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Federal Appeals Court Rules Casinos Illegal

Friday, Jan. 10, 1997 | 11:59 a.m.

The 10th U.S. Circuit Court of Appeals in Denver affirmed the ruling of a lower court that the 1995 state-tribal compacts that authorized the casinos were invalid.

But the 32-page order included a stay "pending final resolution of this matter, either in this court or the United States Supreme Court" that would allow the 11 casinos to remain open.

"The only hope for a satisfactory solution is through dialogue and good faith negotiation between all involved parties," the court said.

Three federal judges in New Mexico had determined that the compacts were invalid because Gov. Gary Johnson didn't consult the Legislature before he signed them.

Tribes that operate casinos had argued that because the U.S. Secretary of Interior had approved the compacts, they were valid.

"We hold that the Secretary cannot, under the (Indian Gaming Regulatory) Act, vivify that which was never alive, and we therefore affirm the decision of the district court," the appellate court said.

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