NY court rejects Conn. Indian casino tax lawsuit

Last Updated: Tue, Jul 16, 2013 02:15 hrs

An Indian tribe in Connecticut has lost its bid in a New York court to prove it does not owe local and state taxes on slot machines at its Foxwoods Resort Casino.

The 2nd U.S. Circuit Court of Appeals in Manhattan ruled Monday against the Mashantucket Pequot Tribe. The decision overturned a lower-court judge who ruled for the tribe over the town of Ledyard and the state of Connecticut.

The appeals court noted the town maintains roads throughout the Indian reservation and provides emergency services and educates tribal children. The 2nd Circuit called it a close case. But it said the tribe's interests in sovereignty and economic development don't trump the interests of the state and town.

A lawyer for the tribe did not immediately respond to a message.

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