank asked the tribe to put up 125 percent collateral. Ultimately, the council decided to tap into a tribal trust fund.

Begaye criticized the council for a lack of accountability with tribal funds and for constructing the temporary casino in a location that is not easily accessible to truckers or tourists.

"The whole intent behind the gaming industry was to cater to truckers or travelers," he said. "Where the site is, it doesn't do justice. It's hard to get to the casino, hard to get on and off the interstate."

Begaye said he worries about the increased funds flowing into the tribe from the casino because the government has not yet displayed transparency in its spending.

"We've done this backwards," he said. "What we needed to do was to develop a strong, accountability-based government, then go after economic development. I'm very disappointed in our system of government."

Preliminary studies on gaming targeted the Church Rock area for the first casino. Other locations that ranked high in profitability were the Farmington/Shiprock area and Flagstaff, Ariz.

Casinos and bingo operations grossed more than $25 billion in 2006 for the 225 tribes that participate in gaming, according to data from the National Indian Gaming Association. The industry has created more than 670,000 jobs, and in areas of high unemployment, American Indians make up more than 75 percent of employees. Unemployment on the Navajo Nation hovers near 50 percent.

No data is available on how the casino fared during its first day of business, but Bates, who sits on the Tribal Council's Budget and Finance Committee, said revenues will be monitored closely.

"We plan to monitor this pretty heavily," he said. "This is the Nation's money we invested, so we're going to watch it."

Bates said financial findings should be available in about six months after the casino is better established.

Alysa Landry: alandry@daily-times.com

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To see more of The Daily Times, or to subscribe to the newspaper, go to http://www.daily-times.com.

Copyright (c) 2008, The Daily Times, Farmington, N.M.

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