Thursday, May 29, 2014


I was going to title this post Corruption in America or American Corruption but the reality is the United States doesn't have a monopoly on corruption.  Corruption is just part of the human condition.  It's always been with us and always will be.

It was present when Jesus threw the money changers out of the temple.  I can't be sure but I would have to guess when the Egyptians were building the pyramids there had to have been some kickbacks and bribery going on.   Corruption in the Roman Empire was legendary.

In more recent times we have had Italy's former prime minister Silvio Berlusconi charged with all sorts of corruption including tax evasion.  Didn't seem to bother the Italian People all that much as he is still very popular.

Corruption in the Mexican Government is legendary to the point where now the media refers to Mexico as a Narco-State due to the influence of the drug cartels.

I am sure we could find corruption in every corner of the world if we looked hard enough.  I'm not trying to single out the United States.  But since I live here the news tends to be more focused on what's happening in America.

We have the best government money can buy.  Billionaires buy elections and pass their own pet legislation.  There's a reason why which ever side spends the most money is the side that tends to win.

Lest we forget the Golden Rule:  He Who Has The Gold Makes The Rules

Here are some examples of corruption I have been following over the past few years:

LA Times FBI arrests sheriff's officials in L.A. County jails probe

Bell corruption: Rizzo gets 33 months for tax fraud

Former Detroit Mayor Kwame Kilpatrick sentenced to 28 years in prison

California's senator Yee indicted on gun, corruption charges


Jury convicts former Mashantucket Pequot chairman in less than two hours

Former Tribal Chairman & Current Treasurer Charged With Stealing From Mashantucket Pequots

California sales executive charged in alleged $150 million bank fraud scheme

Former Army Contracting Official Indicted on Federal Charges in Bribery and Kickback Scheme

Feds charge North Miami mayor with mortgage fraud

Council: Mayor's indictment sad day for city

Former Auburn city clerk faces federal embezzlement charge

Beat the House! 42 Indicted in Legends Casino Scam

6 people charged in Choctaw Nation casino-construction bribery probe

Monday, May 26, 2014

Pala Interactive LLC - New Jersey Filings

Some filings with the State of New Jersey for Pala Interactive

The documents can be found online via google search.  Here is an indirect link to the waiver You have to scroll through a bit to find the Pala Interactive filing and then click view docs.

Here is the direct link to the Pala Interactive Internet Gaming Disclosure Statement:

In other news:

Poker Stars Remains Keg in Wheels of California Online Poker

Sunday, May 25, 2014

The Good Old Days

Some commenters have lamented they wish Pala could go back to the good old days. They say the casino has brought nothing but trouble and caused all this fighting.  There is probably some truth to that but I think we have to be honest with ourselves about just how good those good old days were.

I remember in the early 1990's people would fight over a $300/year or $500/year per capita check.  Some would try to make it to where you had to live on the reservation in order to receive a per capita check.

I remember constantly hearing those that live off the reservation being put down as less Indian and asked why they wouldn't come back to live on the reservation.  Then after the casino was build some did come back to live on the reservation only to be told they don't belong.

But we can go much farther back than that.  Tensions existed between Old Pala and those removed from Warner's.  There was a time when it was thought there were two reservations at Pala - One for the Kupa and one for Old Pala.  This still exists to this day where you can read articles where it refers to Robert as Chairman of the Pala Band of Luiseno Indians and others where he is referred to as the Chairman of the Pala Band of Mission Indians.

The Federally Recognized name of Pala is Pala Band of Luiseno Mission Indians of the Pala Reservation.

We can see some of those tensions described in this letter from the BIA.

7 Feb 1951 Pala H.W Gilmore Letter BIA District Agent to Area Director Mr. James B .Ring

Even before the removal the Kupa were embattled in years of legal proceedings trying to keep their land.

How far do we need to go back before we get to the good old days?  When the Spanish arrived and just declared they owned the land but let the Kupa live on it?  When land ownership of Warner's was transferred and somehow the Kupa were allowed to remain but had to work as serfs?

Should we go all the way back to pre-European contact?  Ok, let's go all the way back to the story of Kisily Pewish where all the Kupa except for him were massacred.  Good old days?

Did the good old days ever exist?  I am sure there were moments of time - stretches of a few years here and there - where things were pleasant.  For the rest of the time Warners's and Pala have been in turmoil for hundreds of years.  If it wasn't being conquered by the Spanish then it was being turned over to U.S. authorities after the Mexican American War.  It was having land taken and traditional culture squelched.

It was being made against the law to speak your language and forcing their children to speak English. It was being forced to give up their traditional religious practices in exchange for Catholicism.  It was many things from the exploitation of cheap labor and the outright theft of land along with its natural resources.

Were there ever good times?  I am sure there were times that had their moments of good.

As for the good old days which ones do we go back to?

Saturday, May 24, 2014

Meeting Update

As far as I have been able to confirm what happened last night was the following:

The 11 members of the Interim Committee were stripped of their voting rights for life, cannot attend tribal meetings, and cannot hold office.

I can't seem to get the exact vote so if anyone knows let me know.

I was told the vote was 178 Yes to 124 No.

Anything beyond that I do not know.  I don't know if there was any discussion.

I am sure there will be various rumors.  I don't know if the vote was electronic or by hand.  Some have said there was an issue with vote counting.  I can't verify that at all.  Some say only some people got the meeting notice and not others.  I can't verify that either.

There could have possibly been some confusion since Robert did send out a letter saying the May 17th Emergency Meeting was illegal and it would be dealt with at the next General Council meeting, June 11th.  Then Howard Maxcy called the emergency meeting to "deal" with the Interim Committee.    So I guess some people could have gotten confused.

But close to 300 people at a meeting is a pretty good turn out.  Does anyone have an exact number for the turn out?

In the meanwhile the push for online poker in California continues:

LA Times - Will PokerStars be dealt out of legalized online poker in California?


So the April 23 discussion before the Governmental Organization Committee was filled with talk about California's "tremendously competent regulators," and how to keep unspecified "bad actors" out of California gaming, and how legislators should avoid "picking winners and losers."

These were code words for the most explosive issue still dividing California's Indian tribes — whether PokerStars should be allowed to participate. Since legalization depends almost entirely on what the tribes want, it's not a trivial matter.

The state's poker interests basically have coalesced into two groups. The one group is made up of the Pechanga Band of LuiseƱo Indians, which owns California's largest casino; the San Manuel Band of Mission Indians; and the Agua Caliente, Pala and other tribes. The second group comprises the Morongo Band of Mission Indians, whose huge casino is located just northwest of Palm Springs; and the Bicycle, Commerce and Hawaiian Gardens card clubs. They've made a deal with PokerStars to run their online game.

Read More Here - LA Times - Will PokerStars be dealt out of legalized online poker in California?

Other news:

Developer Money Follows Circuitous Route to San Diego County Supervisor’s Race

California tribes still at odds over online poker

Paskenta Tribal Dispute Goes Cyber

Paskenta Band of Nomlaki Indians Investigation Alleges $10 Million in Personal Private Jet Trips by Pata Family and Hundreds of Thousands of Dollars in Purchases of Gold by Former Chairman of Paskenta Enterprises

Friday, May 23, 2014

Every Tribal Member Please Attend Tonight's Meeting

Every tribal member, please attend tonight's meeting and let your voice be heard.  There are about 643 Adult Members.  How many live on the reservation?  300?  400?  Everyone that can make the meeting should be there.

If you did not attend the first Emergency Meeting either because notices were torn down or you were afraid to participate now is your chance.

The Executive Committee invested $100 million (thats $100,000,000) to form Pala Interactive, an online poker company without General Council approval.  Is the General Council really ok with this? That's $155K per voting member.

If you're afraid of a casino shut down then you should be worried about the festering sewer pump issue which could cause a casino shut down any day now.

If you're worried about Tribal Sovereignty then you should be worried about the Executive Committee signing away Tribal Sovereignty to build a wake board track only to then terminate the contact thus exposing the tribe to a lawsuit.

What about Pala Raceway?  Can anyone explain that?

These are just a few of the issues facing Pala.  Those that attended last night's meeting and the previous meeting know there is much more.

Some commenters love to say it's about Greed.  It may be about greed but ask yourself whose greed is it about?  The General Council's or the Executive Committee?  How many private jet flights do they need?  How many box seats at sporting stadiums do they need?  Why should the Executive Committee be given stock in an online gaming company which is not even legal in California yet?

Whose greed is it about?

Ask yourself who is the tribe?  The General Council or the Executive Committee?

Some commenters like to say this information and the meetings is somehow threatening the casino.  First off, is it all really only about the casino?  Or is it about the welfare of the tribe?  Second, what is the real threat to the casino?  Executive Committee mismanagement or General Council members asking questions and wanting answers?

Ask questions, ask for information, listen, then make up your own mind.  Please don't be intimidated by the Executive Committee.  Why should the General Council continue to live in fear?

Thursday, May 22, 2014


I am reposting a link here to something I posted nearly 2 years ago.  It contains many documents so I am not going to post it all here again.  You can click the link and go read if you are wanting more information.  I'll post few excerpts here as a preview.

LasCal, Robert Smith, Jerry Turk, Paula Lorenzo, Arlen Opper, and George Maloof

After the plans were revealed to develop a huge Las Vegas style casino at San Pablo there was a State wide backlash.  This ultimately lead to the Lytton Band of Pomo Indians dropping the plans and instead they installed Class II Bingo Like slot machines.  You may recall that earlier I wrote about the development funded by Pala to create a Video Lottery Terminal Slot Machine.

Turns out that in the early days Pala was an investor in the San Pablo Casino:

"At that time, the tribe of about 50 members teamed up with LasCal Development Corp. a
California-based development company owned by Jerry Turk. The partnership also includes the Maloof family, owners of the Palms, and California-based tribes the Rumsey Band of Wintun Indians, and the Pala Band of Mission Indians. The Paiute Tribe also has retained Las Vegas-based Construction Consultants Inc." 

From here we need to go back and revisit the lawsuit filed by RUMSEY INDIAN RANCHERIA OF WINTUN INDIANS vs Howard Dickstein.

Here are some excerpts:

Contemporaneous with the restructuring of the Tribe's investment in the Lytton Band's casino project, the Tribe invested in LASCAL Land Development, LLC ("LASCAL") an entity seeking to develop land in Nevada, belonging to the Las Vegas Paiute Tribe.

The members of LASCAL nearly mirrored those in CIGD and CIGM, including the Tribe (through RMG), the Pala Management Group, the Maloof family, Opper Development, LLC and Turk Paiute, L.P., an entity controlled by Turk, the Pala Band's business manager.

Dickstein, Zerbi and Dickstein & Zerbi also represented the Pala Band in the LASCAL transaction. Dickstein, Zerbi and Dickstein & Zerbi did not disclose to the Tribe their conflict of interest in simultaneously representing multiple parties in the transaction or explain the potential and adverse significance of this conflicted representation. They also never sought or obtained the Tribe's consent and waiver of any conflict of interest in connection with representing both tribal clients in LASCAL.

Is Pala receiving its share of the profits from the San Pablo Casino?

See this article:

San Pablo Casino Pits City v. City, Gambler v. Gambler By RICHARD BRENNEMAN


Some of the supporters of the San Pablo proposal belong to the Maloof family of Sacramento and Las Vegas, owners of the Sacramento Kings NBA team and of the Palms Casino in Las Vegas. The Maloofs reportedly raised $2 million for Schwarzenegger’s successful gubernatorial run, and it was Schwarzenegger who signed a pact with the Lytton Tribe to build the San Pablo casino.

The Maloofs are partners with three other entities that have signed on to manage the reincarnated Casino San Pablo, two casino operating tribes—the Rumsey Band of Wintun Indians which owns and operates the Cache Creek Casino in Yolo County and the Pala Band of Mission Indians—and former Las Vegas casino owner Jerry Turk, who manages the Pala’s casino in San Diego County.

In exchange for running Casino San Pablo, the four managing partners will receive a quarter of the net profit.  (emph added)


Again, these are just excerpts from my previous post LasCal, Robert Smith, Jerry Turk, Paula Lorenzo, Arlen Opper, and George Maloof.  Go the post if you want more reading and to view the documents.

Wednesday, May 21, 2014

Pala Wake Board Park

Congratulations Pala, you're getting a Wake Board Park!

Or wait...maybe not?

Anyway, there's tons on the internet to read about it.

Wake Compound Pala CA Facebook Page

Wake Compound

Pala Casino Cable?

We have begun construction on the Pala Cable Park. It will be a 6 tower Rixen and (2) little bros. Its actually not at the casino but at the Pala action sports park where the Pala Raceway MX is. We will have an official press release next week and up dates on FB

Wake compound at pala, ca

Has anyone been out to the Pala Raceway and seen the cable park being built?? It looks awesome! Can't wait for it to open! 

Breaking Ground - SoCal's Wake Compound
Take a sneak peek at Southern California’s first cable wake park, The Wake Compound currently in development located on the Pala Indian Reservation in San Diego County. The Wake Compound is schedule to open this summer sometime in July. Needless to say this place will be blowing up given it’s proximity to the surf, mountains and world famous skate parks.
Take a sneak peak at Southern California's first cable wake park, The Wake Compound currently in development located on the Pala Indian Reservation in San Diego County. The Wake Compound is schedule to open this summer sometime...

Howard Maxcy Calls for an Emergency Meeting - Misquotes Constitution

Howard Maxcy has called for an emergency meeting.  In the process he has misquoted the Constitution and instead offers his interpretation.

Every tribal member should have a copy of the Constitution.  Here is what sections referred to state:

Article III - General Council
Section 3. MEETINGS

A. Regular Meetings.  A regular meeting of the General Council shall be convened On.
the 2nd Wednesday of each month.

B. Special Meetings.  Special General Council meetings may be called by the Executive
Committee or by a petition signed by ten percent (10%) of the eligible voters
stating the purpose of the special meeting and proposed agenda for the special

C. Quorum.  Actions taken at a regular or special meeting of the General Council shall
not be valid unless a quorum consisting of at least 25 eligible voting members of
the Pala Band, five of which must be Executive Council Members, have signed in
at the meeting.’ If there is not a quorum present, the meeting may proceed for
informational purposes, but no votes shall be taken.

D.     Notice.  All regular and special General Council metings shall be publicly noticed
for no less than fourteen (14) calendar days prior to the meeting by posting notices
at the Tribal Offices and/or at other appropriate places on the Reservation.  In the
case of an emergency, a meeting may be called on three (3) days advance notice and
which notice shall also be posted in advance at the Tribal Hall and/or other
appropriate places on the Reservation. Unless proper notice is given as required
herein, any actions taken ordecisions made during that meeting shall not be valid
and binding.

Article III
Section 2.

J.     The General Council will authorize the Executive Committee to remove members
or non-members from the Reservation by taking the appropriate legal or other
action of authorizing the Executive Committee to do so.
Please refer to your Constitution.

I know some did not come to the Emergency Meeting last Saturday because they feared retaliation.  Others were misinformed and told the meeting was invalid and/or canceled.

Every tribal member needs to attend this meeting.  Please go to the meeting.  Stand up and let your voice be heard!

Tuesday, May 20, 2014

Pala In The News

New article out on UT San Diego.  I'll post an excerpt.  You guys can read it for yourself and make up your own minds.

Power struggle erupts at Pala reservation

By Edward Sifuentes10:53 A.M.MAY 20, 2014 Updated 6:27 P.M.

PALA — An apparent power struggle has erupted at the Pala Indian Reservation after a group of tribal members claimed to have ousted the tribal council and installed a new executive panel.

Tribe spokesman Doug Elmets said Tuesday morning that the claims are untrue and that a meeting held by the group Saturday was illegal and lacked a quorum, so any action taken was invalid. He said only about 23 tribal members attended the meeting; other reports put the number at roughly 70.

Read Full Article Here - Power struggle erupts at Pala reservation

Please read the full article, comment on it on the UT site, and share your thoughts.

On a side note maybe people should start using their real names when commenting.  Are we still living in such fear that we have to remain anonymous?  Land of the Free, Home of the Brave?

Oh, and I guess if you feel like more reading you can read this:

The Big Secret Behind Pala Interactive

Sunday, May 18, 2014

Emergency Meeting Update

I know many people have been asking how the Emergency Meeting went yesterday so I wanted to provide a brief update.  The meeting went very well and was very peaceful.  There were no disturbances and know that the meeting was well documented.  The conduct of the meeting was a breath of fresh air.  From what I was told people were allowed to ask questions and speak freely.  There was no intimidation or threats.

There is going to be a flood of misinformation being put out there probably even as I type.  Know that nearly 3 times the required numbers for a quorum of enrolled members signed into the meeting.  The rest of us that were in the vicinity of the meeting did not participate in the meeting but were there to support our family - our Mothers, Fathers, Cousins, Aunts, Uncles, Grand Parents etc.

I did not participate in the meeting so I cannot give any detail as to what exactly happened.  I can say the items on the proposed agenda passed.  If you did not see the proposed agenda you can read it here.

For those that did not attend I would say reach out to your family and friends that were there and ask them for details.  We need to support each other through this process and it will be a process.  It is not going to happen overnight.  There will also be a lot of work to do.

United We Stand - Divided We Fall.  A piece of string on its own is not very strong.  But weave many pieces of string together and you form an unbreakable rope.

It has been said Robert is going to run to the BIA first thing Monday morning to cry to them about our meeting.  I find it odd that Mr. Tribal Sovereignty is now going to go ask the BIA for help.  Robert refused to listen to the BIA when they recommended we be reinstated but now that a duly held Emergency Meeting of the General Council was held all of a sudden Robert - Mr. Tribal Sovereignty himself - wants help from the BIA.  What has the BIA been telling us for two years?  "It's a tribal matter, we're not getting involved."

Please talk to your families.  Reach out to other families.  Those of you that were there please reach out to others.  Don't let people get away with spreading their lies, gossip, and rumors.

A tribal member yesterday shared with me this story on the power of fear:

The Power of Fear

Legend has it that an old dictator, when he knew that he would soon die, picked two men whom he felt he could trust as potential successors to his throne. As he lay on his deathbed, he summoned the two men and asked his servant to bring him two birds.

When the two men came to his deathbed, he said, “I have called you here to see which one of you is worthy to be the heir to my throne. In order to prove yourself, you must take one of these birds and make it remain in the palm of your hand for five minutes without killing it.”

One of the men took a bird from its cage, but he held it so tightly, he suffocated it. The other man, determined not to make the same mistake, took out the other bird and held it firmly but made no attempt to restrain it. Therefore, it quickly flew away through one of the room's windows.

“Fools! I will show you how to do it properly,” said the dictator. “Bring me a bird!” he ordered his servant.

When the servant came back, the dictator took the bird, plucked out all of its feathers, then held the bird in his hands. The bird was now shivering without its feathers to warm him, and although he was unmistakably terrified, he did not fly away.

"Do you see it? It is now helpless. It is terrified. It is freezing. It is vulnerable. I have stripped it of everything, and now it is thankful for the warmth I am giving it in the palms of my hands," the dictator said.

The legend ends here, but the assumption is that this is how the dictator controlled his people—by taking everything away from them, then making them feel thankful for his protection. He essentially got those people to “play frozen,” just as the bird was “playing frozen” in his hands.

And he was able to take advantage of an emotion that all animals and human beings have. This emotion is fear. It is particularly important for autistic children, because fear is their primary emotion. And when you strip them of everything they value in an attempt to change them according to your values, as in an intensive behavior program, you are unconsciously using the control technique of that old dictator and relying on the child’s fear and helplessness to bend him to your will.

There's also a version of the story attributed to Josef Stalin

*NOTE:  The service I use (scribd) to post documents is down right now.  It's been down for several hours.  This has happened before and usually service returns after a while.

Friday, May 16, 2014

Robert Smith Notice

Robert Smith sent this to tribal members.
Pay attention to section D which states:

D.  Notice. All regular and special General Council metings shall be publicly noticed
for no less than fourteen (14) calendar days prior to themeeting by posting notices
at the Tribal Offices and/or at other appropriate places on the Reservation, in the
case of an emergency, a meeting may be called on three (3) days advance notice and
which notice shall also be posted in advance at the Tribal Hall and/or other
appropriate places on the Reservation. Unless proper notice is given as required
herein, any actions taken ordecisions made during that meeting shall not be valid
and binding.

Here is the Emergency Meeting Agenda

Thursday, May 15, 2014

It's Not About The Lugos

More than any place I know Pala is fueled by rumors.  One rumor I heard today from multiple sources was that somehow this Emergency Meeting was about the Lugos.  According to some people Robert Smith is telling everyone this meeting is about the Lugos.  This meeting has nothing to do with the Lugos.  All anyone has to do is read the agenda in the post below to see that.

My own personal opinion as I have stated before is Pala should stick to the 1913 Allotment Rolls which has been the base roll of the tribe for 50 years.  According to Pala's Constitution and the Articles of Association the 1913 Allotment Roll is the base roll of the tribe.

With regard to this rumor someone emailed me the following.  It has to do with the process in the 1990's Pala went through to move from the Articles of Association to the Constitution.  Robert Smith wanted to differentiate Blood of the Band as Kupa Blood.  The problem with that is Pala is a Band of Mission Indians.  There are many types of Indians at Pala including Kupa, Luiseno, Cahuilla, Yacqui, and Kumeyaay (Digueno).  There is no such thing as a "Pala Indian" by blood and culture.

My own opinion is the Lugos belong at Pala as much as the rest of us do.  The problem with what Robert Smith has done is he has moved away from the 1913 Rolls.  Does anyone know what the current base roll of the tribe is?

Emergency Meeting Notice

I saw a few comments last night asking what this meeting was about.

There are numerous things but we can start with the letters from David Cross which discusses the FBI investigation of Pala's Executive Committee.

Then there's the $100 million dollar investment into online poker Pala's EC made without General Council Approval.

There's also the closure of Pala Raceway and potential liabilities the tribe may face.  There is the cancellation of a wake boarding track and the potential liabilities the tribe may face for that.

There's also the sewer pump issue which if not handled correctly could threaten the casino.

Private Jets for personal use.

Tuesday, May 13, 2014

Bad Actors - Not Just For Movies

If you have been following the push to get Online Poker legalized in California over the past year or so then you have probably heard something about a "bad actor" clause being added to the proposed legislation.  This language in various forms of the proposed legislation has been backed by several tribes including Pala.  The purpose is to ban certain "bad actors" from participating in California's Online Poker market in the event legislation is passed making online poker legal in California.

So who are the bad actors some tribes are trying to ban?  Well, it goes back to something dubbed "black friday" where 3 of the largest online poker operators at the time were indicted by the U.S. Government for violating the Unlawful Internet Gambling Enforcement Act (UIGEA).  These companies are PokerStars, Full Tilt Poker and Cereus (Absolute Poker/Ultimatebet).

The U.S. Government ended up dismissing the cases against PokerStars and Full Tilt Poker with prejudice and settling out of court.  I am not sure what the status of any suit against Cereus is.

What makes the bad actor clause curious to me is what was reported in a previous article titled:


July 10, 2013

X-BWIN.PARTY CEO JIM RYAN’S PALA INTERACTIVE JV RAISES EYEBROWS shed some more legal baggage last December when former co-CEO Jim Ryan (pictured above) agreed to walk the plank rather than complicate’s pursuit of various US gaming licenses. While Ryan said at the time that he was looking forward to spending more time with his family in Canada, he has since resurfaced at the head of Pala Interactive, an online gambling joint venture with California’s Pala Band of Mission Indians. For the moment, the business is entirely speculative, as the Golden State struggles to reach consensus between legislators and stakeholders in order to make online gambling a legal reality.

PokerFuse reported that Pala interactive intended to offer both online poker and casino games in California, which is odd, since none of the state’s recent draft bills envisioned anything other than a poker-only system. Odder still is the fact that Ryan has found common cause with the Pala band, whose chairman Robert Smith has been very vocal about prohibiting so-called ‘bad actors’ from ever participating in a regulated online gambling system. In May, Smith signed his name in support of a draft bill that would bar any company, individual or software that accepted US customers not just post-UIGEA, but at any time, from California’s regulated online market.
Can Smith really be unaware that Ryan was once head of Excapsa, the parent company of Ultimate Bet, a poker outfit that continued to accept US customers right up until the US Department of Justice pulled the rug out on Black Friday? While Ryan had by then moved on to head up PartyGaming, public documents confirm that he was still calling the shots at Excapsa months after the UIGEA was signed into law in October 2006. What’s more, Ryan presided over Excapsa during UB’s infamous cheating scandal and the ensuing coverup, and Pala Interactive apparently intends to use the same Realtime Edge software that allowed Russ Hamilton and others to cheat other players out of millions of dollars (although the software’s ‘god mode’ has since been patched to prevent a recurrence).


So I guess who is a bad actor and who is not is really a matter of perspective and business deals.  To me it looks like some tribes are just trying to block potential competition from entering the State rather than truly looking to block bad actors.

Even more curious is why Robert Smith would push a bad actor clause which could risk Jim Ryan's participation in Pala Interactive.  Could Jim Ryan be dubbed a bad actor under the current proposed legislation given the fact that he was once involved with Excapsa?

Oh wait, probably not if you have a hand in proposing and crafting the legislation...



The bill also changed language regarding a licensee’s ability to partner with technology suppliers. The original clause barring any company that took wagers from US citizens after Dec. 31, 2006 has been amended to exclude only those companies that “knowingly and willfully” engaged in such nefarious antics. The reason for the change is, for the moment, unknown, but it’s been previously suggested by poker blogger Haley Hintze that the original selection of the Dec. 31 date – as opposed to the more logical October 13, 2006 date on which President George W. Bush signed the Unlawful Internet Gambling Enforcement Act (UIGEA) into law – was a way of bringing current co-CEO Jim Ryan in from the cold.
In 2006, Ryan was still at the helm of Excapsa, the parent company of online poker site Ultimate Bet. It’s not precisely clear when Ryan officially fled the Excapsa nest, but the last recorded public document on which Ryan’s name appears in connection with Excapsa was a Canadian court’s approval of the company entering liquidation on Dec. 22, 2006. signed a joint venture online poker deal last month with California’s United Auburn Indian Community, a deal that could have been in jeopardy if the UIGEA signing date was chosen as the ‘suitability’ cutoff. Guess there are some instances in which lobbyists really are worth every penny.

Will this bad actor clause fly?  To me it looks doubtful especially since PokerStars had recently signed deals with Morongo and LA Card Rooms.  Who ever spends the most money will likely win.  What they will win exactly I am not sure...especially since we are not even factoring the anti-online gambling billionaire Sheldon Adelson.

Friday, May 9, 2014

Pushing Online Gambling Is Going to Get Even More Expensive

Sheldon Adelson is a billionaire - worth about $40 Billion.  He is the owner of the Las Vegas Sands Corporation which in turn owns the Venetian Macao Limited which operates The Venetian Resort Hotel Casino and the Sands Expo and Convention Center...among other things.

Up to this point in time Tribes have been throwing money at California's State Legislature hoping to get online poker legalized for themselves.  I am not sure how much money has been spent to date to legalize online poker in California but I am sure it is in the many millions.

Well tribes better be ready to open up that check book.  Oh, and don't forget to get General Council approval for the tens of millions you will need to spend to get online poker passed.  Even after that heavy lift if online poker succeeds in California the Feds could very well end up making online gambling illegal.

The reason?  Sheldon Adelson.  He has decided to basically go all in against online gambling.  He says he is doing it for the children.  In reality it's probably just good business since online gambling is considered a threat to brick and mortar casinos.

You can read more about it here:

Washington Post - Adelson’s political beneficiaries adopt casino magnate’s cause to ban Internet gambling

Here is one of Sheldon Adelson's first ads against online gambling:

Wednesday, May 7, 2014

For Review

For review below is the MOU that outlines Robert Smith's $100 Million dollar investment into Online Poker to create Pala Interactive LLC.

MOU Between Pala and NG Poker to Form Pala Interactive LLC

Also please review the letters from David Cross below.

David Cross 2nd Letter to Pala Apr 29 2014

Sunday, May 4, 2014

Paskenta - After 11 Years, Justice

I was sent this article below.  It is a print version of an article that appeared in the Sacramento Valley Mirror.  There does not seem to be an online version.  It is an embedded pdf file that can be downloaded, printed out, or just enlarged by clicking on the magnifying glass near the bottom of the post.  You can also  toggle to full screen view by clicking the square on the right hand side at the bottom of this post which will help be able to read it.

Also in the news:

Leslie Lohse was one of the Council Members that was removed from office.  She was Treasurer.  She is also Chair of the California Tribal Business Alliance (CTBA) ( of which Pala is a member.  Robert Smith is the treasurer for CTBA.

Paskenta tribe shuns members, investigates missing funds


"Also during the meeting, Leslie Lohse, Tribal Council treasurer, and member of the suspended family, was dismissed off the Tribal Council by the General Council, Rico stated."

Rico claims that a more recent letter from the gaming commission said it is classifying the dispute as an internal tribal affair, and at this time will leave the problem for the tribe to rectify.
“We are still in compliance with all required federal and state regulations,” she stated.

Saturday, May 3, 2014

Shasta Gaughen In The News

Pala's environmental director, Shasta Gaughen was quoted in the news on Friday talking about Gregory Canyon.

Here is the article:

KPBS - Bad News Keeps Piling Up For North County’s Gregory Canyon Landfill


Gregory Canyon itself is considered sacred ground by the Pala Indians. KPBS "Morning Edition's" Deb Welsh spoke to Pala's environmental director, Shasta Gaughen, about the Corps’ action.

KPBS:  What do you make of the corps' withdrawal of the application permit?

Shasta Gaughen:  This is just another sign that the financial situation for Gregory Canyon Ltd. has just gotten that much worse. They've been promising they're getting new financing for the last six to nine months and obviously that financing hasn't come through, which is why the application got pulled.

KPBS:  What do you expect to happen next or do you have any idea?

Shasta Gaughen:  We're not sure what's going to happen. Our hope is that there will be no future financing, which means that the project won't move forward.

I know that Gregory Canyon Ltd. has said that they're still trying to secure financing. If that happens they may reactivate the application. If they do, we will continue to oppose it they way we have from the beginning. And if not, then we'll celebrate finally putting the final nail in the coffin.

Read Full Article Here - KPBS - Bad News Keeps Piling Up For North County’s Gregory Canyon Landfill

Friday, May 2, 2014

Self-Centered Poker Pros

Long article but here is an excerpt:

Self-Centered Poker Pros Tarnish the Game for Everyone

Law suits aside, it appears the Pala Indians in California still want Phil Ivey to be their brand ambassador for the launch of Pala Interactive if and when online poker is launched in the state. And in related news the Morongo Indians are trying to convince the state that PokerStars should not be banned as a bad actor and be allowed to partner with them for legal online California poker. How a company that paid over $714 million to the feds and was exonerated is a bad actor while Phil Ivey who admitted to cheating to get an advantage over the casino isn't a bad actor is beyond me. But that's a topic for a different article.

Read Full Article Here - Self-Centered Poker Pros Tarnish the Game for Everyone

In related news:

Edge sorting: Did Phil Ivey cheat, or just outwit casino?