Judge Rules in Favor of Ponca Tribe’s Prairie Flower Casino

By Jane Shaw Senior Editor Updated: 08/14/2019

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We count on Jane to inform our readers about the latest slot games in the US market. With her passion for video games and a degree in engineering, she’s our gambling tech expert. Jane’s also active in our blog section, where she tackles the curiosities and changes in the industry.

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The Ponca Tribe in Nebraska wins another legal battle, Photo by Prairie Flower Casino Facebook

On Monday, August 12th, the Ponca Tribe of Nebraska achieved another judicial victory in its battle to keep its western Iowa casino open.

The Iowa city of Council Bluffs and the states of Nebraska and Iowa had filed a lawsuit with the purpose of shutting down the Prairie Flower Casino. But Stephanie Rose, U.S. District Judge rejected their request stating, “The disruptive consequences… would have been significant.”

The judge added that if the casino closed, in addition to affecting the tribe’s revenue, it would result in casino employees losing their livelihood as well.

Judge Rose’s statement said,

Plaintiffs admit this would have had a negative economic impact on the Tribe. Other courts have declined to vacate agency decisions when doing so would have adverse economic consequences.

In addition, the governments’ attorneys had argued that the tribal casino impacted social and economic costs upon the surrounding communities. However, Judge Rose declined this reasoning saying that it wasn’t clear if and how the casino in question was “any more detrimental” than the other three casinos already operating in Council Bluffs, which have been licensed by the state of Iowa.

Timeline of events

Over the past decade, the Ponca tribe has been in constant legal upheavals with the local and state governments to keep its casino operational. Having acquired the property in Carter Lake more than 20 years ago, the tribe had first planned to construct a health center on the lot. But when the tribe changed their plans and sought federal permission to build a casino, the states of Iowa and Nebraska, and Council Bluffs filed lawsuits.

After a decade long struggle and sustained efforts by the tribe, the $10 million Prairie Flower finally opened its doors on November 2018, with 200 slot machines.

Then earlier this year, Judge Rose had ordered the National Indian Gaming Commission to go over their 2017 ruling that gave the Ponca Tribe the right to construct the Prairie Flowers Casino on a lot they own in Carter Lake.

In May, the commission said that their ruling was legitimate because the land in question was restored tribal land, making it legal for the tribe to build their casino on the property under federal law.

However, in the most recent motion, the lawyers representing Iowa, Nebraska, and Council Bluffs sought to get Judge Rose to amend her earlier order, which would vacate the 2017 ruling of the commission. If their motion were successful, in all likelihood, it would translate to the Ponca Tribe closing their casino because of long-drawn-out litigation.

Why are the states suing?

Though the Prairie Flower Casino is in Iowa, it is ensconced by Omaha and lies to the west of the Missouri River. The reason Carter Lake is on the Nebraska side of the river is that flooding in the late 19th century resulted in the waterbody altering its course.

So, Council Bluffs, Iowa, which is already home to three casinos that are licensed by the state, and the states of Nebraska and Iowa are trying to get the tribal casino to close down. While Iowa feels the competition will adversely affect their gambling tax revenue, Nebraska, on the other hand, feels the casino will lead to increased crime rates in Omaha.

What the Ponca Tribe has to say

On Tuesday, Larry Wright Jr., the Ponca Tribe Chairman said that with this most recent ruling, Council Bluffs, and the states might have run out of litigation reasons. He added that since the casino was established, it has:

• Provided more jobs
• Attracted more tourists to Carter Lake and the Omaha area
• Donated $775,000 to Carter Lake to support infrastructure, both the fire and police departments, and other general developments in the city

In a written statement, he concluded, that it’s time to leave the litigious environment in the past and for all concerned parties to focus their efforts on bringing in more economic development to the area.