The state of California has appealed to the U.S. Supreme Court to review the opinion by the 9th Circuit Court of Appeals that the state violated its compact with the Pauma Band of Luiseño Indians and owes the tribe $36.2 million.
The issue revolves around Class III gaming and how the state misinterpreted the state tribal gaming compact and prevented the tribe in 2004 from deploying the full 2,000 slots that its compact allowed. The state’s Gambling Control Division interpreted that combined compacts of all gaming tribes and determined that despite the fact that the tribe had a 2,000 slot limit, it couldn’t reach that limit because there was allegedly an upward limit for the combined total of slots allowed in the state.
The tribe, rather than challenging the interpretation, renegotiated its compact which allowed it to operate more machines, but at a much higher tax to the state.
Last autumn a three-judge panel of the 9th Circuit ruled that the state kept key information about the issue from the tribe.
The state, headed by Attorney General Kamala Harris, a possible candidate for governor, argues that if the ruling is upheld it will encourage other tribes in the state to seek similar restitution, costing the state millions.
