California Casino Delayed by Trump Review

The Wilton Rancheria, which thought it had gotten a decision from the federal government to put 36 acres in Elk Grove, California into trust, may be forced to say ‘Not so fast!’ The Trump administration appears to be reviewing the 11th hour decision by the Obama administration to make a casino possible on that land, a unfinished and abandoned mall (l.).

The efforts of the Wilton Rancheria to build a 0 million casino in Elk Grove, California, near Sacramento have hit a roadblock due to the Trump administration’s review of the last-minute approval by the Obama administration.

The new administration appears to be taking a different approach to putting land into trust for tribes so that they can operate casinos than the previous one. It is reviewing past policies and decisions and working toward creating new policies.

The Bureau of Indian Affairs approval for putting about 36 acres into trust in Elk Grove occurred on January 19, the day before Trump’s inaugural. This was delayed by a Trump order that all pending “Federal Register documents” be delayed until they could be reviewed.

Normally a decision to put land into trust becomes official once it has been printed in the Federal Register. Only then can a tribe go forward with a casino.

Howard Dickstein, a California lawyer who specializes in tribal law, interviewed by the Sacramento Bee, said, “It’s speculative as to where this will end up. It’s going to be a significant period of time before the United States Department of The Interior makes a determination on the property. Until then, I think it is unlikely that this particular project can move forward.”

The tribe, through its partner Boyd Gaming Corp. in 2015 purchased land within the unfinished Elk Grove mall from the Howard Hughes Corporation for $36 million. The plan was to build a casino with 2,000 slots and 84 gaming tables, 12-story hotel, spa, and fitness center.

The Trump administration is not the only one giving the Elk Grove casino a second look. So also, is the United States House Committee On Natural Resources, chaired by Rob Bishop, and newly sworn Secretary of the Interior Ryan Zinke.

Bishop wrote to the Interior Department in February, “There is precedent for the reversal of last-minute actions made by an outgoing administration’s personnel following an investigation.” He added that the decision, which many criticized for not following proper procedures, should be undone if it was accomplished, “without a fair consideration of the affected interests.”

The fee to trust transfer has been challenged in federal court, something the Wilton tribe calls a delaying tactic. Opponents include card rooms operating in Sacramento, some residents of Elk Grove and the casino watchdog group Stand Up for California.

Raymond Hitchcock, chairman of the Wilton Rancheria, says the fact that the land decision has not yet been filed in the Federal Register is unimportant, saying that such a filing is “just a notice that an action has occurred” and added “The tribe has land in trust as of Feb. 10, 2017, so the land-in-trust process has been completed and the project continues to progress.”

The Interior Department is declining to comment about the case. The administration of Governor Jerry Brown, which would normally begin negotiations with a tribe for a tribal state gaming compact once land is put into trust has also declined to comment.

Articles by Author: Steve Karoul

Steve Karoul is a well-known and respected casino consultant. He has lived and worked in many different countries and has conducted casino marketing activities in well over a 100 different countries around the world. Karoul understands both casino operations and casino marketing.  He is also a gaming industry innovator who openly shares his ideas and thoughts with fellow casino industry executives. For additional information, Karoul can be reached at skaroul@euroasiacasino.com  or www.euroasiacasino.com.

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