The Rincon Band of Luiseno Indians owns Harrah’s Resort Southern California. A 2011 Supreme Court ruling influenced the tribe to decide not to give California the mandate to manage its gaming activities. Instead, Rincon will directly partner with the National Indian Gaming Commission (NIGC) soon.
Details About the Tribe and State’s Agreement
Rincon and California made a regulatory oversight agreement in November to track the tribe’s gaming activities that the NIGC would conduct. The state was supposed to pull out of the oversight provision later.
The tribe signed another oversight deal on January 3 with the NIGC to end its long gaming management battle with California that Governor Arnold Schwarzenegger’s administration began in 2004. Bo Mazzetti, the tribe’s chairman, has held his position for almost two decades.
He stated that the tribe has exerted its sovereign jurisdiction as the federal Indian Gaming Regulatory Act (IGRA) initially intended as it authorizes Indian gaming. Mazzetti added that American Native tribes have always desired to manage their casinos. Even so, IGRA’s formation required each tribe to make a deal with its state first.
Mazzetti emphasized that the Rincon Band has complied with the Indian gaming regulation since California legalized casino games. Also, it is still following the law’s intent.
Gaming Supervision Charges
The Rincon Band and the NIGC have a gaming compact that excludes California since none of them could agree with the amount the state charged to oversee gaming operations. This made California withdraw from managing the activities in November 2022.
Mazzetti revealed that the 19-year-old dispute mainly arose due to California’s exorbitant oversight fees. Moreover, the state wanted the tribe to pay for items that contravene IGRA’s intent and to pay into various funds that the law didn’t cover.
Was There a Payment Breakdown?
California’s gaming compacts have clauses that show a tribe’s willingness to pay certain oversight costs to it. Mazzetti stated that the tribe didn’t oppose the compact.
Even so, it wasn’t willing to make payments that lacked California’s breakdown of their distribution like non-casino gaming tribal development programs and problem gambling. California was disputed as IGRA and Rincon Band took part in the process.
The Supreme Court’s Ruling
The Rincon Band filed its dispute with California to the U.S. Supreme Court in 2011 and it won. The court found the state guilty of contravening IGRA by compelling gaming operators to make payments to the Indian Gaming Special Distribution Fund to add extra slot machines.
Mazzetti said that the tribe and California could agree on the issue for a long period. Instead, it informed the state that it could opt out of their initial oversight agreement since it couldn’t pay its fees.
The chairman added that Rincon will fully monitor all gaming operations after eliminating California which acted as “the middle man.” But, he didn’t disclose the amount of money they would save after the state’s withdrawal from the agreement. Instead, Mazzetti stated that the tribe’s gaming commission is highly efficient and it will perform the new oversight role well.
The federal government often audits the Rincon Band’s operations to assure clients of their safety. Also, the tribe is committed to fully implementing the gaming regulation.
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