U.S. Attorney, New Mexico Tribes Reach Casino Accord

The U.S. attorney in New Mexico on Friday suspended his ultimatum to seize American Indian gambling assets on Monday, in return for a promise from tribal leaders to drop a lawsuit against such a move and not to blockade vital state highways.

U.S. Atty. John Kelly and nine tribes operating casinos ended their standoff in order to allow a federal judge to rule on the legality of compacts signed by Republican Gov. Gary Johnson that permitted Las Vegas-style gambling on the reservations.

Those compacts were ruled invalid by the state Supreme Court late last year.

The reprieve also grants more time for the state Legislature, which is currently in session, to pass a new law legalizing casino operations in New Mexico.

“This is a good move,” said Frank Chaves, co-chairman of the New Mexico Indian Gaming Assn., “because the situation is very charged in terms of the frustration the tribes are feeling and the need for positive action from the Legislature to end this controversy.”

The controversy erupted when the state Supreme Court voided Johnson’s compacts with the tribes and ruled that casino operations were illegal in the state. As a result, Kelly said that he had no choice but to order that the lucrative operations close down.

The tribes initially rejected the order and threatened to block federal authorities who tried to pull the plug on the operations that employ more than 3,000 people and generate $200 million in annual revenues.

Some of that money is used to pay for infrastructure projects, economic development, scholarships, health programs and police and fire protection on the reservations, as well as restoration of historical traditions and sacred sites.

A few of the tribes were preparing to block state highways and utility easements that run through their reservations if the matter was not settled to their satisfaction.

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Now, the tribes are waiting to see what they can expect from the Legislature, which remains deeply divided over the issue of whether high-stakes gambling should be permitted in the state. If the Legislature refuses to act, the state could lose an opportunity to be involved in monitoring the games and collecting a share of the proceeds, tribal attorneys said.

“We think it is better that the state and tribes agree on the matter than have it decided in federal court,” said tribal attorney Kevin Gover. “In the meantime, our casinos will remain open while we work with the Legislature.”