The plans to build Jemez Casino in New Mexico have been ruined by the proposal of a lawmaker to the government to make federal legislation strict regarding off-reservation gambling and offer local residents to have their say on casino projects in their area. Gerald Peters, and art dealer from the area, announced the plans to build a casino in the town. The pueblo says that they do not have the financial means to build it in north-central New Mexico.

Nowadays, off-reservation casinos must obtain the approval of the U.S. Interior Department and the governor. Rep. Richard Pombo, R-Calif., made the proposal of this law and under his bill, all off-reservation casino projects must undergo a process of approval by state Legislature and county voters. Regarding Indian casinos, the bill says that tribes must have a historical link to the land.

Michael Toledo Jr., Governor of Jemez Pueblo, actually defended the casino project and suggested a location 300 miles from the town. He said that the project could be the only way the pueblo had to survive economically speaking. Senator Mary Kay Papen, in her turn, said that the Jemez Casino project is a clear example of reservation shopping. Ms Papen also said that the law must be applied to all projects equally, otherwise, it would be unfair to tribal competitors who have to pay taxes up to 8 percent.

Papen has been accused by casino supporters of being partial in this matter due to her interests in Sunland Park Racetrack and Casino, where her daughters works as a horse breeder. Papen alleged that her daughter breeds horses as a hobby and this has nothing to do with her position in this discussion.