SANTA FE, N.M. (AP) — Regulators say three pueblos owe New Mexico a combined $40 million under a long-disputed interpretation of an old agreement for sharing revenue from tribal casinos.
The Santa Fe New Mexican reports that the Tesuque, Sandia and Isleta pueblos have asked a judge to block the state from collecting what they argue would amount to an illegal tax.
The disagreement centers over free play credits that are given to entice gamblers to play slots.
Regulators used to argue credits should be included when calculating the revenue tribes must share with the state.
The tribes maintain it would violate federal law.
Under a 2015 agreement, the credits aren't included in tallying the revenue that tribes must share.
Regulators in April demanded a share of revenue from the credits.
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Information from: Santa Fe New Mexican.