About 100 workers furloughed at Chukchansi Gold; gaming officials resign

About 100 workers at Chukchansi Gold Resort & Casino lost their jobs this week after federal regulators learned about a conflict between tribal gaming officials and the tribal council.

Casino officials confirmed Thursday that they have furloughed the employees. Also this week, two of the three tribal gaming commissioners and the commission’s executive director submitted their resignations, saying the tribal council was trying to usurp their authority.

The new developments heightened concerns by federal officials over whether the Picayune Rancheria of Chukchansi Indians should be allowed to reopen the casino, now closed for nearly one year.

There had been about 150 workers on the site preparing the casino for reopening. Prior to this week, casino officials had planned for an opening date as early as this month. The workers remaining at the casino, fewer than 50, will provide security and maintenance, said Christian Goode, chief operating officer.

Goode said the resort was two or three weeks from being ready to open and will remain that way until the tribe is given the green light by state and federal officials who shut down the casino last year. The shutdown was ordered after one tribal faction, which was in search of missing audit materials, conducted a raid of a casino office that resulted in altercations with members of another faction and arrests by law enforcement officials.

“We’re pressing the pause button,” Goode said. “I frankly don’t have work for people to do.”

A National Indian Gaming Commission official told The Fresno Bee on Tuesday that the resort wouldn’t open until after the tribe’s election on Oct. 3. He also said the tribe must show ongoing stability in its governance after the new board is impaneled. Once that occurs, federal officials would consider lifting the order that shut down the hotel and casino last October.

Goode said the gaming machines have been given a “clean bill of health.”

He said the tribe is ready to put 1,000 people back to work.

“We want to bring back an economic engine to the region,” Goode said.

Until that happens, tribe members, employees, investors and the local community are continuing to suffer, he said.

There has been a growing concern among federal officials that the 2010 tribal council, the interim group that the federal government recognizes, may have made decisions beyond its jurisdiction, usurping the power of the regulators.

Chukchansi Gaming Commission Chairman Norm Desrosiers, a former federal gaming commission board member, resigned Monday. In his resignation letter, Desrosiers said that the council will “not respect the independence of its tribal regulatory agency and … knowingly and willingly will not comply with its own tribal gaming ordinance.”

He wouldn’t comment further.

On Tuesday, gaming commission executive director Kammy Chhom resigned “due to decisions made by the tribal council,” her resignation letter said.

Reggie Lewis, Chukchansi tribal chairman, said some members of the tribal council wanted to impose their will on the regulators, and Desrosiers wasn’t willing to put up with it.

On Wednesday, a second gaming commission member, Harlan Goodson, resigned, leaving only one gaming commission member, Lael Echo-Hawk, in place. Lewis is concerned she may resign, too. Desrosiers, Goodson, Echo-Hawk and Chhom are not Chukchansi tribal members.

“We don’t have any regulatory body at the casino,” Lewis said.

The resignations have raised concern among National Indian Gaming Commission officials, Michael Odle, a Washington, D.C., spokesman for the agency said earlier this week.

He said the federal agency is reviewing the situation.

Bottom line, Odle said: “We are looking for assurances that the gaming operation and tribal property can be safe from further conflict.”

The resignations and other developments are definitely a step backward for the tribe, which had been trying to keep moving forward, Lewis said.

“I don’t know how long it will be before we open,” he said. “All this is doing is pushing back the opening day.”

This story was originally published September 17, 2015 at 8:01 PM with the headline "About 100 workers furloughed at Chukchansi Gold; gaming officials resign."