Feds Nix Two Tribal Gaming Compacts, Gov. Gavin Newsom Protests

The US Department of the Interior decided not to approve Class III gaming compacts with two California tribes — the Santa Rosa Indian Community of the Santa Rosa Rancheria and the Middletown Rancheria of Pomo Indians — claiming that they violated portions of the Indian Gaming Regulatory Act.

Tachi Palace Casino Resort
The Tachi Palace Casino Resort in Lemoore, Calif, seen above. The federal government recently denied two compacts signed by the State of California, including one with the Santa Rosa Indian Community of the Santa Rosa Rancheria to expand their resort. (Image: tachipalace.com)

Both tribes were reportedly planning a “casino resort complex,” according to rejection letters sent to the tribes and the state. These plans include building new restaurants and hotels that operate beyond the gaming spaces regulated by the Tribe’s Gaming Commission.

Taking issue with several definitions in the compacts, the feds wrote, “The 2022 compact confers expansive powers on the state and local governments to regulate the tribe’s activities and lands that are not directly related to the actual conduct of gaming.”

State-tribal Class III gaming compacts are agreements between the state and separate tribal governments that specify how many gaming devices and casinos a single tribe can operate, according to the Tribal Alliance of Sovereign Indian Nations.

The Santa Rosa Rancheria had planned to expand the gaming space in their Tachi Palace Casino Resort in Lemoore, Calif. by 44,000 square feet and build a 12-room hotel tower, a bingo hall/conference center, and a three-level garage.

Newsom Slams Decision

California Gov. Gavin Newsom (D) strongly rebuked the feds’ decision, warning of its repercussions. He said in a statement that the disapprovals “Threaten the ability of these and other tribes to invest and maintain jobs in many of California’s economically disadvantaged communities.”

He noted that the compacts were “carefully negotiated by the state and the tribes in compliance with the Indian Gaming Regulatory Act” to give tribes the “economic benefits of gaming while mitigating impacts to local communities.” And he noted that this latest agreement came on top of existing compacts signed between the tribes and the state in 1999.

This is the second time the Interior Department has disapproved of compacts with the same tribes, following a similar decision in November 2021.

California has ratified gaming compacts with 75 tribes, and currently hosts 66 casinos operated by 63 tribes, according to the California Gambling Control Commission.

Corey Levitan joined Casino.org in 2022 after a long career covering Las Vegas. He currently covers entertainment, dining and gaming news in Las Vegas.

Corey spent six years covering the Vegas Strip for the Las Vegas Review-Journal, where he also wrote the most popular humor column in the city’s history. (For “Fear and Loafing,” he tried out 176 Vegas jobs, including poker player, blackjack dealer and Follie Bergere dancer.)

Corey has won more than 100 local, state and national awards for his journalism, which has also appeared in Rolling Stone, New York Magazine and the New York Post.

Corey is a New York native whose hobbies include playing guitar, trying to be a better husband, and arguing with strangers on Facebook.

Contact Corey at corey@casino.org.

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