gaming

Pokagon Band Settles Revenue Sharing Dispute & Amends Gaming Compact

Matthew L.M. Fletcher

From the Business Review Western Michigan:

Amendments to the Pokagon Band of Potawatomi Indians’s gaming compact will give the state an immediate $15 million and give the tribe the right to open limited satellite casinos in Hartford and Dowagiac, Gov. Jennifer Granholm’s office announced today.

The amended compact resolves issues between the state of Michigan and the tribe that led to the Pokagon Band’s withholding revenue-sharing payments to the state for most of the 14 months its Four Winds Casino in New Buffalo Township has been open.

The band contended the state’s Club Keno game eliminated the tribe’s exclusive rights to operate electronic games of chance. The exclusivity provision was deleted from the amended compact. As a result of this change, the band immediately will make an initial annual payment of more than $15 million to the state.

Similar disputes between the Little River Band of Ottawa Indians and the Little Traverse Bay Bands of Odawa Indians were resolved earlier this year. Amendments to compacts do not require approval of the state legislature.

The amendments to the 1998 compact extend the life of the compact from 2018 to 2028, to ensure a full 20 years, as the original compact intended, according to the joint announcement. A series of lawsuits delayed the casino’s opening to August 2008.

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NYTs on the Wind River Casino

Matthew L.M. Fletcher

From the NYTs:

Last week I was in Wyoming, driving westward on the southern edge of a big winter storm. For dozens of miles, sheets of snow arced across the still-dry pavement. After a long while, I made out the welcome lights of Shoshoni. When you find yourself longing for the lights of Shoshoni — the glow of a gas station — you know the driving has been hard.

I joined a convoy of vehicles coming out of Riverton and up the hill past the Wind River Casino, which was shrouded in a nimbus of snow. We slithered along at school-zone speeds, barely 20 miles an hour. Across the highway, the drivers of two pickups climbed into the ditch to check on a car whose headlights were now pointing up at the overcast, snow corkscrewing down into the angled beams. At last, I came down the hill into Lander, where two feet of heavy autumn snow would fall in the next 36 hours.

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Economic Crisis and Impact on Michigan Indian Casinos

Matthew L.M. Fletcher

From TV:

ARENAC COUNTY (WJRT) — (10/15/08)–Wednesday brought more trouble on Wall Street as the Dow closed down more than 700 points.

Economic disappointments like this not only have investors worried, but also have people all over the nation cutting expenses.

That includes entertainment. Casinos in Las Vegas and Atlantic City are reporting big drops in revenue. But how are Mid-Michigan’s casino’s doing?

The Saganing Eagles Landing Casino near Standish was packed today and that has pretty much been the pattern ever since it opened on New Year’s Day.

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A Hidden Cost of Tribal Per Capita Payments?

Matthew L.M. Fletcher

Standards and Poor’s lowered the credit rating of the Mashantucket Pequot Nation (H/T Indianz), making this statement:

The ‘BB-‘ rating reflects the Tribe’s high debt leverage, limited geographic diversity, and significant historical and expected distributions to Tribal members. These factors are partially tempered by the favorable demographics of the Connecticut market and limited new competition expected over the next two to three years.

Here are the factors that contribute to the higher cost of tribal credit: (1) high debt; (2) limited geographic diversity; and (3) high per caps. The first two can’t really be helped, but the per caps can be limited. Indian tribes should seriously consider limited or eliminating per caps. At least until the economy comes back.

Luna Gaming v. Dorsey & Whitney and Holland & Knight

Matthew L.M. Fletcher

Here are the materials in this ongoing contract and legal malpractice claim against two major law firms and a few lawyers by an Indian gaming developer. The court just granted partial summary judgment in favor of the firms, with some claims against Dorsey still remaining.

dorsey-whitney-motion-for-summary-judgment

holland-knight-motion-for-summary-judgment

luna-gaming-opposition-to-dorsey-motion

luna-gaming-opposition-to-holland-motion

luna-gaming-v-dorsey-dct-order

Soo Tribe Selling Greektown

Matthew L.M. Fletcher

From Indianz:


The Sault Ste. Marie Tribe of Chippewa Indians is trying to find a buyer for the troubled Greektown Casino in Detroit, Michigan.

The tribe owns a majority stake in the commercial facility, which is reorganizing in federal bankruptcy court. A sale is to take place by February 16, though the city is pressing for an earlier date. Greektown is the last of Detroit’s three casinos to put up a complete a required 400-room resort hotel, The Detroit News reported. The paper said a minority owner is interested in buying the casino, which has missed revenue projections and missed loan covenants as part of the bankruptcy proceedings.

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Maldonado v. Yakama Tribal Gaming — ICRA Case Dismissed

Matthew L.M. Fletcher

The Eastern District of Washington dismissed a claim under the Indian Civil Rights Act brought by a fired employee of the Yakama Tribal Gaming Corporation. The court rejected the application of the so-called Dry Creek Lodge doctrine.

Here is the order.

Bay Mills Resort & Casino v. Gerbig — Gambling Debt Suit

Matthew L.M. Fletcher

The Michigan Court of Appeals held that Michigan law relating to accounting and cash handling does not apply to Indian gaming operations, the defense raised by a defendant in a claim by the casino for $23,000 in gambling debts. The trial court had awarded $4000. The COA raised that to the full amount. Here is the unpublished opinion.

San Pasqual v. California Decision

Matthew L.M. Fletcher

As Indianz reports, the Ninth Circuit reversed the lower court decision dismissing the case on Rule 19(!) grounds. Here is the unpublished opinion.

And here is a link to the briefs.

Chao v. Spokane Tribe Materials

Matthew L.M. Fletcher

See our earlier post on the W.D. Wash. decision not to quash an administrative subpoena in a FLSA investigation against the Spokane Tribe’s gaming operations. Here are the rest of the materials:

dol-motion-to-enforce-subpoena

spokane-motion-to-quash

dol-reply-brief

R&R

dol-objections

spokane-response-to-dol-objections

DCT Opinion