Thursday of this week in San Diego California an the Fourth District Court of Appeals decided to reinstate a case that involves twenty eight Indian tribes and the casinos they run. This case was brought by Candace Cates a former gambling commission agent against the twenty-eight Indian tribes who run casinos alleging that the state is losing monies owed to them by these casinos, Cates estimates the amount California has lost to be near 330 million. As was reported in the San Diego Chronicle, Justice James McIntyre said they do not understand how the Commission can know if the amounts paid by the tribes is accurate or not.
This case was filed in 2003 and dismissed in 2006 as the judge felt Cates had not proven her case, the case pending after Thursdays decision Cates is fighting it as a taxpayers suit and wile she will receive no payment of any type from the case if she wins she can recover legal fees from the state.
In 1999 the state signed a compact with the twenty-eight tribes that they would be able to own casinos in exchange for revenue payments. These payments as outlined in this agreement the tribes would pay a percentage of their net winnings, this figure is different than the total figure with the payouts, and however it did not include operating costs. Cates has testified to the effect that these casinos are paying overhead and payroll before giving the state its share of the net winnings.
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