Ripped off on the Reservation

Reading the comments at the GMA site where this story originated, you get the feeling people are missing the point. The arguement of "Pay him! Don't pay him! " seems to be irrelevant. Because of sovereign nation status - the casino cannot be sued. Tribal members can vote in US elections, can sue US citizens in US courts of law, and casinos on reservations can operate as a foreign country without tariffs or taxes.

Man Sues Casino over $1.6 million 'Jackpot"
By JIM AVILA, BETH TRIBOLET, DONNA CHOI and SCOTT MICHELS
ABC News Law & Justice Unit
Oct. 25, 2007

For about an hour last August, Gary Hoffman was a very lucky man.

Hoffman was playing the nickel slot machines at the Sandia Resort and Casino on an Indian reservation in New Mexico when he appeared to hit the jackpot: the machine said he won nearly $1.6 million.

"I became ecstatic," he said.

But the ecstasy was short-lived. Hoffman says in a lawsuit filed earlier this year that Sandia refused to pay, claiming that the machine malfunctioned. Instead, he said, they gave him about $385 and a few free meals at the casino.


"I won money, fair and square, and I've been cheated out of my winnings," Hoffman told ABC News.

The casino says it's not responsible for what it describes as a computer error and says it offered Hoffman the maximum payout of $2,500 for that particular slot machine. But, a jury may never decide who is right. Lawyers told ABC News that gamblers like Hoffman may have little legal recourse against Native American casinos, which sometimes operate beyond the reach of U.S. courts.

'I Was a Winner'

Hoffman, a retired Albuquerque city employee, was playing a "Mystical Mermaid" slot machine on the morning of Aug. 16, 2006, when he thought he hit it big.

The nickel slot said he'd won $1,597,244.10. Patrons and casino employees came to congratulate him. He even got a marriage proposal, Hoffman said. But, soon he was asked to come to an executive conference room, where he says he was told the casino refused to pay.

A casino employee "became quite intimidating with me, pointed his finger in my face and said, 'You didn't win. We're not paying you any money. Do you understand what I'm telling you? You're not getting any money,'" Hoffman said.

A technician from the slot machine manufacturer arrived at the casino within the hour and the casino cordoned off the machine.

"I was a winner and I walked out empty handed," Hoffman said.

Computer Malfunction

A technical report said the slot machine's computer malfunctioned, and incorrectly made it appear as if Hoffman won more than the machine is able to pay out. The slot machine has a disclaimer that says it pays a maximum of $2,500 and warns that malfunctions void all winnings, said Paul Bardacke, Sandia's lawyer.

Sovereign Immunity

Regardless, a jury may never get chance to hear Hoffman's case. Native American tribes, as independent nations, have their own court systems and can be sued in state courts only under limited circumstances. New Mexico law generally does not allow tribes to be sued in a state court over a contract dispute, Kleiman said.

Hoffman's lawyers say they should be able to sue the tribe over what they call big business. "They spent millions of dollars getting these customers, these gamblers, to come in and gamble money, then when someone hits it big, they say, 'Sorry, we are not going to pay you," said Hoffman's lawyer, Sam Bregman. "The jury is going to be outraged by that."

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