It was announced on Tuesday that New Mexico U.S. Attorney Damon Martinez would not try to close the two casinos that the Pojoaque Pueblo operates north of Santa Fe, due to an ongoing lawsuit. The gambling compact between the tribe and the federal government expired on June 30.
U.S. Attorney Martinez and the Pojoaque Pueblo reached an agreement, under which the latter is to deposit a certain amount of money in an escrow account instead of contributing it to New Mexico. The tribe is to do this until a federal appeals court announces its decision as to whether it is to be allowed to ink a new gambling compact with the federal government instead of signing an agreement with New Mexico.
Currently, the Pojoaque Pueblo operates two casinos – Cities of Gold and Buffalo Thunder. The first venue covers 40,000 square feet and features 575 slot machines. The latter spreads over a 60,000-square-foot site and offers to visitors 1,200 slot machines, 18 gaming tables, as well as a separate poker room.
U.S. Attorney Martinez said that the closure of the two properties would not serve the interests of New Mexico residents, as this might have quite negative effects on the state’s tourism industry and employment. He also pointed out that even though the compact has expired, the tribe would be allowed to provide its gambling services until the appeals court announces its final decision.
U.S. Attorney Martinez has advised tribal officials to continue operating their casinos under the terms of the expired compact. However, if the tribe violates those terms, it would be asked to shutter the gambling properties. U.S. Attorney Martinez and the Pojoaque Pueblo also agreed that the latter is to provide the official with comprehensive information about its operations and as to whether it runs its venues in accordance with the previous compact.
Earlier this week, Joseph Talachy, Governor of the pueblo, asked for such an agreement and promised that casino officials would provide the U.S. Attorney with quarterly reports and annual audits.
Following the latest announcements, New Mexico Gov. Susana Martinez, who has been involved in an ongoing dispute with the Pojoaque Pueblo, commented that the arrangement leaves a lot of unanswered questions. For instance, it is unclear how the U.S. Attorney would inform himself whether the tribe maintains the proper payout percentages. Furthermore, he would not be able to “monitor gaming machines for tampering.”
The Pojoaque Pueblo was one of the several New Mexico-based tribes that negotiated with the state the potential renewal of their gambling compacts. However, late in 2013, the tribe walked out of those negotiations, claiming that Gov. Martinez’s office was not good-willed. George Rivera, who was governor of the pueblo back then, pointed out that the state was trying to make his casinos pay higher tax on slot machines revenue and prevent customers from being served alcohol on the casino floor.
Under the expired compact, the Pojoaque Pueblo was to pay 8% of its net win to the state. Generally speaking, net win is the money wagered minus the amounts paid out in money and other prizes. According to the New Mexico Gaming Control Board, the tribe generated net win of more than $60.7 million in 2014.
