The 10th U.S. Circuit Court of Appeals in Denver will hear arguments on Monday, October 5, in Pojoaque Pueblo versus New Mexico as the pueblo appeals a lower court ruling that the state, not the U.S. Interior Department, must approve a gaming compact. Pueblo Governor Joseph Talachy said, “The importance of this can’t be underestimated. This appeal ultimately sets precedent for other tribes as we move into the future on whether or not a state can or can’t leverage a tribe into unfair compacts.” Under federal law, tribes must have state gaming compacts in order to operate casinos.
In 2013, Pojoaque officials left compact talks, stating Governor Susana Martinez’s administration was not negotiating in good faith and was violating the Indian Gaming Regulatory Act. The tribe wanted a compact that would lower the legal gambling age from 21 to 18, allow alcohol on the casino floor and end revenue sharing with the state, among other provisions. Martinez administration negotiators said those changes would result in a less socially responsible system and would undermine the stability of New Mexico’s gambling market in the future. The stated noted that large and small tribes signed on to new agreements earlier this year after years of negotiations.
Pojoaque’s compact expired in June but under an agreement with the U.S. attorney’s office, its two casinos remain open while the appeal moves forward. Talachy said the pueblo regulates its casinos under provisions of the expired compact and deposits revenue-sharing payments into an account overseen by an independent trustee.
Talachy noted the tribe pays New Mexico $4.5- $6 million annually. The higher percentage required under the new compacts is an illegal tax. “What the state is asking for is additional revenue sharing monies from tribes when the gaming market is basically declining in the state of New Mexico. Even though they know that, they want to take resources from the most impoverished, from the people with the least jobs. You can see history repeats itself,” he said. Under the expired compact, Pojoaque was required to share 8 percent of its net winnings, which was more than $60.7million in 2014, according Gaming Control Board figures. Tribes that operate casinos in New Mexico reported more than $731 million in net winnings last year.
