The U.S. Supreme Court decision in Salazar v. Patchak will have an effect on financing for tribal casinos, according to Fitch Ratings.

The decision allows just about anyone to challenge a land-into-trust application. Historically, lawsuits were filed by state and local governments and people directly affected by a gaming operation, such as adjacent residents or landowners.

The Supreme Court, however, said the land-into-trust regulations that were developed under the Indian Reorganization Act recognize a wide "zone of interests." A person who lives in the general area of a casino, for example, could file a lawsuit.

The decision also loosened the time frames for challenges to a land-into-trust application. Normally, lawsuits must be filed within 30 days but the Supreme Court said the Administrative Procedure Act -- which provides for a six-year statute of limitations -- governs.

As a result, Fitch Ratings said the decision will have ''several key credit implications for the gaming sector." Companies that partner with tribes may be reluctant to provide financing if a land-into-trust decision remains vulnerable for years.

Get the Story:
Ruling could slow development of some Indian casinos (VegasInc 6/19)
Supremes’ Ruling Opens Floodgates to Challenges of Indian Land Trust Acquisition (Indian Country Today 6/19)

Supreme Court Decision:
Salazar v. Patchak (June 18, 2012)

Oral Argument Transcript:
Salazar v. Patchak (April 23, 2012)

DC Circuit Decision:
Patchak v. Salazar (January 21, 2011)

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Turtle Talk: Commentary on Supreme Court land-into-trust case (6/19)
Non-Indian behind Gun Lake casino challenge applauds decision (6/19