gaming

Seminole/Hard Rock Credit Rating Affected by Distribution of Casino Revenues to Tribal Members

Matthew L.M. Fletcher1 Comment

From St. Pete Times:

Two top credit rating agencies Wednesday downgraded their ratings on the Seminole Tribe of Florida, citing chronic problems with the tribe’s internal financial controls governing funds associated with their extensive casino gambling operations.

The downgrade reflects the inability to resolve the tribal government’s “long track record of weak internal controls with respect to financial and accounting practices,” said Fitch Ratings, which resulted in the June 3 notice of violation from the National Indian Gaming Commission.

Rating agency S&P said it put the tribe on “credit watch with negative implications” as well as its affiliates, Seminole Hard Rock Entertainment Inc. and Seminole Hard Rock International LLC. S&P also cited the gaming commission’s notice about the improper uses of gaming revenues by certain tribal members, including members of the tribal council. The Seminole Hard Rock Casino has locations in Tampa and Hollywood in South Florida.

Sault Tribe Chair Joe McCoy on the Loss of Greektown Casino

Matthew L.M. Fletcher

Well, they sent it to me, so I’ll post it:

I write this memo to our tribal and casino team members to inform you that after more than two years in Chapter 11 reorganization, the Michigan Gaming Control Board (MGCB) transferred the license of Greektown Casino from the Tribe to a group of private hedge funds and investors from other states.  This happened yesterday at a special meeting of the MGCB in Detroit.  We anticipate that next week, ownership of the casino will be legally transferred to the group.

The transfer occurred after the MGCB conducted a relatively abbreviated background check of the new owners. We strongly objected to this decision. Concerns were also raised by state Representative Gary McDowell, D-Rudyard, Republican candidate for governor Mike Bouchard (who wrote the state law that governs the three Detroit casinos when he was in the state Senate), state Senate Majority Leader Michael Bishop, R-Troy, and Congressman Bart Stupak, D-Menominee. Unfortunately, the MGCB ignored all the concerns and abandoned its own rules and the process it has used over the years to license casino owners.

The board and I spent many days, weeks, and months reviewing plans and proposals that would allow us to keep a stake in Greektown. Though some might disagree, I truly believe we did all we could to save our interest in this investment.  Now that this decision has been made, it is time for the Tribe to examine other opportunities we have to grow our revenue stream securing membership services for years to come.

Federal Sexual Harassment Claims against Miss. Band Choctaw Dismissed

Matthew L.M. Fletcher

Here are the materials in Copeland v. Mississippi Band of Choctaw Indians dba Silverstar Casino (S.D. Miss.):

DCT Order Dismissing Copeland Complaint

Mississippi Band Motion to Dismiss

Tribal Court Record Part 1

Tribal Court Record Part 3

DOI Letter re: Little River Band Off-Reservation Gaming Application

Matthew L.M. Fletcher

Interesting reading: Bert Johnson from Paula Hart — Compact Letter 6.16.10.

Does the Michigan Gaming Control Board Have Immunity from Race Discrimination Claims?

Matthew L.M. Fletcher

Seems like a worthy research item, after reading this and the general shoddy treatment the Board has given the Sault Tribe all these years.

From Indianz:

The Michigan Gaming Control Board approved the transfer of the Greektown Casino Hotel in Detroit to a new group of owners over protests from members of the Sault Ste. Marie Tribe of Chippewa Indians.

Tribal members were upset because the tribe had to undergo an extensive investigation before obtaining the state license. The board waived the requirement for the new owners.

“A rubber glove in a doctor’s office is thorough. This was beyond that,” D.J. Hoffman, a member of the tribe’s board, said of his background check, The Detroit Free Press reported.

“It’s not fair to us,” added tribal member Denise Chase, The Detroit News reported. “You investigated us for two years.”

The tribe could have found new investors for the casino had it known about an exemption, tribal members said. “I’m just hoping that you apply the same standards that you expected of our tribe and our people,” Lana Causeley said, The Detroit News reported.

The casino went through bankruptcy proceedings.

Indian Gaming Applications Memorandum

Kate Fort

While it’s not the memorandum floating around the Michigan state capitol from Interior to Rep. Bert Johnson regarding the Little River request, this press release and memorandum were released yesterday by Interior. (h/t Indianz).

Eastern Shawnee Tribe Also Awarded Injunction against Oklahoma Courts in Gaming Compact Disputes

Matthew L.M. Fletcher

Here is the opinion: Eastern Shawnee Tribe v. State of Oklahoma.

The Tribe’s motion for summary J and its complaint were posted earlier today here.

Eastern Shawnee Complaint and Motion for Summary J in Gaming Compact Arbitration Case

Matthew L.M. Fletcher1 Comment

Similar to the Chickasaw and Choctaw case we noted last week.

Here are the materials in Eastern Shawnee Tribe v. Oklahoma:

2010172 – ESTOO v. OK – Complaint – FILE-STAMPED 5.4.10 – 1 –

2014075 – ESTOO v. OK – Plaintiff ESTOOs Motion for Summary J

Little River Withdraws Petition for Land into Trust, Will Likely Resubmit

Kate Fort

From 6/25/10 MIRS (subscription only):

Feds Nix Indian Casino Expansion, For Now
At least for the time being, the U.S. Department of the Interior delayed a Michigan Native American tribe’s plan to move forward with a casino project near the site of the now-defunct Great Lakes Downs Racetrack near Muskegon.

The Little River Band of Chippewa Indians wants to open a casino on the Great Lakes Downs location. The tribe was one of the four tribes that compacted with the state in 1998 for the right to operate class III (Las Vegas style) casinos. It currently operates a casino in Manistee.

Because the location is not within current tribal boundaries, there are several hurdles the tribe would need to clear in order to operate a casino at the Muskegon site. One hurdle has already been cleared. On March 19, Gov. Jennifer GRANHOLM signed two amendments to the state’s compact with the Little River band that would let it build the new casino.

The Governor attached her signature after a deal was negotiated between her administration and the tribe.

“It would mean considerable revenues,” John WERNET, deputy legal counsel told MIRS today. “The good news would be that this would mean more dollars for the School Aid Fund (SAF). The bad news is that this would take years before it happened.”

The next step would be to have the Legislature approve one of the amendments. This is HCR 0054, sponsored by Rep. Doug BENNETT (D-Muskegon), which is currently before the House Regulatory Reform Committee.

Meanwhile, the other amendment to the compact was sent to the U.S. Department of Interior for approval. That’s where the project hit a roadblock.
Continue reading →

Choctaw and Chickasaw Nations Win Injunction against Oklahoma Courts for Accepting Jurisdiction over Claims under their Gaming Compact

Matthew L.M. Fletcher

Here is the order in Choctaw Nation and Chickasaw Nation v. State of Oklahoma (W.D. Okla.): choctawchickasaworder.

If you’ll recall, the Oklahoma Supreme Court in a series of cases held that state courts were “courts of competent jurisdiction” to take jurisdiction over tort claims brought under a Class III gaming compact approved by Oklahoma voters and, later, several Oklahoma tribes.

Oklahoma tribes (with the State consenting) then invoked the arbitration provision of the compacts, arguing the Supreme Court had violated the terms of the compact. They were successful.

This federal suit followed. Very interesting case.