Taxing Tribal Slot Machines?

A federal appeals court has ruled that the tribal slot machines leased by the Mashantucket Pequot Tribe of Connecticut from non-tribal businesses can be taxed. The ruling by the 2nd Circuit Court of Appeals on July 15 reversed a decision by a federal district court judge that said states and their subdivisions cannot tax property on Indian land regardless of who owns it.

The Nation has the option of asking for a rehearing or filing a petition with the United States Supreme Court to review the appeals court ruling about the tribal slot machines tax, but no such decision has yet been made. “’We just received the decision today and continue to review it,” William L. Satti, the Mashantucket Pequot Tribal Nation’s (MPTN) Director of Public Affairs, said on July 16. “We are disappointed that the Court of Appeals reversed the District Court’s decision, which ruled in favor of the tribe.”

The town of Ledyard called the ruling “a precedent-setting decision in favor of state and local governments,” according to The Day. “With this decision, the town of Ledyard will be able to collect taxes that are critically important to providing government services, including those that result from being a host community for the Foxwoods casino,” said Ledyard Mayor John Rodolico.

“This case was just the tip of the iceberg, and our tax revenues would have taken a huge hit if we had not persevered throughout this eight-year legal battle to achieve this victory,” he said. This situation is unprecedented when it comes to tribal slot machines and gambling in America.