Indian Gaming > Gaming firm fights lawsuit on Big Sandy Rancheria agreement

Gaming firm fights lawsuit on Big Sandy Rancheria agreement

Friday, February 18, 2011
Filed Under: Business Deals | California | Litigation | NIGC

A Nevada gaming firm is disputing allegations in a lawsuit filed by the Big Sandy Rancheria of Western Mono Indians in California.

The lawsuit claims Brownstone LLC has refused to comply with licensing requirements of the Indian Gaming Regulatory Act. But the firm says it doesn't need to be licensed by the National Indian Gaming Commission because it isn't providing gaming services to the tribe.

“The multi-million dollar development agreement identifies Brownstone as the exclusive provider for development and construction oversight of the Big Sandy proposed gaming and hospitality facility. Based on the non-gaming nature of these services, the development agreement clearly states that Brownstone has no gaming license requirement. Further, the credit agreement provides that Brownstone’s 2007 loan advances to Big Sandy, in excess of $1 million, would be used only for ‘governmental matters’ unrelated to gaming activities,” American Vantage, the firm's parent company, said in a press release.

The tribe is moving forward on the casino with an unidentified new partner. The Bureau of Indian Affairs has released a draft environmental impact statement on the project.

Get the Story:
Tribe sues to cancel development deal with Las Vegas company (The Las Vegas Sun 2/17)