The tribal government of the Picayune Rancheria of Chukchansi Indians, which had hoped to reopen the Chukchansi Gold Resort & Casino in Coarsegold, northern California soon, has seen its plans shattered by the resignation two weeks ago of its entire gaming commission.
This has caused it to reach out and enlist former NIGC chief Phil Hogen to advise them on gaming regulatory issues. Hogen was chairman of the NIGC from 2002-2009.
The last commissioners to depart, Lael Echo-Hawk, Harlan Goodson and Norm DesRosiers followed Executive Director Kammy Chhom out the door. All cited their inability to do their jobs without interference from the tribal government.
Last week Reggie Lewis, the tribe’s interim council chairman, declared, “We have to get that taken care of. Without a gaming commission in place, we can’t open the casino.”
As of October 10 the casino will have been closed for a year. When it was open the casino had 1,000 employees.
The tribe had been optimistic about opening before that date after its bondholders had agreed to advance $35 million to reopen the casino. When the commissions resign the tribe had to furlough 100 of the 150 employees that had returned to work so far.
Since the resignations the National Indian Gaming Commission has notified the tribe that it is not in compliance with NIGC regulations for reopening.
The tribe will need to hire non-tribal members who are “disinterested third partners,” and must be approved by the NIGC. This could take weeks if not months, said Lewis.
In their resignation letters the officials said the tribe tried to usurp their authority.
Echo-Hawk wrote, “Gaming is a remarkably effective tool for tribal economic development when conducted under strict regulatory standards and free from the imposition of tribal politics,” and added, “I echo the concerns of former Chairman DesRosiers regarding recent council actions and find myself similarly unable to continue to serve on the commission.”
Each of the former commissioners was nationally known in tribal gaming.
In its notification to the tribe the NIGC wrote that the tribe’s “willingness to violate its own tribal gaming laws while negotiating the settlement of existing NIGC enforcement actions is alarming.”
The NIGC director of compliance wrote that the tribe’s actions would have a direct impact on whether he recommends allowing the tribe to reopen the casino.
The tribe hopes that Hogen’s participation will help them get on the good side of the NIGC again. Lewis issued a statement that said, “Hogen’s independent voice is exactly what we needed to get the casino operating again and generating revenue for the tribe and providing a world-class customer experience that brings jobs and economic activity to the region.”
So far Hogen has accompanied tribal members to Washington D.C. to meet with federal officials.
Eventually Hogen might be asked to serve on the commission, according to Christian Goode, chief operating officer of the casino.
The casino has been closed since the day after an armed incursion by a band of fifteen men led by a leader of a faction that claimed to be the legal operators of the casinos. They were trying to seize audit documents that the NIGC said it needed to keep the casino open.
