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 New Mexico over a lightweight they feel is maybe not being negotiated in good faith (Image: Pojoaque Pueblo Realty)

It’s no secret that the negotiations that are compact American Indian tribes and states concerning casinos and other gambling facilities can be contentious through the best of that time period. On the one hand, states tend to be reluctant partners who want to get as much monetary benefit as possible without allowing tribes to offer unrestricted gaming on their land. Meanwhile, the tribes are frequently unhappy about having to negotiate at all to create economic development to land that is meant become their own.

Tense Standoff

That is a pretty good description of the relationship between New Mexico and the Pojoaque Pueblo tribe of Native People in america. Right now, the 2 sides are operating under a compact that lasts until 2015 june. But with that agreement running out in about 18 months, negotiations are underway to strike a bargain that is new the Pojoaque Pueblo doesn’t think the state is dealing in good faith.

That’s why the tribe has decided to sue the state over the failure in negotiations. Based on the Pojoaque Pueblo, hawaii federal government plus in particular, Governor Susana Martinez’s administration has been attempting to gather an illegal income tax without any new benefits for the tribe.

The tribe started seeking a renewal associated with compact in June 2010, plus 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 many important points.

More Taxes, More Fees

According to the lawsuit, the Pojoaque Pueblo says that their state’s proposition would understand two sides come into a compact that is 23-year. Immediately, hawaii’s share of gambling revenue would increase from 8 percent to 9.5 % — and would climb further in later years, up to a ultimate level of 10.5 per cent. Meanwhile, their state’s proposal would also involve increased charges 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 Cities of Gold Casino and wish to maintain the substitute for open other properties too.

‘The Pueblo cannot agree to greater taxation and fees that are regulatory the continuation of outdated business techniques, or new restrictions being damaging to the industry,’ stated Pueblo Governor George Rivera.

According to your Pueblo, a counteroffer was issued that would not ask the state for any security from gambling competition. However, that proposition also does not include any conditions for the tribe to fairly 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 unfortunate that Pojoaque has chosen to litigate, maybe not negotiate,’ said spokesman Enrique Knell. ‘This is an unnecessary and possibly costly strategy on the part, one that, unfortunately, tribal leadership has been seemingly determined to take for the past year.’

The lawsuit does not require damages, but alternatively requests that the court appoint a mediator who would work aided by the two edges for up to 60 times in order to help strike a deal.

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

No Takers Yet for Atlantic Club Auction As Union Makes Demands

The Atlantic Club one of the oldest casinos that are existing Atlantic City stays up for auction (Image: Philly.com/Michael Bryant)


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

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

Caesars is getting the property for a fire sale cost of $15 million, which includes the property that is entire all its fixtures; the casino’s current gaming equipment was snatched up by competitor Tropicana for $8.4 million, and legal processing will charge the removal of the apparatus to Atlantic Club.

With the closure, Atlantic City’s troubled land casino scene will shrink to 11, and four of those remaining is properties that are caesars-owned.

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 really wants to buy the Atlantic Club Casino Hotel in Atlantic City? For those who have the cash and you’re not PokerStars, of course the casino is currently up for auction, enabling anybody who has curiosity about purchasing the fighting property to pick it up, likely at a discount price.

Going, Going, Still Here

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

Nevertheless, the method is going a bit slow 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 is found by the day that is second of. That means the whole schedule of sale has been pushed back, by having a hearing to get yourself a judge’s approval for any sale being pushed back in to Monday morning.

That purchase may have simply turn into a little more complex. Local 54 associated with the Unite-HERE union has asked a judge to block any purchase of the Atlantic Club that doesn’t add a guarantee from the client that they’ll assume the employee that is existing, or at 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 and energy to meet a last-minute deadline.

In line with the union, the Atlantic Club failed to comply with a federal bankruptcy code regulation that will require both notification towards the union, and negotiations before they could be permitted to terminate a labor contract that is existing. They say that none real-money-casino.club of the potential buyers have met this legal requirement either, which will suggest they’d need certainly to accept the contract that is existing.

Long History in Atlantic City

The bankruptcy and sale associated with the Atlantic Club are just the final chapters within the story of a long-struggling casino. Previously known as the Atlantic City Hilton, it is one of the smallest and oldest casinos in the town, and it has had difficulty contending with lots of its newer and more neighbors that are luxurious. In recent years, the Atlantic Club tried to rebrand it self being a haven for locals and casual gamblers, but that move only served to stave off the inescapable.

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 could have been the least expensive in history for almost any Atlantic City casino, with PokerStars paying simply $15 million to gain ownership.

However, the sale was held up as a result of 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 deadlines passed, the Atlantic Club backed out of the deal, and PokerStars neglected to recover $11 million they’d 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 Massachusetts, that has now passed the suitability hurdle.

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

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

‘Our approach right away of this process that is rigorous been to be as forthright … as possible in order to display our … global work ethic and high requirements,’ stated MGM in a published statement, following the long-drawn-out approval process, that has dragged on for almost a year now. The intense investigation concentrated on both MGM’s monetary and ‘ethical’ suitability to do business in the state of Massachusetts.

Locals’ Reaction Still Mixed

Although MGM happens to be the casino that is only still standing for the solitary western Massachusetts permit and despite the suitability clearance local reaction remains blended to the likelihood of having appropriate gambling become a brick-and-mortar reality in the Bay State.

‘Everyone wants the money. That’s the things I think. The cities want money. Everybody wants cash and so it’s going to be really hard,’ Stephen Jasienowski of Northampton told a regional news outlet.

Good read, Stephen.

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

‘Springfield’s gone through some difficult times therefore I think maybe something like this might not be an idea that is bad the general area,’ stated Courtney.

The 2009 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 in the quick track now and Springfield was able to pass with a wide margin. Areas like Suffolk Downs’ planned East Boston/Revere property were met with oddly divergent views; while East Boston summarily rejected the proposal, Revere overwhelmingly authorized it, and along side new partner Mohegan Sun, Suffolk Downs is now pursuing A revere-only redo on their plans, with the blessings associated with gaming commission.

Must Be Comprehensive Steam Ahead Now

Using this suitability stamp of approval, Springfield’s primary development officer Kevin Kennedy foresees sailing that is smooth here on out for the MGM casino task within their city, with official licensing anticipated 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 brand new Springfield casino could possibly start as early as end-of-year 2016.


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