The Chukchansi Gold Resort & Casino near Coursegold, northern California has been closed a year, since October 9, 2014. It was closed by discord within the Picayune Rancheria of the Chukchansi Indians, and despite recent tribal elections, the discord remains the main factor in delaying the reopening of the casino.
The closure resulted from an armed incursion by 15 men led by the head of one of the factions. About 500 employees and patrons had to be evacuated as a result.
They were seeking financial audit documents the National Indian Gaming Commission deemed critical to the casino remaining open. During their incursion they briefly detained some people, which led to them being charged with felonies several weeks later.
Because of fears for safety of casino customers the state and federal governments ordered the casino closed. It has remained closed.
Leading up to the closure of the casino several factions claimed to be the legitimate tribal authority. One group of 46 members claims to be the only true descendants of the tribe that, according to the federal government, has 900 members on the rolls. Membership, and who is an actual member, has been one of the main points of contention among the tribal members.
Two weeks ago the tribe held elections, but, once again, all factions did not recognize the results due to the fact that some members deemed non-members by some were allowed to vote.
The faction of 46 members, known as “the distributees,” which has elected its own tribal council, has sought a cease and desist motion in U.S. District Court in Fresno to prevent the interim counsel from reopening the casino due to its contention that the overall atmosphere is still not safe. In the filing the group states: “These activities obviously violate the intent and substantive restraints placed upon the defendant(s) based on the explicit language of the preliminary injunction.”
The motion adds that the state and federal governments have not certified that the casino is again safe. Luke Davis, who is the “chairman” of this group said in a separate document filed with the court: “If this court allows the casino and hotel to reopen based upon the approval of the National Indian Gaming Commission, who has absolutely no statutory authority to recognize factions in an intra-tribal dispute, the public safety and welfare will certainly be in danger.”
The distributees also accuse the interim council of illegally using $8 million in tribal funds to reopen the casino.
The motion will be heard November 12.
Reggie Lewis, the interim council chairman, denies that they are using tribal money. He notes that the tribe made a deal with bondholders of the casino for an advance of $35 million. They are using the advance to reopen the casino, he says.
Bondholders hope that once the casino reopens the tribe can start repaying the $250 million it owes for a hotel renovation in 2012.
More threatening to the reopening of the casino was the exodus several weeks ago of the three-member gaming commission. Commissions cited interference by tribal officials.
The tribe has tried to right the ship by bringing in the highly respected former NIGC Chairman Phil Hogen to head the new commission. He has been joined by Joe Smith, former chief of audits for the NIGC.
The NIGC has stated that it will not allow the casino to reopen as long as the tribal government remains unstable.
Besides the loss of revenue to the tribe, the casino’s closure has also affected the local economy. When it was open it employed 1,000 and contributed $30 million to the area in payroll.
