The Pojoaque Pueblo Tribe’s gambling compact with New Mexico expired Tuesday, June 30 but the tribe said its casinos–Cities of Gold and Buffalo Thunder, both located north of Santa Fe—will remain open. Instead of paying a portion of revenue to the state, it will go into escrow.
The tribe has been in negotiations with Governor Susana Martinez’s office, but the two sides have clashed over several issues. The main dispute has been over the tribe’s revenue-sharing payments to the state, which wants to raise the percentage of revenue it receives from the tribe. Also, the state wanted a restriction on alcohol on the casino floor but tribes noted private casinos are allowed to have alcohol. And the Pojoaque Pueblo wants to lower the gambling age from 21 to 18, but Martinez objects.
Lawsuits have been filed in the case and the U.S. Interior Department also has tried to arbitrate the dispute.
Martinez’s spokesman Mike Lonergan said, “The U.S. attorney has appropriately acknowledged that the Pueblo of Pojoaque–as of midnight tonight–will be violating federal law. This should concern everyone involved, particularly all those tribes who have negotiated in good faith to reach equitable and fair agreements with the state.” Pojoaque is one of five tribes whose gambling compacts expired June 30. The other four have signed new agreements with Martinez.
However, although the U.S. Attorney, Damon P. Martinez, recognized that the tribe is violating federal law, his office has allowed the tribe’s two casinos to remain open. Lonergan said that the administration was surprised by that decision, which “does leave many questions unanswered.” He said Damon Martinez’s office does not have the regulatory resources to allow the casinos to remain open, and that the U.S. Attorney’s office “is ill-equipped to ensure that proper payout percentages are maintained or to monitor gaming machines for tampering.” Lonergan added without government oversight, those associating with the two casinos also could be affected. Lonergan said Damon Martinez’s office offers “no protection to banks, credit card vendors, gambling machine vendors, advertisers, bondholders and others that are now doing business with an illegal gambling enterprise.”
Pojoaque Governor Joseph Talachy said his tribe has felt bullied by Governor Martinez’s representatives. The tribe hoped the U.S. Attorney’s office could help with the negotiations. “We remain ready and willing to continue to negotiate with the state.” He said he would reject “a compact that is unfair to the tribe, my people and our community, including the employees we currently have. It’s not a position we’d ever want to be in, but when it comes to the interest of my people and our community, I will fight for what’s right.”
Damon Martinez said, “I recognize the effects that uncompacted gaming by the pueblo could have on the state and on other tribes, both gaming and nongaming. All other gaming tribes are making revenue sharing payments to the state.” However, he added he believes the public interest is best served if the status quo is preserved for the time being. Under the current arrangement, both sides might be moved to compromise, he said. New Mexico will not receive revenues, and the Pojoaque Pueblo, although they will keep their casinos open, know they cannot continue without a compact. As a result, Martinez said, both sides might feel the pressure to make a deal.
