Gaughan Gaming, a gaming management business based in Las Vegas, is suing the Tonkawa Tribe, which is located in the state of Oklahoma. The lawsuit was filed in Kay County District Court. On Tuesday, Gaughan Gaming accused the tribal officials of going against the set agreements when control was taken over of two tribal casinos based in the northern region of Oklahoma. Individuals employed by the firm were evicted from the premises and banned from re-entering.
The aim of the lawsuit is to stop the Tonkawa Tribe’s gaming commission from now suspending the license held by Gaughan Gaming. Then, for Gaughan Gaming to regain control of these casinos. There’s also to be a hearing on bringing in a restraining order.
The Reasons
Gary Pitchlynn of Norman, one of the tribe’s attorneys, explained that the reason why this action was taken is due to the fact that Gaughan Gaming breached the contract first. On September 28th 2010, when the incident took place, the company suspended the gaming license put in place for Tonkawa casinos.
Apparently, the situation got heated last year between the tribe and Gaughan Gaming.
This was over past disputes which had been resolved. Any which had not been were considered as arbitrary through the contract. Therefore, in August, Gaughan Gaming stated in August that arbitration would be sought to bring resolution over these management disputes. However, these were then cited by the tribal gaming commission when suspension of Gaughan Gaming’s license was agreed open through a vote.
Gaughan’s Involvement
The tribe has had a rather unruly past concerning gambling. The Financial Crimes Enforcement Network fined it $1 million after it was discovered that certain transactions concerning the Tonkawa Bingo and Casino had not been reported. There was also evidence that the casino had been utilized for organized crime and money laundering.
Gaughan Gaming got involved with the Tonkawa Indian tribe in February 2006. Before this, the National Indian Gaming Commission had shut down any gambling operations.
This was partly due to the fact that there was no approved management contract in place. In their petition, Gaughan Gambling claims that they helped such operations to be brought back into the tribe. Since 2007, the company has managed the City Lights Casino based in Newkirk and the Tonkawa Indian Casino located in Tonkawa.
The company’s contracts with the tribe are to expire within the next few years, with the Tonkawa Indian Casino in July and Native Lights in September 2011. Gaughan Gaming has apparently brought in a lot of revenue: Native Lights was opened in 2006 and since then the casinos have managed to bring in over $52 million. As part of the agreement, Gaughan Gaming is entitled to 30 percent of the profit. The company has played a major role in the managing of the casinos, including marketing, advertising, and game playing. Therefore, in their petition, they argue that they’ve had a vital role in the profits the tribe has made.