Eighth Circuit Decision Settles Legality of Lucky Tab II Machines

OMAHA, Neb., March 21 /PRNewswire/ -- A legal victory Thursday by the Santee Sioux Tribe of Nebraska eliminates a federal ban on certain types of video gaming devices and means that tribes in California and throughout the United States can install the games in casinos without having to follow restrictions imposed by compact agreements with state governments.

"This is a tremendous victory for the tribe," said Conly J. Schulte of Monteau & Peebles, the national law firm which represented the tribe. "The Santee Sioux are a small, impoverished tribe who believed they were following the law, but instead they've been caught between two conflicting points of view by two government agencies. Now, we are anxious to begin the process of rebuilding the reservation and using responsible gaming as a way to maintain the tribe's sovereignty and economic independence."

Handed down by the United States Court of Appeals for the Eighth Circuit, the decision caps more than 10 years of legal fighting between the tribe, the state of Nebraska and the U.S. government -- in particular, the U.S. Department of Justice. In pursuing the case, the Department of Justice froze tribal assets, seized bank accounts, shuttered a grocery store and even impounded a fund used to purchase child safety seats. The Department of Justice also attempted to imprison the Tribe's Chairman, Roger Trudell, and 12 Tribal Council members.

The tribe had turned to the devices -- popularly referred to as "Lucky Tab II" machines -- after the National Indian Gaming Commission advised the Tribe to operate the machines as an alternative to slot machines.

Despite the blessing of the National Indian Gaming Commission, the Department of Justice sought continued sanctions against the Tribe, arguing the machines constituted illegal "gambling devices" as defined by the Johnson Act, commonly used against organized crime families. The Department of Justice also argued that the Tribe needed a compact with the State of Nebraska to operate the video devices.

The Santee Sioux fought back, and authorized Schulte and the firm of Monteau & Peebles to litigate the case. After the Tribe obtained a favorable decision at the federal district court in Omaha, the Department of Justice assigned the case to its Washington D.C.-based Organized Crime Control Division, which pursued an appeal to the Eighth Circuit Court. At the Court of Appeals, Schulte successfully argued that Lucky Tab II machines were not gambling devices under federal law, and were Class II games that the Tribe could operate without having a state compact. The court agreed, stating in its opinion that the machines "do not randomly generate patterns displayed on a screen, pay out money or otherwise determine the outcome of a game of chance."

The case has been closely watched by tribes throughout the country.

"It has been a long and difficult process made frustrating by two federal agencies with what is essentially differing views," Schulte said. "Now, it's our hope that tribes everywhere can use this decision to help establish, build and maintain tribal sovereignty and independence. Despite slanderous attacks in the national media, Indian gaming is a success and works to the benefit of tens of thousands of Americans-both Indian and non-Indian."

Monteau & Peebles, LLP has a nationwide practice specializing in Federal Indian law, complex governmental negotiations, business transactions in Indian Country, administrative law and federal lobbying. The firm has offices in Omaha, NE; Washington, D.C.; Phoenix, AZ; and Sacramento, CA. To learn more, visit their Web site at www.ndnlaw.com.

Source: Monteau & Peebles, LLP