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The Chip Board Archive 06

All bets are off, Tiguas casino to close this week

Tribal leaders vow slots will jingle again

Jennifer Shubinski
El Paso Times

Linda Stelter / El Paso Time
The Tiguas' Speaking Rock Casino may close this week barring a last-minute court stay. The state is preparing to help employees with job placement and other services, but many workers say they aren't sure what their prospects are in the current economy.

Casino chronology

August 1987: Congress' 1987 Restoration Act brings federal recognition to the Ysleta del Sur Pueblo and the Alabama-Coushatta tribes.

1991: The Texas Constitution is amended after voters approve a state lottery.

1992: The Tiguas petition then-Texas Gov. Ann Richards to enter into a tribal-state compact to allow casino gambling. Richards rejects the tribe's request.

November 1993: Speaking Rock opens, offering bingo.

February 1996: The Tribal Council enacts a gaming ordinance authorizing high-stakes gambling on the tribe's lands.

September 1999: The Texas attorney general's office files a civil suit in federal court challenging the legality of the casino.

Sept. 27, 2001: U.S. District Judge Garnett Thomas Eisele grants the state's summary judgment, issues an injunction and orders the casino to close by Nov. 30.

Nov. 2: The tribe's motion to reconsider is denied.

Nov. 6: Eisele denies the tribe's motion for a stay.

Nov. 16: Tribal lawyers, led by Tom Diamond, file an emergency request for a stay with the U.S. 5th Circuit Court of Appeals in New Orleans.

Nov. 27: 5th Circuit Court of Appeals grants the Tiguas' request for a stay of Eisele's order.

Jan. 9: Tiguas argue their case before the 5th Circuit Court of Appeals.

Jan. 17: 5th Circuit Court panel upholds Eisele's ruling that Speaking Rock violates state law.

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After about two years of court battles with the state and more than eight years in business, Speaking Rock Casino is expected to close its doors Monday, leaving more than 700 people without jobs.

But tribal officials said their fight is far from over and the casino that brought the tribe out of poverty with its estimated $60 million a year income will open again.

"What we offer is legal, and we have the right to engage in gaming activities," Tigua Gov. Albert Alvidrez said. "We're going to continue with our restaurant facilities, the Spirit Garden and entertainment."

Alvidrez said that if the tribe is unsuccessful in the courts, it will turn to the Texas Legislature for relief.

Jane Shepperd, a spokeswoman for the Texas attorney general's office, declined to comment. Officials with the Texas attorney general's office have declined to comment since late January.

The closure follows a Jan. 17 opinion by the U.S. 5th Circuit Court of Appeals upholding a lower court ruling that the gaming operations violated state law. In that ruling, U.S. District Judge Garnett Thomas Eisele ordered the casino to close.

The appeals court in New Orleans is scheduled to send its mandate to El Paso's district court Monday, enabling Eisele to enforce his order.

The rulings stem from a civil lawsuit filed Sept. 27, 1999, by Texas Attorney General John Cornyn claiming that the casino was illegal under state law. The Tiguas argued that the creation of the state lottery in 1991 allowed them to offer their own games of chance. Cornyn contended all forms of casino gambling are illegal in Texas, including the Tiguas' operation.

The tribe has filed motions for a rehearing before the three-judge appeals panel and for a hearing before the full court. Friday, the 5th Circuit Court of Appeals denied a request from tribal lawyers for a stay. Lawyers were hoping for a stay while their appeals were considered. Lawyers have said they would take the case to the U.S. Supreme Court if necessary.

Alvidrez said the federal judiciary and the state are stripping the Tiguas of their ability to provide services to the tribe and are creating irreparable harm to the El Paso community. The Tribal Council has offered 60-day severance packages to the hundreds of people who will be laid off, but Alvidrez worries about where the employees may find work.

The Rio Grand Workforce Development Board and the Texas Workforce Commission are working with the casino's management to let people know of the services that are available, said Sidney Alvarez, spokesman for the development board.

Despite a center set up within walking distance of the casino to help employees, few people have taken advantage of the resources, Alvarez said.

"I think they're all holding their breath" that the casino doesn't close, he said.

Speaking Rock employee Irene Torres, 49, said she hasn't looked for a job or resources because she and other employees are hoping the casino stays open.

"We're hoping they don't close us down," she said. "We're still praying, and we're still with a positive mind frame."

Another problem

But Torres has more than a new job on her mind. The Central El Pasoan was found to have breast cancer in 1999. After surgery and treatment, the cancer has gone into remission.

Without her insurance coverage, which will end 60 days after the casino closes, she worries about how she will pay for her treatments and her medicine, which costs at least $700 a month.

"It will be hard to find somebody to insure me with the illness I have," Torres said. "It's either that or I go to Medicaid. I've never depended on anybody, and I don't want to start now."

Torres and other employees may be eligible for COBRA insurance. Federal law requires businesses with more than 20 employees to let those workers and their dependents keep their group health coverage for a time after they leave the job under certain conditions. People who are eligible for COBRA often stay in the health plan for an additional 18 months but may have to pay both their share and the employer's share of the premium.

The tribe has said many people such as Torres are dependent on their jobs at Speaking Rock. Many employees are single parents or young families just starting out.

Negative impact

Speaking Rock employee Terrie Gardea Ortiz, 28, said she doesn't think state officials realize what a negative impact closing the casino will have.

"I wish that people would be able to see how bad our local economy is getting and how destructive this can be," she said.

Ortiz, who's worked at the casino for seven years, said that unlike some other employees at Speaking Rock, she'll "be OK."

"I'm single, I have my own house, and with my 401(k) I will be able to pay off my car and some of my bills," she said.

Ortiz said she will take advantage of the state's offer for retraining and plans to attend El Paso Community College when the casino closes.

"I tend to look at things more positively," she said. "I just had a recent divorce. ... I'll take a chance to see what else I can do, to start a new career and a new life."

Alvidrez said, "I'm extremely confident in the employees of Speaking Rock. But Texas doesn't have jobs for them."

A blow to area

East-Valley city Rep. Paul Escobar is worried the closure of the casino will hurt his district, because many residents are employed by Speaking Rock.

"They not only offer good salaries and wages but also health insurance," he said. "Shutting down the casino will hurt the area."

Escobar said he doesn't expect to see much growth in the district once the casino is forced to close. He said he was hoping the casino would be a catalyst for the area, raising property values and bringing in more businesses and jobs.

"I don't see that happening at this point," Escobar said.


Copyright 2022 David Spragg