Pioneer tribal casino closed

Friday, Oct. 28, 2005 | 6:57 a.m.

The Spokane Tribal Gaming Commission closed the casino, which opened in 1986 in this Stevens County town, on Oct. 20.

The move came as the tribe seeks a gaming compact with the state of Washington.

On Thursday, Gov. Christine Gregoire, worried about plans for an off-reservation casino in suburban Spokane, rejected the tribe's proposed gaming compact, a move that sent tribal and state officials back into negotiations.

In a letter to the state Gambling Commission, Gregoire praised portions of the compact that would send as much as 35 percent of the tribe's gambling money to state and local governments.

But she wants officials to reconsider plans for a casino on tribal trust land about 25 miles from the tribe's reservation.

The Double Eagle closure comes during a time of political strife on the Spokane Reservation, about 50 miles northwest of Spokane, as tribal member Ronald "Buzz" Gutierrez struggles in Tribal Court to keep his casino business alive.

"This erratic action put 19 people out of work in Stevens County, and that is economically devastating to the surrounding community of Chewelah," Gutierrez said in a news release.

The Double Eagle is located on tribal property next door to the tribal-owned Chewelah Casino, which remains open.

Double Eagle employees gathered Tuesday in the casino to discuss the loss of their jobs and the economic effect it would have on Chewelah. Double Eagle employees averaged $9.50 an hour, said casino manager Monica Simeon.

She said that with tips, casino workers brought home between $15 and $20 an hour.

In September, Gutierrez sued the tribe for alleged breach of contract after the tribe removed its electronic gaming devices from the Double Eagle. The tribe, through its attorney, has said the lawsuit is without merit and has sought its dismissal.

The lawsuit and Gutierrez's appeal of the closure are pending in Tribal Court. Gutierrez contended his casino is a "grandfathered" gaming facility because it was in existence before the 1988 enactment of the federal Indian Gaming Regulatory Act.

Under the act, individually owned casinos may continue to operate provided they pay 60 percent of net revenue to the tribe and pay an annual assessment to the National Indian Gaming Commission, which regulates tribal gambling.

Over the past 12 years, the Double Eagle has raised $25 million for the tribe, Gutierrez said.

After the tribe pulled its 250 "slot machines" out of the casino in September, Gutierrez leased and installed 104 Class II electronic devices, which simulate bingo. In its Oct. 18 order to close the Double Eagle, the Tribal Gaming Commission said those devices were installed without its approval.

Robert A. Rosette, Gutierrez's attorney, said the only approval necessary for the devices is the Double Eagle's Class II gaming license.

The tribe's gaming attorney, Scott Crowell, disagreed. Not only are the gambling devices out of compliance with federal and tribal law, the Double Eagle has not paid its annual assessment to the NIGC, he said. Gutierrez and his attorney adamantly denied the allegation.