A top official for the U.S. Department of the Interior has revoked a legal opinion that formed part of the legal basis for two new casino-like tribal gaming halls in Alaska, putting their future in question.
On Thursday, Deputy Secretary Kate MacGregor declared that she had overruled the opinion, which was issued during the Biden administration and challenged in court by the state of Alaska.
Writing in a memo to the head of the National Indian Gaming Commission and the top attorney at the Interior Department, MacGregor said that the Biden-era opinion “does not reflect the best interpretation of applicable law.”
The opinion overruled by MacGregor applied only to Alaska and declared that tribal authority applied under many circumstances to land allotments that were given to individual Alaska Natives by the federal government.
That’s a system similar to what’s in place in the Lower 48.
The state of Alaska opposed that view, holding to the position that the Alaska Native Claims Settlement Act of 1971 extinguished almost all “Indian Country” in Alaska and that the state holds primary jurisdiction over land owned by Alaska Natives, Alaska Native corporations and Alaska tribes, with the exception of the Metlakatla Indian Community.
Millions of acres potentially affected
The settlement act left almost all Alaska tribes with no federal trust land on which to exert sovereignty. There are, however, more than 17,000 parcels of up to 160 acres that have been granted to individual Alaska Natives since 1906 and are held in federal trust. Collectively, they represent as much as 5 million acres of land.
Until the Biden-era opinion, it was believed that most — if not all — of that land was outside tribal jurisdiction. After the opinion, the Native Village of Eklutna and the Central Council of the Tlingit and Haida Indian Tribes of Alaska went ahead with plans to build casino-like facilities on allotments in their traditional territory. It was the first significant move to take advantage of the new interpretation of federal law.
The Native Village of Eklutna opened the Chin’an Gaming Hall in Birchwood, outside Anchorage, earlier this year. The Tlingit and Haida gaming hall, on Douglas Island, is under construction.
Now that the Biden-era opinion has been revoked, it isn’t clear whether the gaming halls are legal.
It’s still possible — albeit much more difficult — for tribes to exert jurisdiction over an allotment. But before the Biden administration’s opinion, Eklutna and the Tlingit and Haida Central Council had tried for decades to open casino-like gaming halls on allotments and had their applications rejected.
Before the Biden administration changed things, only Klawock and Metlakatla could operate casinos, and because of state laws regulating gaming, they do not offer table games like poker and blackjack. Instead, rows of slot-machine-like electronic devices fill their gaming halls.
That’s what can be seen in Birchwood and what is expected at the casino in Juneau.
MacGregor’s Sep. 25 memo says any action taken by the Interior Department or the National Indian Gaming Commission — which regulates gaming halls and casinos on tribal land — “should be reevaluated in accordance with this revocation.”
Birchwood gaming hall remains open
Aaron Leggett, President of the Native Village of Eklutna, said afterward in a written statement that its tribal gaming hall “remains open for our guests and continues to provide meaningful benefits to our Tribe, the surrounding community, and our state.”
Eklutna sought to build the gaming hall to provide jobs and an economic boost for tribal members and the local community, according to tribal leaders.
Leggett said the tribe is reviewing the new order.
A spokesperson for Tlingit and Haida declined to say whether construction will continue on its gaming hall, which is located on Douglas Island, on a road that leads to Juneau’s municipal ski area.
“Tlingit & Haida is aware of the U.S. Department of the Interior action to withdraw the solicitor’s decision. We also anticipated the action,” said Tlingit and Haida President Richard Peterson in a prepared statement. “We are reviewing internally and remain committed to exercising our Tribal sovereignty to preserve sovereignty, enhance economic and cultural resources and promote self-sufficiency and self-governance for Tribal citizens.”
State attorney general pleased by decision
The state of Alaska opposed the Biden-era opinion and has repeatedly fought the Native Village of Eklutna in court over its plans to open a tribally operated gaming hall.
Alaska Attorney General-designee Stephen Cox expressed support for the reversal in a written statement.
“We are encouraged that (the Department of the) Interior has returned to a position grounded in Alaska’s unique history. The Supreme Court has often said, ‘Alaska is the exception, not the rule.’ Today’s action respects that principle and restores the jurisdictional balance Congress intended and courts have repeatedly affirmed,” Cox said.
Asked to clarify whether the state believes that the Eklutna and Juneau casinos are now illegal, Department of Law spokeswoman Patty Sullivan said by email that MacGregor’s memo calls for a re-evaluation.
“Therefore,” she said, “it is for Interior to undertake the re-evaluation process and for the state to see the result of that re-evaluation process.”
It’s also not known how the new decision will affect two in-progress lawsuits that have challenged the Eklutna gaming hall. One suit, filed by neighboring landowners, is being considered by the U.S. Ninth Circuit Court of Appeals after a lower-court ruling went in favor of Eklutna.
A second lawsuit, filed by the state of Alaska against Eklutna, is on hold, pending the result of the Ninth Circuit case.
Tlingit and Haida’s gaming hall has not yet been the subject of lawsuits, but attorneys and other observers familiar with the issue say they expect that hall will be the subject of litigation as well.