Tribe May Reopen Shuttered Casino

The beleaguered Chukchansi Gold Resort & Casino near Fresno, Calif., may reopen as soon as Labor Day if it can close a $35 million deal with creditors.

Photo: AP Photo/The Fresno Bee, Tomas Ovalle
Chukchansi Gold Resort and Casino, shown shortly after its opening in 2003, is closed on orders of a federal judge and the National Indian Gaming Commission after a dispute between tribal factions resulted in an armed showdown inside the casino and hotel complex near Coarsegold, Calif.

It also requires state and federal approval to open the doors. The resort has remained closed since rival tribal factions clashed in an armed raid of the venue’s office in October.

Officials with the Picayune Rancheria of Chukchansi Indians, members of a faction led by Reggie Lewis, described the development as one of the “significant milestones necessary to reopen their world-class” casino, according to the Fresno Bee. The tribe’s Chukchansi Economic Development Authority has entered into a term sheet with certain lenders for up to $35 million at 12 percent interest to reopen the facility, according to a statement.

It also announced it has hired Christian Goode from Las Vegas-based Ivory Gaming to serve as its chief operating officer. Prior to Ivory Gaming, Goode was president of Genting Americas, where he was responsible for all aspects of development, construction, and operations for the Genting Group – Resorts World in the Americas.

Goode spearheaded the development of the $880 million Resorts World New York City project, which became the largest-grossing slot facility in the world in less than two years of operations, according to CEDA. The Lewis tribal faction said it expects to finalize an agreement “in a few weeks” with the National Indian Gaming Commission and California Attorney General’s Office that will allow the tribe to again operate the casino with its hotel and entertainment facilities.

But Chukchansi Gold still faces a potential roadblock. Madera County supervisors have yet to recognize a tribal council and a rival faction formerly led by Tex McDonald – who was recently sentenced to time served stemming from the October fracas and released – continue to occupy tribal offices across the street from the casino complex. The Lewis faction-led tribal council is a holdover from 2010, but was recognized last year by the federal Bureau of Indian Affairs and affirmed by the U.S. Department of the Interior’s Board of Indian Affairs, according to the Bee.

Madera County’s reluctance to recognize a tribal council has delayed a new public safety services agreement for the hotel and casino that would ensure the casino and tribal properties can be safe from ongoing conflict between tribal factions, Lewis told the Bee. Madera County Board of Supervisors Chairman David Rogers said in a letter reported by the paper that the while the county supports the reopening of Chukchansi Gold, it has yet to support any controlling faction in a tribal council.

“We understand that the Chukchansi tribe is presently securing funding and taking steps to establish the lawful governing body of the Chukchansi tribe,” Rogers’ letter reportedly said. “Madera County is committed to working with the Chukchansi tribe to develop an agreement once those endeavors are finalized.”

A recent meeting between the factions, including a third consisting of one family that wants to shrink tribal membership to 50, reportedly didn’t go well.

A tribal council election is scheduled Oct. 3. On the bright side, facility maintenance was continued through the closure “to the extent possible,” Goode told the Bee. About 400 of the casino’s 1,800 gaming machines that were leased are gone, but added the casino will honor unused points or gaming vouchers that held by patrons before the sudden closure.