California Casino Doesn’t Need Management Contract to Open

A management contract is not required by a gaming tribe before it can open a casino the National Indian Gaming Commission ruled last week. This would allow the Jamul Indian Village to operate its casino in San Diego County if the NIGC rules that its management agreement with Penn National Gaming is invalid.

The National Indian Gaming Commission (NIGC) last week ruled that the Jamul Indian Village in San Diego County, California does not need a gaming management agreement to open, and could run the casino itself if the agreement it has with Penn National Gaming is not approved by the NIGC.

The question arose last December during questions from a judge on the 9th Circuit Court of Appeals reviewing a federal lawsuit challenging the tribe’s right to open a casino on its reservation east of San Diego.

The tribe hopes to open its $390 million Hollywood Casino. Its management agreement calls for Penn to manage the casino for seven years. NIGC must approve of any management agreement.

The NIGC published a Notice of Availability in the Federal Register last week that stated that the Jamul tribe, “would assume operation and management responsibilities of the Jamul Gaming Facility,” in the event the management agreeing is not approved.

The casino’s opening is the subject of a lawsuit filed by the Jamul Action Committee, which sought a preliminary injunction to prevent the casino from opening in July. That injunction was denied by a federal judge and has been appealed to the 9th Circuit.

 

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