gaming

Greektown Revenues Improving

Matthew L.M. Fletcher

From the Detroit News via Pechanga:

Detroit — Greektown Casino-Hotel, the city’s smallest casino, reported a 21-percent increase in its November revenue over the same month in 2008.

Greektown took in $28.44 million last month compared to $23.51 million a year earlier.

Overall, gaming revenues were up just slightly in November, 0.6 percent, compared to the same month last year, according to numbers released by the Michigan Gaming Control Board.

MGM Grand Detroit and MotorCity casinos reported respective year-over-year declines of 7.8 percent and 1.8 percent during the same time period.

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BIA Opinion Letter re: Inquiry over Seneca Indian Preference Rules at Niagara

Matthew L.M. Fletcher1 Comment

Here is the opinion letter referenced in this news article.

Indian Preference Seneca

BIA Proposes to Extend Federal Recognition to the Shinnecock Indian Nation

Matthew L.M. Fletcher

From the Nation’s counsel:

The Department of Interior today issued a positive Proposed Finding to extend federal acknowledgment to the Shinnecock Indian Nation.  Under the federal consent decree governing the processing of the Nation’s petition, DOI must issue a final determination at some point between May 19 and November 13, 2010.  (Given the consent decree terms, the date will likely be in the middle of this range.)
Congratulations should be extended to the Shinnecock Nation’s members and leaders, and the Nation’s team, all of whom have worked long and hard to get the federal bureaucracy to acknowledge what the Nation has always known (and what a federal court determined in 2005).
Of note, upon federal acknowledgment becoming effective, the Nation will be eligible to game under IGRA.  The Nation’s Southampton, NY reservation, over which the State has continuously disclaimed jurisdiction, immediately will meet IGRA’s definition of Indian lands eligible for gaming.
DOI’s press release and the Proposed Finding should be available on the BIA’s website.

New Firekeepers Casino Crime Impact Never Materialized

Matthew L.M. Fletcher

From the Battle Creek Inquirer via Pechanga:

Four months after the opening of FireKeepers Casino, local police say crime hasn’t risen as some casino opponents had feared.

While some critics feared the casino would lead to an increase in burglaries, embezzlement and crimes of that ilk, that hasn’t materialized, police and residents said.

Increased traffic is the thing most residents near the casino are going to experience, said Emmett Township’s acting Public Safety Director Kenneth Cunningham. Gamers at the casino might see the occasional drunken and disorderly conduct, but nothing more than would be expected at a place selling alcohol, Cunningham said.

Cunningham and casino officials said data on the number of incidents near FireKeepers and on casino grounds were not immediately available. Those statistics are tracked by the Huron Potawatomi Police Department, the force for the Athens Township-based Nottawaseppi Huron Band of Potawatomi, FireKeepers’ owners.

Residents living near the facility say its impact has been minimal.

“It’s not really been a problem,” said Sue Bess, 67, who lives on Ackerson Drive, directly east of the casino property. “Traffic’s not really been much different. Everything’s moved pretty smooth.”

The tribe in October 2008 signed a $1.1 million agreement with Emmett Township for Emmett to police the casino around the clock for three years. The tribe pays for five cross-trained police, fire and emergency medical public safety officers and a new patrol car for the township, which is housed at the casino. Fire or medical calls are handled and paid for on a per-call basis.

Four months after the casino’s opening, “Things are going very good,” Cunningham said.

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Dicara v. Cahuilla Band — Immunity Waiver in Gaming Contract Dispute

Matthew L.M. Fletcher

Here is the opinion from the California Court of Appeals (4th Dist., Div. 2).

An excerpt:

The trial court issued a postjudgment assignment order (Code of Civ. Proc., § 708.510) against the Cahuilla Band of Indians (Cahuilla), in favor of Mary DiCara dba Scott Leasing (Scott). Cahuilla contends the assignment order should be reversed because (1) the superior court did not have jurisdiction to issue the order; (2) the lease agreement, upon which the underlying damage award was based, was void since inception; and (3) federal law and Cahuilla’s revenue allocation plan preempt the superior court’s order. Scott contends that it should be awarded attorney’s fees on appeal. We affirm the judgment and award attorney’s fees to Scott.

The trial court issued a postjudgment assignment order (Code of Civ. Proc.,§ 708.510)1, 2 against the Cahuilla Band of Indians (Cahuilla), in favor of Mary DiCaradba Scott Leasing (Scott). Cahuilla contends the assignment order should be reversedbecause (1) the superior court did not have jurisdiction to issue the order; (2) the leaseagreement, upon which the underlying damage award was based, was void sinceinception; and (3) federal law and Cahuilla’s revenue allocation plan preempt thesuperior court’s order. Scott contends that it should be awarded attorney’s fees onappeal. We affirm the judgment and award attorney’s fees to Scott.

News Coverage of LTBB Casino General Manager Hiring

Matthew L.M. Fletcher1 Comment

From the Petoskey News-Review:

The Little Traverse Bay Bands of Odawa Indians Tribal Council did not take action Sunday, during its regular meeting, to suspend the hiring process for a new general manager at the casino.

According to John Bott, tribal council member, the action request item was presented by tribal chairman Ken Harrington, but was not fully explained.

“We never got an explanation as to what it was about,” Bott said. “As a result, no action was taken, and no motion was made.”

The tribe began its search for a new general manager for the casino after Sean Barnard, who had been in the position since May of 2008, tendered his resignation on Nov. 23, making his last official day Dec. 4.

Harrington said he couldn’t fully explain the reason he brought this potential hiring suspension to the tribal council, but said it was directly linked to tribe’s current renegotiation process for the casino’s financing.

“(The reason) is tied to a confidential report, and I can’t go into great detail,” he said. “I wanted to slow the (hiring) process down until we were complete with the forbearance agreement … there might still be some unknowns.” Continue reading →

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).