Friday, February 15, 2019

Judge Revives Lawsuit Over Casino Blocked Under Zinke


An American Indian Tribe can Revive a Lawsuit arguing that Former Interior Secretary Ryan Zinke responded to Improper Political Pressure to Block a New Casino, a Federal Judge ruled on Friday.

The Mashantucket Pequot Tribe has contended that the Interior Department acted Illegally when the Agency Refused to Sign-Off on its Plans to Open a New Casino in Partnership with the Mohegan Tribe. After an Initial Lawsuit was Dismissed last year, the Judge on Friday allowed the Tribe to add New Claims of Political Interference and Refile the Case. Allowing the Case to Proceed means Interior will have to Produce an Administrative Record explaining its Decision.

The “vague, cursory reasoning” in a 2017 Letter to the Tribe “provides the Court with no basis, at this stage, to conclude that the decision … was based on appropriate considerations,” Judge Rudolph Contreras, of the U.S. District Court for D.C., wrote in Friday’s Opinion.

Contreras ordered the Mashantucket to File an Amended Lawsuit by Feb. 22nd, and there will likely be Additional wrangling between the Parties before Documents are Produced.

“The administrative record or other evidence may ultimately demonstrate that the alleged political pressure did not occur or affect the Secretary’s decision,” Contreras wrote. “But at this stage, Plaintiffs have plausibly alleged that significant political pressure was brought to bear on the issue and the Secretary may have improperly succumbed to such pressure.”

The Two Tribes each Operate a Casino on their Reservations in Connecticut, but the Proposed Third Off-Reservation Property encountered Fierce Opposition from MGM Resorts International, which owns a Competing Casino nearby.

The Tribes say Lobbying from MGM and Lawmakers from Nevada, where the Company is based, led Interior to Block their Plans based on Inappropriate Considerations. The Tribes also say Interior’s Decision is “arbitrary and capricious” on its face, in Violation of the Administrative Procedures Act.

In September 2017, Interior Refused to Act on Requests from the Tribes to Approve Amendments to their Existing Revenue-Sharing Agreements with the State of Connecticut that were required for the New Jointly-Owned Casino to move forward.

That Decision apparently was made at the 11th hour by Trump Administration Political Appointees and Contradicted the Recommendations of Career Officials. MGM and its Allies had Direct Access to Zinke and other Top Officials in the Runup to that Decision. Interior later Approved the Mohegan Amendments, but it has Refused to Address the Mashantucket one.

Interior's Inspector General's Office also has been Investigating the Casino Decision, including Conducting Interviews with Zinke. The Justice Department is also Reportedly looking into Allegations that Zinke Lied to Investigators, and House Democrats want to Question the Former Secretary who Departed the Trump Administration in early January.

Zinke has Denied any Wrongdoing related to the Probe.










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