Indian gaming

Burt Lake Legislative Backers View Casino as a Long Shot

Matthew L.M. Fletcher1 Comment

From the radio (?!?!), via Pechanga:

State Rep. Matt Lori reports that – after looking into the possibility of changing state gaming laws to allow the Burt Lake Band to establish an Indian casino in Sturgis – believes the chances are slim.

The Burt Lake Band has tried and failed to receive federal recognition as a tribe four times.  Without federal recognition, they are unable to establish a casino under state gaming laws.

At the request of local developers hoping to bring a casino and the jobs that come with it to the area, Lori agreed to investigate whether it is possible for the tribe to gain official recognition from the state, and modify current Michigan gaming laws to allow the project to move forward.  However, after consulting with legislative legal advisors and leaders in both the House and Senate, Lori said he did not believe it is a feasible option.

“I recognized the potential economic impact in terms of jobs and increased tourism a casino would bring to the area which is why I was willing to look into this issue, but it doesn’t seem possible at the current time,” said Lori, of Constantine.  “The legal hurdles combined with the dynamic in the Legislature are too much to overcome.”

Senator Cameron Brown previously said he believed it would not be possible to gain recognition from the state and modify gaming laws, and Lori’s investigation confirms that position.

“From my point of view it would be fruitless to continue pursuing legislation that has very little hope of succeeding at this time.  Rather than give people false hope, I think we need to move on to find another solution,” Lori said.

Lori said he is willing to meet with developers and city officials on how to best proceed.

Seneca Allowed to File Amicus in Challenge to Seneca Gaming Laws

Matthew L.M. Fletcher

Here is the district court order in Warren v. United States (W.D. N.Y.) — DCT Order re Seneca Amicus Motion

Seneca Motion for Leave & Amicus Brief

Legal Analysis of Restructuring Tribal Gaming Enterprise Debts

Matthew L.M. Fletcher

From Gaming Industry Media (via Indianz):

The issue of casino bankruptcies in Indian country is tricky – and evolving. We turned to former National Indian Gaming Commissioner Tom Foley to analyze the situation. Foley, who works closely with Spectrum Gaming Group (publisher of this newsletter) and is a founding member of the PACE/Minnesota government relations firm, wrote this analysis with PACE partner Kevin Quigley and Bill Fisher of the Gray Plant Mooty law firm.

Over the last two decades Indian gaming has grown from a handful of modest-sized bingo facilities in a few states into a $26 billion industry with over 425 tribal gaming establishments operated by 230 tribes in 28 states, many such operations being large-scale casino destination resorts offering Class III gaming. Tribes and others (bondholders, bank syndicates, development/management companies) have leveraged significant investments to fuel this growth, betting heavily on the long-term success of the gaming projects.

In doing so, the question  lurking in the minds of many investors (and seldom considered likely to need a definitive answer) has been: What happens if the bet goes bad? The recent credit freeze and recession has thrust this question to the forefront of the industry, particularly for creditors holding substantial Indian gaming debt. Like many issues involving the Indian gaming industry, the answer – and related issues – is yet to be discovered and is evolving with the law.

Commercial gaming debt restructurings are generally made against the backdrop of a well-defined and understood set of legal parameters (i.e. the U.S. Bankruptcy Code). But even here, there is some uncertainty as to the interplay of the bankruptcy laws and state gaming regulatory requirements.

Attempts to restructure tribal gaming debt will only add a number of other variables to the equation and impact several different interested parties (tribal operators, tribal members and casino employees, management companies, lenders/bondholders). Each of these will have a perspective about how the law should address tribal gaming debt restructurings that may, or may not, be consistent with the others.

Some of the questions that will need to be resolved include:

  • Do U.S. bankruptcy laws apply to tribal gaming debt restructurings?
  • What impact will tribal sovereignty and gaming laws have on restructuring attempts?
  • How will the Indian Gaming Regulatory Act, and regulations adopted by the National Indian Gaming Commission interplay with “usual” debt work-out negotiations?

Continue reading →

Shinnecock Gaming and Federal Recognition News

Matthew L.M. Fletcher

From the NYTs:

The Shinnecock Indian Nation cleared a major hurdle toward its goal of federal recognition on Tuesday when it entered into a settlement with the Interior Department that requires a preliminary ruling on its tribal status by the end of the year.

Shinnecock leaders would like to run the first casino in downstate New York, and wrote to Gov. David A. Paterson on Tuesday, citing the settlement as an impetus to begin talks with the state on a range of issues.

After a court fight of more than 30 years, the Shinnecocks believe that federal recognition is in their grasp; they have long been recognized by the state, and a federal judge described them as a sovereign tribe in a 2005 ruling. The settlement gives the federal government until Dec. 15 to make a preliminary ruling on the Shinnecocks’ status.

The implications for New York could be considerable.

Continue reading →

Op-Ed on Pokagon Band Revenue Sharing

Matthew L.M. Fletcher

From Indianz:

“The release of $6.2 million in revenue sharing from the Four Winds Casino to local governmental units this month was welcome news. The schools, libraries, New Buffalo township and city, Berrien County, as well as the state of Michigan, sorely need the funds that had been accruing since the Pokagon band of the Potawatomi Indians opened the New Buffalo casino in 2007. This first revenue sharing payment was nearly a year and a half overdue. Meanwhile, the entities kept anteing up services, including police protection and road work, to support the gaming operation. This month’s distribution of funds ought to be the start of something good for both the Pokagons and the community. The cash-strapped governmental units should now receive an annual infusion of money to provide needed services. And those entities that helped establish the Four Winds will have good reason to support the Pokagons’ enterprise. ”

Get the Story:
Editorial: Governmental units win with casino payout (The South Bend Tribune 5/19)

Meister, Rand and Light on Diversifying Tribal Economies

Matthew L.M. Fletcher

Alan Meister, Kathryn Rand, and Steve Light have published their paper “Indian Gaming and Beyond: Tribal Economic Development and Diversification” in the South Dakota Law Review as part of a symposium on tribal economic development.

Here is the paper — Meister et al. Article on Tribal Econ Development

Pokagon Band Revenue Sharing Update

Matthew L.M. Fletcher

From tv (via Pechanga):

It’s an apparent case of ‘better late than never.’ The tribal owners of the Four Winds Casino are about to make good on a promise to share revenue with the communities that are closest to the facility.

The break through came today in New Buffalo.

During the first 20-months of operation, the promised payments were placed in an escrow account by the tribe that owns the casino. The account is said to contain at least $6.2 million.

Today the Pokagon Band of Potawatomi Indians started the process of releasing the cash.

Continue reading →

District Court Dismisses Challenge to Graton Rancheria Casino

Matthew L.M. Fletcher

Indianz’ report is here. Here are the materials in Stop the Casino 101 Coalition v. Salazar (N.D. Cal.):

stop-the-casino-dct-order

salazar-motion-to-dismiss

graton-rancheria-motion-to-dismiss

SCT Denies Cert in California Revenue Sharing Cases

Matthew L.M. Fletcher

The Supreme Court denied cert earlier this week in two of the cases that are part of a trilogy of California gaming cases (here is the Court’s order list). Those cases were docket nos. 08-931 (CACHIL DEHE BAND OF WINTUN) and 08-1030 (RINCON BAND OF LUISENO MISSION). A third petition is still pending, but one expects that one to be denied as well (no. 08-1208 — San Pasqual).

All of the petitions are available here.

Burt Lake Band May Pursue Casino under State Law Without Federal Recognition

Matthew L.M. Fletcher1 Comment

From Indianz:

The Burt Lake Band of Ottawa and Chippewa Indians doesn’t need federal recognition to open a casino in Michigan, a lawyer for the tribe said.

The tribe can pursue state approval for a casino in Sturgis, said John Dresser, of Dresser, Dresser, Haas and Caywood. “A bill will have to be introduced, passed by a simple majority in the House and Senate, has to be signed by Gov. Granholm, and we can rock and roll from there,” Dresser told Business Review Western Michigan. The process would take much longer if the tribe was recognized, according to Dresser. He said new regulations would limit where the tribe could pursue a casino.

Get the Story:
Truck stop with casino seen as a quick economic fix for Sturgis (Business Review Western Michigan 2/17)