Ruling helps Shoshone-Bannock gaming

BOISE – The 9th U.S. Circuit Court of Appeals says Idaho can’t limit the number of video gambling machines operated by the Shoshone-Bannock Tribes, nor can state officials force the tribes to renegotiate their compact with the state.

The ruling, handed down Wednesday, upheld an earlier ruling in favor of the tribes from U.S. District Judge B. Lynn Winmill. The state and the Idaho State Lottery had hoped to overturn Winmill’s 2004 decision that found the Shoshone-Bannock tribes did not have to renegotiate a 2000 gaming compact signed by then-Gov. Dirk Kempthorne in order to install video gambling machines. Winmill had ruled that the Shoshone-Bannocks automatically got the right to the machines when three other Idaho tribes were allowed to install similar devices.

But unlike the Shoshone-Bannocks, the gaming compacts signed by the Coeur d’Alene, Nez Perce and Kootenai tribes limit the number of machines and require the tribes to contribute 5 percent of their annual gaming revenue to local schools.

“The fact that the (Shoshone-Bannock) Tribes may now be in a technically better position than the other tribes is purely a function of the terms of the compact that Idaho and the (Shoshone-Bannock) Tribes voluntarily entered into,” Judge William Canby Jr. wrote for the unanimous three-judge panel.

In fact, the appellate court found, the Shoshone-Bannock’s case was even stronger when it came to the payments made to local schools.

The compact prohibits the state from collecting “any Idaho tax or contribution in lieu of taxes or fees on or measured by gaming transactions, gaming devices permitted under this compact, gross or net gaming revenues, or the tribes’ net income,” according to the court ruling.

“The (Shoshone-Bannock) Tribes did not bargain away their immunity from such taxes or payments in the compact,” Canby wrote. “The fact that other tribes have accepted a package of benefits and burdens when they voluntarily amended their compacts does not change the terms of the compact between the (Shoshone-Bannock) Tribes and Idaho.”

The attorney representing the Shoshone-Bannock Tribes in the case, Scott Crowell, said the appellate court victory was the last hurdle the tribes faced before moving forward with a “substantial investment” in gaming operations.

“It should be expected and anticipated that the tribes will now look for some significant capital to be invested in this operation,” Crowell said. “We did not believe that this was a well-founded appeal to begin with and we’re gratified that the court agrees. Now the tribes can begin receiving the benefits of tribal gaming, which is to provide a revenue source for the tribal government and jobs.”

Bob Cooper, a spokesman for the Idaho attorney general’s office, said the state was still going over the ruling.

“We’ll need to review the opinion and consult with our client, the state lottery, before making any decision on further action,” Cooper said.