Lawsuit Dismissed Against Chukchansi Tribe

The company that helped the Picayune Rancheria of Chukchansi Indians reopen the Chukchansi Gold Resort & Casino (l.) in 2015 after it was closed for many months has lost a lawsuit against the tribe. Osceola Blackwood Ivory Gaming Group (OBIG) of Florida claims the tribe owes it $21 million.

A lawsuit by a group that claims it helped the Picayune Rancheria of Chukchansi Indians reopen the Chukchansi Gold Resort & Casino in 2015 after it closed for more than a year and was then left holding the bag for million has been dismissed by a federal judge.

The judge ruled that the suit should be pursued in federal court by the Osceola Blackwood Ivory Gaming Group (OBIG) of Florida because state contracts come under the state.

The judge wrote “state law claims that simply ‘center upon the contract and its construction rather than the (federal) statutory basis for the contract’ do not present federal questions.”

The group contends that it signed an agreement with the tribe to be paid 30 percent of net revenues for seven years for managing the casino. However, the tribe countered that the agreement was never approved by the National Indian Gaming Commission.

OBIG has not said whether it plans to appeal.