New Mexico Tribe Sues State Over Gambling Compact Negotiations

New Mexico Tribe Sues State Over Gambling Compact Negotiations

The Pojoaque Pueblo is throwing tomahawks that are legal the state of the latest Mexico over a lightweight 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 could be contentious throughout the best of that time period. On the one hand, states tend to be reluctant partners who want to get the maximum amount of economic 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 financial development to land that is supposed to be their own.

Tense Standoff

That is a pretty description that is good of relationship between New Mexico and the Pojoaque Pueblo tribe of Native Us americans. At this time, the 2 edges are operating under a concise that lasts until June 2015. However with that agreement operating out in about 18 months, negotiations are underway to hit 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. According to the Pojoaque Pueblo, hawaii federal government as well as in particular, Governor Susana Martinez’s administration was trying to gather an illegal taxation without any new benefits for the tribe.

The tribe started requesting a renewal of this compact in June 2010, and also the state later appointed a negotiator to work out a deal. But after two meetings, the tribe says there is no progress at all on the most points that are important.

More Taxes, More Fees

In line with the lawsuit, the Pojoaque Pueblo states that hawaii’s proposition would see the two sides enter into a compact that is 23-year. Immediately, their state’s share of gambling income would increase from 8 percent to 9.5 % — and would climb further in later years, as much as a eventual degree of 10.5 percent. Meanwhile, hawaii’s proposal would also involve increased fees and would restrict the scope of tribal gambling operations. Currently, the tribe operates two casinos 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 as well.

‘The Pueblo cannot agree to greater taxation and regulatory fees, the continuation of outdated business techniques, or new limitations which are damaging to the industry,’ said Pueblo Governor George Rivera.

According to the Pueblo, a counteroffer was issued that will maybe not ask the state for any protection from gambling competition. However, that proposal additionally does not include any conditions for the tribe to share with you gaming revenue.

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

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

The lawsuit doesn’t require damages, but instead requests that the court appoint a mediator who would work because of 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 New Mexico. While almost every other tribes signed gambling compacts in 2001, Pojoaque was 1 of 2 tribes to refuse, not coming to a contract with the state until 2005. In 2007, most tribes agreed to extended compacts having a tax enhance that brought the state’s share of revenue up to 10.75 %, however the Pojoaque Pueblo once again refused.

No Takers Yet for Atlantic Club Auction As Union Makes Demands

The Atlantic Club one of the oldest existing casinos in Atlantic City stays up for auction (Image: Bryant)


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

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

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

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

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

Who would like to buy the Atlantic Club Casino Hotel in Atlantic City? If you have the cash and you are not PokerStars, of course the casino is currently up for auction, allowing anyone who has desire for purchasing the struggling property to choose it up, likely at a bargain 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 pick up the casino: despite the fact that it may well function as least regarding the dozen casinos in Atlantic City, it’s still a casino most likely, and has a substantial amount of potential value. The casino hopes to have someone willing to make a purchase by and it’s likely that talks will be ongoing with potential buyers in the days to come monday.

Still, the process is going a bit slower than anticipated. Whenever the Atlantic Club Casino went into bankruptcy, the bankruptcy court set out a routine for the sale of this casino that assumed a buyer could be found by the day that is second of. Which means the entire routine of sale has been pushed back, having a hearing to obtain a judge’s approval for any sale being pushed back again to Monday early morning.

That sale may have just turn into a little more complex. Local 54 of this Unite-HERE union has expected a judge to block any sale of the Atlantic Club that doesn’t add a guarantee from the buyer that they will assume the existing worker contract, or at the very least negotiate a brand new one with the union. The union, which represents a number of different casino and resort workers, filed their objection just in time to meet a deadline that is last-minute.

In line with the union, the Atlantic Club would not comply with a federal bankruptcy code regulation that needs both notification to the union, and negotiations before they could be allowed to terminate an existing labor agreement. They say that none of the potential buyers have met this legal requirement either, which may mean they’d need certainly to accept the existing contract.

Long History in Atlantic City

The bankruptcy and sale associated with the Atlantic Club are just the final chapters into the story of a casino that is long-struggling. Previously called the Atlantic City Hilton, it is one of the smallest and earliest casinos into the city, also it has had difficulty competing with a lot of its newer and much 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 simply $15 million to gain ownership.

However, the sale happened 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 away, the Atlantic Club backed out of the offer, and PokerStars did not recover $11 million they had loaned to the casino, which had been designated towards the purchase price.

MGM Clears Springfield Massachusetts Suitability Check

An artist’s rendering regarding the proposed MGM Springfield in Massachusetts, which has now passed the suitability hurdle.

The Massachusetts Gaming Commission needs to be filled up with warm-heartedness this holiday period; just a couple of times after giving Steve Wynn their blessing that is papal a suitability thumbs up for his planned Everett casino task in eastern Massachusetts, they have now done the same for MGM Resorts Global as well as its prospective Springfield casino in the western section of the state.

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

‘Our approach from the start of this process that is rigorous gone to be as forthright … as possible in order to display our … global work ethic and high standards,’ said MGM in a posted statement, following the long-drawn-out approval process, which includes dragged on for almost a year now. The intense investigation concentrated on both MGM’s monetary and ‘ethical’ suitability to conduct business in the state of Massachusetts.

Locals’ Reaction Still Mixed

Although MGM happens to be the casino that is only nevertheless standing for the solitary western Massachusetts permit and regardless of the suitability clearance local reaction remains mixed to the possibility 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 desires cash and thus it’s going to be really hard,’ Stephen Jasienowski of Northampton told a news outlet that is local.

Good read, Stephen.

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

‘Springfield’s gone through some difficult times therefore I think maybe something similar to this could not be a bad idea for the typical area,’ stated Courtney.

This past November’s casino referendum vote in Massachusetts was rocky, depending 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 managed to pass with a margin that is wide. The areas like Suffolk Downs’ planned East Boston/Revere home were met with oddly divergent views; while East Boston summarily rejected the proposition, Revere overwhelmingly authorized 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 gaming payment.

Must Certanly Be Full Steam Ahead Now

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

‘If we do everything correctly, and we continue on the course that we are on while having been on for a long time, I think we are on the correct path so i believe we’re gonna be fine,’ said Kennedy, redundantly.

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


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