Seminole Tribe of Florida

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.

Florida Seminole Tribe to Seek Compact through Secretarial Procedures

January 15, 2010Matthew L.M. Fletcher

From the Orlando Sentinel:

After the Legislature voted down a proposed revenue-sharing deal Thursday, the Seminole Tribe will now turn to the federal government for authority to run its casinos that feature slots and blackjack, tribe attorney Barry Richard said in an interview.

Richard said that the tribe remains open to negotiate more with the Legislature, but “we’ve reached the conclusion that it’s time to begin looking at other options.”

“We made a vigorous effort to work this out,” he said. “We had two separate compacts with the governor. We made giant strides toward negotiation with the Legislature. It’s disappointing – the tribe can’t continue to wait forever.”

The tribe will enter a formal process known as “procedures,” in which it will ask the federal government for authorization to keep its blackjack tables open, even though there’s no compact in place to allow such table games. Continue reading →