That's what this article in from Dickinson Wright law firm seems to say:
In January 2015, the Tribe requested that the State reopen compact negotiations. In a January 16, 2015, letter to the Tribe’s attorney, Joginder Dhillon, Senior Advisor for Tribal Negotiations to Governor Brown, wrote: “Given that the people have spoken, entering into negotiations for a new compact for gaming on the Madera parcel would be futile.”
Dhillon’s letter was exactly what the Tribe needed to demonstrate that the State had refused to negotiate. On March 17, the Tribe filed a federal lawsuit against the State of California in federal district court alleging that the referendum overturning the compact ratification and the renewed refusal to enter new negotiations violated IGRA. The Tribe asked the court for a declaration that the State had failed to negotiate a Class III gaming compact “in good faith” in violation of IGRA and for an order requiring the State to resume negotiations.
The State has yet to file an answer, but California’s waiver of its Eleventh Amendment immunity to the Tribe’s bad-faith suit means that the Tribe will likely prevail and win the right to conduct Class III gaming at the site. In the meantime, nothing prevents the Tribe from conducting Class II gaming on the site, as Class II gaming does not require a compact.
Anyone believe that Governor Jerry Brown did not realize this would happen? Anyone?