Supreme Court Ruling Has Major Impact On Tribal Casinos In US

The Seminole tribe in Florida knows they are sitting on a gold mine in Coconut Creek, a city in South Florida. The tribe already runs a casino in the city, and was hoping to expand to a huge resort and casino, even bigger than their Hard Rock Casino a little further south in Hollywood.

This week, however, the tribe was dealt a devastating blow by the US Supreme Court. In fact, the ruling that came down from the court may change the face of tribal casino gambling all across the country.

The court ruled that the federal government cannot place land into trust for any tribe that has been recognized after 1934. The ruling was not unanimous, but it was an overwhelming majority at 8-1.

"This is going to severely change how tribes do business regarding their casinos around the country. For years they have been putting land into trust, and then building casinos in which they do not have to adhere to local or state laws. This ruling changes all that," said legal analyst Greg Kypuchsky.

The Seminoles in Florida have had plans for years to expand their Coconut Creek Casino. They claim they will still do so, only now they will have to abide by state gambling laws. That could mean no blackjack and baccarat like they offer at their Hard Rock Casino.

The Seminoles may end up being one of the lucky tribes in the country because they are negotiating a compact with legislators that would still allow them to run all the games they seek. In other states, tribes may not be as fortunate.

In Massachusetts, the Mashpee Wampanoag tribe has been trying to get 539 acres of land put into trust for a $1 billion casino in Middleborough. The Supreme Court ruling has all but ended that quest for now. Still, there are options for tribes around the country.

"What these tribes will do now is lobby Congress to change the law to include all federally recognized tribes and not just the ones that were recognized before 1934," said Kypuchsky.

President Obama may have a strong say in the outcome of this legal battle. He has vowed to carefully take into account the concerns of Native Americans and persuading Congress to amend the law may be his first step in achieving his goals.

Tribes such as the Wampanoags will receive the brunt of this latest ruling. The casino gambling laws in Massachusetts make it impossible for the tribe to build a casino without having land put in trust. There are many other tribes across the country that will be in a similar position.

While laws are changing across the US to expand casino gambling, tribes are not used to having to deal with state laws. In addition to the laws they will have to follow, any tribe that opens a casino without the land trust will be subject to state taxes.

"This ruling will forever change the landscape of how tribes in the US view the profitability of casinos. If they are forced to pay taxes and abide by laws, these tribes will think twice about opening new casinos," says financial adviser Timothy Reglester.

February 25, 2009
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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