The Pueblo of Pojoaque owns and operates the Buffalo Thunder Resort & Casino in New Mexico. Photo: MyEyeSees

Compacts | Litigation

Pueblo of Pojoaque still fighting for $10.1 million in seized revenues

Monday, November 19, 2018

The Pueblo of Pojoaque is still trying to reclaim $10.1 million in gaming revenues that were seized by the federal government.

The revenues were being deposited into a trust account while the tribe was defending its gaming rights in federal court. But after the tribe lost both cases, the Department of Justice seized the funds, claiming they represented the proceeds of "illegal gambling."

The tribe, however, contends the seizure violated an agreement in which the tribe and the state of New Mexico were supposed to decide what to do with the revenues once the court cases were resolved. The state naturally wants all of the money, plus another $1.1 million, The Albuquerque Journal reported.

The tribe, on the other hand, has proposed various alternatives, including one in which the money would be invested in programs on the reservation. That would help account for what the tribe said was a $8.84 million loss in revenues during the court dispute, the paper reported.

If the seized funds aren't returned, that would mean the tribe lost nearly $19 million after it refused to sign a new Class III gaming compact with the state.

The tribe eventually signed the agreement, which imposes a higher revenue sharing rate on gaming proceeds. The rate goes as high as 10.75 percent, which is greater than the 8 percent required by a prior version.

The Bureau of Indian Affairs allowed the compact to go into effect last October even though the provisions had previously been questioned by the agency. The state does not appear to have offered anything in return for demanding a higher share of tribal revenues, former Assistant Secretary for Indian Affairs Kevin Washburn wrote in a June 2015 letter.

Despite the concerns, every tribe has signed the updated agreement. All have been allowed to take effect, making New Mexico the only state in which every tribe is operating under a Class III gaming compact that was neither approved, nor disapproved, by the BIA.