American Indian casino in California to stay shut until dispute settled: Judge

[October 30, 2014]  LOS ANGELES (Reuters) - A Native American casino in California must remain closed for the foreseeable future because of the threat of violence from a tribal faction that sought to take over the establishment weeks ago, a federal judge ruled on Wednesday.

The state Attorney General's Office sought the closure of the Chukchansi Gold Resort & Casino in Coarsegold after guests were sent scurrying on Oct. 9 when an armed tribal faction entered and confronted another group running the business.

U.S. District Judge Lawrence O'Neill of the Eastern District of California, who ordered the temporary closure of the business one day after the standoff, wrote in his latest opinion that the casino north of Fresno will remain shuttered until a legal settlement is reached or a judgment is handed down.

The casino belongs to the Picayune Rancheria of the Chukchansi Indians, which is embroiled in a dispute between various groups over who should lead it.

O'Neill blamed a group he described as the McDonald Faction, which is led by tribal member Tex McDonald, for instigating the latest flashpoint, despite the group's argument that it barged into the casino in an attempt to evict usurpers.

"This twisted statement of facts ... belies any semblance of truth or reasonableness," O'Neill wrote. "It is simply an admission that the emotional and explosive keg that existed the day before the armed and illegal takeover that occurred on Oct. 9, 2014, still exists."

An attorney for the McDonald group did not return calls.

O'Neill, in response to arguments from the McDonald Faction that a federal court had no jurisdiction over the casino in this situation because of the tribe's sovereign rights, wrote in his opinion that he had authority under U.S. law to rule in disputes between states and tribes over gambling.

No one was injured in the armed confrontation between the two tribal factions.

(Reporting by Alex Dobuzinskis; Editing by Sandra Maler)

[© 2014 Thomson Reuters. All rights reserved.]

Copyright 2014 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.