Mashantucket Pequot

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.

“Reservations Rebuffed” — Article on Off Rez Gaming Policy

Matthew L.M. Fletcher

From CQ Politics:

Tribal casinos, which have bulked into a multibillion-dollar industry since Congress first gave them its blessing two decades ago, now possess all sorts of economic and political clout — but not enough, it seems, for them to go off the reservation.

American Indians marooned on reservations far from population centers have long pressed the Interior Department to grant them the authority to launch gambling operations closer to where the people willing to risk their money live — and rake in the sort of revenues that the more fortuitously situated tribes have enjoyed.

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Sovereignty and NLRB Subpoenas

Matthew L.M. Fletcher

Does the National Labor Relations Board have authority to issue subpoenas to tribal cops?

From the New London Day:

Sovereignty Takes Center Stage in NLRB Hearing

HARTFORD – Today’s National Labor Relations Board hearing on the unionization of casino dealers began with a fiery debate on sovereign immunity.

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Interesting Legal Argument on Unions in Tribal Casinos

Matthew L.M. Fletcher

From the blog On the Wings of Eagles….

NLRB Foxwoods Decision — October 24, 2007

Matthew L.M. Fletcher2 Comments

The decision of the regional NLRB director in the Foxwoods Casino case is here.

One interesting passage from this opinion:

“I find particularly unpersuasive the Employer’s claim, unsupported by record evidence, that “a strike against the Tribal Gaming Enterprise would severely disrupt the Tribe’s continuing ability to provide essential services” to its constituent members.  As previously indicated, the Employer has annual gross revenues in excess of $1 billion, and approximately 98% of the Tribe’s revenues are derived from the operation of Foxwoods. Thus, approximately 2 percent of the Tribe’s annual income, at least $20,000,000, is derived from outside sources. The record does not indicate the Tribe’s capital reserves, or the amounts needed to fund any of its essential services. Therefore, even if the Employer were to face a protracted strike, there is no evidence that it would have insufficient revenues and/or capital to provide the Tribe’s 900 members with any essential public service.

But what about tribal casinos that don’t make that kind of money or have larger memberships? Hmmm….