In re Gaming Related Cases
United States Court of Appeals for the Ninth Circuit
331 F.3d 1094 (2003)
California (defendant) negotiated the Davis Compact with 58 tribes, granting exclusive class III gaming rights in exchange for tribes contributing to a revenue sharing trust fund benefiting tribes without gaming facilities, a special distribution fund covering state gambling-related costs and addiction programs, and a labor relations ordinance governing casino employees, and 57 of 58 tribes signed; the Coyote Band (plaintiff), which did not sign, sued arguing these conditions constituted per se bad-faith negotiation and impermissible direct taxation triggering a statutory presumption of bad faith under IGRA. The district court denied relief and entered judgment for California, and the Coyote Band appealed.
Whether a state that negotiates in good faith may include revenue-related provisions in a tribal-state gaming compact, provided the state offers consideration in return for the demand.