At & T Corporation v. Coeur D'Alene Tribe

295 F.3d 899, 2002 WL 1560783
Court of Appeals for the Ninth Circuit·Decided July 17, 2002·No. 99-35088·Published·Cited by 27 cases

Opinions

Opinion by Judge B. FLETCHER; Partial Concurrence and Partial Dissent by Judge GOULD.

ORDER

The opinion of this court filed March 19, 2002, 283 F.3d 1156, slip op. at 4411, is amended as follows:

On page 4421 [283 F.3d at 1161] of the slip opinion, in the first full paragraph, delete the sentence beginning “This is no less true ...” and the accompanying citations to El Paso Natural Gas Co. v. [901]*901Neztsosie [526 U.S. 473, 119 S.Ct. 1430, 143 L.Ed.2d 635 (1999)] and Santa Clara Pueblo v. Martinez [436 U.S. 49, 98 S.Ct. 1670, 56 L.Ed.2d 106 (1978)]. On page 4422 [283 F.3d at 1162] of the slip opinion, delete the second sentence of the second full paragraph and its accompanying citation. Insert in its place the following: “Subject to a number of exceptions, tribal courts ordinarily have the first opportunity to determine the extent of their own jurisdiction.” Add the following footnote at the end of the sentence: See Nevada v. Hicks, 533 U.S. 353, 369, 121 S.Ct. 2304, 150 L.Ed.2d 398 (2001).
On page 4422 [283 F.3d at 1162] of the slip opinion, delete the last sentence of the second full paragraph. Insert in its place the following: “We need not decide whether exhaustion was required in this case or if any of the exceptions to exhaustion applied, because the tribal court did in fact have the first opportunity to determine the extent of its jurisdiction; thus, whether exhaustion was required or not, the issue of tribal jurisdiction is ripe for review.”
On page 4422 [283 F.3d at 1162] of the slip opinion, delete the paragraph beginning “In the absence of Congressional action, ...”

OPINION

BETTY B. FLETCHER, Circuit Judge:

Having received conflicting determinations from tribal courts and the federal district court, the Coeur d’Alene Tribe appeals the district court’s determination that AT & T Corporation need not provide toll-free telephone service for the Tribe’s lottery. We find that the tribal court lacked jurisdiction to resolve the dispute, but vacate the district court’s determination that the lottery itself is illegal under the Indian Gaming Regulatory Act (IGRA). We conclude that AT & T was not the proper party to challenge the legality of the lottery.

I. BACKGROUND

The federally recognized Coeur d’Alene Tribe (“Tribe”) resides on the Coeur d’Al-ene Reservation in Idaho. Federal law permits tribes like the Coeur d’Alene to engage in gambling activities on Indian lands pursuant to the Indian Gaming Regulatory Act (IGRA), 25 U.S.C. § 2701 et seq. As IGRA requires of any tribe wishing to engage in gambling on its land, the Tribe entered into a compact with the State of Idaho. The compact permits the Tribe to offer Class III gaming, including a lottery. See 25 U.S.C. § 2710(d)(3). The Secretary of the Interior approved the compact. See 25 U.S.C. § 2710(d)(8); 58 Fed.Reg. 8478 (1993).

The Tribe created the National Indian Lottery (“Lottery”). The Lottery’s administration occurs entirely on the Reservation. However, off-Reservation participants may purchase tickets by telephone from outside Idaho.1 In order to participate in the Lottery, an off-Reservation player establishes an account on the Reservation and funds it either by credit card or by delivering funds. To purchase a ticket, the player authorizes a deduction from the account and either selects a sequence of numbers or requests randomly [902]*902selected numbers. A player may request written confirmation of the transaction, but the lottery ticket itself remains on the Reservation. Once a week, lottery officials draw a sequence of winning numbers and distribute the prize pool to players whose tickets contain them. An off-Reservation winner receives a credit to his or her account that is redeemable in person or through the mail.

The federally approved compact itself did not specify that off Reservation telephone purchases would be permitted.2 However, a management contract between the Tribe and UNISTAR Entertainment, Inc. made clear that off-Reservation players could participate telephonically. As required by 25 U.S.C. § 2710(d)(9), the Tribe submitted the management contract to the Chairman of the National Indian Gaming Commission (NIGC) for approval. The Chairman approved the management contract, a decision that constitutes a final agency action. 25 U.S.C. § 2714. The Chairman subsequently clarified in a letter — -in response to an inquiry about the Lottery’s legality3 — that:

In the opinion of the NIGC, the Tribe’s lottery proposal, which involves customers purchasing lottery tickets with a credit card both in person and by telephone from locations both inside and outside the state of Idaho, is not prohibited by the IGRA.

Following the NIGC’s approval of the UN-ISTAR contract, the Tribe adopted a resolution and amended its Tribal Code to authorize the Lottery. Consistent with IGRA, the Tribe’s resolution was deemed approved by the NIGC Chairman ninety days after its submission pursuant to 25 U.S.C. § 2710(e).4

In order to attract Lottery participants, the Tribe sought to establish toll-free telephone service to its on-Reservation offices from callers in states that operate their own state-run lotteries. AT & T was among the carriers with whom the Tribe negotiated to provide such service.

Upon learning that the Tribe intended to offer toll-free “Tele-Lottery” service, several state Attorneys General sent letters to AT & T allegedly pursuant to 18 U.S.C. § 1084(d), warning AT & T that furnishing interstate toll-free service for the Lottery would violate federal and state laws. Title 18 U.S.C. § 1084(d) provides that:

When any common carrier, subject to the jurisdiction of the Federal Communications Commission, is notified in writing by a Federal, State, or local law enforcement agency, acting within its jurisdiction, that any facility furnished by it is being used or will be used for the purpose of transmitting or receiving gambling information in interstate or [903]

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At & T Corporation v. Coeur D'Alene Tribe, 295 F.3d 899, 2002 WL 1560783 (9th Cir. 2002).

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