Wednesday, June 29, 2011

Supreme Court to states: No jurisdiction or taxing authority on Indian casino expansions

The U.S. Supreme Court ruled Monday that states cannot tax any expanded gaming at Indian casinos.  As reported in the Enterprise Press, the court's decision is a watershed event in limiting states' relations with the tribal casino industry.  This has major implications for how governors can negotiates future casino agreements.

California state legislators are already concerned noting Monday's outcome complicates their state's "revenue potential" from tribal gambling.  While Indian gaming backers and tribes celebrated the decision as proof that the state governments' were seeking illegal tax revenues in violation of the federal Indian Gaming Regulatory Act.

Good news for the Wampanoag plan and their Asian gaming syndicate backers at Genting.  Bad news for Massachusetts legislators hoping to gain revenues from Indian gaming carve outs in the planned Murray-Patrick legislation.

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