Minneapolis, Minnesota (AP)

The head of the Mille Lacs Band of Ojibwe, in a pointed letter to Gov. Tim Pawlenty, withdrew an earlier offer to be a partner of the state of Minnesota on joint gambling proposals.

Melanie Benjamin, the band’s chief executive, levied several criticisms at the governor, including his decision to appear in election ads for House Republican candidates that called for Indian tribes to make revenue payments to the state.

“You led a political smear campaign,” Benjamin wrote, “in a deliberate attempt to turn undeserved animosity toward Indian gaming and Indian people into votes for Republican candidates.”

Dan McElroy, Pawlenty’s chief of staff, said that he had talked to Pawlenty about the letter and that “we were surprised and disappointed, but our position hasn’t changed.”

Benjamin, whose tribe’s casinos at Hinckley and Lake Mille Lacs are the second most profitable in the state, had broken with other tribes in August to propose a joint partnership with the state. In return for new casino games and simulcast horse-race betting, Benjamin said the tribe could offer contributions toward a Vikings or Twins stadium.

Benjamin also cited Pawlenty’s call for the tribes to pay $350 million a year to the state to retain their monopoly on casino gambling, and his intimation that Las Vegas casino interests might otherwise be waiting in the wings.

In the November 17th letter, Benjamin said that “your actions to politicize the gaming issue since the Band came forward in August have poisoned the water... Accordingly, the Band has decided to discontinue talks with you and your staff until you agree to have reasonable, serious and respectful discussions.”

McElroy said that Benjamin’s criticisms notwithstanding, “we believe we should be able to negotiate a mutually beneficial arrangement. The governor believes a change in the relationship between the tribes and the (state) government is appropriate.”

He called “ironic” Benjamin’s criticism of Pawlenty’s role in House election ads. “She’s angry with us for being political,” he said, “when there’s no question the tribes were major contributors in the last election. I find that ironic.”

McElroy noted that Benjamin’s letter came a day after Indian tribes in Kansas reached an agreement with Gov. Kathleen Sebelius on a proposed gambling compact that would give the state 17 percent of gambling proceeds. Like Minnesota, Kansas has existing gambling compacts with no termination date, but also with no guarantee of exclusivity, McElroy said.

The proposal also would permit a privately licensed racino, he said. The agreement has not yet been approved by the Kansas Legislature.

Canterbury Park has been seeking permission for a racino – a racetrack with casino-style gambling — for several years without success, and the proposal is expected to resurface when the Minnesota Legislature convenes in January.