Frequently Asked Questions About the Barstow Casino Project

Q: What are the highlights of the compacts?
A: The compacts are a very positive step forward that will allow the Big Lagoon and Los Coyotes tribes to become self-sufficient, as is their right under federal law. The signed compacts are also a win-win outcome for the environment, the State of California, and the Barstow community.

Some specific highlights of the compacts include:
• The environmentally sensitive coastal lagoon fronting the Big Lagoon
reservation will be preserved from development.
• The State will receive revenues from 16% to 25% of the net win on slot
machines and card games based on a sliding scale.
• The tribes will be allowed to operate a maximum of 2,250 gaming devices;
however, each tribe expects to open with only 1,250 gaming devices.
• The project will undergo environmental scrutiny, and construction will meet
or exceed California Building Code.
• The tribes will adhere to federal and state workplace standards for casino
workers.
• The compacts include provisions to address the issue of problem gambling.
• The Tribes will be required to negotiate agreements with the City of Barstow that address the increased costs to fire, police, and other municipal services. The Los Coyotes Band has already negotiated such an agreement, which calls for the City to receive 4.3% of the net win of their casino. Big Lagoon is currently negotiating a similar agreement with the City.

Q: Where is Big Lagoon Rancheria’s ancestral land?
A: The Rancheria is located at the edge of the picturesque Big Lagoon, an environmentally sensitive habitat area that is a popular destination for local fishermen, kayakers, campers, and hikers. The lagoon is separated from the Pacific Ocean by a sand spit and is part of a state wildlife area, which is home to salmon, trout, and thousands of migrating shorebirds.

Q: Why doesn’t Big Lagoon just build a casino on its tribal land?
A: The Tribe has always expressed a preference for developing a gaming facility on its ancestral land in Humboldt County. However, the State of California requested that the Tribe consider moving its gaming facility elsewhere to preserve the unique ecological character of the Big Lagoon. The Governor’s office encouraged Big Lagoon to partner with Los Coyotes to establish a joint gaming facility in the City of Barstow. Under the terms of the compact, Big Lagoon agreed to drop its lawsuit against the State and gave up its right to commercially develop tribal land in Humboldt County, in exchange for the State’s support in Barstow.

Q: Isn’t this just a case of reservation shopping?
A: It is important to note that gaming on newly acquired lands, while rare, is expressly permitted under federal law. The Tribes will be required to obtain approval for the compacts by having the Secretary of the Interior determine that gaming in Barstow is in the best interest of the Tribes and is not detrimental to the community.

The compacts are the first in the state that meet the conditions mandated by Governor Schwarzenegger’s May 2005 proclamation on tribal gaming, which in rare circumstances allows for an off-reservation casino in a non-urban area when a clear state public policy purpose is being served. In this case, state policy is served through the protection of the environment at Big Lagoon and by condensing the impacts of what would be two casinos into one project on an environmentally suitable site.

Q: How will the Barstow community benefit from the proposed casino resort?
A: The City of Barstow is the ideal location for this project. City leaders and residents have expressed a strong desire to host a responsible tribal gaming project because it will create good-paying jobs and drive economic development. In response to the City’s request, the project was located adjacent to struggling retail outlet malls. The proposed casinos will create approximately 4,000 jobs for Barstow residents and generate hundreds of millions of dollars in economic benefits to the Barstow community over the next 25 years.

Q: Now that the compacts have been signed, what’s next?
A: The next step in the process is to seek ratification from the State Legislature of the two compacts that were signed by Governor Schwarzenegger.

Q: Hasn’t the market for a new casinos dried up?
A: The market for new casinos in California remains strong in selected areas. The City of Barstow is at the center of a major transportation corridor, with more than 60 million people traveling through town each year, many on the way to or from Las Vegas. In addition, the unique, non-urban location of the casinos means they will not be in competition with other Indian gaming facilities, but instead will keep in California gaming dollars otherwise bound for Las Vegas. These factors make Barstow an ideal location for a casino resort.

The tribes have partnered with an experienced management partner, BarWest Gaming, to help develop and initially manage the resort and casino. An affiliate of BarWest operates a $400 million casino in Detroit, and BarWest has the experience and financial strength to operate a first class casino and resort in Barstow.

Q: Does any tribe have historical ties to Barstow?
A: No tribe has a reservation in Barstow and no existing tribe has any true aboriginal ties to Barstow. While history shows that various tribes have traded in or traveled through Barstow there is no modern tribe that can legitimately claim the Barstow area as its aboriginal territory. The only tribe that called the Barstow area its home, the Vanyume, became extinct more than 100 years ago.

It is important to note that county boundaries did not exist at the time that the ancestors of today's Indians roamed the Mojave. In fact, the Los Coyotes Band reservation is located closer to Barstow than the San Manuel reservation, and 50 miles closer than the Chemehuevi reservation.

Q: Aren’t the tribes being taken advantage of by out-of-state developers who just want to make a quick buck?
A: Similar to any other major business opportunity, the tribes have investors who are helping provide financing for the casino project. The tribes have selected BarWest Gaming, a respected and experienced management team, to work with them on the development of the casino and resort. The partnership that has been formed is in the best interest of all parties and will help the tribes become self-sufficient. Furthermore, both the revenue flow to BarWest and the length of the management agreement contracts are limited by federal law.

Q: Now that the compacts have been signed, what’s next?
A: The State Legislature now has the opportunity to approve the compacts under Senate Bill 1582. Hearings are scheduled for later this spring.

The compacts also allow for a Municipal Services Agreement (MSA) with the City of Barstow that includes payments to the City. The Los Coyotes already have secured an MSA with the City. Big Lagoon is currently negotiating a separate MSA with the City.

Q: Will it be difficult to obtain legislative approval for the deal?
A: We have been meeting with legislators for weeks and continue to receive a very positive response from them. Legislators familiar with the project have repeatedly acknowledged that these compacts are good for the California environment, good for the California economy and good for the Barstow community. We believe that once legislators have an opportunity to review all the facts they will vote to ratify the compacts.

Q: What about the federal approval process?
A: The process of working with the federal government to place the casino site land into trust includes a review by the Bureau of Indian Affairs (BIA) of the project’s benefits and the preparation of an Environmental Impact Statement. That process is already underway. The Secretary of the Interior must also approve the compacts, once the land has been taken into trust. A signed compact is critical to obtaining the local, state and federal approvals necessary for any tribal casino, and now that we have signed compacts, we are confident our proposal will be embraced at all levels.

Q: How long will the process take to complete?
A: The entire process including federal, state and local approval should take approximately 18-24 months to complete.

Q: Does the public support a casino in Barstow?
A: According to a public opinion survey scientifically conducted by San Jose State University, two-thirds of residents support bringing a gaming facility to Barstow. This survey meets the requirements that public support for a casino must be demonstrated which was part of the compacts signed by the Governor.

In addition, more than 2000 local residents have signed cards indicating their support for the Barstow casino project led by the Big Lagoon and Los Coyotes tribes.