Feds ask court to order seizure of Indian slots

John K. Wiley

Friday, June 12, 1998 | 1:56 a.m.

SPOKANE, Wash. - Eastern Washington Indian tribes reacted with anger and dismay Friday after the government went to court to seize nearly 2,000 slot machines from their reservation casinos.

The government contends the devices are illegal under both state and federal laws and asks a U.S. District Court to determine how to seize the slots at casinos on the Spokane and Colville tribal reservations.

Jim Connelly, U.S. Attorney for eastern Washington, said he talked with representatives of both tribes Thursday to tell them of the pending forfeiture actions.

"It's going to be a disaster," Colville Tribal spokeswoman Sheila Whitelaw said.

"We asked them not to go through this process. We asked them to stand behind the tribe in asking the state to sit down and negotiate a pact with us," Spokane Tribe chairman Dave Wynnecoop said, promising an appeal. "Here's the federal government jumping on the fence again."

Neither tribe would disclose its gaming revenues, but the Colvilles released documents indicating tribal gambling operations employ nearly 700 people, pumping $7 million a year into local and tribal economies.

The Spokanes operate nearly 1,000 slots at their Two Rivers Casino near Ford and three other sites. The Colvilles operate a like number at three casinos, including the Mill Bay Casino near Manson at Lake Chelan.

The action, not unexpected, follows a similar filing this week by the U.S. attorney for western Washington involving 104 machines on the tiny Shoalwater Bay tribal casino near Ocean Shores.

Both Kate Pflaumer, U.S. attorney for Western Washington, and Connelly said there would be no surprise raids by U.S. Marshals, out of respect for the tribes' sovereignty.

They said they would prefer to have a court either order the tribes to hand over the slots or allow marshals to seize them.

The tribes, which have seen their gambling revenues skyrocket with installation of slots in their casinos, decried the filing.

"This is the federal government doing the state's dirty work," said Scott Crowell, a Kirkland lawyer who represents the Spokane Tribe.

The state has refused to allow slots to be brought to the table during negotiations for compacts with the tribe for so-called Class III, or Nevada-style, gambling operations.

Both tribes have filed lawsuits contending the state refused to negotiate in good faith. Both contend because the state operates a lottery, Keno and other types of gambling, they are allowed under the Indian Gaming Regulatory Act to operate slots without compacts.

The government's complaint contends the tribe has no agreement with the state to operate the machines, as required under the Indian Gaming Regulatory Act. The slots are illegal under both state and federal laws, the government contends.

The state of Washington has no authority to seize the machines once they are on the reservation, which is considered sovereign territory.

Crowell said the latest filing contains the same issues as an unsuccessful action several years ago seeking a declaratory judgment on all Class III gaming in reservation casinos.

But Connelly said the latest filing is much narrower, targeting only slots under the Johnson Act.

Crowell said the forfeiture action is a repackaging of issues the 9th U.S. Circuit Court in San Francisco already has ruled on in favor of the tribes.

"We expect and intend for the federal court to see the correctness of the tribe's position," he said. "This is not new."