gaming

Second Greektown Reorganization Plan to Be Considered

Matthew L.M. Fletcher

From the Freep via Pechanga:

A second plan to speed Greektown Casino’s exit from bankruptcy protection could go out to creditors for a vote next week.

U.S. Bankruptcy Court Judge Walter Shapero told lawyers for the casino and its creditors Friday that he expected to sign an order Monday to approve the disclosure statement. That would clear the way for the plan to be sent out next Friday for creditor voting.

The confirmation hearing is scheduled for Jan. 12. The goal is for plan confirmation by Jan. 31 and for the casino to emerge from bankruptcy by June 30.

Greektown Casino still needs to get the City of Detroit’s approval before it can approach state regulators for a 15% tax rollback.

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Mohegan Sun Officials Assuage Financial Community

Matthew L.M. Fletcher

From the New London Day via Pechanga:

The Mohegan Tribal Gaming Authority reduces stipends to tribal members when changes like the current economic downturn warrant it, casino officials told the financial community today.

Mohegan Sun also has a stable management team that is continuing to work to improve the product it offers patrons, despite the effects of the recession.

Casino officials made the comments this morning during a Webcast presentation at the Bank of America Merrill Lynch 2009 credit conference in New York City. Participants in the Webcast included a broad range of members of the financial industry.

The tribe’s Mohegan Sun casino is one “you could put anywhere and it would be a category killer and a market leader,” said Mitchell Etess, the casino’s president and chief executive officer.

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Greektown Reorganization Agreement Reached

Matthew L.M. Fletcher

Here is the reorganization plan referenced in the article below — Greektown Reorganization Plan

From Fox Business via Pechanga:

Greektown Holdings, L.L.C. announced today that beneficial holders of a majority of the principal amount of its pre-petition bank debt have reached agreement to support the plan of reorganization filed on November 2, 2009 by plan sponsors MFC Global Investment Management, OppenheimerFunds, Inc., Brigade Capital Management and Solus Alternative Asset Management LP. That agreement has been supplemented by a stipulation adopted by the Bankruptcy Court on November 19, 2009 among the Debtors, the plan sponsors, an ad hoc group of certain of the Debtors’ pre-petition bank lenders, the indenture trustee for the holders of the Debtors’ 10.75% Senior Unsecured Notes due 2013, the administrative agent for the Debtors’ pre-petition bank debt and DIP Debt and the official committee for the Debtors’ unsecured creditors.

Under the plan which will be amended pursuant to the stipulation, the pre-petition bank lenders would be paid in cash in full on the effective date of the plan, and the holders of the Debtors’ 10.75% Senior Unsecured Notes due 2013 will receive the equity of the reorganized Debtors, subject to dilution by the rights offering provided for in the plan. The holders of the Senior Unsecured Notes would also have the right to subscribe for approximately 78% of the equity at an aggregate purchase price of $185 million in the rights offering. The four plan sponsors have agreed to purchase any equity in such rights offering that is not subscribed for by the holders of the Senior Unsecured Notes in the rights offering. In addition, Solus Alternative Asset Management LP would make a direct investment in the equity of the reorganized Debtors.

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Steiger v. Little River Casino — Title VII Complaint

Matthew L.M. Fletcher

Here are the early materials in Steiger v. Little River Casino Resort, a sex discrimination claim under Title VII of the 1964 Civil Rights Act:

Steiger Complaint

LRB Motion to Dismiss

Not sure how the plaintiff’s lawyer thinks the federal court has jurisdiction over this. The complaint just cites Title VII, without any argument as to why it could possibly apply to a tribe or its business. Other doing the same have been subject to Rule 11 sanctions (see our paper here).

Idaho Supreme Court Dismisses Claim by Gambling Addicts that State Indian Gaming Law was Unconstitutional

Matthew L.M. Fletcher1 Comment

Here is the opinion in Knox v. State of Idaho. And the court’s press release.

From the opinion:

This is an action seeking to have Idaho Code §§ 67-429B and 67-429C declared unconstitutional. The district court dismissed this action on the ground that the Plaintiffs lacked standing. It concluded that the relief sought would not redress the Plaintiffs’ alleged injuries. We affirm.

G2E Indian Gaming Track Panels

Matthew L.M. Fletcher

Indian Gaming @ G2E

Tuesday, November 17, 2009

CD2: Big Brands: Native American Casino Design
Room: N115 ~ 9:15AM – 10:15AM (Tuesday, November 17, 2009)

Just as in the commercial market, a brand is what separates a successful Native American operation from its more pedestrian competitors. This session will examine branding as part of the overall design process, including the minimization of costs and implications for long term success. Executives from some of the most recognizable brands in Indian Country will discuss their experiences and offer valuable insights for expanding your casino brand through resort design.

Moderator:
Tom Hoskens – Vice President, Cuningham Group Architecture, P.A.
Speaker:
Charles “Chief” Boyd – Partner, Thalden-Boyd-Emery Architects
J R Mathews – Vice Chairman, Quapaw Tribe of Oklahoma
David Stewart – CEO, Cherokee Nation Entertainment

CSR7: NCRG at G2E: Myths vs. Evidence: The Impact of Indian Gaming
Room: N103 ~ 11:45AM – 12:45PM (Tuesday, November 17, 2009)

Myths about the impact of Indian gaming on the health of tribal members, crime and economic development persist in the media. Does scientific research support these assumptions? The panel, representing a variety of perspectives, will examine these myths in the light of research.

Moderator:
Christine Reilly – Executive Director, Institute for Research on Pathological Gambling & Related Disorders, Division on Addictions, Cambridge Health Alliance
Speaker:
Harry Ashton – Head of Legal Research, Gambling Compliance Ltd.
Jacob Coin – Director, Office of Public Affairs, San Manuel Band of Mission Indians
Kate Spilde – Chair, Sycuan Institute on Tribal Gaming, San Diego State University

FIN2: Spreading the Wealth: Tribal Financing Options
Room: N109 ~ 2:00PM – 3:00PM (Tuesday, November 17, 2009)
The money is still there for tribal gaming projects, but lenders are much more careful now about who receives loans from them and for what purpose. Speakers at this session will explain how to best qualify for loans, what lenders require and how they expect to be repaid, while tribal officials involved in these financial deals will reveal how they convinced banks and other financial institutions to provide capital or refinance existing loans.

Moderator:
Kristi Jackson – CEO, Tribal Financial Advisors
Speaker:
Rochanne L. Hackett – Senior Vice President / Director of National Gaming Development, Wells Fargo Bank N.A.
Jeff Hartmann – Executive Vice President & Chief Operating Officer, Mohegan Tribal Gaming Authority
Mike Lettig – Executive Vice President, Native American Financial Services, Key Bank
Dave Rebich – CFO, Turning Stone Resort Casino

CLR5: Tribal Perspective: Indian Gaming and the Obama Administration
Room: N109 ~ 3:15PM – 4:15PM (Tuesday, November 17, 2009)

Some of President Obama’s most ardent campaign supporters were Native Americans. The tribes believed they needed a change in the way they related to the federal government and that Obama would deliver. Now, one year later, tribal leaders, former and current federal officials and other experts will come together to discuss whether the change they sought has been delivered, and what the future holds for Indian Country during this administration.
Moderator:
Tom Foley – President, Foley Law Group
Speaker:
Tom Brierton – President, Franklin Creek Consulting
Larry Rosenthal – Partner, Ietan Consulting, LLC
John Tahsuda – Vice President, Navigators Global LLC
Loretta Tuell – Attorney, AndersonTuell, LLP

Wednesday, November 18, 2009

IG4: National Indian Gaming Commission: An Update
Room: N115 ~ 9:15AM – 10:15AM (Wednesday, November 18, 2009)
With at least one new member, the National Indian Gaming Commission will be re-tooled to consider a wide range of issues that will impact Indian Country. This session will bring together the current members of the commission for an annual update on the role of this federal agency in overseeing tribal gaming and what its members hope to accomplish during the upcoming year. Topics discussed will be Class II gaming, off-reservation gaming and the relationship of the NIGC with other federal bodies, including the Bureau of Indian Affairs.

Moderator:
Ernie Stebbins – Executive Director, Washington Indian Gaming Association
Speaker:
Norm DesRosiers – Vice Chairman, National Indian Gaming Commission (NIGC)
George Skibine – Acting Principal Deputy Assistant Secretary, Indian Affairs, Acting Chairman, National Indian Gaming Commission

IG5: Tribal Compacts 2.0: The Next Generation
Room: N115 ~ 11:45AM – 12:45PM (Wednesday, November 18, 2009)

The Indian Gaming Regulatory Act (IGRA) prohibits states from taxing tribal gaming revenues. Tribes may, however, agree to share a limited portion of their gaming proceeds with state and local governments, subject to approval by the Secretary of the Interior. To ensure that these compacts are not interpreted as imposing taxes and therefore in violation of IGRA, states and tribes are beginning to develop a new generation of compacts that include revenue sharing models designed to provide more certainty and enforceability. This panel will provide background regarding compacts and older models, and explain how this next generation of revenue sharing can benefit tribal and state governments alike.

Moderator:
Mark Van Norman – Executive Director, National Indian Gaming Association (NIGA)
Speaker:
Scott Crowell – Attorney, Crowell Law Offices
Ezekiel Fletcher – Attorney, Rosette & Associates, P.C.
Paula Hart – Director, Office of Indian Gaming, US Department of the Interior

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Little River Band of Ottawa Indians’ Summary Judgment Motion against NLRB

Matthew L.M. Fletcher1 Comment

Previous materials are here, including the complaint and exhibits.

LRB Motion for Summary Judgment

LRB Statement of Material Facts

NLRB Opposition

LRB Reply

NLRB Surreply

29 Palms Band v. Schwarzeneggar State Income Tax Case

Matthew L.M. Fletcher1 Comment

As this article reports, the 29 Palms Band sued the State of California over gaming-related income on behalf of its off-reservation members. The court granted an earlier motion to dismiss, but allowed the Band leave to file an amended complaint on whether IGRA preempts state taxation.

Here are the materials so far:

California Motion to Dismiss

29 Palms Band Opposition

California Reply

Sept DCT Order Granting California Motion to Dismiss

29 Palms Band Amended Complaint

California Motion to Dismiss Amended Complaint

N.Y. Appellate Division Dismisses Contract Counterclaims against Oneida

Matthew L.M. Fletcher1 Comment

Here is the opinion in Oneida Indian Nation of N.Y. v. Hunt Construction Group, reversing a trial court order that accepted jurisdiction over four counterclaims against the Nation — Oneida Indian Nation v. Hunt Constr Group

An excerpt:

Plaintiff, the owner of the Turning Stone Casino & Resort, commenced this action seeking damages resulting from the alleged breach by defendant of its construction contract with plaintiff. Plaintiff moved to dismiss the second through fifth counterclaims on the ground that it had waived sovereign immunity only with respect to counterclaims seeking to enforce the terms of the contract and thus that Supreme Court lacked subject matter jurisdiction over the second through fifth counterclaims. We agree with plaintiff that the court erred in denying those parts of the motion seeking to dismiss the second counterclaim to the extent it alleges the breach of implied warranties; the fourth counterclaim, for quantum meruit and unjust enrichment; and the fifth counterclaim, for an account stated. We therefore modify the order accordingly.

Fitch Ratings Waiting for Federal Government to Make Indian Gaming Decisions

Matthew L.M. Fletcher

From dBusinessNews (via Pechanga):

In a special report released today (Nov 2009 Fitch Report), Fitch Ratings says there are two important issues that will determine the future for the Native American gaming industry’s expansion: whether tribes will have access to the debt capital needed to finance growth, and federal government policy decisions regarding approvals for future Native American gaming developments on off-reservation lands. Investor sentiment on the Native American gaming sector has soured in this economic downturn, as poor trends in regional gaming markets pressure credit profiles, three tribes defaulted on bond payments in 2009, and the Mashantucket Pequot Tribal Nation recently announced a forbearance agreement with its senior lenders after the Tribal Chairman made comments highlighting investors’ concerns about the unique legal issues involved in lending to a tribal government.

Fitch believes many investors are likely to take a ‘wait-and-see’ approach with respect to these ongoing debt workout and restructuring efforts before committing significant additional funds to the sector, making it unlikely a tribe would be successful in arranging debt financing for a large-scale greenfield casino development at the present time (for additional information on this topic see Fitch research ‘Managing Through Distress: Considerations for Investors in Distressed Native American Gaming Credits’, dated May 11, 2009). However, over the longer term, the federal government’s policy stance with respect to approvals for off-reservation gaming projects will be the most important factor shaping the future growth path of the Native American gaming industry.

‘Right now the Native American gaming sector is feeling the effects of poor gaming operating trends and unfavorable credit market conditions, but those issues are likely to be less limiting down the road assuming an economic recovery and improved investor sentiment on the sector,’ said Megan Neuburger, Director at Fitch. ‘Actions taken by the federal government under the Bush Administration in 2008 were clearly an effort to curb off-reservation gaming expansion. Department of Interior officials have recently made public comments that they are in the process of reviewing their policy on off-reservation gaming approvals, and we’re closely following the developments to assess their impact on the industry.’

According to the report, since the promulgation of the Indian Gaming Regulatory Act (IGRA) set the framework for the Native American gaming industry in 1988, there has been significant political controversy. Proponents of expansion tout the benefits of economic development, while opponents decry ‘reservation shopping’ and the ills associated with the expansion of casino gaming. While it has never been easy for a tribe to obtain the regulatory approvals necessary for gaming on off-reservation land, recent developments have made the likelihood of a successful outcome even more remote. These developments include guidance and a rule published by the U.S. Department of the Interior in 2008, as well as the 2009 U.S. Supreme Court ruling in Carcieri v. Salazar.

In the special report, Fitch explains these developments, the associated impact on the approval process, and the actions the federal government may take under the Obama Administration with respect to these issues, as well as providing a summary of the implications for the credit outlook for the sector. ‘Native American Gaming Insights: Off-Reservation Gaming Approvals: How Will the Feds Play Their Hand?’ is now available on Fitch’s web site at ‘www.fitchratings.com’.

Additional information is available at ‘www.fitchratings.com’.