The state of Alaska is suing the federal government over its approval of a controversial tribal gambling venture that opened to the public this week in Birchwood.
The Alaska Department of Law argues that the approval for the Chin’an Gaming Hall threatens the state’s jurisdiction over land in Alaska. It’s the second lawsuit that could halt the casino, which is owned by the Eklutna tribal government.
“This challenge isn’t about gaming,” said Alaska Attorney General Treg Taylor in a statement from the Alaska Department of Law. ”The governor supports gaming and the pursuit of economic opportunities for all Alaskans, including Alaska tribes. This is about jurisdiction over lands. We are asking a court to reaffirm what it has already said — the state maintains primary jurisdiction over Alaska Native Allotments.”
The casino began limited operations on Jan. 20 on an Alaska Native allotment owned by members of the tribe on the northern edge of the Anchorage municipality.
On Monday, it opened daily to the public with 85 electronic bingo machines, in a temporary modular building. It’s located off Birchwood Spur Road, near the Birchwood Airport and a shooting range, and is about 25 miles northeast of downtown Anchorage.
It will remain open as the the legal challenge plays out, a spokesperson for the tribe said on Tuesday.
A larger permanent building is expected to be built at the site sometime next year, representatives for the gaming hall said. As the business grows, it could feature up to 1,000 gaming machines and two restaurants with seating for 200, according to the tribe’s proposal.
“I know this sounds cliché, but really, it is a dream coming true,” said Aaron Leggett, president of the Eklutna tribal government, shortly before the gaming hall opened on Monday. “I’ve been hearing about this my entire adult life.”
Leggett said in a statement Tuesday that the Native Village of Eklutna will challenge the lawsuit, “knowing our case is strong,” he said. If the state wins, that will cause “enormous financial damage” to the tribe and the area, he said.
“This is not only an unnecessary expense for NVE and the state, but also a time-consuming, unwarranted federal lawsuit that will increase the financial strain on the Eklutna people and create another barrier to economic benefits for Tribal members and the broader community,” Leggett said. “This is a burden the tribe, the local community and the state of Alaska’s citizens should not have to bear.”
Most of the employees are Eklutna tribal members, alongside people from the local area, Leggett said.
During a private and traditional Dena’ina blessing for the facility on Sunday, several tribal members shed tears of joy, he said.
“I am disappointed for my people and our ancestors who have worked diligently for generations to get to this moment,” he said. “I am especially saddened as I had hoped the governor and attorney general would share in our excitement for the future, both for our Tribe and the community we share. We had hoped we might go forward together with optimism and a future where we are finally able to provide resources for education, housing and healthcare, and so much more.”
The gaming hall is the only tribal casino in Southcentral Alaska. It’s only the third in the state.
The Bureau of Indian Affairs approved the casino in the closing days of the Biden administration.
The Ekltuna tribe has fought for many years to win federal approval to open it.
The federal government rejected the project in 2018, during President Donald Trump’s first term, ruling that the tribe did not have governmental authority over the Native allotment.
But last year, the Interior Department under Biden determined that Native allotments are presumed to fall under tribal jurisdiction in cases like this. The land is owned by a tribal member and is not geographically removed from the tribal community, two favorable factors in the decision.
Anchorage Mayor Suzanne LaFrance and Anchorage Assembly Chair Chris Constant, as an individual and not speaking for the Assembly, have said they support for the gaming hall. They argue that it will provide economic gains for the city and the tribal government, among other benefits.
The tribe has said it expects the venture to generate more than $67 million in new economic activity in the municipality, and support more than 400 jobs, when it’s fully built.
Residents from the surrounding neighborhood have filed a lawsuit to stop the gaming hall. They’re raising concerns about noise and traffic, and challenging the Native Village of Eklutna’s authority to operate as a federally recognized tribe, which the tribe rejects.
The administration of Gov. Mike Dunleavy has asked the Trump administration to overturn the Interior Department’s decision that allowed the gaming hall to move forward.
The lawsuit opens another line of legal attack against the casino. It was filed Tuesday in the U.S. District Court for the District of Columbia.
It challenges the series of federal decisions leading to the casino’s approval, including last summer from the National Indian Gaming Commission, before the Bureau of Indian Affairs approved it.
The decisions upended longstanding legal interpretations, the Alaska Department of Law said in a prepared statement Tuesday afternoon. They also ignore a 2021 ruling by the District of Columbia district court that concluded that the tribe did not have territorial jurisdiction over the Native allotment, the department said.
Alaska has more than 17,000 Native allotments. The federal government’s position that they may be under tribal jurisdiction could drastically affect Alaska’s authority over lands, the department argues.
“The change raises questions about whose public safety and regulatory laws (federal, state, tribal) apply on these allotments,” the department said in the statement. “Which authority would prosecute certain crimes and manage hunting and fishing rights? Are state alcohol and marijuana use or sales laws, environmental laws, and State property tax laws no longer applicable to these lands?”
The state argues in its complaint that it has jurisdiction over Alaska Native lands under federal law, except in Metlakatla in Southeast Alaska, the state’s only American Indian reservation.
The tribal government in Klawock also operates a casino with electronic gaming machines. It’s different than the gaming hall at Birchwood, because it’s located on land held in trust for the tribe by the federal government, rather than on a Native allotment.
The Alaska Law department on Tuesday also provided what it describes as answers to frequently asked questions on the Native allotment issues on its website.
The Chin’an gaming hall — Chin’an means “thank you” in the Dena’ina Athabascan language — is now open daily at 1 p.m. It closes at 10 p.m. on Friday and Saturday, and 9 p.m. on other nights.
It doesn’t serve alcoholic drinks. The tribe has not decided whether or not that will be allowed in the future. The facility also does not offer card or table games.
As business grows, the hours will expand, said Ryan Walker, the general manager. The hope is that it can eventually stay open round-the-clock, he said.