gaming

White Earth Band Awarded Millions in Tribal Court Dispute with Former Chair and Gaming Management Co.

Matthew L.M. Fletcher4 Comments

From the Bemidji Pioneer:

An $18,562,767.45 money judgment was recently awarded to the White Earth Band of Chippewa against Angelo Medure and Gaming World International, Ltd. (GWI).

The award culminates a 14-year struggle of the people of White Earth to recover illegal profit distributions made to Medure and Gaming World International. The legal action began in White Earth Tribal Court and then removed by GWI and Medure to Federal Court and then remanded back to Tribal Court by the Eighth Circuit Court of Appeals.

Medure was found to have conspired with former White Earth Chairman Darrell “Chip” Wadena to deprive the people of White Earth the benefits of the White Earth Land Settlement Act (WELSA). Although agreement provisions between GWI and Wadena required that Medure provide management services for the construction, development and operation of the Shooting Star Casino, GWI had no employees at the Shooting Star Casino at any time. In spite of having no employees at Shooting Star Casino, GWI and Medure were paid $10,153,772.61 in profit distributions. The management agreement required GWI to pay back the White Earth Land Settlement Act (WELSA) funds before any profit distributions were made to GWI.

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Ysleta del Sur Pueblo Challenge to NIGC General Counsel Opinion Dismissed

Matthew L.M. Fletcher

Here are the materials in Ysleta del Sur Pueblo v. NIGC (W.D. Tex.):

NIGC Motion to Dismiss

Ysleta del Sur Pueblo Opposition

NIGC Revised Motion

WD Tex Order of Dismissal

Michigan AG’s Office Issues Demand to Bay Mills to Close Vanderbilt Casino

Matthew L.M. Fletcher1 Comment

Here is that letter: Bay Mills Ltr 12 16 10.

Bay Mills’ legal theory (at least as presented to the NIGC) is here.

Detroit News Laments “Low-Rent Casinos” in Editorial re: Bay Mills Vanderbilt Casino Start-Up

Matthew L.M. Fletcher

A cheap shot from the News:

Editorial: Rolling the dice

Allowing a slot machine hall without state involvement opens door to proliferation of low-rent casinos

The latest tribal casino imbroglio illustrates what a tangled web government weaves when it attempts to determine who will be winners and losers in the marketplace. Five tribes want Michigan to crack down on a new slot machine hall the Bay Mills Indian Community has installed 100 miles south of its Upper Peninsula headquarters near Brimley, arguing it violates the spirit of the law allowing casinos on tribal land.

In a perfect world, casino locations would be based on business prospects. But because gambling is a regulated industry, the state is going to have to wade into this controversy, and Gov.-elect Rick Snyder will inherit the job of negotiating some new ground rules with the Indian communities regarding the proliferation of casinos.

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Santa Ynez Indians Sue IRS Over Tax Refund re: Gaming Per Cap Withholding

Matthew L.M. Fletcher1 Comment

Here is the complaint, filed in Central District of California: Santa Ynez v US Complaint.

An excerpt:

11. During 2003 and 2004, Santa Ynez made “per capita” payments to its members from revenues derived from gaming activities. Federal law, at 25 U.S.C. § 2710(b)(3)(D), makes such payments subject to federal income taxation and 26 U.S.C. § 3402(r) make such payments subject to federal withholding requirements.

12. During 2003 and 2004, Santa Ynez failed to withhold, or underwithheld, federal taxes on payments made to some tribal members.

13. The IRS later conducted an audit of Santa Ynez for those years and assessed taxes, interest and penalties against the Tribe for 2003 and 2004.

14. On or about May 5, 2006, Santa Ynez paid the IRS $1,041,745.11 for tax year 2003 and $2,891,865.76 for tax year 2004 in full satisfaction of all amounts ostensibly owed under the audit.

15. Upon information and belief, the IRS received and credited the Tribe’s tax payments on or about May 10, 2006.

16. Subsequent to making its May, 2006 tax payments to the IRS, the Tribe determined that all, or virtually all, of the tribal members whose taxes had not been withheld, or had been underwithheld, had reported and fully paid their federal income taxes for years 2003 and 2004. As a result, the Tribe overpaid its withholding tax obligation for years 2003 and 2004.

 

Interlochen Public Radio on the Bay Mills Vanderbilt Casino Controversy

Matthew L.M. Fletcher

Here.

By Linda Stephan

A small casino that just opened last month in Vanderbilt is already growing. The Gaylord Herald Times reports leaders of the Bay Mills Indian Community are building on to the small facility, even as questions abound over its legality.

Several other Indian nations say it is not legal and that Vanderbilt is not place Bay Mills has any historic claim to. That’s a traditional litmus test with off-reservation gaming.

The state has yet to decide whether the casino is legal.

It’s no more than a few dozen slot machines and even after expansion, it will be just 2,600 square feet. But it’s widely speculated that this is a test case, and that the tribe would like to build in other places, such as Port Huron.

Play the audio above for more on the legal questions, as seen by Matthew Fletcher. He’s a member of the Grand Traverse Band and an Indian law expert at the Michigan State University College of Law. He spoke with IPR’s Linda Stephan.

 

Bay Mills to Expand Vanderbilt Casino

Matthew L.M. Fletcher

From Indianz:

The Bay Mills Indian Community of Michigan is already expanding its controversial off-reservation casino.

The tribe opened the 1,200 square-foot facility on November 3. A 1,400 square-foot addition will more than double the size of the casino.

“It’s going as well as we had expected. On opening day we were tickled pink with the number of people who showed up,” spokesperson Shannon Jones told The Petoskey News-Review

Other tribes say the facility is illegal. But Bay Mills says it’s entitled to open a casino in connection with a land claim settlement.

Get the Story:
Casino expands in Vanderbilt (The Petoskey News-Review 12/8)

Bay Mills Indian Community Submission to NIGC re: Vanderbilt Casino

Matthew L.M. Fletcher1 Comment

This document was submitted in support the Bay Mills Indian Community’s amendment to their gaming ordinance, and appears to be the legal justification for their Vanderbilt casino.

Here it is: Bay Mills Submission to NIGC.

 

Ninth Circuit Remands Pauma Band Gaming Dispute to Trial Court in Light of Colusa Case

Matthew L.M. Fletcher1 Comment

Here is that unpublished order.

An excerpt:

This case is remanded to the district court for reconsideration of all four ofthe Winter factors (see Winter v. Natural Res. Def. Council, – U.S. –, 129 S.Ct.365, 374 (2008)), and to re-analyze them in light of our recent decisions inAlliance for Wild Rockies v. Cottrell, 09-35756, 2010 WL 3665149 (9th Cir. July28, 2010) (amended Sept. 22, 2010) (articulating a post-Winter “sliding-scale”test), and Cachil Dehe Band of Wintun Indians of the Colusa Indian Cmty. v.California, No. 09-16942, 2010 WL 3274490 (9th Cir. Aug. 20, 2010) (altering theEastern District Court of California’s interpretation of the IGRA Compact formulafor determining the total number of Class III gaming licenses at issue). If uponreconsideration the district court determines injunctive relief is warranted, it mustjustify any alteration of the status quo. See Tanner Motor Livery, Ltd. v. Avis, Inc.,316 F.2d 804 (9th Cir. 1963).

Little Traverse Bay Bands Completes Financing Restructure

Matthew L.M. Fletcher

Here is the press release: LTBBOI Press Release Financial Restructure

An excerpt:

The Little Traverse Bay Bands of Odawa Indians (“LTBBOI”) is pleased to announce the completion of a financial restructuring with its bondholders. An exchange offer to holders of its $122 million 10.25% Senior Notes due 2014, which was launched October 26, 2010, has closed and is effective today.The transaction will result in the exchange of $143 million of existing Senior Notes and related unpaid accrued interest, for $23 million of cash and $40 million of new 9.0% Senior Secured Notes due 2020.