Tribe thrown curve with plan to license gaming resorts

Shawn W. Hendricks Sr., the Mashpee Wampanoag tribal chairman, answered questions about the governor's decision. (Vincent DeWitt for the Boston Globe)

MASHPEE - Only weeks ago, the Mashpee Wampanoag were on their way to fortune. They had won federal recognition, clearing the way for them to build a glittering $1 billion resort and casino in Middleborough and reap the millions that other tribes have collected from gambling. Then things went awry. The tribal chairman stepped down in disgrace. Federal authorities launched an investigation into the tribe's handling of millions in investments.

And yesterday, Governor Deval Patrick threw the Wampanoag another curveball with his plan to license three casinos and give special consideration to an Indian tribe for one of the licenses. The plan disrupts the tribe's expectations of a quick and easy windfall. No longer will theirs be the only casino in the state.

Yesterday, the new tribal chairman, Shawn W. Hendricks Sr., made clear that the tribe would consider bidding for a state license, but would also pursue a federal license.

Each choice comes with advantages and potential pitfalls. If the Wampanoag reject a state license and pursue construction of a federally licensed casino, they may have to compete with three casinos, including one near them in Southeastern Massachusetts.

If they accept a state license, they could avoid a protracted wait for a federal license, but would still have to face two other competitors. And they would have to pay state taxes.

Asked whether the governor had complicated the tribe's plans for a casino in Middleborough by opening up the field to three casinos, Hendricks said, "Anything we've done for the tribe in the past 30 years hasn't been easy."

"Royal sovereignty is a guaranteed right for us, and today the governor has acknowledged that right," Hendricks said at a press conference with tribal leaders in Mashpee. "In his proposal, the governor acknowledges there has to be a native tribe component."

Last night, Hendricks delivered a check for $250,000 to Middleborough, the first payment under a casino deal the town approved in July that could eventually bring Middleborough $11 million annually.

Len Wolman, a Connecticut businessman who is financing the tribe's bid with other investors, said he would follow the tribe's lead, but was encouraged by Patrick's plan.

"Clearly the governor said he is supportive of gaming," Wolman said. "That's something which is good, and it's definitive."

The tribe has been reeling since its longtime chairman, Glenn Marshall, stepped down last month amid revelations that he had lied about his military record and had been convicted of a 1981 rape. Then the FBI, acting at the behest of the Internal Revenue Service, descended on the tribe's offices last week, seeking records detailing the tribe's finances.

Clyde W. Barrow, a gambling researcher at the University of Massachusetts at Dartmouth, said Patrick's plans gives the state the upper hand over the tribe.

The tribe "had some inflated expectation up till now, and this brings them back to reality," he said. "It doesn't scuttle the possibility of a casino. The opportunity is still there. They may just have to pursue it in a different way."

The Rev. Richard A. McGowan, an economics professor and gambling specialist at Boston College, agreed that Patrick had forced the tribe to seriously consider bidding for a license from the state.

"What he's saying to them right now is, 'I want you bid on these licenses like everyone else, and I don't have to negotiate with you,"' McGowan said. "He's forcing their hands."

Barrow said some tribes have waited up to 15 years for federal approval for a casino. Patrick, meanwhile, has said state licenses will allow casinos to open by 2012.

"I fully expect that we will give special weight to the tribes," Patrick said. "I think that they have a special role and interest that they have expressed. At least one of the licenses I have talked about will have a Native American component."

Michael Levenson can be reached at mlevenson@globe.com.