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Montana Casino Owners Dispute Audit Bill

30 June 2005

POLSON, Montana – As reported by the Lake County Leader: "One casino was closed last week after its owner refused to pay an audit bill submitted by tribal gaming officials, while other casino owners paid up in an effort to avoid having their machines confiscated, but disputed the claim that they should have to pay for their own audits.

"Jackpot Casino owner Kathy Gilroy needs to find work now that her gaming establishment has been shut down, but first she is going to take a breather after wrestling with the Tribal Gaming Commission for three years over a $10,577 audit-- an audit she believes is unfair.

"Last week, Gilroy lost her gaming license after refusing to pay the charge handed to her by tribal gaming officials. Gilroy, along with several other valley casino owners found themselves in the same predicament -- pay up or lose your gaming revenue.

"According to Gilroy, when she first started her business, the Tribes originally wanted $200 a year per machine. Gilroy and other valley casino owners negotiated with the Tribes and eventually came to an agreement in which the owners would pay $100 per machine.

"However, it came as a surprise to Gilroy when she received a letter in 1999 explaining that she was to pay for her audits. Other casino owners interviewed said they were blindsided by the letter as well.

"…Casino owners said that this was something that was not discussed in negotiations. For three years, owners either ignored or disputed the letter, but Tribal gaming officials said ignoring the situation wasn't the proper response…"

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