Fight over New Mexico Racino License Heads to Appeals Court
A company wanting to build a racino in Tucumcari, New Mexico, that has been fighting for a permit for years hasn't given up their battle yet.
Coronado Partners, who've been vying for a license, has appealed against a district court's decision in August stating that the New Mexico Racing Commission (NMRC) is not required to issue a sixth racino license in the state, according to The Quay County Sun.
Under the current MOUs between New Mexico and its 14 federally recognized tribes, only six racino licenses are allowed. Five of them have been given out already.
The NMRC was supposed to announce the winner of the sought-after sixth license at the end of 2018. However, the announcement was postponed and ultimately canceled due to a court injunction.
One of the applicants, Hidalgo Downs, filed a claim, insisting the feasibility study of the five bidders was inaccurate and thus, the entire selection process was faulty.
Agency Shakeup
While this was going on, New Mexico's incoming Democratic governor, Michelle Lujan Grisham, reshuffled the NMRC. Members of the commission had been previously appointed by the Republican governor.
The reformed commission declined to give out the final license, reasoning that the gambling sector had shifted, and a new racino would harm the existing market. Commission Chair Sam Bregman commented, "I don't believe the industry is resilient enough to accommodate a sixth license."
Coronado wants to establish a racino in the modest city of Tucumcari. The developer asserts that the facility would provide jobs for at least 500 people and produce up to $55 million in profits by 2025.
The firm reapplied in 2021 and initiated legal action against the NMRC to push the regulator into making a judgment on their submission.
Refused
In June 2022, Coronado filed a writ mandamus against the NMRC. This court order compels an official body to do what they're lawfully required to do.
District Judge Nancy Franchini granted the writ, instructing the NMRC to determine on the Tucumcari proposal. They said no.
In August, Franchini dismissed Coronado's lawsuit. In an 18-page judgment, she highlighted that New Mexico's legislature granted the NMRC the authority to approve or reject licenses at its discretion back in 1978.
Coronado submitted a notice of appeal on August 23, and it's expected to be heard by the appellate court. No date for the hearing has been set.
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