$2+ Million Tribal Donation to Gov. Newsom Draws Ethics Concerns in Casino Battle

California Governor Gavin Newsom has been accused of a quid pro quo in accepting over $2 million in donations from a state tribe to oppose a rival casino. 

Sensationalist UK tabloid The Daily Mail reported that Newsom requested payments from the Federated Indians of Graton Rancheria (FIGR) before joining the tribe’s efforts to block a casino from opening just 15 miles from theirs.

Newsom’s office and the FIGR immediately denied any wrongdoing or illegal activity.

The Bay Area tribe donated $1.8 million to The California Partners Project, a nonprofit co-founded by Newsom’s wife, Jennifer Siebel Newsom, and another $450,000 to fund Newsom’s inauguration.

After receiving the funds, earlier this year Newsom and the state filed a lawsuit to block the Koi Nation from opening a proposed casino 15 miles from FIGR’s Sonoma County resort. The casino had been granted federal approval, but the lawsuit challenged this as improper under the Indian Gaming Regulatory Act (IGRA). 

The FIGR had already filed their own lawsuit against the proposed casino and welcomed Gov. Newsom joining their fight. 

Greg Sarris, Chair of the FIGR commented, “We strongly support California Governor Gavin Newsom’s suit challenging the Interior Department’s rushed, illegal decision.”

Newsom’s Office Calls Allegations ‘Insulting and Offensive’

Responding to the allegations, Newsom’s office said: “This is an absurd inquiry… Any suggestion that the governor’s decisions were influenced by public, transparent donations… isn’t just baseless – it’s insulting and offensive.” 

One of the arguments in the lawsuit filed by Newsom and the state was that the lands the Koi Nation proposed to build the casino on did not traditionally belong to the tribe. 

However, Newsom subsequently approved plans for the Tejon Indian Tribe to develop a resort, despite the development being on non-tribal lands. 

In a letter supporting the proposal, Newsom wrote: “Though I am reticent to allow gaming on land that is not currently eligible for gaming, after careful consideration, I have decided to concur in the secretarial determination based on the Tribe’s unique circumstances.”

Newsom also extended the compact with the FIGR recently to allow the tribe to continue operating its casino in Sonoma County. 

Watchdog Calls for Further Investigation

Michael Chamberlain, the director of Protect the Public’s Trust, said the favors Newsom allegedly performed for the FIGR may be illegal and called for further investigation. 

“This is very troubling and likely warrants further investigation by authorities,” Chamberlain said.

In a similar case earlier this year, Newsom awarded a $14 million no-bid contract to the Central Valley Community Foundation to administer part of a state jobs-building program. This followed a $99,000 donation at the behest of Newson from the Central Valley Community Foundation to the California Partners Project.

Caitlin Sutherland, the executive director of Americans for Public Trust, said this also warranted further scrutiny. She stated: “The sheer amount of cash combined with the nature and timing of government activity, is eye-catching—especially when unexpected windfalls are benefiting the contributors. It’s past time for this cash flow to fall under intense scrutiny.”

FIGR Chief Cites Tribe’s Long History of Donating Funds

FIGR Chief Greg Sarris also denied any wrongdoing in the matter. Sarris noted that the tribe has a long history of supporting various causes in the state.

He stated: “The Federated Indians of Graton Rancheria has a long history of giving to local, regional, and statewide causes that work to improve the lives of Californians.”

“In that vein, we are proud of the strong support we have provided annually to the California Partners Project since 2022.”

In addition to supporting causes in California, the state’s tribes are also active in opposing any threats to the exclusivity of their gaming compacts. 

Last week, three tribes filed lawsuits against Kalshi and Robinhood in California, alleging the companies are operating illegal sports betting on tribal lands, violating the IGRA.

Newsom’s Wife Says the Focus Should Be On ‘Grifter-In-Chief’ Trump

When challenged about her involvement in accepting donations from the FIGR to her charity, Newsom’s wife said the Daily Mail should be focusing on Donald Trump rather than her husband. 

She reportedly told reporters that Trump is the ‘grifter-in-chief’ who is ‘openly hawking watches, cologne, and crypto meme coins.’

She went on to add: “The implication that anything was done here for political advantage is completely false and misleading.”

“Neither the First Partner nor the Governor receives any personal financial benefit from its work or from any donations.”