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Mashantucket Tribe Drops Slot Taxation Case

Mashantucket Tribe Drops Slot Taxation Case

The Mashantucket Pequot Tribe has decided against asking the US Supreme court to review an appellate court decision that allowed the town of Ledyard to tax the Foxwoods Resort Casino slot machines that the tribe rented from non-tribal sources.

Mashantucket Tribe Drops Slot Taxation Case

The Mashantucket Pequot Tribe has decided not to go to the Supreme Court with its case over slot machine taxation.

The tribe said that while the taxation is “an affront to the tribe’s sovereign authority”, it believes that it would be more productive to “enter into discussions with the state and to continue to foster its relationship with the neighboring towns by working together on mutually beneficial projects and agreements.”

The Ledyard mayor, John Rodolico, has said that the town is “very pleased with the tribe’s decision” and expects their good relationship to continue. The appellate court’s decision means that the town can now collect hundreds of thousands of dollars in personal property taxes.

The only option left to the tribe was a US Supreme Court appeal after the 2nd US Circuit Court of Appeals rejected the tribe’s petition for a rehearing on the matter. The tribe was arguing that federal laws bar state and local governments from taxing non-tribal entities that do business on reservation lands.

However, the appellate court ruled that, “The economic effect of the tax on the tribe is negligible; its economic value to the town is not.”

OCA News Editor

Jenny McKinnley is OCA’s financial correspondent. After spending years on the trading floor in both NY and London, she offers insight from the inside out on world financial news and events.

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