Texas tribe to enlarge casino

"EAGLE PASS -- It's nothing fancy, but the state's only legal casino has become a symbol of the hopeful future -- and sad recent past -- of the Kickapoo Traditional Tribe of Texas.

The empty shell of a replacement building looms next to the Lucky Eagle Casino, waiting for an impending infusion of cash to complete it and hasten the tribe's recovery from years of financial and political blunders.

In the meantime, the frumpy, cramped interior of the Lucky Eagle sometimes can't accommodate the crowds that show up day and night at the Kickapoo Reservation, seven miles southeast of Eagle Pass near the Rio Grande. The casino gets so packed that players must wait for turns and managers are reluctant to boost attendance with advertising.

Yet, it's been tempting to think of expansion, especially now that Texas lawmakers have rejected efforts to allow wagering at the state's two other reservations for the Tiguas in El Paso and the Alabama-Coushatta near Livingston. Texas Kickapoos have federal tribal status that allows gambling, while the other tribes have more restrictive charters.

With their unique and lucrative situation unlikely to change for several years, the Kickapoos are maneuvering to capitalize on their luck. They're hoping that by year's end, the new 100,000-square-foot facility -- with room for boxing and other events -- will be raking in cash to repay tribal debts and improve members' humble living conditions.

"We're shooting for December," said tribal attorney Gloria Hernandez, acknowledging that the existing Lucky Eagle needs to spread its wings.

"If we market it even more, we're going to have a lot of people upset because it's at full capacity now," she said.

Plans also envision an expansion of the gambling conducted here. With its Class II permit from the National Indian Gaming Commission, the tribe offers blackjack, poker, about 340 pull-tab slots and bingo. Dreaming of a bonanza, the tribe has revived its request for a Class III permit that would allow a wider array of games, from craps to off-track betting.

The tribe's push to improve the casino and reservation comes less than a year after it was rocked by turmoil that culminated with the 2002 ouster of tribal leaders and the casino's former manager, Isidro Garza Jr., who was not a tribe member. With power shifted to a new faction, tribe officials last week said recovery is not only necessary but within reach.

Signs of a comeback are at times subtle, like the fact that three Kickapoos just graduated from Eagle Pass High School -- the most anyone could remember in a single school year -- and are entitled to tribal scholarships.

The catharsis also can be painful. In May, a judge's ruling castigated the tribe for actions of the previous regime that launched an ambitious yet unlawful plan to acquire neighboring land.

Indeed, the Kickapoos could long be paying a financial and public relations price for their former leaders' deeds, whose full cost to the tribe has not been disclosed. The ousted officials also face consequences. Several federal agencies, including the IRS and gaming regulators, continue to investigate the former officials amid allegations of lavish spending and lax casino oversight.

Garza, who has no formal accusations pending, has denied any wrongdoing during his tenure, saying he operated with full tribal council support and within the bounds of his employment contract. But tribe members who banished him last year claimed he misused casino proceeds and steamrolled his critics.

At least one lawsuit is pending against the previous regime. It seeks $400,000 in compensation for tree destruction and other damage resulting from the unsuccessful attempt to obtain squatter's rights on a neighbor's land, which was coveted as part of a now-abandoned plan to build a golf course near the casino.

The 2001 land grab, which also cost the tribe nearly $90,000 in attorney fees, came at a time when the tribe gave wide leeway to Garza. Now the casino is run by a tribe member who responds to a five-member council. A tribal gaming commission was launched as well, along with a revamped tribal court to settle any future leadership disputes.

In October 2002, when tribe members said their complaints of casino mismanagement and other reservation woes were ignored, the tribe resorted to a traditional "vote of conscience" to fire tribal leaders. Though change was resisted by those in power, and federal authorities were slow to accept the vote, it was eventually recognized as the will of an overwhelming majority among the tribe's nearly 500 adult members.

The turmoil forced a brief closure of the casino, but it reopened around Thanksgiving and has been humming ever since, said Lucky Eagle spokeswoman Judith Canales.

"We're successful. We're gaining income. At the same time, we're having to ensure that what happened in the past no longer will be a threat to what the casino is about," Canales said.

For example, in her role as human resources director, she said hiring for the casino's 350-member staff is based more on qualifications now than it was in the past.

"We are now following all (hiring) rules and regulations as required by the U.S. government," she added, including the completion of background checks that weren't always conducted by the previous management. Tribal members, who make up less than half the casino's work force, continue to get preference in hiring, she noted.

Canales said the tribe has an improving rapport with federal regulators who are helping to ensure the casino's integrity.

"They understand the situation that occurred here, and they want to help us succeed," she said. "We have tremendous goals for the tribe, and the casino can be a very successful enterprise. But to be able to keep doors open, you must remain in compliance."

"The games themselves are part of that review," Canales said, insisting that gamblers can be confident of a fair shake.

Canales said Eagle Pass hopes to cash in on casino-bound traffic, which includes buses arriving daily from Mexico and San Antonio. And there are fresh signs that Maverick County is willing to improve the washboard roads leading to the casino.

The tribe is not required to disclose its casino income, but a 2002 investigative report by Time magazine estimated its annual gross revenue at $25 million. Unlike some tribes, the Kickapoos do not receive direct cash payments from the casino, though proceeds pay for health care and housing and the tribe's debt service.

Even so, the tribe is ready to take on more debt to finish the new facility, which could produce enough cash flow to enable the tribe "to move into other enterprises," Canales said.

"It's only fair that the tribe be the No. 1 beneficiary of the efforts here at the casino," Canales said."

By JOHN W. GONZALEZ