New Mexico tribes appeal federal judge’s decision

Saturday, Jan. 6, 2001 | 12:47 p.m.

Attorney General Patricia Madrid sued a dozen casino-owning tribes last summer for not making payments to the state as required in gambling compacts signed in 1997.

In December, U.S. District Judge Bruce Black ruled that his court had jurisdiction over the matter and that the state could pursue legal action against the tribes to resolve the revenue-sharing dispute.

The tribes this week appealed that ruling with the U.S. 10th Circuit Court of Appeals in Denver.

The tribes argue that they have sovereign immunity from the state's lawsuit and only the U.S. Congress can authorize such litigation.

The tribes also contend that the federal courts lack jurisdiction to hear the case.

The state sued the Jicarilla Apache and Mescalero Apache Tribes, and the pueblos of Acoma, Isleta, Laguna, Pojoaque, Sandia, San Felipe, San Juan, Santa Ana, Taos and Tesuque. The Mescalero Apache Tribe did not join the others in seeking to have the case dismissed.

Tribal leaders formally announced in April they would no longer make gambling payments to New Mexico unless a federal judge ordered them to do so. They said the revenue sharing rate - 16 percent of slot machine proceeds - is illegally high.

Their announcement came after the Legislature in March rejected a proposed compact - the product of nine months of negotiations. The rejected proposal was a 20-year pact with a revenue sharing rate of 7.75 percent of slot proceeds.

Madrid has said if the courts rule in the state's favor and the tribes still refuse to pay, they could risk having their casinos closed. The casinos will remain open during the litigation.