Indian Gaming

Attorney Gabe Galanda criticizes a decision from the 2nd Circuit Court of Appeals that allows state and local taxation of tribal casino vendors:

In a horrid opinion in Mashantucket Pequot v. Town of Ledyard, the Second Circuit scrutinized IGRA’s tax preemption provision, 25 U.S.C. 2710(d)(4), which provides:

nothing in this section shall be interpreted as conferring upon a State or any of its political subdivisions authority to impose any tax, fee, charge, or other assessment upon an Indian tribe or upon any other person or entity authorized by an Indian tribe to engage in a class III activity.

Astonishingly, the Second Circuit held that this provision somehow does not operate to outlaw state taxes on Class III slot machine vendors, meaning on “entit[ies] authorized by an Indian tribe to engage in a class III activity.” The panel reasoned that “IGRA does not directly preempt, by its text of by plain implication. . . . IGRA addresses state taxation, without prohibiting taxes.” Wow.

Get the Story:
Gabe Galanda: 2nd Circuit Gets Stupid With IGRA (Galanda Broadman Blog 8/15)

2nd Circuit Decision:
Mashantucket Pequot Tribal Nation v. Ledyard (July 15, 2013)

Related Stories:
Another town expects taxes from non-Indian casino vendors (8/14)