Tribal Gaming Books Closed to State

South Dakota legal representatives were told by a federal judge they have no right to examine the books recording gambling revenue at Sioux tribal casinos. US Magistrate Judge John Simko ruled the state had not shown cause to force the Flandreau Santee Sioux leadership to reveal its gross and profit for its gaming operations.

The tribe has been pursuing federal intervention in a dispute with the state in which it wishes to add m ore games at existing casinos. Tribal lawyers say the state has negotiated in bad faith. If federal overseers determine this to be the case, the Sioux may be granted permission to act unilaterally concerning their game limits.

State investigators asked that discovery for the case include both gross and net by tribal gambling operations, the amount issued to each tribal member, and the disposition of funds not dispersed to tribal members. Clearly, state attorneys want to threaten to expose irregularities in the use of the massive gaming income tribal casinos generate.

But with this week’s decision, a June trial now looms with South Dakota holding a limited number of options in fighting the tribal request.