New Mexico Regulators Can Pursue Pueblo’s Vendors

After its gaming compact expired, the Pueblo of Pojoaque kept operating casinos, including Buffalo Thunder (l.) near Santa Fe, but New Mexico threatened vendors with enforcement actions. The pueblo sued, lost, appealed and lost again when judges ruled the state acted within its authority. The pueblo claims federal law prohibits states from taking action leading to closing gambling on tribal land.

In a 2-1 decision, a three-judge panel of the 10th Circuit Court of Appeals recently ruled New Mexico was acting within its authority when it cracked down on gambling equipment and service companies doing business with the Pueblo of Pojoaque’s casinos, after the tribe’s gaming compact expired in 2015.

Later, Pojoaque sued the state after gambling regulators sent letters threatening to take enforcement action against companies who helped the casinos continue to operate. Pojoaque argued the state’s actions could effectively shut down gambling on the pueblo’s land. It claims under federal law the state does not have the right to do that.

A federal judge dismissed the lawsuit but blocked state regulators from taking enforcement action against the pueblo’s vendors while the case was under appeal.

Judges Paul Kelly and Michael Murphy sided with the government. In a dissenting opinion, Judge Robert Bacharach argued federal law prohibits New Mexico gambling regulators from taking actions that would directly or indirectly affect the pueblo.

Certain games continue to operate at the Buffalo Thunder Casino & Resort. However, as of March, several slots and specialty table games had been shut down because the companies that own the games feared large fines from state regulators.