California | Compacts | Litigation

Pauma Band might finally see $36.3M payment from gaming case

Wednesday, August 24, 2016

The Casino Pauma in Pauma Valley, California. Photo from Facebook

The state of California owes $36.3 million to the Pauma Band of Luiseño Indians as part of a Class III gaming compact dispute but the tribe still hasn't seen the money.

That could finally change if lawmakers pass Senate Bill 1187, a measure that would pay the tribe for being overcharged. The deadline to take action is August 31, The Sacramento Bee reports.

The dispute arose after the tribe sought to add more slot machines at the Casino Pauma. Although the 1999 gaming compact promised up to 2,000 machines, the state claimed there weren't enough licenses to go around.

As a result, the tribe was forced to sign a new agreement in 2004 that contained a higher revenue sharing rate.

Indianz.Com SoundCloud: 9th Circuit Court of Appeals Oral Arguments in Pauma Band of Luiseno Mission v. State of California

But there were in fact enough licenses to go around, the 9th Circuit Court of Appeals determined last October. The state was ordered to pay restitution of $36.2 million for overcharging the tribe.

The state, however, refused to pay up and instead asked the U.S. Supreme Court to overturn the 9th Circuit, Without comment, the justices declined to hear the dispute in June.

Read More on the Story:
A Schwarzenegger-era casino deal will cost state $36.3 million (The Sacramento Bee 8/24)

9th Circuit Court of Appeals Decision:
Pauma Band of Luiseno Mission v. State of California (October 26, 2015)