The Pauma Band of the Luiseno Mission Indians has filed a lawsuit against both Harrah's and Caesar's Entertainment for breaking an agreement to build a resort casino on tribal lands.  The deal, which was originally made between the Pauma Band and Caesar's, was promised by Caesar's that the project would manifest as planned.  However, since the acquisition of Caesar's by Harrah's Entertainment, the deal seems to be falling through the cracks. 

The Pauma Tribe claims that Caesar's has abandoned the project, and is now suing for what they say the tribe has invested in the deal - and incurred as a result of Caesar's broken promise.  This includes a casino compact the tribe acquired with the state - agreeing to pay $5.7 million per year, as well as a management contract with the developers of Hard Rock Casino Resort in Las Vegas.  As a result of this delay, the Pauma Tribe has faced financial setbacks while trying to solicit another gambling corporation to fill the shoes of Caesar's.

Much of the conflict is being caused by Harrah's acquisition of Caesar's, which began in 2004.  Harrah's which has a management deal with the nearby Rincon Tribe, is not permitted to start up another contract with the Pauma Tribe.  In other words, the Harrah's Rincon Hotel and Casino prevents Harrah's to deal with the Pauma Tribe.  And now that Caesar's is close to fully merging into Harrah's (by the end of June '05), the situation becomes a sticky one.

It does seem that the Pauma Tribe has the upper hand in this Las Vegas case, for the original contract with Caesar's was signed in 2003, while the talks to merge with Harrah's did not begin until 2004.  Now it is up to the courts to decipher exactly what the fine print says.