California | Compacts | Legislation | Litigation

Pauma Band gets closer to seeing $36.3M payment in gaming case

Thursday, September 1, 2016

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

A bill to pay $36.3 million to the Pauma Band of Luiseño Indians has been sent to California Gov. Jerry Brown (D) for his signature.

The tribe is owed the money after winning a lawsuit. The 9th Circuit Court of Appeals ruled that the state -- under the administration of former governor Arnold Schwarzenegger (R) -- forced the tribe to sign a Class III gaming compact with higher revenue sharing rates by withholding key information about slot machines.

Under a 1999 compact, the tribe was promised up to 2,000 machines. Schwarzenegger's negotiators, however, claimed there weren't any available licenses.

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

As a result, the tribe signed a new compact in 2004 that required a payment of $7.75 million a year, The Valley Roadrunner reported. Under the old agreement, the tribe was only paying $315,000 a year, a huge difference that was recognized by the 9th Circuit.

"Since this misrepresentation induced Pauma to enter into the much more expensive 2004 amendment, the tribe is entitled to rescission of the amendment and restitution for the $36.2 million in overpayments made to the state," Judge Richard C. Tallman wrote in the October 2015 decision. The amount owed has since grown to $36.3 million.

Senate Bill 1187, the bill that authorizes the $36.3 million payment, was presented to Brown on Tuesday.

Read More on the Story:
Schwarzenegger-era bullying pays big for Pauma tribe Appeals court awards tribe $36.3 million (The Valley Roadrunner 9/1)

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