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Even Tribal Casino Gambling Illegal in Texas

Texas clamped down on the Tigua tribe's El Paso casino, getting a federal judge to order slot machines shut down, even though they paid in gift cards and not cash.

A US District Court judge found this week that a casino run by the Tigua tribe near El Paso is operating illegally and must shut down. The tribal casino had attempted to use gray areas in the law to run slot machines that paid out in gift cards rather than cash, but Judge Harry Hudspeth said continued operations may result in daily fines of $500.

The tribe had run a full-fledged casino at the location, but lost a 2001 court case when US Senator John Cornyn, then Texas Attorney General, sued in federal court to shut down the casino as a violation of the regulations on Indian gaming.

The casino stopped paying off in cash, but since has reopened as a sweepstakes electronic gaming location, issuing Visa gift cards, which can be used as cash for purchases around the country. Hudspeth ruled that prizes had to be worth substantially less than the price to play the game, or it became gambling.

He said the tribe was clearly just trying to avoid abiding by the 2001 ruling.

The Tigua tribe had been hopeful during the past legislative session, when it appeared likely that Texas would expand gambling to include at least slots, thus opening the door for tribal casinos to include games legal elsewhere in the state. But too may proposals floated allowed an organized minority to exploit divisions among pro-gambling forces and defeat any bills.

Tribal representatives say their attorneys are studying the ruling to decide whether to appeal or take a different tack.

Published on August 5, 2009 by JulieWong

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