Chukchansi tribe gets federal OK to reopen Coarsegold casino

The National Indian Gaming Commission agreed Monday to allow Chukchansi Gold Resort & Casino to reopen and the state Attorney General’s Office, which has the final say, isn’t opposing the federal order.

“I think it’s just a wonderful day for all Chukchansi and their families,” said Claudia Gonzales, the tribal chairwoman. “It’s good for the employees, especially during the holiday season.”

The tribe can now open the casino as soon as possible, which will likely be in early January.

“We will know more in the next couple of days,” Gonzales said. “We look forward to welcoming back the community.”

There still are a number of logistical issues to be worked out in the casino, but much of the work is done and most of the employees are hired, officials said.

The tribal council wants to open the resort as quickly as possible to start paying off the tribe’s debts.

The tribe’s bondholders took on $250 million in debt three years ago after the tribe had fallen behind on its hotel payments. The tribe must make two $12 million payments each year and has been unable to pay since last September.

Bondholders also arranged for the tribe to get an additional $35 million earlier this year to pay start-up costs to reopen the resort.

Under terms of the agreement with the federal government, the tribe was fined $19.8 million for failing to submit audits on time. But in a statement issued Monday afternoon, the gaming commission said a bulk of those fines will be suspended as long as the tribe follows conditions of the commission’s order.

The tribe must pay $500,000 in three installments to the federal government: $250,000 in the next 30 days; $125,000 in 180 days; and the final $125,000 in 360 days. The remaining $19.3 million of the fine will be suspended in three years after safe operation of the facility and financial compliance by the tribe.