The National Indian Gaming Commission (NIGC) has taken the drastic step of closing down the remaining operating Nooksack Indian Tribe’s casino in Washington. The commission issued a “notice of violation” (NOV) that said the tribe doesn’t have a legal functioning tribal council to operate the Northwood Casino and is in violation of the Indian Gaming Regulatory Act (IGRA) because four of its council members have expired terms due to a cancelled election.
The four items specified in the NOV are:
• The tribe failed to maintain its sole proprietary interest and responsibility for the conduct of any gaming activity.
• The tribe failed to submit the required attestation certifying that the construction and maintenance of the gaming facility adequately protects the environment and public health and safety.
• The tribe failed to maintain and operate the gaming facility in a manner that adequately protects the environment and public health and safety, which is evident in orders issued by the Environmental Protection Agency (EPA) detailing significant deficiencies of the Safe Drinking Water Act that have occurred at six water systems, including the Northwood Casino Water System.
• The tribe failed to perform required licensing actions for members of the Nooksack Business Corporation II (NBCII) who are primary management officials of the Northwood Casino.
The casino is located on tribal land in Whatcom County in the tribal village of Squahalish, near the town of Lynden.
This is the second casino of the tribe to close in less than two years.
Previous to the NIGC order a federal assistant U.S. attorney had already deemed the tribal council “unelected, unrecognized and illegitimate.”
The tribe has for several years been enmeshed in a bitter leadership struggle, typified by an action of the council in February 2013 “disenrolling” or removing as tribal members 306 individuals. The council said those being expelled did not have the required blood ties and had been falsely enrolled to begin with.
The NIGC ruling stated that currently no legitimate authority governs the tribe.
NIGC Chairman Jonodev Chaudhuri issued a statement saying, “We do not take lightly the issuance of notices of violation and closure orders against tribal gaming operations. We are taking this significant enforcement action only after a complete analysis of the unique circumstances involved, including a full review of the structure of the tribe’s governing and business bodies.”
In the 18-page order the NIGC issued did not come without several warnings from other federal officials, including letters from the Bureau of Indian Affairs, the highest authority overseeing tribes, saying that the tribal council could not legally have a quorum with four council members whose terms expired.
An election that was scheduled last year was cancelled because of its focus on the disenrollment issue. This prompted the federal government to withdraw its recognition of the council.
The tribe has already lost funding from various state and federal agencies, such that its only remaining source was the casino.
The tribe’s other casino, the River Casino, was closed in December 2015 due to the failure of the tribe to address a $15 million debt owed to a former management company.
The NIGC order also noted several violations, including the failure of the tribe to “maintain sole proprietary interest in and responsibility for the conduct of its gaming operation.” In addition, the Environmental Protection Agency has hit the tribe’s casino with six violations of the Safe Drinking Water Act.
The tribe has lashed out against the federal government by trying to sue for $13.7 million, claiming that its decision not to recognize the council was a violation of sovereignty. However, the case was dismissed by a federal judge who ruled that the tribe did not have the authority to file the suit.
The tribe has 30 days to appeal the NIGC’s decision. Meanwhile it could be fined $50,276 per day for each violation that isn’t addressed.
