New Mexico Tribe Sues State Over Gambling Compact Negotiations

New Mexico Tribe Sues State Over Gambling Compact Negotiations

The Pojoaque Pueblo is throwing legal tomahawks at the state of the latest Mexico over a compact they feel is maybe not being negotiated in good faith (Image: Pojoaque Pueblo Realty)

It’s no secret that the compact negotiations between American Indian tribes and states concerning casinos and other gambling facilities are contentious during the best of times. On the one hand, states in many cases are reluctant partners who desire to get the maximum amount of financial benefit as possible without allowing tribes to offer unrestricted gaming on their land. Meanwhile, the tribes are often unhappy about having to negotiate at all to bring development that is economic land that is meant become their own.

Tense Standoff

That’s a pretty good description of the relationship between New Mexico and the Pojoaque Pueblo tribe of Native People in america. Right now, the two edges are running under a concise that lasts until June 2015. However with that agreement running out in about 18 months, negotiations are underway to hit a bargain that is new the Pojoaque Pueblo doesn’t think their state is dealing in good faith.

That’s why the tribe has decided to sue the continuing state within the failure in negotiations. Based on the Pojoaque Pueblo, the state federal government and in particular, Governor Susana Martinez’s administration happens to be trying to collect a tax that is illegal any new benefits for the tribe.

The tribe started seeking a renewal associated with compact in June 2010, therefore the state later appointed a negotiator to work a deal out. But after two meetings, the tribe says there has been no progress at all on the most points that are important.

More Taxes, More Fees

In line with the lawsuit, the Pojoaque Pueblo claims that hawaii’s proposal would begin to see the two edges access a 23-year compact. Immediately, the state’s share of gambling income would increase from 8 percent to 9.5 per cent — and would climb further in later years, as much as a level that is eventual of percent. Meanwhile, their state’s proposal would also include increased costs and would restrict the scope of tribal gambling operations. Currently, the tribe operates two gambling enterprises north of Santa Fe the Buffalo Thunder Resort and Casino, and the populous Cities of Gold Casino and wish to maintain the substitute for open other properties also.

‘The Pueblo cannot concur to greater taxation and fees that are regulatory the continuation of outdated business practices, or new limitations which are damaging to the industry,’ said Pueblo Governor George Rivera.

According to the Pueblo, a counteroffer was issued that could maybe not ask the continuing state for any security from gambling competition. However, that proposition also does not include any conditions for the tribe to share gaming revenue.

A spokesman for Governor Martinez disputed the tribe’s claims, saying that they have been negotiating in good faith.

‘It’s incredibly regrettable that Pojoaque has chosen to litigate, maybe not negotiate,’ said spokesman Enrique Knell. ‘This is an unnecessary and possibly costly tactic on the part, one that, regrettably, tribal leadership has been seemingly determined to just take for the last year.’

The lawsuit doesn’t request damages, but instead requests that the court appoint a mediator that would work utilizing the two sides for up to 60 days in order to help strike a deal.

This lawsuit is the latest incident in a contentious relationship between the Pojoaque Pueblo and brand New Mexico. While almost every other tribes signed gambling compacts in 2001, Pojoaque was 1 of 2 tribes to refuse, not coming to an agreement with the state until 2005. In 2007, many tribes agreed to extended compacts with a tax increase that brought the state’s share of revenue up to 10.75 percent, but the Pojoaque Pueblo once again refused.

No Takers Yet for Atlantic Club Auction As Union Makes Demands

The Atlantic Club one of the oldest current casinos in Atlantic City remains up for auction (Image: Philly.com/Michael Bryant)

UPDATED DEC. 22:

Finally a taker for the Atlantic Club, but perhaps maybe not just what the casino had in your mind: Caesars Entertainment has apparently put in a bid for the beleaguered property, but then plans to shut it straight down since early as January 13, 2014.

Colony Capital LLC the outfit that presently owns Atlantic Club announced late week that is last the sales contract would be forwarded to bankruptcy court for last approvals.

Caesars gets the home for a fire sale cost of $15 million, which includes the entire property and all its fixtures; the casino’s existing gaming equipment has been snatched up by competitor Tropicana for $8.4 million, and legal processing will charge the removal of the gear to Atlantic Club.

With the closure, Atlantic City’s troubled land casino scene will shrink to 11, and four of those staying will be Caesars-owned properties.

The total $23.4 million sale cost gives Atlantic Club the dubious distinction of setting a new low in casino sales; the last low record holder was Resorts Casino Hotel, sold three years ago for $31.5 million.

Who desires to buy the Atlantic Club Casino Hotel in Atlantic City? when you have the cash and you aren’t PokerStars, of program the casino is currently up for auction, permitting anybody who has curiosity about purchasing the fighting property to choose it up, likely at a deal price.

Going, Going, Still Here

However, after two days at auction, there nevertheless hasn’t been a buyer. That doesn’t mean that nobody will select the casino up: even though it would likely well function as least associated with the dozen casinos in Atlantic City, it’s still a casino all things considered, and it has a substantial amount of potential value. The casino hopes to have someone willing to make a purchase by Monday, also it’s likely that talks will likely be ongoing with potential buyers into the days to come.

Nevertheless, the method is going a bit slower than expected. Whenever the Atlantic Club Casino went into bankruptcy, the bankruptcy court set out a schedule for the sale regarding the casino that assumed a buyer will be found by the second time of auction. This means the schedule that is entire of has been pushed back, by having a hearing to obtain a judge’s approval for any sale being pushed back to Monday morning.

That sale might have simply develop into a a bit more complex. Local 54 for the Unite-HERE union has asked a judge to block any purchase of the Atlantic Club that doesn’t consist of a guarantee from the customer that they are going to assume the existing worker contract, or at the least negotiate a brand new one with the union. The union, which represents a number of different casino and resort employees, filed their objection just in time to meet a last-minute deadline.

Based on the union, the Atlantic Club did not comply with a federal bankruptcy code legislation that needs both notification to the union, and negotiations before they would be allowed to terminate an existing labor agreement. They do say that none of the potential buyers have met this legal requirement either, which would suggest they’d need certainly to undertake the contract that is existing.

Long History in Atlantic City

The bankruptcy and sale associated with Atlantic Club are only the final chapters within the tale of a casino that is long-struggling. Previously referred to as the Atlantic City Hilton, it is one of the smallest and earliest gambling enterprises within the town, also it has had difficulty competing with many of its newer and more luxurious neighbors. The Atlantic Club tried to rebrand itself as a haven for locals and casual gamblers, but that move only served to stave off the inevitable in recent years.

Earlier this the Rational Group the parent company of PokerStars attempted to purchase the Atlantic Club in an effort to gain a foothold in New Jersey ahead of the state’s regulation of online gambling year. The sale might have been the lowest priced in history for any Atlantic City casino, with PokerStars paying just $15 million to gain ownership.

However, the sale was held up due to fears that state regulators could be uncomfortable with a purchase by an online gambling company that continued operating within the United States after the passage of the UIGEA regulations in 2006. After contractual due dates passed, the Atlantic Club backed out of the offer, and PokerStars did not recover $11 million they had loaned to your casino, which had been designated towards the purchase price.

MGM Clears Springfield Massachusetts Suitability Check

An artist’s rendering for the proposed MGM Springfield in winner casino welcome bonus Massachusetts, that has now passed the suitability hurdle.

The Massachusetts Gaming Commission must be filled up with warm-heartedness this holiday season; just a couple days after giving Steve Wynn their papal blessing with a suitability thumbs up for his planned Everett casino task in eastern Massachusetts, they will have now done the same for MGM Resorts Global and its own potential Springfield casino in the western section of the state.

Technically, the commission approved Blue Tarp reDevelopment LLC (sic), but that body is under the 99 per cent ownership of MGM, with only one percent belonging up to a Paul Picknelly.

‘Our approach right away of the process that is rigorous gone to be as forthright … as possible in order to showcase our … global work ethic and high requirements,’ stated MGM in a published statement, following the long-drawn-out approval process, which includes dragged on for pretty much a year now. The intense investigation concentrated on both MGM’s financial and ‘ethical’ suitability to conduct business in hawaii of Massachusetts.

Locals’ Reaction Still Mixed

Although MGM happens to be the casino that is only nevertheless standing for the single western Massachusetts license and regardless of the suitability approval local reaction continues to be blended to the likelihood of having legal gambling become a brick-and-mortar reality in the Bay State.

‘Everyone wants the money. That’s what I think. The cities want money. Everybody wishes cash and so it’s going to be very difficult,’ Stephen Jasienowski of Northampton told a local news outlet.

Good read, Stephen.

But another area resident, Tom Courtney of Wilbraham, told the news headlines he thinks the casino is actually a definite advantage to the spot, which has been hard-hit by the financial recession of the past few years.

‘Springfield’s gone through some difficult times and so I think maybe something such as this might not be a bad idea for the typical area,’ stated Courtney.

Earlier this November’s casino referendum vote in Massachusetts was rocky, dependent on which parts of the state were up for vote, but both Everett where Steve Wynn’s casino project is on the fast track now and Springfield been able to pass with a wide margin. The areas like Suffolk Downs’ planned East Boston/Revere property were met with oddly divergent views; while East Boston summarily rejected the proposal, Revere overwhelmingly approved it, and along side new partner Mohegan Sun, Suffolk Downs happens to be pursuing a redo that is revere-only their plans, with the blessings associated with the video gaming commission.

Must Be Comprehensive Steam Ahead Now

With this suitability stamp of approval, Springfield’s primary development officer Kevin Kennedy foresees smooth sailing from here on out for the MGM casino project in their city, with official licensing expected to come through some time in May.

‘so I think we’re gonna be okay,’ said Kennedy, redundantly if we do everything correctly, and we continue on the path that we’re on and have been on for quite a while, I think we’re on the correct path.

Should that licensing come through as scheduled, MGM might start breaking ground the exact same month, which would mean the new Springfield casino could possibly open as soon as end-of-year 2016.

Leave a Reply