Judge denies Pechanga request to stop new guidelines

By: EDWARD SIFUENTES - Staff Writer | Monday, February 28, 2005 9:51 PM PST ∞

In a setback to the Pechanga Band of Luiseno Mission Indians, a federal judge Monday denied the tribe's request to stop the state from counting multi-player gambling machines as more than one game.

U.S. District Judge William J. Rae also ruled that the tribe's lawsuit may continue against the state on how slot machines at Indian casinos can be counted.

At issue is the definition of a "gaming device." Pechanga officials want each computer, which controls the outcome of its slot machines, and all the slot machine terminals connected to it counted as one game. The state wants to count each terminal as a separate game.

The difference could mean that eight tribal casinos have more games than the 2,000 slots allowed under the terms of their 1999 agreements with the state.

Nathan Barankin, a spokesman with the state Attorney General's Division of Gambling Control, said the judge's decision boosts the state's argument.

"We do feel that the law supports the stated position," Barankin said.

Slot machines provide most of the revenues at Indian casinos, but their agreements with the state limit each tribe to no more than 2,000 machines. The state collects millions in fees each year from tribal governments based on how many machines are in use.

The lawsuit stems from an 2003 opinion by the state Attorney General that said the state should count each terminal of a game and not each computer. The opinion said the 2,000-slot limit would be meaningless if tribes were allowed to count computerized, or central server systems, as one machine.

"A tribe could expand its gaming floor by simply adding a central server system, which would operate the play of potentially thousands of player station terminals and thereby circumvent the gaming device limitation and the payment of fees," wrote Christine Murphy, deputy attorney general.

Pechanga Chairman Mark Macarro filed the lawsuit in federal court, alleging that the state violated the terms of their agreement with tribes by "unilaterally" making the decision on how to count the machines. He said the tribe, which owns a large gambling casino near Temecula, would continue to pursue the lawsuit.

"Although we had hoped for a different outcome, we remain confident that when all of the facts and arguments have been presented, the court will agree that the state must comply with its obligation to follow the important process as outlined in the compact," Macarro said.

Last month, the state's Gambling Control Commission, which oversees the state's tribal casinos, voted to follow the Attorney General's interpretation of a gambling device.

On Feb. 15, Judge William J. Rea issued a temporary restraining order that kept the state from implementing the new guidelines. Monday's decision reverses the earlier ruling.

Barankin said there is no plan to take immediate action. But, under the rules of the compact, either the state or the tribe could request to meet and try to resolve the dispute through negotiations, he said.

If enforced, the new guidelines would mean that Pechanga is using 91 more machines than the 2,000 slots it is allowed under its agreement with the state, according to court documents. Seven other tribes could also have more than the 2,000 machine limit, Barankin said.

Contact staff writer Edward Sifuentes at (760) 740-5426 or esifuentes@nctimes.com.

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