Wyoming is granted rehearing in lawsuit

Bob Moen

Tuesday, March 1, 2005 | 8:54 a.m.

CHEYENNE, Wyo. -- The state won a rehearing before the full 10th U.S. Circuit Court of Appeals in Denver in its attempt to prevent the Northern Arapaho Tribe from offering high-stakes, Las Vegas-style casino gambling.

The decision was a setback for the tribe, which has laid the foundation for a new casino two miles south of Riverton.

"It's a real rare circumstance," state Attorney General Pat Crank said Monday. "It's an indication that a number of judges on the 10th Circuit want to take a close look at the issue."

Mark Howell, consultant to the tribe, said the decision would at least slow construction of the casino because some financial backers may wait for the court battle to conclude before committing money.

The rehearing before the 12 judges was scheduled for May 3 in Denver, where the 10th Circuit is based.

In November a three-judge panel of the appeals court sided with the tribe, ruling the state had negotiated in bad faith and overturning a lower court ruling that the state did not have to negotiate with the tribe over casino-type gambling.

Wyoming officials said they didn't have to negotiate over casino-style games on tribal land because the state allows gambling only for nonprofit purposes and the tribal casino would be a for-profit venture.

But the court agreed with the tribe, saying the state must negotiate a compact with tribes if the gambling is allowed, "even if state law restricts the sponsors or purposes of such gaming."

The tribe took the ruling as an endorsement of its arguments that it could offer slot machines and other high-stakes games. The tribe now offers bingo and pull tabs.

The state, under the administration former Gov. Jim Geringer and now under Gov. Dave Freudenthal, said the Northern Arapaho should not be allowed to offer high-stakes gaming.

Howell said that was "causing people to live below the poverty line."

Crank said the tribe's drive for full-blown casino gambling went far beyond the type of charitable games the state allowed.

"The important issue is going to be the extent of gaming allowed by Wyoming," Crank said.