California | Compacts | Legislation | Litigation

Pauma Band is finally getting $36.3M payment in gaming dispute

Monday, September 12, 2016

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

The Pauma Band of Luiseño Indians is finally getting paid $36.3 million after winning a gaming dispute in California.

The money is on its way after Gov. Jerry Brown (D) signed Senate Bill 1187 into law on Friday. The payment ends a long-running dispute that arose when the tribe was forced into signing a new Class III gaming compact in 2004.

The compact, which was negotiated under the administration of former governor Arnold Schwarzenegger (R), required the tribe to pay more revenues to the state in exchange for adding more slot machines to the Casino Pauma. But the new agreement wasn't required at all -- the 9th Circuit Court of Appeals determined that the state basically lied to the tribe during talks.

"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.

Read More on the Story:
California pays tribe $36 million to settle years-old fight (AP 9/10)

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