Iowa sues federal agency over Ponca casino

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BY KEVIN ABOUREZK / Lincoln Journal Star

The state of Iowa filed a lawsuit Friday in federal district court challenging a decision by a federal agency allowing the Ponca Tribe of Nebraska to build a casino near Omaha.

The tribe won a December decision from the National Indian Gaming Commission to build a casino on the tribe’s trust land just northeast of downtown Omaha in Carter Lake, Iowa.

Iowa filed its lawsuit in the U.S. District Court for the Southern District of Iowa.

In a news release Friday, Iowa Gov. Chet Culver and Attorney General Tom Miller said the commission’s decision ran contrary to its own, earlier determination, as well as the opinion of its legal counsel, that the tribe’s land did not qualify as restored lands that could be used for gaming.

The lawsuit alleges the tribe misled the commission in seeking the restored lands designation. The tribe “stated that it intended to use the five-acre Carter Lake parcel for a health clinic and other tribal services, but never for a casino,” the lawsuit states.

Ponca Chairman Larry Wright Jr. defended the tribe’s actions, saying it merely had changed its mind in its intentions for the land.

As for the commission’s decision, he said, it was based on sound legal principle and would survive Iowa’s lawsuit.

“At the end of the day, the decision will stand based on the merits,” Wright said. “We’ll continue to move forward with our plans.”

In January, Nebraska Attorney General Jon Bruning filed a lawsuit challenging the commission’s decision to allow the tribe to build the Carter Lake casino.

In late July, the U.S. Justice Department asked the federal court to dismiss Bruning’s complaint, arguing the state of Nebraska lacks legal standing in the matter.

Bruning has argued Carter Lake’s location near Omaha gives his office legal standing as it would impact Nebraska.

On Monday, Bruning’s office filed a motion opposing the justice department’s efforts to get Nebraska’s lawsuit dismissed.

Bruning hailed Iowa’s lawsuit.

“The likelihood of success for those who are opposed to the Carter Lake casino just increased dramatically,” he said.

Pottawattamie County officials in Iowa recently stepped into the controversy and are considering taking legal action to stop the tribe’s casino plans.

Wright said the tribe’s world-class casino would create 1,800 jobs and millions in annual revenue benefiting Carter Lake and Pottawattamie County.

He said the tribe and county officials have been discussing the casino and he’s hopeful they’ll be able to negotiate a settlement.

“We think those conversations have went well,” he said.

Heidi McNeil Staudenmaier, a Phoenix attorney who specializes in Native gaming, said Friday it’s rare for a state to sue the NIGC for decisions it has made.

“The NIGC certainly will take it seriously and have to defend it,” she said.

Still, the Ponca’s legal troubles likely won’t delay its plans, at least until the federal court issues a decision. That’s because states lack jurisdiction over tribes because of their sovereign status, she said.

“It’s one more block that the tribe has to face,” she said.

Reach Kevin Abourezk at 473-7225 or kabourezk@journalstar.com.