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Red Hawk Casino may close if forced to pay judgement

10:44 PM, Feb 24, 2012   |    comments
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SHINGLE SPRINGS, CA -  Red Hawk Casino might close in December because of a $30 million jury verdict.

That's the warning from the Shingle Springs Band of Miwok Indians, the tribe which operates Red Hawk Casino.

In court papers, lawyers for the tribe warn of a "doomsday scenario" if the tribe is forced to pay the court judgement.

The casino was sued by Sharp Image Gaming for a breach of contract after the company provided the facility with 400 video gaming machines, for which it was never paid, and a jury agreed.

"The jury said to the tribe, 'You can't get rid of your obligations simply by canceling a contract,'" President of Sharp Image Gaming Chris Anderson said.

But in court filings, the tribe said the casino is already operating at a loss and the tribe will "confront an economic meltdown with catastrophic consequences" if forced to pay the judgement.

This week, an El Dorado County judge agreed to give the tribe more time to re-group.

"We are confident the court will reject Sharp's effort to collect on a judgment while we appeal to a higher court," Tribe Chairman Nicholas Fonseca said.

News10/KXTV

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