PACTOregon

The Oregon Liquor Control Commission, Oregon's hard-liquor monopoly, sells alcohol to bars and restaurants at markups ranging from 103 percent to 108 percent. Tribal casinos pay only a 5 percent markup. The OLCC's justification for putting Oregon's non-Indian businesses to such a huge competitive disadvantage? In return for the cheap liquor for their casinos, the tribes agree to abide by state liquor laws -- such as not serving under-age children alcohol.

However, when the prohibition against selling liquor in "Indian Country" was lifted under enactment of Title 18 United States Code, Section 1161, it clearly stated that liquor could be sold in "Indian Country" only when "such act or transaction is in conformity BOTH with the laws of the State in which such act or transaction occurs and with an ordinance duly adopted by the tribe ..." (emphasis added)

Also, the United States Supreme Court case of Rice v. Rehner (1983 ) 463 U.S. 713, 103 S Ct 3291, 77 LEd 2d 185. In that case the court held "It is clear from the face of the statute and its legislative history both that Congress intended to remove federal prohibition on the sale and use of liquor imposed on Indians and [463 U.S. 713, 714] that Congress intended state laws would apply of their own force to govern tribal liquor transactions as long as the tribe itself approved these transactions by enacting an ordinance." (emphasis added)

COMPARE:

	Markup	Price Estimate on one bottle of 80 proof Absolut Vodka
Cost to Oregon Liquor Control Commission ("landed cost") (Note: the "markup" charged at time of sale also covers a commission paid to Liquor Store operators, averaging about 8.54% of sales)	Cost	$ 10.46
"Special accounts" may purchase directly from the State Warehouse: Spirit Mountain Casino, Chinook Winds Casino, Seven Feathers Casino, Ka-Nee-Ta Resort Casino, U.S. Coast Guard, U.S. Air Force	Cost plus 5%	$10.98
Local Restaurant or Bar must purchase from State Liquor Store (Receive 5% discount from state price = net markup of 100%)	Cost plus 100%	$ 20.92
Customer at local State Liquor Store	Cost plus 105%	$ 21.45
Source: Phone conversation with OLCC staff; Prices calculated on theoretical cost to OLCC of $10.46 per bottle

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How much does this 'deal' cost Oregonians?

The estimate below does NOT include income tax that should have been paid to the State on the profits from the sale of the liquor - because casinos in Oregon pay no income taxes.

• Total Lost Tax Revenues for Oregon
  
  
• OpEd - OLCC Gives Unfair Break to Casinos
• KEZI-TV - Locals Afraid to Object
• PACT letter to OLCC
• News Article re: OLCC Liquor Deal Unfair
• OLCC Agreement with Casino Tribe