The National Indian Gaming Commission and the Picayune Rancheria of Chukchansi Indians announced on Monday that they have entered a settlement agreement and under its terms, the tribe is now allowed to reopen its Chukchansi Gold Resort & Casino, located in Coursegold, California.
The venue was closed by the Commission back in October 2014 after a dispute between rivaling tribal factions erupted in its gaming offices. The national Indian gaming regulator decided that the casino provided its services in a manner that threatened public health and safety and issued a temporary closure order. Another temporary closure order was also issued due to the tribe’s failure to submit the necessary annual financial statements, independent audits, and other procedure reports for the 2012 and 2013 fiscal years.
The National Indian Gaming Commission said in a statement that the casino has been allowed to be reopened under several important conditions. According to one of those conditions, the Chukchansi Tribe would have to pay a fine of $19.8 million, part of which would likely be suspended provided that tribal officials follow closely the terms of the settlement agreement.
The tribe will have to pay $500,000 within the course of the next year. The remaining portion of the fine would be suspended after three years of safe operation of the gambling venue and financial compliance by tribal officials.
The National Indian Gaming Commission also noted on Monday that the closure orders may be reinstated if “anything occurs to threaten the health and safety” of the casino, its employees and customers or tribal officials do not provide the necessary financial information.
No official date has been announced for the casino’s relaunch, but tribal officials said that this is likely to happen in January. Most of the employees have already been hired but there are certain logistical issues to be solved at the gambling venue. Members of the Chukchansi tribal council stated that they want to open the hotel and casino resort as soon as possible so that it starts paying off the tribe’s pending debts.
Back in 2012, Chukchansi bondholders took $250 million in debt and were required to annually make payments of $12 million. However, the tribe has not made any payments since September 2014. Bondholders also arranged the additional amount of $35 million in order for the tribe to be able to pay for the casino’s reopening.
Commenting on the Monday announcement, Chukchansi Chairwoman Claudia Gonzales said that they are looking forward to welcoming back their customers and to providing tribal members and residents of the region with the much-needed jobs they lost last year when the venue closed doors. Prior to its closure, Chukchansi Gold Resort & Casino employed 1,000 people, most of whom from Madera County.
