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

It’s no secret that the negotiations that are compact United states Indian tribes and states concerning casinos and other gambling facilities can be contentious during the best of times. On the one hand, states are often reluctant partners who wish to get as much benefit that is financial 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 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 Americans. Right now, the two edges are operating under a compact that can last until June 2015. However with that agreement operating out in about 18 months, negotiations are underway to hit a new bargain and the Pojoaque Pueblo doesn’t think the state is dealing in good faith.

That’s why the tribe has made a decision to sue the state within the failure in negotiations. In accordance with the Pojoaque Pueblo, the state 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 of this compact in June 2010, plus the state later appointed a negotiator to work out a deal. But after two meetings, the tribe says there has been no progress at all on the most important points.

More Taxes, More Fees

According to the lawsuit, the Pojoaque Pueblo claims that their state’s proposal would start to see the two sides come into a 23-year compact. Immediately, their state’s share of gambling revenue 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 %. Meanwhile, their state’s proposition would involve increased fees also and would restrict the scope of tribal gambling operations. Presently, the tribe operates two casinos north of Santa Fe the Buffalo Thunder Resort and Casino, and the Cities of Gold Casino and would like to maintain the option to open other properties also.

‘The Pueblo cannot agree to greater taxation and regulatory fees, the extension of outdated company techniques, or new restrictions that are damaging to the industry,’ said Pueblo Governor George Rivera.

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

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

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

The lawsuit will not ask for damages, but alternatively requests that the court appoint a mediator that would work because of the two sides for up to 60 days in order to help strike a deal.

This lawsuit is the incident that is latest in a contentious relationship between the Pojoaque Pueblo and brand 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, most tribes agreed to extended compacts with a tax increase that brought the state’s share of revenue up to 10.75 percent, 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 current casinos in Atlantic City stays 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 at heart: Caesars Entertainment has apparently place 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 presently owns Atlantic Club announced late week that is last the sales contract would be forwarded to bankruptcy court for final 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 current gaming equipment was snatched up by competitor Tropicana for $8.4 million, and legal processing will charge the removal 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 is going to be properties that are caesars-owned.

The total $23.4 million sale price gives Atlantic Club the dubious distinction of setting a brand new lower in casino sales; the previous 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? It up, likely at a bargain price if you have the cash and you’re not PokerStars, of course the casino is currently up for auction, allowing anyone who has interest in purchasing the struggling property to pick.

Going, Going, Still Here

However, after two days at auction, there nevertheless hasn’t been a customer. That doesn’t mean that nobody will pick the casino up: even though it may well end up being the least associated with dozen casinos in Atlantic City, it’s still a casino all things considered, 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.

Nevertheless, the method is certainly going a bit slower than expected. Whenever the Atlantic Club Casino went into bankruptcy, the bankruptcy court set away a schedule for the sale of this casino that assumed a buyer would be found by the second time of auction. Meaning the entire routine of sale has been pushed back, by having a hearing to get a judge’s approval for any sale being pushed back in to Monday early morning.

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

In line with the union, the Atlantic Club didn’t comply with a federal bankruptcy code regulation that will require both notification to the union, and negotiations before they is allowed to terminate an existing labor agreement. They say that none of the possible purchasers have met this legal requirement either, which may suggest they’d have to undertake the contract that is existing.

Long History in Atlantic City

The bankruptcy and sale regarding the Atlantic Club are just the final chapters into the tale of a long-struggling casino. Previously called the Atlantic City Hilton, it is one of the smallest and earliest casinos within the city, also it has had difficulty competing with a lot of its newer and much more neighbors that are luxurious. In recent years, the Atlantic Club tried to rebrand itself as a haven for locals and casual gamblers, but that move only served to stave off the unavoidable.

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 real-money-casino.club 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 in the United States after the passage of the UIGEA regulations in 2006. After contractual deadlines passed away, the Atlantic Club backed out of the deal, and PokerStars failed to 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 includes now passed the suitability hurdle.

The Massachusetts Gaming Commission must certanly be filled up with warm-heartedness this holiday season; just a few times after giving Steve Wynn their blessing that is papal a suitability thumbs up for his planned Everett casino project in eastern Massachusetts, they have now done the same for MGM Resorts Overseas and its particular prospective 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 % ownership of MGM, with just one percent belonging to a Paul Picknelly.

‘Our approach from the start of the rigorous process has 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, that has dragged on for pretty much a year now. The investigation that is intense on both MGM’s monetary and ‘ethical’ suitability to do business in the state of Massachusetts.

Locals’ Reaction Still Mixed

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

Good read, Stephen.

But another area resident, Tom Courtney of Wilbraham, told the headlines which he thinks the casino is actually a benefit that is definite the spot, which has been hard-hit by the economic recession of recent years.

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

Earlier this 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 in the quick track now and Springfield were able to pass with a wide margin. 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 is now pursuing a redo that is revere-only their plans, with the blessings of this video gaming commission.

Is Complete Steam Ahead Now

Using this suitability stamp of approval, Springfield’s primary 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 every thing correctly, and we continue on the course that we are on and also have been on for a long time, I think we’re on the right 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 month, which would mean the brand new Springfield casino could possibly start as soon as end-of-year 2016.