CHEWELAH – The operator of one of the state’s oldest Indian-owned casinos has sued the Spokane Tribe of Indians, accusing leaders of breach of contract and interference in a dispute over slot machines.
Ronald Gutierrez, owner of the Double Eagle Casino near Chewelah, is seeking more than $30 million in damages in Spokane Tribal Court for breach of contract and interference in the casino’s attempts to replace the gambling machines.
Tribal authorities, who removed 250 Nevada-style slot machines from the casino on Indian trust land Sept. 23, filed a motion for dismissal, citing the tribe’s sovereign immunity from being sued, tribal attorney Rory Flint Knife said.
The Double Eagle has operated since June 1986 under a series of land lease agreements with the tribe. Since June 1996, the tribe has leased Double Eagle floor space for some of its slot machines.
The tribe has made $17 million on its slot machines at the Double Eagle since they were installed and $25 million since the casino opened, Gutierrez said.
The tribe contends the slot machines weren’t making as much revenue as those in other tribal-owned casinos and that lease agreements with the Double Eagle and two other individually owned casinos exposed the tribe to potential fines and enforcement action by the National Indian Gaming Commission.
A September 2004 audit by the national commission found three “potential notice of violations” involving the Spokane Tribal Gaming Commission, the Double Eagle and two other individually owned casinos.
They included failure to provide annual audit statements, failure to provide NIGC fees and quarterly statements, and failure to perform background checks for key employees.
Steps were taken to correct the potential violations and no enforcement action was taken by the NIGC, the lawsuit claims.
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