Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 7, 1995 TAG: 9503070122
SECTION: NATIONAL/INTERNATIONAL PAGE: A8 EDITION: METRO
SOURCE: KNIGHT-RIDDER NEWSPAPERS
DATELINE: WASHINGTON LENGTH: Medium
The National Indian Lottery is scheduled to begin sometime in the fall in 36 states, including Virginia and West Virginia, and Washington, D.C. It will be available for play through an 800 telephone number.
Gaming experts estimate the new lottery could pay jackpots of as much as $500 million within a few years.
The tribe and its partner, Unistar Entertainment Inc. of Denver, will run the lottery from the Coeur d'Alene reservation in northern Idaho.
According to tribal leaders, Unistar will put up all the estimated $30 million to $50 million it will take to finance the new lottery.
``But make no mistake,'' said David J. Matheson, general manager of Coeur d'Alene gaming enterprises. ``It's our operation.''
The agreement is not unusual. Cash-strapped tribes often look to outside management firms to provide the capital and equipment to start their gambling projects. Such partnerships are allowed under the federal Indian Gaming Regulatory Act passed by Congress in 1988.
In return for its help, the tribe will share its lottery profits with Unistar. The tribe gets 70 percent, while Unistar gets 30 percent.
In a press conference preceded by a colorful dance and traditional prayer, tribal leaders acknowledged their lottery might face legal challenges.
A number of companies that manufacture lottery systems and states that use them have said the Coeur d'Alene venture will severely restrict their revenue-raising ability. States would be unable to tap into the Indian lottery profits.
Opponents also question the tribe's decision to operate their lottery across state lines.
But Coeur d'Alene leaders counter that they're just doing what states already do - using the lottery to help raise much-needed revenues as their budgets shrink.
``With gaming dollars, we can help our people,'' said Coeur d'Alene Tribal Chairman Ernest L. Stensgar. ``We wonder about their motives, the people that oppose us.''
Furthermore, Coeur d'Alene leaders said they had cleared all the necessary legal and federal regulatory hurdles to run their lottery.
Using a TouchTone telephone, callers to the 800 number will be able to buy sets of lottery numbers by credit cards - any time of the day or night, all year long. There would be a lottery each week.
The six-number sets can be any combination of single- or double-digit numbers up to number 49.
Each set of lottery numbers will cost $1. Players will be required to place a minimum order of $5.
Safeguards will be built into the system, the tribe emphasizes, to prevent credit-card fraud.
Tribal leaders say the odds of winning the big jackpot will be about 1 in 14 million.
by CNB