Committee proposes New Mexico-tribe gambling compact

The revamped state-tribal agreement, if approved, would allow casinos to offer credit as well as free lodging and food to some high rollers, as well as operate 24/7.

Some members expressed support for the agreement but others have raised questions about the risk of saturation, given that New Mexico already has 23 casinos, and the possible negative impacts on the state’s horse-racing industry.

“At what point do we reach market saturation?” asked Rep. Larry Larrañaga, R-Albuquerque, after probing Hernandez on the number of new casinos that might be built as a result of the proposed compact.

Martinez’s Deputy Chief of Staff and lead negotiator Jessica Hernandez argued that the compact would provide stability to the state’s gambling market and tax revenue would increase in exchange for exclusivity rights for the tribes. “It’s a very carefully negotiated agreement that balances a lot of different interests,” Hernandez said.

New Mexico’s share of tribal gambling revenue in Q4 2014 came to nearly US$ 16 million and over $66m in 2014. According to the data released by the New Mexico Gaming Control Board, all tribes reported US$ 176 million revenue in Q4 2014, US$ 5 million less than the same period in 2013.

A second meeting for public input is scheduled for Saturday. Committee Chair Sen. Clemente Sanchez said that the goal is to forward a recommendation to the Legislature before the end of the session on March 21.

The legislature is under pressure as the current compact with the Navajo Nation and some other tribes will expire in June.