Gaughan Gaming loses ruling in case with Oklahoma Indian tribe

Las Vegas-based casino management company Gaughan Gaming lost its request for a temporary restraining order against an Oklahoma Indian tribe, but a federal judge agreed to keep the case in his court.
 
Gaughan Gaming operator John Gaughan sued Tonkawa Tribe of Oklahoma and the Tonkawa Tribal Gaming Commission last week for allegedly violating management agreements.
 
John Gaughan, who also operates Las Vegas Dissemination Co., is the son of South Point owner Michael Gaughan.
 
U.S. District Judge Joe Heaton of Oklahoma City denied the temporary request against the tribe’s suspension of the company’s license to operate two casinos in north-central Oklahoma.
 
Heaton ruled that Gaughan Gaming hadn’t shown of a significant risk of irreparable harm if the Tonkawa Tribal Gaming Commission conducts a hearing on whether to permanently revoke the company’s license.
 
The judge also ruled he had jurisdiction in the lawsuit as a result of the Tonkawa Tribe waiving their sovereign immunity for the remaining claims.  
 
“We are pleased with important parts of today’s decision, even though Judge Heaton exercised caution and did not enjoin the Tonkawa Gaming Commission from proceeding with the hearing,” D. Michael McBride III, an attorney for Gaughan Gaming said in statement. “Judge Heaton denied the tribe’s motion regarding sovereign immunity and found that the excuses for failing to follow their own regulations were troubling, ‘lame” and unpersuasive.’” 
 
Tribal attorney Gary Pitchlynn told the Associated Press the judge ruled in favor of the tribe on the restraining order. However, he didn’t address the tribe’s request to dismiss the lawsuit or other issues.
 
While under management from Gaughan Gaming, the two Tonkawa casinos, Tonkawa Casino and Native Lights Casino, netted more than $52 million in revenues.