Connecticut | Litigation

Mashantucket Tribe weighs appeal in slot machine taxes case

Monday, August 19, 2013

The Mashantucket Pequot Tribal Nation of Connecticut is weighing its next step in a dispute over slot machines at its casino.

The tribe sued the town of Ledyard over taxes imposed on non-Indian vendors that lease slot machines to the Foxwoods Resort Casino. A federal judge sided with the tribe but the 2nd Circuit Court of Appeals reversed on appeal.

The tribe could ask a full panel of the 2nd Circuit to rehear the case. Or it could go to the U.S. Supreme Court.

The decision has forced several non-Indian vendors to pay hundreds of thousands of dollars in back taxes to Ledyard. And the nearby town of Montville has started collecting taxes on businesses that lease slot machines to the Mohegan Tribe.

The 2nd Circuit ruled that the taxes do not violate the Indian Gaming Regulatory Act or infringe on tribal sovereignty. Attorney Gabe Galanda says other circuit courts have ruled differently in similar cases.

Get the Story:
CCM says slot taxes a victory for towns (The Norwich Bulletin 8/18)

2nd Circuit Decision:
Mashantucket Pequot Tribal Nation v. Ledyard (July 15, 2013)