Judge stays slot machine seizure order pending appeal

U.S. District Judge Fred Van Sickle on Wednesday agreed to stay his Dec. 10 order to remove the slots, saying such a move would create undue hardships for the tribes.

The more than 1,200 machines will continue to operate in seven casinos run by the Spokane Tribe of Indians and the Confederated Tribes of the Colville Reservation, pending appeals of Van Sickle's original ruling.

Van Sickle had decided that the gambling devices are illegal under the federal Johnson Act. He ordered federal marshals to seize them as part of a civil forfeiture action.

Both tribes have operated the devices for five years or more without a compact with the state that would allow their operation.

But lawyers for the tribes asked Van Sickle to stay execution of that order so the case could be appealed to the 9th U.S. Circuit Court of Appeals in San Francisco.

Unplugging the slot machines would cost the tribes hundreds of jobs and millions of dollars in revenues used to fund social programs.

"In this situation, the question of balance of hardships has to be considered," Van Sickle said. "I believe the balance of hardships tips in favor of the tribes."

A standing-room-only crowd of nearly 100 tribal members and supporters broke out in cheers and tears as Van Sickle announced his decision in the small federal courtroom.

Van Sickle's agreement to stay his order, with conditions, came as a shock to tribal officials.

"We finally got a good ruling out of a district court," Spokane Tribal Vice Chairman John Keiffer said. "We are sure that we will prevail in the 9th Circuit."

Colvilles Tribal Chairman Joe Pakootas said lawyers expected Van Sickle to deny the stay and force them to ask for an emergency stay from the San Francisco appeals court.

"We are elated," he said, noting he could now tell 400 casino employees that their jobs are safe. The appeal could take a year or longer.

Pakootas said gaming revenues from three casinos represent 30 percent of the annual tribal budget. About 90 percent of the gaming revenues come from slot machines, he said.

Assistant U.S. attorney Jim Shively argued that the tribes' operation of illegal machines put them at a competitive advantage over other tribes that have compacts that do not allow slots.

"The benefits are derived from basically an illegal enterprise," he told the judge.

But Van Sickle said he was swayed by arguments of lawyers hired by the tribes that pulling the slot machines from casinos would result in numerous reservation social programs being gutted or killed.

They also argued that there was a strong likelihood that his Dec. 10 order would be overturned by the 9th Circuit, which previously overturned two of his other rulings on Indian gambling.

Van Sickle granted the stay on condition that the tribes expedite their appeals, make efforts to begin negotiating with the state and report in writing on their progress every 60 days.

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