Casino remains open as judge mulls closure order

Todd Dvorak

Wednesday, May 21, 2003 | 9:13 a.m.

TAMA, Iowa -- Hundreds of gamblers played slots, craps and blackjack at the Meskwaki casino Tuesday as a federal judge spent a second day deliberating whether to back federal gaming regulators and close the casino.

The Meskwaki Bingo, Hotel and Casino, which generates $3 million a week and employs 1,300, has been operating for more than a week in defiance of a closure order issued by the National Indian Gaming Commission.

The agency acted after losing patience with Meskwaki tribal officials, who are embroiled in a leadership dispute that has put the casino at odds with federal gaming laws.

U.S. District Judge Linda Reade is deciding whether to enforce the shutdown, which would be carried out by U.S. Marshals.

At a hearing in Cedar Rapids Monday, Reade said she hoped to issue an opinion quickly, but she also gave attorneys until Tuesday to file additional written arguments. The judge had not filed a decision by the close of business Tuesday.

Meanwhile, business Tuesday at the casino was down slightly from the daily average of 4,100 gamblers, casino officials said.

"It's a little slower than usual," said Betsy McCloskey, executive director of sales and marketing. "But it's a nice day. It's also planting season, and that makes a difference this time of year."

Casino officials said publicity about a shutdown has not taken a significant bite out of business, attendance or the casino's status as a popular destination for Midwest tour buses.

"We're getting some calls from our regular customers who have been coming here for 10 years. We're getting some calls from bus companies, but we haven't had any cancellations," Renetta Plander, acting general manager, said. "We're telling them we're still open."

The casino's livelihood -- as well as jobs and royalty checks tribal members receive each month -- is being threatened by a power struggle that began when the elected tribal council was ousted eight weeks ago by a new council appointed by the hereditary chief, Charles Old Bear.

Tribal members say frustration and suspicion with the elected council began last year and gained momentum when the elected council, led by chairman Alex Walker Jr., ignored valid recall petitions.

The appointed council and about 60 supporters seized tribal government offices March 26. The group changed the locks on buildings, occupied tribal offices around the clock and assumed control of the government and casino.

But federal officials have refused to recognize the legitimacy of the appointed leaders, and the gaming commission says the casino violates the Indian Gaming Regulatory Act as long as the appointed council remains in control.

Leaders of both councils, with the help of federal officials and attorneys, tried unsuccessfully to negotiate a settlement that featured power sharing and new elections.

The appointed council, led by Homer Bear Jr., has scheduled an election Thursday, but Reade said the results are not likely to be recognized by federal agencies.

Walker also said Tuesday that his council would not recognize the results and is urging tribal members not to vote.