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Monday, November 30, 2009
Mashpee Wampanoag Tribe Exiting Relationship With Prior Investors And Signing On Malaysians That Backed Foxwoods
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This installment of The Tribes In The Media is a Boston Globe article outlining reports that the Mashpee Wampanoag Tribe of Massachusetts has switched investors, changing from principal investors Sol Kerzner and Len Wolman and moving to new investors - the Malaysian group that financed Foxwoods at its inception.
Wampanoag cut ties with casino investors
Now in negotiations with Malaysian firm
By Christine Legere
The Boston Globe
November 30, 2009
The Mashpee Wampanoag tribe is dissolving its partnership with two investors to develop a Middleborough casino and making a new start with an international investment group that boasts a strong track record for building successful gambling resorts.
New investors could put the project on steadier footing at a time when gaming is likely to get its most favorable airing yet on Beacon Hill early next year. But the tribe faces a number of obstacles, including the possibility that the state Legislature may legalize expanded gambling next spring, giving locations like Suffolk Downs a jump on Middleborough.
Wampanoag Tribal Council vice chairman Aaron Tobey said yesterday that investors Sol Kerzner and Len Wolman have agreed in principle to bow out of the project. The pair had been backing the tribe for more than two years, after striking an agreement with former Tribal Council chairman Glenn Marshall. Marshall was convicted of fraud and embezzlement and is currently serving a 3 1/2-year prison term.
A new slate of Tribal Council members refused to reaffirm their agreement with Wolman and Kerzner last spring, saying it was unfair to the Wampanoag tribe. The investors subsequently ceased to make agreed-upon payments to the tribe - a sign the rela tionship was unraveling.
The 500-acre target site in Middleborough will be turned over to the tribe under the terms of the breakup. “The tribe is turning the page and moving forward with investors who are committed to our goals,’’ Tobey said.
The tribe said yesterday its leaders are negotiating an agreement for a “world class’’ resort-style gambling facility with Arkana Limited, a wholly-owned affiliate of Malaysian investment group Kien Huat.
Dennis Whittlesey, the Washington lawyer who helped Middleborough craft its multimillion-dollar casino agreement with the Wampanoag tribe, said the change in the investment team should bode well. “They have a lot of money and they are experienced in getting projects done,’’ Whittlesey said of the Malaysian group. “Depending on the terms of the deal, this could be a very positive development.’’
In the United States, Kien Huat affiliates financed the startups of Foxwoods Resort and Casino in Connecticut in 1992 and the Seneca Niagara Casino in New York in 2002. Worldwide, Kien Huat affiliates maintain substantial interests in a group of companies actively involved in gaming, leisure, cruise, power generation, plantations, property development, biotechnology, and oil and gas.
Kerzner and Wolman, meanwhile, recently filed for bankruptcy for their jointly owned Twin Rivers casino in Rhode Island.
“I suspect the Malaysian group saw a good opportunity with the Wampanoag,’’ said casino specialist Clyde Barrow, a professor at the University of Massachusetts in Dartmouth’s Center for Policy Analysis. “And those investors are very successful with casinos.’’ But Barrow said the tribe faces other obstacles. “Unless they are willing to do some type of arrangement with the state, I think you’ll see other Massachusetts casinos open three to five years before a tribal casino,’’ he said.
Tribal leaders have no plans to meet with Governor Deval Patrick to discuss how the tribe’s proposal fits into the consideration for expanded gaming in Massachusetts, Tobey said.
Rev. Richard McGowan, a Boston College economics professor who studies gambling, said the switch in investors makes the tribe’s position a little more solid.
“It puts them in a better position, but there are still a lot of hurdles,’’ McGowan said. “I don’t think the governor is going to let the tribe take over a casino at a racetrack. And if the Legislature allows casino gambling at places like Suffolk Downs and Wonderland, I don’t see how a casino in Middleborough is ever going to compete.’’
One hurdle the tribe faces could be removed in the coming months. A recent Supreme Court ruling bars the US Department of the Interior from placing land into trust for tribes recognized after 1934, which has stalled the Mashpee Wampanoag’s application to put the Middleborough casino site into trust. “In five or six months, I expect to see legislation correcting that decision,’’ Whittlesey said.
Middleborough Selectwoman Marsha Brunelle said she was unaware of the tribe’s tentative agreement with the new investors. But she maintained it is not likely to have any impact on the town’s deal. “Our agreement is with the tribe,’’ she said. “If they go with different investors, that’s up to them.’’
This installment of The Tribes In The Media is a Boston Globe article outlining reports that the Mashpee Wampanoag Tribe of Massachusetts has switched investors, changing from principal investors Sol Kerzner and Len Wolman and moving to new investors - the Malaysian group that financed Foxwoods at its inception.
Wampanoag cut ties with casino investors
Now in negotiations with Malaysian firm
By Christine Legere
The Boston Globe
November 30, 2009
The Mashpee Wampanoag tribe is dissolving its partnership with two investors to develop a Middleborough casino and making a new start with an international investment group that boasts a strong track record for building successful gambling resorts.
New investors could put the project on steadier footing at a time when gaming is likely to get its most favorable airing yet on Beacon Hill early next year. But the tribe faces a number of obstacles, including the possibility that the state Legislature may legalize expanded gambling next spring, giving locations like Suffolk Downs a jump on Middleborough.
Wampanoag Tribal Council vice chairman Aaron Tobey said yesterday that investors Sol Kerzner and Len Wolman have agreed in principle to bow out of the project. The pair had been backing the tribe for more than two years, after striking an agreement with former Tribal Council chairman Glenn Marshall. Marshall was convicted of fraud and embezzlement and is currently serving a 3 1/2-year prison term.
A new slate of Tribal Council members refused to reaffirm their agreement with Wolman and Kerzner last spring, saying it was unfair to the Wampanoag tribe. The investors subsequently ceased to make agreed-upon payments to the tribe - a sign the rela tionship was unraveling.
The 500-acre target site in Middleborough will be turned over to the tribe under the terms of the breakup. “The tribe is turning the page and moving forward with investors who are committed to our goals,’’ Tobey said.
The tribe said yesterday its leaders are negotiating an agreement for a “world class’’ resort-style gambling facility with Arkana Limited, a wholly-owned affiliate of Malaysian investment group Kien Huat.
Dennis Whittlesey, the Washington lawyer who helped Middleborough craft its multimillion-dollar casino agreement with the Wampanoag tribe, said the change in the investment team should bode well. “They have a lot of money and they are experienced in getting projects done,’’ Whittlesey said of the Malaysian group. “Depending on the terms of the deal, this could be a very positive development.’’
In the United States, Kien Huat affiliates financed the startups of Foxwoods Resort and Casino in Connecticut in 1992 and the Seneca Niagara Casino in New York in 2002. Worldwide, Kien Huat affiliates maintain substantial interests in a group of companies actively involved in gaming, leisure, cruise, power generation, plantations, property development, biotechnology, and oil and gas.
Kerzner and Wolman, meanwhile, recently filed for bankruptcy for their jointly owned Twin Rivers casino in Rhode Island.
“I suspect the Malaysian group saw a good opportunity with the Wampanoag,’’ said casino specialist Clyde Barrow, a professor at the University of Massachusetts in Dartmouth’s Center for Policy Analysis. “And those investors are very successful with casinos.’’ But Barrow said the tribe faces other obstacles. “Unless they are willing to do some type of arrangement with the state, I think you’ll see other Massachusetts casinos open three to five years before a tribal casino,’’ he said.
Tribal leaders have no plans to meet with Governor Deval Patrick to discuss how the tribe’s proposal fits into the consideration for expanded gaming in Massachusetts, Tobey said.
Rev. Richard McGowan, a Boston College economics professor who studies gambling, said the switch in investors makes the tribe’s position a little more solid.
“It puts them in a better position, but there are still a lot of hurdles,’’ McGowan said. “I don’t think the governor is going to let the tribe take over a casino at a racetrack. And if the Legislature allows casino gambling at places like Suffolk Downs and Wonderland, I don’t see how a casino in Middleborough is ever going to compete.’’
One hurdle the tribe faces could be removed in the coming months. A recent Supreme Court ruling bars the US Department of the Interior from placing land into trust for tribes recognized after 1934, which has stalled the Mashpee Wampanoag’s application to put the Middleborough casino site into trust. “In five or six months, I expect to see legislation correcting that decision,’’ Whittlesey said.
Middleborough Selectwoman Marsha Brunelle said she was unaware of the tribe’s tentative agreement with the new investors. But she maintained it is not likely to have any impact on the town’s deal. “Our agreement is with the tribe,’’ she said. “If they go with different investors, that’s up to them.’’
Sunday, November 29, 2009
A Perspective On The Mashantucket's Financial Situation
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The following installment of The Tribes In The Media is an article in today's Hartford Courant on the possible precedent setting situation of the Mashantucket Pequot's financial crisis.
Many Eyes Watching Foxwoods' Negotiations With Creditors
By Eric Gershon
The Hartford Courant
November 29, 2009
When the Mashantucket Pequot Tribal Nation disclosed that it failed to make a large scheduled debt payment Nov. 16, the owner of Foxwoods Resort Casino left no doubt that it faces the sort of financial stress that could drive a business into bankruptcy court.
Debt rating agencies pounced, branding the tribe a defaulter. Despite hundreds of millions of dollars in revenue from slot machines alone, the tribe fell $7 million short of a $21 million payment.
But as Foxwoods limps into the holiday season — traditionally a weak time for business at the casino — the Pequots' situation isn't as desperate as it would be for a regular private business.
As a sovereign nation, the tribe doesn't operate under all the same rules: It can't be forced into Chapter 11 bankruptcy, so its creditors have unusually limited ability to compel payment.
Some legal experts doubt whether the Mashantuckets could even qualify for a voluntary Chapter 11 filing, an option that might benefit the tribe as a way of easing the load of its more than $2 billion in debt.
For now, creditors have little choice but to negotiate with the tribe. The terms the Pequots offer — and the terms that creditors ultimately exact — will affect more than the parties involved, and Native American business interests nationwide are paying close attention.
The outcome could influence every tribal casino operator that might need to restructure debt — or borrow money in the future.
"Foxwoods is going to set the precedent," said Greg Guedel, chairman of the Native American Legal Services Group for the Seattle law firm Foster Pepper. "It's such a significant business enterprise that it is probably going to become a model, good or bad, for whatever happens subsequently."
Because the tribe does not issue public financial reports other than slot revenue (25 percent of which goes to the state of Connecticut) it's difficult for outsiders to gauge how deep Foxwoods' financial troubles are. The Pequots have said their debt restructuring is "separate and distinct from operations at Foxwoods" and "will not have any impact on guests, employees, suppliers or business partners at Foxwoods and MGM Grand at Foxwoods," which employ about 9,000 people — down from 11,000 in October 2008.
Still, it remains unclear whether the problems that led to the restructuring will force more cost-cutting.
Bankruptcy Possible
The Pequot tribe opened Foxwoods in 1992 and has since turned it into the nation's largest casino.
On Nov. 16, the tribe said it failed to deliver in full a scheduled payment on a $500 million debt and expects to enter default. The announcement followed the tribe's disclosure last August that it had hired an investment bank to help restructure its debt.
The tribe would not comment on its financial circumstances this week. But in an interview Tuesday, a source familiar with the tribe's thinking said a bankruptcy filing is not totally out of the question, even though the tribe prefers to continue negotiating directly with debt holders.
"On surface, that does appear to be potentially difficult," the source said of a bankruptcy filing. "But in no way are we ruling it out. It's not something that appears to be top of the list in terms of viability."
Guedel said a voluntary bankruptcy is effectively impossible for political reasons within the tribe, but he does not view it as impossible: "I think if you had a tribal business that decided, 'The best thing we can do here is file for Chapter 11,' I think they could do it."
Like casinos nationwide, revenues at Foxwoods have plunged. Between the 2004-05 fiscal year and the end of the 2008-09 fiscal year in June, slot revenue fell by 13.5 percent from an all-time high of $820 million to $709 million, the smallest total in a decade.
Slot revenue this past July through October was down further — 9 percent from the prior year.
At a time of cost-cutting, that doesn't fully explain how the tribe became unable to deliver a semiannual $21.25 million debt payment.
The broader explanation holds that the onset of recession in late 2007 coincided with Foxwoods' massive, highly leveraged expansion, namely the addition of MGM Grand at Foxwoods, which opened the following spring amid a hiring spree.
Pressure From Tribes
The Pequots' failure to make the Nov. 16 debt payment underscored the nature of the unusual risk borne by investors in tribal casinos.
"If it was a typical U.S. corporation, then the lenders would have more leverage at the negotiating table," said Craig Parmelee, a managing director at Standard & Poor's who follows the gambling industry. "They could accelerate their loans, demand full payment today. And if they were to do that, that would force the corporation to file for bankruptcy protection. And we have a well established process through our bankruptcy courts where the situation gets worked out thereafter.
"Often in those situations, the lenders take control of the company and can sell it and/or operate it. In case of a tribe, they can still accelerate and demand payment today. The problem is that doesn't take you down the same path."The Pequots may be insulated from a forced bankruptcy, but they nonetheless face pressure to deal with creditors fairly, for their own sake and that of other tribal casino operators.
"Whatever value the tribe places on maintaining relationships with the capital markets — that's the leverage that the lenders have," Parmelee said.
Other tribes, eager to keep the trust of lenders, will also be urging the Pequots to use their negotiating advantage responsibly, according to Guedel, the lawyer in Seattle.
"Every lender, when a tribe came calling, would say, 'Wait a minute, look what happened over here with Foxwoods,'" he said.
Creditors' inability to take control of Foxwoods or force a sale of its assets means that the casino must remain open for business for them to get paid at all. In its Nov. 16 announcement, the tribe said its restructuring efforts would not affect visitors' experience of the casino, and at least one gambling analyst said he saw "zero" chance that Foxwoods would close for business.
"The lenders are trying to attain the maximum value that they can for their loans," Parmelee said. "If the casino were to shut down, then there's no value."
The following installment of The Tribes In The Media is an article in today's Hartford Courant on the possible precedent setting situation of the Mashantucket Pequot's financial crisis.
Many Eyes Watching Foxwoods' Negotiations With Creditors
By Eric Gershon
The Hartford Courant
November 29, 2009
When the Mashantucket Pequot Tribal Nation disclosed that it failed to make a large scheduled debt payment Nov. 16, the owner of Foxwoods Resort Casino left no doubt that it faces the sort of financial stress that could drive a business into bankruptcy court.
Debt rating agencies pounced, branding the tribe a defaulter. Despite hundreds of millions of dollars in revenue from slot machines alone, the tribe fell $7 million short of a $21 million payment.
But as Foxwoods limps into the holiday season — traditionally a weak time for business at the casino — the Pequots' situation isn't as desperate as it would be for a regular private business.
As a sovereign nation, the tribe doesn't operate under all the same rules: It can't be forced into Chapter 11 bankruptcy, so its creditors have unusually limited ability to compel payment.
Some legal experts doubt whether the Mashantuckets could even qualify for a voluntary Chapter 11 filing, an option that might benefit the tribe as a way of easing the load of its more than $2 billion in debt.
For now, creditors have little choice but to negotiate with the tribe. The terms the Pequots offer — and the terms that creditors ultimately exact — will affect more than the parties involved, and Native American business interests nationwide are paying close attention.
The outcome could influence every tribal casino operator that might need to restructure debt — or borrow money in the future.
"Foxwoods is going to set the precedent," said Greg Guedel, chairman of the Native American Legal Services Group for the Seattle law firm Foster Pepper. "It's such a significant business enterprise that it is probably going to become a model, good or bad, for whatever happens subsequently."
Because the tribe does not issue public financial reports other than slot revenue (25 percent of which goes to the state of Connecticut) it's difficult for outsiders to gauge how deep Foxwoods' financial troubles are. The Pequots have said their debt restructuring is "separate and distinct from operations at Foxwoods" and "will not have any impact on guests, employees, suppliers or business partners at Foxwoods and MGM Grand at Foxwoods," which employ about 9,000 people — down from 11,000 in October 2008.
Still, it remains unclear whether the problems that led to the restructuring will force more cost-cutting.
Bankruptcy Possible
The Pequot tribe opened Foxwoods in 1992 and has since turned it into the nation's largest casino.
On Nov. 16, the tribe said it failed to deliver in full a scheduled payment on a $500 million debt and expects to enter default. The announcement followed the tribe's disclosure last August that it had hired an investment bank to help restructure its debt.
The tribe would not comment on its financial circumstances this week. But in an interview Tuesday, a source familiar with the tribe's thinking said a bankruptcy filing is not totally out of the question, even though the tribe prefers to continue negotiating directly with debt holders.
"On surface, that does appear to be potentially difficult," the source said of a bankruptcy filing. "But in no way are we ruling it out. It's not something that appears to be top of the list in terms of viability."
Guedel said a voluntary bankruptcy is effectively impossible for political reasons within the tribe, but he does not view it as impossible: "I think if you had a tribal business that decided, 'The best thing we can do here is file for Chapter 11,' I think they could do it."
Like casinos nationwide, revenues at Foxwoods have plunged. Between the 2004-05 fiscal year and the end of the 2008-09 fiscal year in June, slot revenue fell by 13.5 percent from an all-time high of $820 million to $709 million, the smallest total in a decade.
Slot revenue this past July through October was down further — 9 percent from the prior year.
At a time of cost-cutting, that doesn't fully explain how the tribe became unable to deliver a semiannual $21.25 million debt payment.
The broader explanation holds that the onset of recession in late 2007 coincided with Foxwoods' massive, highly leveraged expansion, namely the addition of MGM Grand at Foxwoods, which opened the following spring amid a hiring spree.
Pressure From Tribes
The Pequots' failure to make the Nov. 16 debt payment underscored the nature of the unusual risk borne by investors in tribal casinos.
"If it was a typical U.S. corporation, then the lenders would have more leverage at the negotiating table," said Craig Parmelee, a managing director at Standard & Poor's who follows the gambling industry. "They could accelerate their loans, demand full payment today. And if they were to do that, that would force the corporation to file for bankruptcy protection. And we have a well established process through our bankruptcy courts where the situation gets worked out thereafter.
"Often in those situations, the lenders take control of the company and can sell it and/or operate it. In case of a tribe, they can still accelerate and demand payment today. The problem is that doesn't take you down the same path."The Pequots may be insulated from a forced bankruptcy, but they nonetheless face pressure to deal with creditors fairly, for their own sake and that of other tribal casino operators.
"Whatever value the tribe places on maintaining relationships with the capital markets — that's the leverage that the lenders have," Parmelee said.
Other tribes, eager to keep the trust of lenders, will also be urging the Pequots to use their negotiating advantage responsibly, according to Guedel, the lawyer in Seattle.
"Every lender, when a tribe came calling, would say, 'Wait a minute, look what happened over here with Foxwoods,'" he said.
Creditors' inability to take control of Foxwoods or force a sale of its assets means that the casino must remain open for business for them to get paid at all. In its Nov. 16 announcement, the tribe said its restructuring efforts would not affect visitors' experience of the casino, and at least one gambling analyst said he saw "zero" chance that Foxwoods would close for business.
"The lenders are trying to attain the maximum value that they can for their loans," Parmelee said. "If the casino were to shut down, then there's no value."
Saturday, November 28, 2009
Investment Company Buying Up Mashantucket Debt
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This installment of The Tribes In The Media is a Norwich Bulletin article on an investment company seeking to profit through purchasing Mashantucket Pequot debt. The Day newspaper previously reported on the debt purchases.
Foxwoods debt buy could aid outside firm
By William Sokolic
The Norwich Bulletin
November 27, 2009
Could Apollo Management, the parent of largest casino company in the nation, be gobbling up debt from the Mashantucket Pequot Tribal Nation at distressed prices?
The private equity owner of Harrah’s Entertainment Inc. isn’t saying. Neither is the tribe, which owns Foxwoods Resort Casino and MGM Grand at Foxwoods.
Still, according to folks who track the industry, there are potential upsides for Apollo, or any private company, to invest in the financially strapped tribal gaming authority, despite the limitations outside investors face when dealing with Indian gaming.
An outside company can manage gaming operations but cannot own any portion of the casino or hold any ownership stake. Nor can an outside firm foreclose on a tribal casino.
Marketing, branding
Yet, as MGM can attest, such investments can lend marketing and branding efforts to tribal casinos. MGM does not own the casino hotel at Foxwoods that bears its name, but struck a deal for use of its brand. Should Apollo buy up enough debt — even if purchased from a creditor rather than the tribe — it could present synergies with the Harrah’s brand, said Megan Neuburger, a director with Fitch Ratings Services. Apollo completed its transaction to buy Harrah’s early last year.
“They can in some way explore a marketing partnership,” Neuburger said.
There also is a potential to sell any purchased Foxwoods bonds at a profit, she said, especially if bought at distressed levels.
“Buy cheaply, and when gaming levels recover, sell at a profit,” Neuberger said.
Foxwoods, like most gaming companies in the country, has fallen on hard times. Slot revenue has declined year-over-year for much of 2009 as consumers cut back on discretionary spending.
The Mashantuckets have cut costs, as have gambling companies elsewhere.
Apollo, or any other company, would not buy debt at face value if there were concerns it would not be paid in full, said Craig Parmalee, managing director of Standard & Poor’s, which just lowered the tribe’s rating after the announcement last week that it might be unable to meet a complete interest payment due this month, and would likely miss the grace period, going into default.
“But an investor could buy debt at a substantial discount, like 10 or 20 cents on a dollar,” Parmalee said. “They could buy the debt from a creditor at a fraction of par, or face value.”
If the purchasing firm can make a deal for even twice that much later on, it stands to walk away with a profit, he said.
Moody’s Investor Services withdrew its ratings on the Mashantucket Pequot Tribal Nation last week because it lacks adequate information to maintain a rating, Moody senior vice president Keith Foley said.
In addition to the default, the tribal council said last month that as part of the ongoing debt restructuring process, it entered into a forbearance agreement, which extends through Jan. 20, with its senior lenders.
The tribe is working with Miller Buckfire, a New York financial firm, on its debt restructuring.
Apollo Management is a private equity investment firm founded in 1990 by former Drexel Burnham Lambert banker Leon Black. The firm specializes in purchasing distressed companies involved in corporate restructuring.
Apollo also owns AMC Entertainment and Norwegian Cruise Lines, in addition to Harrah’s Entertainment.
This installment of The Tribes In The Media is a Norwich Bulletin article on an investment company seeking to profit through purchasing Mashantucket Pequot debt. The Day newspaper previously reported on the debt purchases.
Foxwoods debt buy could aid outside firm
By William Sokolic
The Norwich Bulletin
November 27, 2009
Could Apollo Management, the parent of largest casino company in the nation, be gobbling up debt from the Mashantucket Pequot Tribal Nation at distressed prices?
The private equity owner of Harrah’s Entertainment Inc. isn’t saying. Neither is the tribe, which owns Foxwoods Resort Casino and MGM Grand at Foxwoods.
Still, according to folks who track the industry, there are potential upsides for Apollo, or any private company, to invest in the financially strapped tribal gaming authority, despite the limitations outside investors face when dealing with Indian gaming.
An outside company can manage gaming operations but cannot own any portion of the casino or hold any ownership stake. Nor can an outside firm foreclose on a tribal casino.
Marketing, branding
Yet, as MGM can attest, such investments can lend marketing and branding efforts to tribal casinos. MGM does not own the casino hotel at Foxwoods that bears its name, but struck a deal for use of its brand. Should Apollo buy up enough debt — even if purchased from a creditor rather than the tribe — it could present synergies with the Harrah’s brand, said Megan Neuburger, a director with Fitch Ratings Services. Apollo completed its transaction to buy Harrah’s early last year.
“They can in some way explore a marketing partnership,” Neuburger said.
There also is a potential to sell any purchased Foxwoods bonds at a profit, she said, especially if bought at distressed levels.
“Buy cheaply, and when gaming levels recover, sell at a profit,” Neuberger said.
Foxwoods, like most gaming companies in the country, has fallen on hard times. Slot revenue has declined year-over-year for much of 2009 as consumers cut back on discretionary spending.
The Mashantuckets have cut costs, as have gambling companies elsewhere.
Apollo, or any other company, would not buy debt at face value if there were concerns it would not be paid in full, said Craig Parmalee, managing director of Standard & Poor’s, which just lowered the tribe’s rating after the announcement last week that it might be unable to meet a complete interest payment due this month, and would likely miss the grace period, going into default.
“But an investor could buy debt at a substantial discount, like 10 or 20 cents on a dollar,” Parmalee said. “They could buy the debt from a creditor at a fraction of par, or face value.”
If the purchasing firm can make a deal for even twice that much later on, it stands to walk away with a profit, he said.
Moody’s Investor Services withdrew its ratings on the Mashantucket Pequot Tribal Nation last week because it lacks adequate information to maintain a rating, Moody senior vice president Keith Foley said.
In addition to the default, the tribal council said last month that as part of the ongoing debt restructuring process, it entered into a forbearance agreement, which extends through Jan. 20, with its senior lenders.
The tribe is working with Miller Buckfire, a New York financial firm, on its debt restructuring.
Apollo Management is a private equity investment firm founded in 1990 by former Drexel Burnham Lambert banker Leon Black. The firm specializes in purchasing distressed companies involved in corporate restructuring.
Apollo also owns AMC Entertainment and Norwegian Cruise Lines, in addition to Harrah’s Entertainment.
Oneida Indian Nation Of New York To Give Out $5 Million In Employee Bonuses
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This installment of The Tribes In The Media is an Observer-Dispatch article on the Oneida Indian Nation's decision to give out over $5 million in bonuses to its employees.
Oneida Nation gives out $5.1M in bonuses
By Rebecca Croniser
Observer-Dispatch
November 27, 2009
Despite an economic downturn that hit many area businesses hard, the Oneida Indian Nation this week awarded $5.1 million in bonuses to most of its 4,800 employees.
The bonuses topped last year’s by about $400,000 and are believed to be the most the Nation has ever distributed, said Dana Sovocool, the Nation’s vice president of human resources.
The funds were distributed to about 90 percent of employees across all of the Nation’s business divisions, including Turning Stone Resort & Casino in Verona, SavOn convenience stores and video and animation company Four Directions Productions.
Nation officials said their enterprises — including Turning Stone Resort and Casino — performed exceedingly well this year.
Officials declined to release revenue figures, but Sovocool said the bonuses are “based on the Nation’s performance.”
“Knowing we were facing a troubled economy, we took careful measures to manage the various businesses,” Sovocool said.
In 2008, the Nation — the largest employer in Oneida and Madison counties — laid off an estimated 100 employees in an attempt to avoid troubles seen at other casinos. Spokesman Mark Emery said Friday that about half of those laid off have been hired back.
Sovocool said the cuts were designed not to take away from customer service or quality.
“We’ve focused more heavily than ever on service,” he said.
He said that approach has paid off with more visitors this year than last year, though specific numbers were not available.
The Nation has been expanding its enterprises lately. Last year, it purchased an Erie County cigarette plant. Employees of the cigarette plant, described as its own entity, were not included in the bonuses.
Emery said no more additions are on the immediate horizon.
“Right now the focus is on what the Nation already has,” he said.
This installment of The Tribes In The Media is an Observer-Dispatch article on the Oneida Indian Nation's decision to give out over $5 million in bonuses to its employees.
Oneida Nation gives out $5.1M in bonuses
By Rebecca Croniser
Observer-Dispatch
November 27, 2009
Despite an economic downturn that hit many area businesses hard, the Oneida Indian Nation this week awarded $5.1 million in bonuses to most of its 4,800 employees.
The bonuses topped last year’s by about $400,000 and are believed to be the most the Nation has ever distributed, said Dana Sovocool, the Nation’s vice president of human resources.
The funds were distributed to about 90 percent of employees across all of the Nation’s business divisions, including Turning Stone Resort & Casino in Verona, SavOn convenience stores and video and animation company Four Directions Productions.
Nation officials said their enterprises — including Turning Stone Resort and Casino — performed exceedingly well this year.
Officials declined to release revenue figures, but Sovocool said the bonuses are “based on the Nation’s performance.”
“Knowing we were facing a troubled economy, we took careful measures to manage the various businesses,” Sovocool said.
In 2008, the Nation — the largest employer in Oneida and Madison counties — laid off an estimated 100 employees in an attempt to avoid troubles seen at other casinos. Spokesman Mark Emery said Friday that about half of those laid off have been hired back.
Sovocool said the cuts were designed not to take away from customer service or quality.
“We’ve focused more heavily than ever on service,” he said.
He said that approach has paid off with more visitors this year than last year, though specific numbers were not available.
The Nation has been expanding its enterprises lately. Last year, it purchased an Erie County cigarette plant. Employees of the cigarette plant, described as its own entity, were not included in the bonuses.
Emery said no more additions are on the immediate horizon.
“Right now the focus is on what the Nation already has,” he said.
Wednesday, November 25, 2009
President Obama's Thanksgiving Proclamation
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The following proclamation was issued by the White House:
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
What began as a harvest celebration between European settlers and indigenous communities nearly four centuries ago has become our cherished tradition of Thanksgiving. This day's roots are intertwined with those of our Nation, and its history traces the American narrative.
Today, we recall President George Washington, who proclaimed our first national day of public thanksgiving to be observed "by acknowledging with grateful hearts the many and signal favors of Almighty God," and President Abraham Lincoln, who established our annual Thanksgiving Day to help mend a fractured Nation in the midst of civil war. We also recognize the contributions of Native Americans, who helped the early colonists survive their first harsh winter and continue to strengthen our Nation. From our earliest days of independence, and in times of tragedy and triumph, Americans have come together to celebrate Thanksgiving.
As Americans, we hail from every part of the world. While we observe traditions from every culture, Thanksgiving Day is a unique national tradition we all share. Its spirit binds us together as one people, each of us thankful for our common blessings.
As we gather once again among loved ones, let us also reach out to our neighbors and fellow citizens in need of a helping hand. This is a time for us to renew our bonds with one another, and we can fulfill that commitment by serving our communities and our Nation throughout the year. In doing so, we pay tribute to our country's men and women in uniform who set an example of service that inspires us all. Let us be guided by the legacy of those who have fought for the freedoms for which we give thanks, and be worthy heirs to the noble tradition of goodwill shown on this day.
NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim Thursday, November 26, 2009, as a National Day of Thanksgiving. I encourage all the people of the United States to come together, whether in our homes, places of worship, community centers, or any place where family, friends more and neighbors may gather, with gratitude for all we have received in the past year; to express appreciation to those whose lives enrich our own; and to share our bounty with others.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of November, in the year of our Lord two thousand nine, and of the Independence of the United States of America the two hundred and thirty-fourth.
BARACK OBAMA
The following proclamation was issued by the White House:
BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A PROCLAMATION
What began as a harvest celebration between European settlers and indigenous communities nearly four centuries ago has become our cherished tradition of Thanksgiving. This day's roots are intertwined with those of our Nation, and its history traces the American narrative.
Today, we recall President George Washington, who proclaimed our first national day of public thanksgiving to be observed "by acknowledging with grateful hearts the many and signal favors of Almighty God," and President Abraham Lincoln, who established our annual Thanksgiving Day to help mend a fractured Nation in the midst of civil war. We also recognize the contributions of Native Americans, who helped the early colonists survive their first harsh winter and continue to strengthen our Nation. From our earliest days of independence, and in times of tragedy and triumph, Americans have come together to celebrate Thanksgiving.
As Americans, we hail from every part of the world. While we observe traditions from every culture, Thanksgiving Day is a unique national tradition we all share. Its spirit binds us together as one people, each of us thankful for our common blessings.
As we gather once again among loved ones, let us also reach out to our neighbors and fellow citizens in need of a helping hand. This is a time for us to renew our bonds with one another, and we can fulfill that commitment by serving our communities and our Nation throughout the year. In doing so, we pay tribute to our country's men and women in uniform who set an example of service that inspires us all. Let us be guided by the legacy of those who have fought for the freedoms for which we give thanks, and be worthy heirs to the noble tradition of goodwill shown on this day.
NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States, do hereby proclaim Thursday, November 26, 2009, as a National Day of Thanksgiving. I encourage all the people of the United States to come together, whether in our homes, places of worship, community centers, or any place where family, friends more and neighbors may gather, with gratitude for all we have received in the past year; to express appreciation to those whose lives enrich our own; and to share our bounty with others.
IN WITNESS WHEREOF, I have hereunto set my hand this twentieth day of November, in the year of our Lord two thousand nine, and of the Independence of the United States of America the two hundred and thirty-fourth.
BARACK OBAMA
Former Mohegan Gaming Authority CEO Bill Velardo Dies At Age 54
Feather News
Bill Velardo reportedly died earlier this week at the age of 54. Velardo initially served as Mohegan Sun's executive vice-president in 1995 and later became the president, general manager and chief executive officer before leaving in 2004.
Velardo later served as the president and chief operating officer for Fontainebleau casino in Las Vegas and in 2007 as president and chief operating officer of a joint venture between MGM Mirage and Kerzner International.
Feather News is still attempting to confirm the death.
Bill Velardo reportedly died earlier this week at the age of 54. Velardo initially served as Mohegan Sun's executive vice-president in 1995 and later became the president, general manager and chief executive officer before leaving in 2004.
Velardo later served as the president and chief operating officer for Fontainebleau casino in Las Vegas and in 2007 as president and chief operating officer of a joint venture between MGM Mirage and Kerzner International.
Feather News is still attempting to confirm the death.
Tuesday, November 24, 2009
Mohegan Gaming Authority Earnings On The Back Of A Napkin
Feather News
By Ken Davison
Last week the Mohegan Tribal Gaming Authority issued its earnings report for the three months of July through September and for the twelve month fiscal year which ended on September 30th.
I have always said that to understand MTGA's financial statements a reader must understand how MTGA accounts for its contract with its investors, Trading Cove Associates.
As the reader may know, MTGA agreed to pay Trading Cove five percent of its revenues (before expenses) to Trading Cove Associates for 15 years, beginning on January 1, 2000 and ending on December 31, 2014.
MTGA has paid Trading Cove Associates about $75 million per year in recent years but since Trading Cove was not entitled to five percent of the revenues on the Casino of The Wind expansion that $75 million (approximate figure) has declined to somewhere in the $60 plus million dollar range.
So when MTGA reports on the details of the fiscal year that ended September 30th, will the profits be reduced by the $60 plus million dollars that MTGA will have paid Trading Cove Associates last fiscal year? The answer is no, MTGA not only will not show an expense of $60 plus million related to what it paid Trading Cove Associates but it will show a profit of $15 to $20 million on that contract because of the accounting method used.
At the end of every fiscal year, MTGA estimates what it will pay Trading Cove during the entire 15-year contract period which means it must estimate the payments through December 2014. This past fiscal year, MTGA estimated it would pay Trading Cove less than previous estimates so MTGA recorded a $45 million gain in the last fiscal year that ended in September.
As far as the payments to Trading Cove throughout the year, MTGA records only about half of those payments as an expense in the year they are incurred because MTGA booked a huge expense in the two fiscal years before the contract took effect. MTGA probably recorded between $25 million and $30 million as an expense in the last fiscal year (out of the $60 plus million it paid Trading Cove).
So if you take that $25 - $30 million expense and then take into account the $45 million gain explained earlier, then the Trading Cove contract shows up as a gain of $15 million to $20 million in the income statement last fiscal year.
That's how a $60 plus million expense can be shown as a profit of $20 million on the financial statements. One can look at it as the profits being overstated on paper by about $80 million based on the accounting treatment of that Trading Cove contract.
MTGA has not yet issued its full financial statements for last fiscal year, only a press release so that is why we're dealing with estimates here and why we're calling these calculations "back of the napkin" computations. But when the details are issued in December, it will be mighty close.
MTGA reported a profit of $119 million for the twelve months that ended on September 30, 2009. Take away $80 million and that figure becomes $39 million. Take away the $71.5 million that MTGA distributed to the tribal government last fiscal year (which is not deducted from profits but from retained earnings and the situation looks pretty dicey.
The accounting for the Trading Cove contract is all on the up-and-up, I'm not saying it isn't. What I am saying is that a clear understanding of the Trading Cove contract is the key to understanding MTGA's financial statements.
By Ken Davison
Last week the Mohegan Tribal Gaming Authority issued its earnings report for the three months of July through September and for the twelve month fiscal year which ended on September 30th.
I have always said that to understand MTGA's financial statements a reader must understand how MTGA accounts for its contract with its investors, Trading Cove Associates.
As the reader may know, MTGA agreed to pay Trading Cove five percent of its revenues (before expenses) to Trading Cove Associates for 15 years, beginning on January 1, 2000 and ending on December 31, 2014.
MTGA has paid Trading Cove Associates about $75 million per year in recent years but since Trading Cove was not entitled to five percent of the revenues on the Casino of The Wind expansion that $75 million (approximate figure) has declined to somewhere in the $60 plus million dollar range.
So when MTGA reports on the details of the fiscal year that ended September 30th, will the profits be reduced by the $60 plus million dollars that MTGA will have paid Trading Cove Associates last fiscal year? The answer is no, MTGA not only will not show an expense of $60 plus million related to what it paid Trading Cove Associates but it will show a profit of $15 to $20 million on that contract because of the accounting method used.
At the end of every fiscal year, MTGA estimates what it will pay Trading Cove during the entire 15-year contract period which means it must estimate the payments through December 2014. This past fiscal year, MTGA estimated it would pay Trading Cove less than previous estimates so MTGA recorded a $45 million gain in the last fiscal year that ended in September.
As far as the payments to Trading Cove throughout the year, MTGA records only about half of those payments as an expense in the year they are incurred because MTGA booked a huge expense in the two fiscal years before the contract took effect. MTGA probably recorded between $25 million and $30 million as an expense in the last fiscal year (out of the $60 plus million it paid Trading Cove).
So if you take that $25 - $30 million expense and then take into account the $45 million gain explained earlier, then the Trading Cove contract shows up as a gain of $15 million to $20 million in the income statement last fiscal year.
That's how a $60 plus million expense can be shown as a profit of $20 million on the financial statements. One can look at it as the profits being overstated on paper by about $80 million based on the accounting treatment of that Trading Cove contract.
MTGA has not yet issued its full financial statements for last fiscal year, only a press release so that is why we're dealing with estimates here and why we're calling these calculations "back of the napkin" computations. But when the details are issued in December, it will be mighty close.
MTGA reported a profit of $119 million for the twelve months that ended on September 30, 2009. Take away $80 million and that figure becomes $39 million. Take away the $71.5 million that MTGA distributed to the tribal government last fiscal year (which is not deducted from profits but from retained earnings and the situation looks pretty dicey.
The accounting for the Trading Cove contract is all on the up-and-up, I'm not saying it isn't. What I am saying is that a clear understanding of the Trading Cove contract is the key to understanding MTGA's financial statements.
St. Regis Mohawks End Bid For Catskills Casino
Feather News
This installment of The Tribes In The Media is a Times Herald-Record article on the St. Regis Mohawks ending their long fought battle to build a casino in the Catskill Mountains of New York.
St. Regis Mohawks vote to stop pursuing Sullivan
By Barry Lewis
Times Herald-Record
November 24, 2009
MONTICELLO — The St. Regis Mohawk tribe appears to have ended its decade-old fight to have an off-reservation casino in Sullivan County.
The decision was the result of a referendum Saturday by tribal members who voted 178-140 against continuing with an off-reservation gaming project.
The Mohawks, who have a reservation near the Canadian border, have had a long but at times bumpy relationship with Empire Resorts, their partners in developing a casino at Monticello Gaming & Raceway.
"We respect the process and procedure of the St. Regis Mohawks, and we are evaluating the impact of the referendum," said Empire spokesman Charlie Degliomini.
The Mohawks did not return calls for comment.
The vote by the tribe comes as Sen. Chuck Schumer has lobbied Interior Secretary Ken Salazar to reverse the policy of the Bush administration on a blanket ban on off-reservation casinos. Such applications have been proposed by the Mohawks and the Stockbridge-Munsee Band of Mohicans, a Wisconsin tribe with ancestral claims to Sullivan. The Buffalo-based Seneca Nation has also had talks about a possible casino in the Catskills.
"We still have two good tribes that want to open a casino in Sullivan County," said Thompson Supervisor Tony Cellini. "The St. Regis Mohawks have been on and off about a casino and have been changing sites for years. We'll work with tribes who want to be here."
News of the Mohawks' vote sent shares of Empire plummeting nearly 20 percent, closing at $2.43 a share.
This installment of The Tribes In The Media is a Times Herald-Record article on the St. Regis Mohawks ending their long fought battle to build a casino in the Catskill Mountains of New York.
St. Regis Mohawks vote to stop pursuing Sullivan
By Barry Lewis
Times Herald-Record
November 24, 2009
MONTICELLO — The St. Regis Mohawk tribe appears to have ended its decade-old fight to have an off-reservation casino in Sullivan County.
The decision was the result of a referendum Saturday by tribal members who voted 178-140 against continuing with an off-reservation gaming project.
The Mohawks, who have a reservation near the Canadian border, have had a long but at times bumpy relationship with Empire Resorts, their partners in developing a casino at Monticello Gaming & Raceway.
"We respect the process and procedure of the St. Regis Mohawks, and we are evaluating the impact of the referendum," said Empire spokesman Charlie Degliomini.
The Mohawks did not return calls for comment.
The vote by the tribe comes as Sen. Chuck Schumer has lobbied Interior Secretary Ken Salazar to reverse the policy of the Bush administration on a blanket ban on off-reservation casinos. Such applications have been proposed by the Mohawks and the Stockbridge-Munsee Band of Mohicans, a Wisconsin tribe with ancestral claims to Sullivan. The Buffalo-based Seneca Nation has also had talks about a possible casino in the Catskills.
"We still have two good tribes that want to open a casino in Sullivan County," said Thompson Supervisor Tony Cellini. "The St. Regis Mohawks have been on and off about a casino and have been changing sites for years. We'll work with tribes who want to be here."
News of the Mohawks' vote sent shares of Empire plummeting nearly 20 percent, closing at $2.43 a share.
Monday, November 23, 2009
Connecticut Tribes Under Financial Stress
Feather News
The following installment of The Tribe In The Media is one of at least four articles written by Bill Cummings in the past few days on the plight of the Mohegan and Mashantucket Pequot's financial situation.
Tribes teeter on financial brink
Stamford Advocate
By Bill Cummings
Stamford Advocate
November 23, 2009
At the top of a steep hill, high above the Thames River and the glimmering glass towers of the Mohegan Sun casino, a huge white building sits half-finished.
A newly paved road winds its way to the plastic-shrouded shell of the Mohegans' new tribal office and community center. Construction equipment is scattered about, but work on the facility stopped months ago.
It's a stark and unmistakable symbol of the financial crisis within Connecticut's multibillion-dollar Indian gaming empire.
After making and spending billions over the last decade, the Mohegans and their nearby neighbors, the Mashantucket Pequot Indians, are teetering on the brink of a financial meltdown.
Expansion plans have been canceled, employees have been laid off, credit ratings are in free fall, and bankers and bond holders are knocking on the door. In a sign of just how bad it has become, the Pequots last week defaulted on a Wall Street bond, signaling to creditors the tribe cannot meet its obligations.
All of this adds up to a toxic mix of problems that only a few years ago would have been unthinkable for two tribes with economic engines that once seemed geared for never-ending growth.
The immediate cause is a national recession that has cash-strapped gamblers staying away or spending less when they do visit. The trend is similar across the country. Casinos in Atlantic City are reporting slot losses of 20 percent or more, and gaming revenue in Las Vegas is in a downward spiral. Three smaller Indian tribes have already defaulted on loans.
But the revenue drop at the Mohegan Sun and Foxwoods, the casino built by the Pequots, is being magnified by billions of dollars in debt the two tribes accumulated during a nearly decade-long building binge and dubious business deals that have crippled cash flow for both operations.
All this comes as competition grows around the casinos. Slot parlors at race tracks in Rhode Island and Yonkers, N.Y., are already cutting into the take, and both tribes face the possibility that Massachusetts will soon allow casino gambling in the Bay State.
"The Connecticut tribes got in the same situation as commercial operators," said Megan Neuburger, a senior analyst with Fitch Ratings Services, which tracks gaming trends nationally.
"Revenue was up, and a lot of investor money was available. Now revenue is down. Did they overbuild? To some extent, I think so. There was easy access to capital for a half a decade. There was also a belief that this was a recession-proof industry." Neuburger said.
Bradley Beecher, a former head of the Connecticut State Police gaming unit who later worked for the Mohegan Gaming Commission, said he watched the tribe overpay for goods and services during its accelerated building campaigns.
"It was crazy what they were paying. They imported wool carpet from London, glass beads from India. And it was all fast-track construction," Beecher said.
"Ask yourself why they are in a bind when they pay no tax on 75 percent of their revenue," Beecher said, referring to the fact that while the state takes 25 percent of slot revenue, the tribes pay no taxes because of their status as sovereign nations.
TOUGH TIMES
Over the last two years, the Pequots watched their slot revenue drop by more than $100 million while debt grew to $2.1 billion.
The Pequots' credit rating fell to CCC, but the news got far worse last week when the tribe defaulted on a $500 million bond package. Standard and Poor's dropped the Pequots rating to D, the lowest possible.
Pequot tribal leaders had already laid off 800 of its more than 7,500 workers and offered buyouts to top tribal employees.
The Pequots are also struggling to meet payments to a Malaysian family that bankrolled Foxwoods and to MGM Mirage, the Las Vegas casino developer that helped build the MGM Grand at Foxwoods. The Malaysian investors will earn money until 2018, when they are expected to walk away $1 billion richer.
The Mohegans are not much better off. The tribe is carrying $1.6 billion in debt, its net income dropped 23 percent in 2009, and it must send five cents out of every dollar spent at the Sun to South African investors who built the first casino.
The tribe recently avoided default on a $200 million loan when it refinanced at 12 percent interest. Earlier, the tribe refinanced a $330 million note.
A new hotel planned at the Sun is on hold, along with other projects.
THE RISE OF THE SUN AND FOX
For Connecticut's two federally recognized Indian tribes, the foray into gambling began with hundreds of millions of dollars in borrowed money. The source was dubious at best, but few believed casinos in a rural part of Connecticut would be successful.
The Pequots in 1992 turned to Kien Huat Realty, a family-owned construction and development firm that made its fortune in Malaysian government projects. The deal provided $235 million to build the first version of Foxwoods.
The Mohegan Sun came on line a few years later under an arrangement with South African casino mogul Solomon Kerzner and his partner Len Wolman, a Mystic hotel chain owner and fellow South African.
The Pequot and Mohegan casinos quickly surpassed expectations. Foxwoods grew into the world's largest casino, featuring thousands of hotel rooms, dozens of restaurants and seven gambling areas. The Sun grew to 3.1 million square feet, offering three casinos, assorted hotels and other features.
Public records show in 1993, the year Foxwoods opened its doors, the casino earned $81 million from slot machines. By 2005, the slot take had swelled to $818 million.
The Sun earned $227 million in slot revenue in 1997, its first year of operation. Slot revenue ballooned to $916 million by 2007.
The Pequots bought the Lake of Isles Golf Course in North Stonington and the Spa at Norwich Inn, built a $200 million museum dedicated to Eastern Indians and invested in a Philadelphia casino plan.
The Mohegans purchased the Pocono Downs race track in Pennsylvania and added a casino. They proposed a $1 billion casino in Palmer, Mass., bought a golf course in Connecticut and a WNBA basketball team, and struck several deals with other tribes to build casinos outside Connecticut.
The building and buying mirrored what was happening nationally. The Native American gaming industry took off like wildfire, moving from a handful of bingo parlors and card rooms in the early 1990s to a $27 billion industry in 2008.
THOSE EXPANSION BLUES
By the end of 2008, however, the national recession had taken a serious toll on casino income, in Connecticut and nationally.
Foxwoods earned $708 million from its slot machines in 2009, a $111 million decrease since 2005. The Sun earned $802 million from its thousands of slot machines, a $114 million drop from 2007.
The first three months of the 2010 fiscal year, which began in July, showed no improvement. Foxwoods slot revenue dropped 13 percent from the previous year, and slot revenue at the Sun was down 10 percent.
Reports filed by the Mohegans with the federal Securities and Exchange Commission show the tribe's net income dropped 11 percent in 2009; gaming revenue fell 8 percent; gross slot revenue was down 5 percent; and non-gaming revenue dropped 16 percent.
The Mohegan's interest expenses rose 19 percent compared with 2008, according to financial statements.
The Pequots do not file reports with the SEC, claiming their status as a sovereign nation makes disclosure voluntary. The Mohegans agree, but file anyway.
At the Sun, the revenue drop had a very visible impact. The Mohegans launched an $800 million expansion, but it was cut short. Although a third casino opened in mid-2008, at a cost of $113 million, the rest of the project, another hotel, parking garage and other features, was suspended because of lack of money.
TROUBLE IN MASHANTUCKET
The first public sign the Pequots were in trouble came in September when former Pequot Tribal Chairman Michael Thomas told tribal members in an e-mail that he would rather keep casino profits than make payments to bond holders and banks.
"These are dire financial times for the tribe," Thomas wrote. "The situation is serious and threatens our tribe. Regardless of what may happen, I have made it clear that we will not accept Wall Street mandates for cuts to tribal government or the incentive." The incentive is a stipend every adult member of the tribe receives. According to a variety of published reports and sources, the payments can be as much as $100,000 a year for each of the 450 or so adult members of the tribe.
The tribe also uses casino revenue to provide health insurance, day care and higher education for members, and operate tribal government.
Pequot spokesmen and other tribal members declined to comment on the stipend or the cost of other services. Some said reports of a $100,000 stipend are false, but they refused to say how much each member receives.
Meanwhile, Thomas worried possible casinos in Massachusetts would drain profits. At least three casino ventures are on the table, and the state Legislature this fall decided to put off a vote allowing casino gambling until next year.
According to a study by the Center of Policy Analysis at the University of Massachusetts at Dartmouth, more than 7 million Bay Staters in 2008 visited casinos in Connecticut and slot parlors in Rhode Island and Maine.
SHOCK WAVES AND PANIC
Thomas' e-mail sent panic through the financial institutions that set the cost of bonds and lending. He was quickly removed from office and opted not to seek re-election during balloting this fall.
Attempts to reach Thomas for comment were unsuccessful.
"The tone affected investors," said Neuburger, the Fitch analyst, referring to Thomas' remarks. "The tribe's response (suspending Thomas) helped." Neuburger said the issue facing the Pequots and Mohegans is what Thomas feared: how revenue from the casino will be distributed and how much will have to go toward debt.
"The lenders may want to change how it's distributed," she said, explaining the tribe may receive less as more revenue is diverted to pay debt.
Pequot tribal leaders this fall hired Miller Buckfire, a high-powered New York City financial firm that specializes in reorganizing companies, to restructure the tribe's debt and finances.
The biggest immediate challenge is a $700 million revolving loan due next July that the tribe cannot pay, according to a source with direct knowledge of tribal finances. The Pequots recently entered into a forbearance agreement in which certain creditors agreed to take no action until the end of January.
That agreement, however, did not include the $500 million loan now in default, or a $250 million note due in 2021.
The tribe last week announced it paid $14.2 million of a $21.3 million interest payment on the $500 million bond. Tribal leaders said they did not anticipate paying the balance, resulting in default.
"NOT SURPRISING"
Neuburger, the Fitch analyst, said the default is "not good news," but added it was "not entirely surprising" given the forbearance agreement.
"There have been other defaults at smaller tribes, but this is an outstanding situation," Neuburger said. "Everyone is watching to see if they default more." The problem facing lenders, industry analysts explained, is creditors cannot attach property owned by tribal nations, which means they cannot foreclose. Instead, lenders accept payments based on cash flow. If the tribe does not meet its payments, there is little a lender can do except cut off credit.
The source close to the tribe said hiring Miller Buckfire is an acknowledgement of trouble. The source described Foxwoods as "a highly leveraged business," and admitted the reorganization under way is akin to what a company would do in Chapter 11 bankruptcy.
Chapter 11 allows companies to reorganize their business and pay off debts while also keeping the doors open and avoiding foreclosure.
Kelly Sullivan, a Pequot spokeswoman, cautioned against reading too much into last week's the default.
"This is not an unusual step when you enter into restructuring. Now that they are in default nothing really happens. There are discussions with all lenders, but this won't impact operations."
The following installment of The Tribe In The Media is one of at least four articles written by Bill Cummings in the past few days on the plight of the Mohegan and Mashantucket Pequot's financial situation.
Tribes teeter on financial brink
Stamford Advocate
By Bill Cummings
Stamford Advocate
November 23, 2009
At the top of a steep hill, high above the Thames River and the glimmering glass towers of the Mohegan Sun casino, a huge white building sits half-finished.
A newly paved road winds its way to the plastic-shrouded shell of the Mohegans' new tribal office and community center. Construction equipment is scattered about, but work on the facility stopped months ago.
It's a stark and unmistakable symbol of the financial crisis within Connecticut's multibillion-dollar Indian gaming empire.
After making and spending billions over the last decade, the Mohegans and their nearby neighbors, the Mashantucket Pequot Indians, are teetering on the brink of a financial meltdown.
Expansion plans have been canceled, employees have been laid off, credit ratings are in free fall, and bankers and bond holders are knocking on the door. In a sign of just how bad it has become, the Pequots last week defaulted on a Wall Street bond, signaling to creditors the tribe cannot meet its obligations.
All of this adds up to a toxic mix of problems that only a few years ago would have been unthinkable for two tribes with economic engines that once seemed geared for never-ending growth.
The immediate cause is a national recession that has cash-strapped gamblers staying away or spending less when they do visit. The trend is similar across the country. Casinos in Atlantic City are reporting slot losses of 20 percent or more, and gaming revenue in Las Vegas is in a downward spiral. Three smaller Indian tribes have already defaulted on loans.
But the revenue drop at the Mohegan Sun and Foxwoods, the casino built by the Pequots, is being magnified by billions of dollars in debt the two tribes accumulated during a nearly decade-long building binge and dubious business deals that have crippled cash flow for both operations.
All this comes as competition grows around the casinos. Slot parlors at race tracks in Rhode Island and Yonkers, N.Y., are already cutting into the take, and both tribes face the possibility that Massachusetts will soon allow casino gambling in the Bay State.
"The Connecticut tribes got in the same situation as commercial operators," said Megan Neuburger, a senior analyst with Fitch Ratings Services, which tracks gaming trends nationally.
"Revenue was up, and a lot of investor money was available. Now revenue is down. Did they overbuild? To some extent, I think so. There was easy access to capital for a half a decade. There was also a belief that this was a recession-proof industry." Neuburger said.
Bradley Beecher, a former head of the Connecticut State Police gaming unit who later worked for the Mohegan Gaming Commission, said he watched the tribe overpay for goods and services during its accelerated building campaigns.
"It was crazy what they were paying. They imported wool carpet from London, glass beads from India. And it was all fast-track construction," Beecher said.
"Ask yourself why they are in a bind when they pay no tax on 75 percent of their revenue," Beecher said, referring to the fact that while the state takes 25 percent of slot revenue, the tribes pay no taxes because of their status as sovereign nations.
TOUGH TIMES
Over the last two years, the Pequots watched their slot revenue drop by more than $100 million while debt grew to $2.1 billion.
The Pequots' credit rating fell to CCC, but the news got far worse last week when the tribe defaulted on a $500 million bond package. Standard and Poor's dropped the Pequots rating to D, the lowest possible.
Pequot tribal leaders had already laid off 800 of its more than 7,500 workers and offered buyouts to top tribal employees.
The Pequots are also struggling to meet payments to a Malaysian family that bankrolled Foxwoods and to MGM Mirage, the Las Vegas casino developer that helped build the MGM Grand at Foxwoods. The Malaysian investors will earn money until 2018, when they are expected to walk away $1 billion richer.
The Mohegans are not much better off. The tribe is carrying $1.6 billion in debt, its net income dropped 23 percent in 2009, and it must send five cents out of every dollar spent at the Sun to South African investors who built the first casino.
The tribe recently avoided default on a $200 million loan when it refinanced at 12 percent interest. Earlier, the tribe refinanced a $330 million note.
A new hotel planned at the Sun is on hold, along with other projects.
THE RISE OF THE SUN AND FOX
For Connecticut's two federally recognized Indian tribes, the foray into gambling began with hundreds of millions of dollars in borrowed money. The source was dubious at best, but few believed casinos in a rural part of Connecticut would be successful.
The Pequots in 1992 turned to Kien Huat Realty, a family-owned construction and development firm that made its fortune in Malaysian government projects. The deal provided $235 million to build the first version of Foxwoods.
The Mohegan Sun came on line a few years later under an arrangement with South African casino mogul Solomon Kerzner and his partner Len Wolman, a Mystic hotel chain owner and fellow South African.
The Pequot and Mohegan casinos quickly surpassed expectations. Foxwoods grew into the world's largest casino, featuring thousands of hotel rooms, dozens of restaurants and seven gambling areas. The Sun grew to 3.1 million square feet, offering three casinos, assorted hotels and other features.
Public records show in 1993, the year Foxwoods opened its doors, the casino earned $81 million from slot machines. By 2005, the slot take had swelled to $818 million.
The Sun earned $227 million in slot revenue in 1997, its first year of operation. Slot revenue ballooned to $916 million by 2007.
The Pequots bought the Lake of Isles Golf Course in North Stonington and the Spa at Norwich Inn, built a $200 million museum dedicated to Eastern Indians and invested in a Philadelphia casino plan.
The Mohegans purchased the Pocono Downs race track in Pennsylvania and added a casino. They proposed a $1 billion casino in Palmer, Mass., bought a golf course in Connecticut and a WNBA basketball team, and struck several deals with other tribes to build casinos outside Connecticut.
The building and buying mirrored what was happening nationally. The Native American gaming industry took off like wildfire, moving from a handful of bingo parlors and card rooms in the early 1990s to a $27 billion industry in 2008.
THOSE EXPANSION BLUES
By the end of 2008, however, the national recession had taken a serious toll on casino income, in Connecticut and nationally.
Foxwoods earned $708 million from its slot machines in 2009, a $111 million decrease since 2005. The Sun earned $802 million from its thousands of slot machines, a $114 million drop from 2007.
The first three months of the 2010 fiscal year, which began in July, showed no improvement. Foxwoods slot revenue dropped 13 percent from the previous year, and slot revenue at the Sun was down 10 percent.
Reports filed by the Mohegans with the federal Securities and Exchange Commission show the tribe's net income dropped 11 percent in 2009; gaming revenue fell 8 percent; gross slot revenue was down 5 percent; and non-gaming revenue dropped 16 percent.
The Mohegan's interest expenses rose 19 percent compared with 2008, according to financial statements.
The Pequots do not file reports with the SEC, claiming their status as a sovereign nation makes disclosure voluntary. The Mohegans agree, but file anyway.
At the Sun, the revenue drop had a very visible impact. The Mohegans launched an $800 million expansion, but it was cut short. Although a third casino opened in mid-2008, at a cost of $113 million, the rest of the project, another hotel, parking garage and other features, was suspended because of lack of money.
TROUBLE IN MASHANTUCKET
The first public sign the Pequots were in trouble came in September when former Pequot Tribal Chairman Michael Thomas told tribal members in an e-mail that he would rather keep casino profits than make payments to bond holders and banks.
"These are dire financial times for the tribe," Thomas wrote. "The situation is serious and threatens our tribe. Regardless of what may happen, I have made it clear that we will not accept Wall Street mandates for cuts to tribal government or the incentive." The incentive is a stipend every adult member of the tribe receives. According to a variety of published reports and sources, the payments can be as much as $100,000 a year for each of the 450 or so adult members of the tribe.
The tribe also uses casino revenue to provide health insurance, day care and higher education for members, and operate tribal government.
Pequot spokesmen and other tribal members declined to comment on the stipend or the cost of other services. Some said reports of a $100,000 stipend are false, but they refused to say how much each member receives.
Meanwhile, Thomas worried possible casinos in Massachusetts would drain profits. At least three casino ventures are on the table, and the state Legislature this fall decided to put off a vote allowing casino gambling until next year.
According to a study by the Center of Policy Analysis at the University of Massachusetts at Dartmouth, more than 7 million Bay Staters in 2008 visited casinos in Connecticut and slot parlors in Rhode Island and Maine.
SHOCK WAVES AND PANIC
Thomas' e-mail sent panic through the financial institutions that set the cost of bonds and lending. He was quickly removed from office and opted not to seek re-election during balloting this fall.
Attempts to reach Thomas for comment were unsuccessful.
"The tone affected investors," said Neuburger, the Fitch analyst, referring to Thomas' remarks. "The tribe's response (suspending Thomas) helped." Neuburger said the issue facing the Pequots and Mohegans is what Thomas feared: how revenue from the casino will be distributed and how much will have to go toward debt.
"The lenders may want to change how it's distributed," she said, explaining the tribe may receive less as more revenue is diverted to pay debt.
Pequot tribal leaders this fall hired Miller Buckfire, a high-powered New York City financial firm that specializes in reorganizing companies, to restructure the tribe's debt and finances.
The biggest immediate challenge is a $700 million revolving loan due next July that the tribe cannot pay, according to a source with direct knowledge of tribal finances. The Pequots recently entered into a forbearance agreement in which certain creditors agreed to take no action until the end of January.
That agreement, however, did not include the $500 million loan now in default, or a $250 million note due in 2021.
The tribe last week announced it paid $14.2 million of a $21.3 million interest payment on the $500 million bond. Tribal leaders said they did not anticipate paying the balance, resulting in default.
"NOT SURPRISING"
Neuburger, the Fitch analyst, said the default is "not good news," but added it was "not entirely surprising" given the forbearance agreement.
"There have been other defaults at smaller tribes, but this is an outstanding situation," Neuburger said. "Everyone is watching to see if they default more." The problem facing lenders, industry analysts explained, is creditors cannot attach property owned by tribal nations, which means they cannot foreclose. Instead, lenders accept payments based on cash flow. If the tribe does not meet its payments, there is little a lender can do except cut off credit.
The source close to the tribe said hiring Miller Buckfire is an acknowledgement of trouble. The source described Foxwoods as "a highly leveraged business," and admitted the reorganization under way is akin to what a company would do in Chapter 11 bankruptcy.
Chapter 11 allows companies to reorganize their business and pay off debts while also keeping the doors open and avoiding foreclosure.
Kelly Sullivan, a Pequot spokeswoman, cautioned against reading too much into last week's the default.
"This is not an unusual step when you enter into restructuring. Now that they are in default nothing really happens. There are discussions with all lenders, but this won't impact operations."
Mohegan Investors Making More Than Tribe From Casino
Feather News
This installment of The Tribe In The Media is another article by Bill Cummings in the past few days on the Mohegan's business dealings.
As revenue falls, tribe's investors now making more than Mohegans draining assets of Mohegan tribe
By Bill Cummings
Newstimes.com
November 23, 2009
The international investors who helped the Mohegan Indians build their casino 13 years ago are making more money from it than the tribe.
Since 2000, South African casino mogul Solomon Kerzner and his partners earned $542 million from the Mohegan Sun, the casino they helped build and finance, according to publicly available documents.
The 1,700-member Mohegan tribe, which owns the casino, earned $475 million during the same period.
In fact, the tribe's annual take from its casino has steadily dropped since 2005, while payments to Kerzner and his partners have risen.
The money pouring into Kerzner's bank accounts will continue until January 2015, when his contract with the tribe ends. Although Kerzner was instrumental in running the Sun during its early years, he has not had a management role since 2000.
Financial experts estimate that Kerzner and his partners will walk away with more than $1 billion when their contract ends, depending on how well the casino does in the future.
That huge annual obligation to Kerzner is draining the Mohegans, who are suffering from a toxic combination of dwindling revenue because of the recession, growing competition and high payments on $1.6 billion in accumulated debt.
MEGA-BUILDER
In the early 1990s, Kerzner, a South African billionaire and casino mogul known around the world for creating mega-resorts, saw opportunity in the hills of southeastern Connecticut.
The Mohegans had gained federal recognition and, like their neighbors 10 miles away, the Mashantucket Pequot Indians, the tribe now had permission to build a casino, complete with hotels, restaurants and other resort features.
Kerzner formed a partnership with Len Wolman, a Mystic hotel chain owner and the head of the Waterford Group, and created a new company called Trading Cove Associates. Kerzner and TCA invested about $10 million in the original Sun and backed $90 million in bonds that were sold on Wall Street.
The tribe obtained $175 million in bank notes to finish the initial $280 million casino, which opened in 1996. The developer later oversaw the next phase of the Sun, a $1 billion expansion that added another casino, a new hotel and a variety of other features. That expansion opened in 2002.
For its efforts, TCA initially received as much as 40 percent of the net revenue from the casino, a hefty amount that drew criticism for being too generous. Kerzner's company was also assigned the role of managing operations at the Sun.
In 1999, Kerzner struck a new deal with the tribe that ended his management role, effective in 2000. In return, the Mohegans gave TCA five cents for every dollar spent at the casino, its restaurants, hotels and other businesses.
The new contract marked a big change for Kerzner.
Along with ending his management duties, Kerzner's take was previously calculated on the basis of net revenue, the amount the tribe kept after expenses. Now his payments were calculated against gross revenue, the total amount taken in.
For Kerzner and his partners, it was a windfall.
In 2000, the year TCA ended its management role, the developer and his partners earned $20 million. Those yearly payments grew to $77.5 million in 2007 and $76 million in 2008.
At the same time, the tribe was earning less. The tribe collected $50 million in 2000. By 2008, the tribe earned $58.2 million, $18 million less than the group led by Kerzner.
`EGREGIOUS'
The new deal with Kerzner was immediately panned within the American Indian gaming industry as too generous. Bradley Beecher, a former head of the Connecticut State Police gaming unit who investigated Kerzner when he sought a Connecticut gaming license, said the tribe was unable to stand up to such an international business superstar.
"They got taken advantage of," Beecher said.
The National Indian Gaming Commission called the deal "egregious," and declared the management contract to be far above the legal limit, which is 30 percent of a casino's profits for no more than five years.
But as the gaming commission reviewed the complicated contract, it concluded the deal was a consulting contract, not a management contract. That meant the commission had no jurisdiction, and the deal stood.
The distinction, some call it a loophole, between a management contract and a consulting contract is allowed under the national Indian Gaming Regulatory Act, which oversees Indian casino transactions and partnerships. Under the act, investors can avoid caps on their return by calling their deals anything but a management contract.
In filings with the federal Securities and Exchange Commission, the Mohegans refer to their contract with Kerzner as a "relinquishment agreement," which at face value appears to indicate the ending of a previous relationship.
"We and TCA agreed to terminate the management agreement," the Mohegans explained in their 2008 annual report to the SEC, the most recent available. "This termination occurred on December 31, 1999. On January 1, 2000, we assumed the day-to-day management of Mohegan Sun.
"To compensate TCA for terminating its management rights, we agreed to pay to TCA five percent of revenues, as defined in the relinquishment agreement, generated by Mohegan Sun during the 15-year period commencing on January 1, 2000 and ending on December 31, 2014," the SEC filing explains.
Federal lawmakers, including Sen. John McCain, attempted to change the rules and close the consulting contract loophole. But aggressive lobbying by the gaming industry, including Kerzner, foiled the attempt.
Len Wolman, Kerzner's partner in TCA, declined to comment regarding arrangements with the Mohegan tribe. He referred all questions to the tribe.
"We have a really good relationship with the Mohegans, but they comment on anything related to their facilities. You have all the public information," Wolman said.
Mohegan tribal officials did not return calls regarding TCA or Kerzner. Representatives for Kerzner did not respond to requests for comment.
`WORLD'S BEST SALOON KEEPER'
When Kerzner opened his flagship casino in South Africa in 1979, the famed Sun City resort, Frank Sinatra remarked that the developer was the "world's best saloon keeper." Sun City was vintage Kerzner: a heavily themed, over-the-top resort that offered hundreds of hotel rooms, dozens of restaurants and, most importantly, huge areas for slot machines and table games.
He continued to develop international resorts, most notably the massive Atlantis Resort in the Bahamas. One Kerzner company, One & One Resorts, manages seven luxury properties in the Bahamas, Mexico, Mauritius and the Maldives.
Kerzner is also involved with the Twin River slots and greyhound racing parlor, one of Rhode Island's top revenue producers. That operation recently entered bankruptcy, although state officials are backing moves to restore it to good health and keep the revenue stream pouring into state coffers.
But despite his reputation as a premier resort builder, controversy followed Kerzner from the moment he arrived in Connecticut. Former Gov. John Rowland, who later resigned and pleaded guilty to corruption charges, tried to block Kerzner from receiving a gaming license, his first in the United States.
Allegations of bribes paid to South African officials followed the developer to Connecticut, and Rowland declared the casino mogul unfit to do business in his state.
"There was serious pressure on me to make sure he didn't get a license," said Beecher, the former state police trooper who later headed the state police gaming unit.
Beecher said the bribe allegations were thoroughly investigated, a process that included sending Connecticut investigators to South Africa. In the end, Beecher concluded there was nothing to the accusations.
"Sol stood up to a very intense state police investigation. This was a 10-year-old allegation that was never prosecuted. It just did not hold weight," Beecher said.
"Everyone was saying, `Make sure this guy does not get a license.' It was so bad that Rowland hit up Wolman for season tickets to the (formerly Hartford Whalers) while we were conducting the investigation of Kerzner. I was livid.
"What was the difference between what was going on and what Kerzner was accused of doing?" Beecher said.
MOVING EAST
Kerzner and Wolman recently set their sights on a tract of land in Middleborough, Mass., and signed a deal with the Mashpee Wampanoag tribe to build a $1 billion casino on the rural site near Cape Cod.
The Wampanoags have identified more than 500 acres, but the federal Department of the Interior has yet to approve its application.
Casinos are a hot topic in Massachusetts, where a number of ventures are on the table, backed by recognized tribes and commercial operators.
The Mohegans proposed a casino for Palmer, Mass., pledging to serve as a commercial developer, and others are circling with similar projects.
The Massachusetts state Legislature is expected to vote next year on whether to allow gaming.
This installment of The Tribe In The Media is another article by Bill Cummings in the past few days on the Mohegan's business dealings.
As revenue falls, tribe's investors now making more than Mohegans draining assets of Mohegan tribe
By Bill Cummings
Newstimes.com
November 23, 2009
The international investors who helped the Mohegan Indians build their casino 13 years ago are making more money from it than the tribe.
Since 2000, South African casino mogul Solomon Kerzner and his partners earned $542 million from the Mohegan Sun, the casino they helped build and finance, according to publicly available documents.
The 1,700-member Mohegan tribe, which owns the casino, earned $475 million during the same period.
In fact, the tribe's annual take from its casino has steadily dropped since 2005, while payments to Kerzner and his partners have risen.
The money pouring into Kerzner's bank accounts will continue until January 2015, when his contract with the tribe ends. Although Kerzner was instrumental in running the Sun during its early years, he has not had a management role since 2000.
Financial experts estimate that Kerzner and his partners will walk away with more than $1 billion when their contract ends, depending on how well the casino does in the future.
That huge annual obligation to Kerzner is draining the Mohegans, who are suffering from a toxic combination of dwindling revenue because of the recession, growing competition and high payments on $1.6 billion in accumulated debt.
MEGA-BUILDER
In the early 1990s, Kerzner, a South African billionaire and casino mogul known around the world for creating mega-resorts, saw opportunity in the hills of southeastern Connecticut.
The Mohegans had gained federal recognition and, like their neighbors 10 miles away, the Mashantucket Pequot Indians, the tribe now had permission to build a casino, complete with hotels, restaurants and other resort features.
Kerzner formed a partnership with Len Wolman, a Mystic hotel chain owner and the head of the Waterford Group, and created a new company called Trading Cove Associates. Kerzner and TCA invested about $10 million in the original Sun and backed $90 million in bonds that were sold on Wall Street.
The tribe obtained $175 million in bank notes to finish the initial $280 million casino, which opened in 1996. The developer later oversaw the next phase of the Sun, a $1 billion expansion that added another casino, a new hotel and a variety of other features. That expansion opened in 2002.
For its efforts, TCA initially received as much as 40 percent of the net revenue from the casino, a hefty amount that drew criticism for being too generous. Kerzner's company was also assigned the role of managing operations at the Sun.
In 1999, Kerzner struck a new deal with the tribe that ended his management role, effective in 2000. In return, the Mohegans gave TCA five cents for every dollar spent at the casino, its restaurants, hotels and other businesses.
The new contract marked a big change for Kerzner.
Along with ending his management duties, Kerzner's take was previously calculated on the basis of net revenue, the amount the tribe kept after expenses. Now his payments were calculated against gross revenue, the total amount taken in.
For Kerzner and his partners, it was a windfall.
In 2000, the year TCA ended its management role, the developer and his partners earned $20 million. Those yearly payments grew to $77.5 million in 2007 and $76 million in 2008.
At the same time, the tribe was earning less. The tribe collected $50 million in 2000. By 2008, the tribe earned $58.2 million, $18 million less than the group led by Kerzner.
`EGREGIOUS'
The new deal with Kerzner was immediately panned within the American Indian gaming industry as too generous. Bradley Beecher, a former head of the Connecticut State Police gaming unit who investigated Kerzner when he sought a Connecticut gaming license, said the tribe was unable to stand up to such an international business superstar.
"They got taken advantage of," Beecher said.
The National Indian Gaming Commission called the deal "egregious," and declared the management contract to be far above the legal limit, which is 30 percent of a casino's profits for no more than five years.
But as the gaming commission reviewed the complicated contract, it concluded the deal was a consulting contract, not a management contract. That meant the commission had no jurisdiction, and the deal stood.
The distinction, some call it a loophole, between a management contract and a consulting contract is allowed under the national Indian Gaming Regulatory Act, which oversees Indian casino transactions and partnerships. Under the act, investors can avoid caps on their return by calling their deals anything but a management contract.
In filings with the federal Securities and Exchange Commission, the Mohegans refer to their contract with Kerzner as a "relinquishment agreement," which at face value appears to indicate the ending of a previous relationship.
"We and TCA agreed to terminate the management agreement," the Mohegans explained in their 2008 annual report to the SEC, the most recent available. "This termination occurred on December 31, 1999. On January 1, 2000, we assumed the day-to-day management of Mohegan Sun.
"To compensate TCA for terminating its management rights, we agreed to pay to TCA five percent of revenues, as defined in the relinquishment agreement, generated by Mohegan Sun during the 15-year period commencing on January 1, 2000 and ending on December 31, 2014," the SEC filing explains.
Federal lawmakers, including Sen. John McCain, attempted to change the rules and close the consulting contract loophole. But aggressive lobbying by the gaming industry, including Kerzner, foiled the attempt.
Len Wolman, Kerzner's partner in TCA, declined to comment regarding arrangements with the Mohegan tribe. He referred all questions to the tribe.
"We have a really good relationship with the Mohegans, but they comment on anything related to their facilities. You have all the public information," Wolman said.
Mohegan tribal officials did not return calls regarding TCA or Kerzner. Representatives for Kerzner did not respond to requests for comment.
`WORLD'S BEST SALOON KEEPER'
When Kerzner opened his flagship casino in South Africa in 1979, the famed Sun City resort, Frank Sinatra remarked that the developer was the "world's best saloon keeper." Sun City was vintage Kerzner: a heavily themed, over-the-top resort that offered hundreds of hotel rooms, dozens of restaurants and, most importantly, huge areas for slot machines and table games.
He continued to develop international resorts, most notably the massive Atlantis Resort in the Bahamas. One Kerzner company, One & One Resorts, manages seven luxury properties in the Bahamas, Mexico, Mauritius and the Maldives.
Kerzner is also involved with the Twin River slots and greyhound racing parlor, one of Rhode Island's top revenue producers. That operation recently entered bankruptcy, although state officials are backing moves to restore it to good health and keep the revenue stream pouring into state coffers.
But despite his reputation as a premier resort builder, controversy followed Kerzner from the moment he arrived in Connecticut. Former Gov. John Rowland, who later resigned and pleaded guilty to corruption charges, tried to block Kerzner from receiving a gaming license, his first in the United States.
Allegations of bribes paid to South African officials followed the developer to Connecticut, and Rowland declared the casino mogul unfit to do business in his state.
"There was serious pressure on me to make sure he didn't get a license," said Beecher, the former state police trooper who later headed the state police gaming unit.
Beecher said the bribe allegations were thoroughly investigated, a process that included sending Connecticut investigators to South Africa. In the end, Beecher concluded there was nothing to the accusations.
"Sol stood up to a very intense state police investigation. This was a 10-year-old allegation that was never prosecuted. It just did not hold weight," Beecher said.
"Everyone was saying, `Make sure this guy does not get a license.' It was so bad that Rowland hit up Wolman for season tickets to the (formerly Hartford Whalers) while we were conducting the investigation of Kerzner. I was livid.
"What was the difference between what was going on and what Kerzner was accused of doing?" Beecher said.
MOVING EAST
Kerzner and Wolman recently set their sights on a tract of land in Middleborough, Mass., and signed a deal with the Mashpee Wampanoag tribe to build a $1 billion casino on the rural site near Cape Cod.
The Wampanoags have identified more than 500 acres, but the federal Department of the Interior has yet to approve its application.
Casinos are a hot topic in Massachusetts, where a number of ventures are on the table, backed by recognized tribes and commercial operators.
The Mohegans proposed a casino for Palmer, Mass., pledging to serve as a commercial developer, and others are circling with similar projects.
The Massachusetts state Legislature is expected to vote next year on whether to allow gaming.
Friday, November 20, 2009
Flash: Mohegan Gaming Authority Announces 4th Quarter Operating Results
Feather News
Last month the Mohegan Tribal Gaming Authority issued estimates as to what it believed would be the final profit figure (and other figures) for the fourth quarter but today MTGA issued the final number.
A few of the highlights, until a more complete article can be written are as follows:
Profits (or net income) for the fourth quarter, which is the three-month period of July through September, was reported to be $66.4 million but this figure includes a one-time annual adjustment of $45.7 million that relates to estimated payouts to the casino's former management company, Trading Cove Associates. Had the one-time annual adjustment of $45.7 million not been included, then profits would have been $20.7 million for what is by far the busiest three-month period in MTGA's seasonal calendar. Note that distributions to the tribal government are not deducted from the profit figure.
Interest expense for the full twelve months of fiscal 2009, which ended on September 30th, increased to $109.7 million from $93.8 million in the prior fiscal year although the weighted average interest rate on MTGA's debt was 6.7 percent in fiscal year 2009 compared to a lower rate, 7.2 percent, in fiscal year 2008.
MTGA's total debt was $1.64 billion as of September 30, 2009 compared to $1.56 billion the year before, on September 30, 2008.
A Feather News analysis concludes, based upon figures reported in the press release and separate interest expense computations, that Pocono Downs lost more money since the expansion was opened than before the expansion opened in the summer of 2008.
A conference call with analysts is scheduled for 11:00 a.m. this morning.
The entire press release can be seen at http://www.sec.gov/Archives/edgar/data/1005276/000119312509238924/dex991.htm
Last month the Mohegan Tribal Gaming Authority issued estimates as to what it believed would be the final profit figure (and other figures) for the fourth quarter but today MTGA issued the final number.
A few of the highlights, until a more complete article can be written are as follows:
Profits (or net income) for the fourth quarter, which is the three-month period of July through September, was reported to be $66.4 million but this figure includes a one-time annual adjustment of $45.7 million that relates to estimated payouts to the casino's former management company, Trading Cove Associates. Had the one-time annual adjustment of $45.7 million not been included, then profits would have been $20.7 million for what is by far the busiest three-month period in MTGA's seasonal calendar. Note that distributions to the tribal government are not deducted from the profit figure.
Interest expense for the full twelve months of fiscal 2009, which ended on September 30th, increased to $109.7 million from $93.8 million in the prior fiscal year although the weighted average interest rate on MTGA's debt was 6.7 percent in fiscal year 2009 compared to a lower rate, 7.2 percent, in fiscal year 2008.
MTGA's total debt was $1.64 billion as of September 30, 2009 compared to $1.56 billion the year before, on September 30, 2008.
A Feather News analysis concludes, based upon figures reported in the press release and separate interest expense computations, that Pocono Downs lost more money since the expansion was opened than before the expansion opened in the summer of 2008.
A conference call with analysts is scheduled for 11:00 a.m. this morning.
The entire press release can be seen at http://www.sec.gov/Archives/edgar/data/1005276/000119312509238924/dex991.htm
Thursday, November 19, 2009
Mashantucket Tribal Member Found Guilty
Feather News
A federal jury in Hartford today found a Mashantucket tribal member guilty of wire fraud in a scheme that defrauded investors.
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that a federal jury sitting in Hartford found Christoper Pearson, 50, of Ledyard, guilty of eight counts of wire fraud.
According to the announcement, Pearson, who was formerly a Deputy Chief Operating Officer for the Mashantucket-Pequot Tribal Nation, defrauded a number of investors out of $280,000 that he obtained from them based upon his representations that he would purchase land in Honduras on which a casino would be built.
Pearson is scheduled to be sentenced by on February 5, 2010. Pearson faces a maximum term of imprisonment of 20 years and a fine of up to $250,000, on each count.
Pearson is also a defendant in a civil case in the Mashantucket Pequot tribal court because some of the investors were tribal members but no decision has yet been issued in that case.
A federal jury in Hartford today found a Mashantucket tribal member guilty of wire fraud in a scheme that defrauded investors.
Nora R. Dannehy, United States Attorney for the District of Connecticut, announced that a federal jury sitting in Hartford found Christoper Pearson, 50, of Ledyard, guilty of eight counts of wire fraud.
According to the announcement, Pearson, who was formerly a Deputy Chief Operating Officer for the Mashantucket-Pequot Tribal Nation, defrauded a number of investors out of $280,000 that he obtained from them based upon his representations that he would purchase land in Honduras on which a casino would be built.
Pearson is scheduled to be sentenced by on February 5, 2010. Pearson faces a maximum term of imprisonment of 20 years and a fine of up to $250,000, on each count.
Pearson is also a defendant in a civil case in the Mashantucket Pequot tribal court because some of the investors were tribal members but no decision has yet been issued in that case.
Comments On Feather News
Feather News
One of the comments we received yesterday will be thoroughly researched. We did not post the comment, in part because of the sensitivity of the subject and in part because some of us have been discussing for some time the appropriate action to take on that topic. Stay tuned ... and thank you.
One of the comments we received yesterday will be thoroughly researched. We did not post the comment, in part because of the sensitivity of the subject and in part because some of us have been discussing for some time the appropriate action to take on that topic. Stay tuned ... and thank you.
Tuesday, November 17, 2009
Mashantucket's Credit Rating Downgraded
Feather News
This installment of The Tribes In The Media is a Bloomberg News article on the Mashantucket Pequot Tribe's likely default on interest payments:
Foxwoods Casino Owner Will Likely Default on Payments (Update2)
By James Callan
Bloomberg News
November 16, 2009
The Mashantucket Pequot Tribal Nation, owner of Foxwoods Resort Casino, said it will probably default on interest payments for its $500 million of 8.5 percent notes due in 2015.
The tribe entered a 30-day grace period for payments on the notes and doesn’t expect the remaining amounts to be paid during that period, according to an e-mailed statement today. The trustee for the notes has received and distributed about $14.2 million of the $21.3 million semi-annual interest payment due today, the southeastern Connecticut-based tribe said in the statement.
Last month, creditors for the tribe agreed not to pursue default rights if debt payments aren’t made or loan conditions are breached. That forbearance agreement with senior lenders runs until Jan. 20, giving the tribe time to restructure debt.
Standard & Poor’s cut its rating on the notes four steps to D today, signaling the debt is in default.
Moody’s Investors Service stopped covering the tribe because the rating company “lacks adequate information to maintain a rating,” according to a statement released today.
The 8.5 percent notes due in 2015 rose 0.125 cent to 30 cents on the dollar today, according to data compiled by Bloomberg.
Foxwoods, among the largest casinos in the U.S. by gambling space, is on tribal land in the town of Ledyard. It has lost business in the recession and to competition from new casinos and racetracks with slot machine-style video-lottery in nearby states.
This installment of The Tribes In The Media is a Bloomberg News article on the Mashantucket Pequot Tribe's likely default on interest payments:
Foxwoods Casino Owner Will Likely Default on Payments (Update2)
By James Callan
Bloomberg News
November 16, 2009
The Mashantucket Pequot Tribal Nation, owner of Foxwoods Resort Casino, said it will probably default on interest payments for its $500 million of 8.5 percent notes due in 2015.
The tribe entered a 30-day grace period for payments on the notes and doesn’t expect the remaining amounts to be paid during that period, according to an e-mailed statement today. The trustee for the notes has received and distributed about $14.2 million of the $21.3 million semi-annual interest payment due today, the southeastern Connecticut-based tribe said in the statement.
Last month, creditors for the tribe agreed not to pursue default rights if debt payments aren’t made or loan conditions are breached. That forbearance agreement with senior lenders runs until Jan. 20, giving the tribe time to restructure debt.
Standard & Poor’s cut its rating on the notes four steps to D today, signaling the debt is in default.
Moody’s Investors Service stopped covering the tribe because the rating company “lacks adequate information to maintain a rating,” according to a statement released today.
The 8.5 percent notes due in 2015 rose 0.125 cent to 30 cents on the dollar today, according to data compiled by Bloomberg.
Foxwoods, among the largest casinos in the U.S. by gambling space, is on tribal land in the town of Ledyard. It has lost business in the recession and to competition from new casinos and racetracks with slot machine-style video-lottery in nearby states.
Mashantuckets Credit Rating Lowered, Interest Payment Missed
Feather News
The following appeared in today's The Day newspaper:
Mashantuckets likely to default on key payment
By Brian Hallenbeck
The Day
November 17, 2009
Two-thirds of $21.25M in interest paid, but tribe says balance won't be on time as credit rating plummets
The Mashantucket Pequot Tribal Nation expects to default next month on the balance of a bond interest payment that was due Monday.
In a statement, the tribe said it had paid about two-thirds of a $21.25 million payment, triggering a 30-day grace period in which it could pay the rest. It said, however, that it does not "currently anticipate" paying the balance within the grace period, meaning it will be in default as of Dec. 16.
While the tribe stressed that its ongoing efforts to restructure debt will have "no impact" on operations at its casinos - Foxwoods Resort Casino and MGM Grand at Foxwoods - it did not say whether tribal government or payments to tribal members could be affected.
Spokesmen for the tribe did not respond to a request for more information.
Hours after the tribe's announcement, Standard & Poor's, the credit-rating agency, lowered its "issuer credit rating" on the tribe from CCC to D, the lowest possible rating, which is assigned to debtors whose bonds are in default because of nonpayment of principal and/or interest. The agency also lowered to D its "issue-level rating" on the 8.5 percent notes in question.
"The rating actions stem from the Tribe's announcement that it did not make the full $21.25 million interest payment due today on the notes; it made a $14.2 million payment," Standard & Poor's said in a press release.
Although the tribe has a 30-day grace period in which to retire the balance of the interest payment, or "coupon," Standard & Poor's said it considers a default to have occurred, even if a grace period exists, "when the nonpayment is a function of the borrower being under financial distress - unless we are confident that the payment will be made in full during the grace period."
The $21.25 million payment represents half of the 8.5 percent annual interest on $500 million in notes, which are to mature in 2015.
Three weeks ago, the tribe announced it had reached a so-called forbearance agreement with its "senior lenders," a reference to the Bank of America-led syndicate of banks that has extended the tribe a $700 million revolving line of credit, which is due in its entirety in July 2010. It could not be determined whether terms of the forbearance agreement prevented the tribe from making the full $21.25 million payment on the 8.5 percent notes, as one financial analyst familiar with the situation speculated.
The tribe's agreements with bondholders give the bondholders the right to restrict payments to the tribe in the event of a default. According to one financial source who asked not to be named, a default on the 8.5 percent notes would not necessarily cause the tribe difficulty because the distribution of gaming revenue to the tribe would not be severely restricted.
A default on more senior bonds, however, could lead to severe restrictions on distributions to the tribe, the source said.
The Day first reported in late August that the tribe had drawn down the balance on its line of credit and would seek to restructure more than $2 billion in debt with the help of Miller Buckfire, an independent New York investment bank. Michael Thomas, then the chairman of the Mashantucket Pequot Tribal Council, had informed tribal members that he intended to put tribal government and "incentive" payments to members ahead of payments to creditors.
Thomas' pledge sent shock waves through the financial markets and Indian Country, and the tribal council moved swiftly to relieve him of his duties. He has since been expelled from the council. Rodney Butler, the council treasurer, was elected chairman Nov. 1 by the tribal membership and will take office Jan. 1.
The tribe met last week with a committee of bondholder representatives, which hired GLC Advisors & Co. to provide financial advice and the New York firm Bracewell & Giuliani as legal counsel. In addition to the $500 million in 8.5 percent notes, the tribe's bond debt includes $570 million of special revenue obligation bonds, or SROs; and $369 million in subordinated special revenue obligations, or SSROs.
The tribe also owes Kien Huat, the Malaysian investment company that originally bankrolled Foxwoods, some $21.2 million.
In its statement Monday, the tribe said once again that its debt-restructuring efforts "are separate and distinct from operations at Foxwoods" and would not affect "guests, employees, suppliers or business partners at Foxwoods or MGM Grand at Foxwoods."
"There's been no impact on our operation," said Robert Victoria, Foxwoods' senior vice president of consumer marketing. "The debt and the restructuring, that's all handled on the (tribal) nation side. People really don't talk much about it."
The Mashantuckets' impending default is expected to send more ripples through Indian Country, particularly among other gaming tribes that need to access credit to upgrade their operations.
Asked for her tribe's reaction to Monday's news, Lynn Malerba, chairwoman of the Mohegan Tribe, which owns Mohegan Sun, said, "Our thoughts are with our friends at the Mashantucket Pequot Tribal Nation, and we sincerely hope they can resolve their financial issues in a manner that is fair to everyone involved."
The following appeared in today's The Day newspaper:
Mashantuckets likely to default on key payment
By Brian Hallenbeck
The Day
November 17, 2009
Two-thirds of $21.25M in interest paid, but tribe says balance won't be on time as credit rating plummets
The Mashantucket Pequot Tribal Nation expects to default next month on the balance of a bond interest payment that was due Monday.
In a statement, the tribe said it had paid about two-thirds of a $21.25 million payment, triggering a 30-day grace period in which it could pay the rest. It said, however, that it does not "currently anticipate" paying the balance within the grace period, meaning it will be in default as of Dec. 16.
While the tribe stressed that its ongoing efforts to restructure debt will have "no impact" on operations at its casinos - Foxwoods Resort Casino and MGM Grand at Foxwoods - it did not say whether tribal government or payments to tribal members could be affected.
Spokesmen for the tribe did not respond to a request for more information.
Hours after the tribe's announcement, Standard & Poor's, the credit-rating agency, lowered its "issuer credit rating" on the tribe from CCC to D, the lowest possible rating, which is assigned to debtors whose bonds are in default because of nonpayment of principal and/or interest. The agency also lowered to D its "issue-level rating" on the 8.5 percent notes in question.
"The rating actions stem from the Tribe's announcement that it did not make the full $21.25 million interest payment due today on the notes; it made a $14.2 million payment," Standard & Poor's said in a press release.
Although the tribe has a 30-day grace period in which to retire the balance of the interest payment, or "coupon," Standard & Poor's said it considers a default to have occurred, even if a grace period exists, "when the nonpayment is a function of the borrower being under financial distress - unless we are confident that the payment will be made in full during the grace period."
The $21.25 million payment represents half of the 8.5 percent annual interest on $500 million in notes, which are to mature in 2015.
Three weeks ago, the tribe announced it had reached a so-called forbearance agreement with its "senior lenders," a reference to the Bank of America-led syndicate of banks that has extended the tribe a $700 million revolving line of credit, which is due in its entirety in July 2010. It could not be determined whether terms of the forbearance agreement prevented the tribe from making the full $21.25 million payment on the 8.5 percent notes, as one financial analyst familiar with the situation speculated.
The tribe's agreements with bondholders give the bondholders the right to restrict payments to the tribe in the event of a default. According to one financial source who asked not to be named, a default on the 8.5 percent notes would not necessarily cause the tribe difficulty because the distribution of gaming revenue to the tribe would not be severely restricted.
A default on more senior bonds, however, could lead to severe restrictions on distributions to the tribe, the source said.
The Day first reported in late August that the tribe had drawn down the balance on its line of credit and would seek to restructure more than $2 billion in debt with the help of Miller Buckfire, an independent New York investment bank. Michael Thomas, then the chairman of the Mashantucket Pequot Tribal Council, had informed tribal members that he intended to put tribal government and "incentive" payments to members ahead of payments to creditors.
Thomas' pledge sent shock waves through the financial markets and Indian Country, and the tribal council moved swiftly to relieve him of his duties. He has since been expelled from the council. Rodney Butler, the council treasurer, was elected chairman Nov. 1 by the tribal membership and will take office Jan. 1.
The tribe met last week with a committee of bondholder representatives, which hired GLC Advisors & Co. to provide financial advice and the New York firm Bracewell & Giuliani as legal counsel. In addition to the $500 million in 8.5 percent notes, the tribe's bond debt includes $570 million of special revenue obligation bonds, or SROs; and $369 million in subordinated special revenue obligations, or SSROs.
The tribe also owes Kien Huat, the Malaysian investment company that originally bankrolled Foxwoods, some $21.2 million.
In its statement Monday, the tribe said once again that its debt-restructuring efforts "are separate and distinct from operations at Foxwoods" and would not affect "guests, employees, suppliers or business partners at Foxwoods or MGM Grand at Foxwoods."
"There's been no impact on our operation," said Robert Victoria, Foxwoods' senior vice president of consumer marketing. "The debt and the restructuring, that's all handled on the (tribal) nation side. People really don't talk much about it."
The Mashantuckets' impending default is expected to send more ripples through Indian Country, particularly among other gaming tribes that need to access credit to upgrade their operations.
Asked for her tribe's reaction to Monday's news, Lynn Malerba, chairwoman of the Mohegan Tribe, which owns Mohegan Sun, said, "Our thoughts are with our friends at the Mashantucket Pequot Tribal Nation, and we sincerely hope they can resolve their financial issues in a manner that is fair to everyone involved."
Monday, November 16, 2009
Mohegan Sun Reports 3.8% Decline In October Slot Revenue
Feather News
The decline in slot revenue slowed considerably for Mohegan Sun in the month of October. The Mohegan Sun reported a 3.8 percent decline in its October slot revenue compared to the year before in October 2008 while Foxwoods reported a 4 percent decline.
Slot revenue for October at Mohegan Sun was $62.9 million and Foxwoods reported total October slot revenue of $54.8 million. Both casinos pay the state of Connecticut 25 percent of these amounts.
The decline in slot revenue slowed considerably for Mohegan Sun in the month of October. The Mohegan Sun reported a 3.8 percent decline in its October slot revenue compared to the year before in October 2008 while Foxwoods reported a 4 percent decline.
Slot revenue for October at Mohegan Sun was $62.9 million and Foxwoods reported total October slot revenue of $54.8 million. Both casinos pay the state of Connecticut 25 percent of these amounts.
Sunday, November 15, 2009
Extras Needed For Filming At Mohegan Sun
Feather News
The following article was in The Day newspaper today:
Mohegan -The producers of a Ben Affleck movie are seeking extras for a scene taking place Monday at Mohegan Sun.
C.P. Casting Inc. of Boston is seeking adult men and women, 21 and older, to work as background extras. Extras need to provide their own transportation to the casino and may be asked to arrive, ready to work, as early as 6:30 a.m.
The movie, "The Town," is based on the book, "Prince of Thieves" by Chuck Hogan. The movie stars and is being directed by Affleck.
If you're interested in applying, and you're available from early in the morning to late in the evening Monday, send an e-mail to thetowncasino@gmail.com. If you are chosen, you'll have to provide ID and documentation to prove you can work in the United States.
The following article was in The Day newspaper today:
Mohegan -The producers of a Ben Affleck movie are seeking extras for a scene taking place Monday at Mohegan Sun.
C.P. Casting Inc. of Boston is seeking adult men and women, 21 and older, to work as background extras. Extras need to provide their own transportation to the casino and may be asked to arrive, ready to work, as early as 6:30 a.m.
The movie, "The Town," is based on the book, "Prince of Thieves" by Chuck Hogan. The movie stars and is being directed by Affleck.
If you're interested in applying, and you're available from early in the morning to late in the evening Monday, send an e-mail to thetowncasino@gmail.com. If you are chosen, you'll have to provide ID and documentation to prove you can work in the United States.
Saturday, November 14, 2009
Photos: Native American Veterans Honored By Mashantucket Pequot Nation
Trudy Lamb Richmond
Stan Harris, Mashantucket Pequot War Chief
Honoring Mohegan Veteran Bill Baker (pictured on left in photo)
Candace presents sweetgrass to veterans
Blanket Dance to honor veterans
Native American Veterans Honored By Mashantucket Pequot Nation
Native American Veterans Honored
By Bill Donehey (Mohegan), U.S. Army Veteran
November 14, 2009
Mashantucket, CT. - The sixth annual ceremony to honor Native American veterans for their military service took place Saturday, November 14, 2009 at the Pequot Museum at Mashantucket, CT. Native American veterans were treated to a lunch of salad, lasagna, fresh fruits and cookies at The Mashantucket Tribally sponsored event, hosted by Trudy Lamb Richmond, director of public programs at the Pequot Museum.
The ceremony was held in the main gathering space, the heavy rain cascaded down the glass enclosure as if the creators’ tears were being shed for those veterans unable to be present for the recognition they so richly deserved.
The main speaker was Mashantucket War Chief Stan Harris, U.S. Navy veteran. Mr. Harris was introduced by his son a former marine and desert storm warrior. Stan talked about the day his son embarked for overseas duty and how he stood and watched as his plane became a distant speck in the sky. Only then would he leave the airport. From that moment on each night as he lie in bed praying to the creator to keep his son safe did he understand what sacrifice meant. The first phone call he received from his son was the day he knew his boy was changed forever, Stan asked “how you doin' son?” Silence for a moment and then his usually energetic and enthusiastic son replied in a soft quiet tone, “I’m ok I guess”, Stan sensed something was wrong and asked, “Son? What is it?” and his son replied “I killed someone today…” His son had been changed forever.
When Stan’s son returned home Stan knew he had to do something to help him readjust, so they went to the drag races at the local fair grounds. a beautiful day for father and son bonding, good food, beautiful cars and friendship, suddenly overhead the roar of four fighter jets in formation flew over. Stan looked up to admire the sight, his son meanwhile dove on the ground rolling for cover under a table. His son had been changed forever…
Stan told the audience that to be a veteran, whether it was being a cop on the street fighting a war on crime or the teenage soldier in Iraq, Afghanistan or other parts of the world, the word veteran means sacrifice and we all need to appreciate them. Appreciate them for our ability to roam as we please, to go shopping, the movies, go to any church we want to worship in and if we please, to take for granted the freedoms we enjoy. Stan and his son sacrificed for our country and they were never the same.
By Bill Donehey (Mohegan), U.S. Army Veteran
November 14, 2009
Mashantucket, CT. - The sixth annual ceremony to honor Native American veterans for their military service took place Saturday, November 14, 2009 at the Pequot Museum at Mashantucket, CT. Native American veterans were treated to a lunch of salad, lasagna, fresh fruits and cookies at The Mashantucket Tribally sponsored event, hosted by Trudy Lamb Richmond, director of public programs at the Pequot Museum.
The ceremony was held in the main gathering space, the heavy rain cascaded down the glass enclosure as if the creators’ tears were being shed for those veterans unable to be present for the recognition they so richly deserved.
The main speaker was Mashantucket War Chief Stan Harris, U.S. Navy veteran. Mr. Harris was introduced by his son a former marine and desert storm warrior. Stan talked about the day his son embarked for overseas duty and how he stood and watched as his plane became a distant speck in the sky. Only then would he leave the airport. From that moment on each night as he lie in bed praying to the creator to keep his son safe did he understand what sacrifice meant. The first phone call he received from his son was the day he knew his boy was changed forever, Stan asked “how you doin' son?” Silence for a moment and then his usually energetic and enthusiastic son replied in a soft quiet tone, “I’m ok I guess”, Stan sensed something was wrong and asked, “Son? What is it?” and his son replied “I killed someone today…” His son had been changed forever.
When Stan’s son returned home Stan knew he had to do something to help him readjust, so they went to the drag races at the local fair grounds. a beautiful day for father and son bonding, good food, beautiful cars and friendship, suddenly overhead the roar of four fighter jets in formation flew over. Stan looked up to admire the sight, his son meanwhile dove on the ground rolling for cover under a table. His son had been changed forever…
Stan told the audience that to be a veteran, whether it was being a cop on the street fighting a war on crime or the teenage soldier in Iraq, Afghanistan or other parts of the world, the word veteran means sacrifice and we all need to appreciate them. Appreciate them for our ability to roam as we please, to go shopping, the movies, go to any church we want to worship in and if we please, to take for granted the freedoms we enjoy. Stan and his son sacrificed for our country and they were never the same.
Friday, November 13, 2009
New Restaurant At Mohegan Sun To Open Next Saturday
Feather News
Celebrity chef Bobby Flay's second restaurant at the Mohegan Sun casino is scheduled to open to the public next Saturday, according to the Boston Globe. The 276-seat Bar Americain at Mohegan Sun replaced Fidelias Restaurant.
Celebrity chef Bobby Flay's second restaurant at the Mohegan Sun casino is scheduled to open to the public next Saturday, according to the Boston Globe. The 276-seat Bar Americain at Mohegan Sun replaced Fidelias Restaurant.
Thursday, November 12, 2009
Mohegan Sun Pays To Have Name On Pennsylvania Arena
Feather News
The following installment of The Tribe In The Media is an article in Pennsylvania's The Morning Call regarding the Mohegan Sun's purchase of naming rights for an 8,300-seat arena that is close to the Tribe's Pennsylvania racetrack-slot parlor.
Mohegan Sun bets on arena's concert draws
Posted by John J. Moser
The Morning Call
November 12, 2009
The 8,300-seat arena sports and entertainment arena near Wilkes-Barre has its fourth name in its 10-year history.
But Mohegan Sun at Pocono Downs casino is betting on the arena’s success, anteing up to keep its name on the building for its next decade, officials said Wednesday.
The arena, which since 2003 has been Wachovia Arena at Casey Plaza, will become Mohegan Sun Arena at Casey Plaza as of Jan. 20. Luzerne County Convention Center Authority voted Wednesday to award the naming rights for an undisclosed sum.
“The Mohegan Sun brand is synonymous with great entertainment so it’s perfect for us to support the region and community by being the naming rights partner with the premier destination for live performances in Pennsylvania,” Mohegan President Bobby Soper said.
Authority Chairman Pat Judge said that “of all the companies we negotiated with over the last year, Mohegan Sun emerged as the strongest partner.” He did not say who else sought the naming rights, but said the sponsorship money will be reinvested in the building.
The arena opened in November 1999 as the Northeastern Pennsylvania Civic Arena and Convention Center, and two months later, First Union Bank became the first naming rights partner until Wachovia Bank acquired First Union in 2003.
Its 10th anniversary season this year featured Elton John, AC/DC, Jeff Dunham, Barry Manilow, The Dead and Walking with Dinosaurs. In past, it has offered Neil Diamond, The Eagles, Simon and Garfunkel, Cher, Bon Jovi, Trans-Siberian Orchestra, Rod Stewart and Bette Midler.
The following installment of The Tribe In The Media is an article in Pennsylvania's The Morning Call regarding the Mohegan Sun's purchase of naming rights for an 8,300-seat arena that is close to the Tribe's Pennsylvania racetrack-slot parlor.
Mohegan Sun bets on arena's concert draws
Posted by John J. Moser
The Morning Call
November 12, 2009
The 8,300-seat arena sports and entertainment arena near Wilkes-Barre has its fourth name in its 10-year history.
But Mohegan Sun at Pocono Downs casino is betting on the arena’s success, anteing up to keep its name on the building for its next decade, officials said Wednesday.
The arena, which since 2003 has been Wachovia Arena at Casey Plaza, will become Mohegan Sun Arena at Casey Plaza as of Jan. 20. Luzerne County Convention Center Authority voted Wednesday to award the naming rights for an undisclosed sum.
“The Mohegan Sun brand is synonymous with great entertainment so it’s perfect for us to support the region and community by being the naming rights partner with the premier destination for live performances in Pennsylvania,” Mohegan President Bobby Soper said.
Authority Chairman Pat Judge said that “of all the companies we negotiated with over the last year, Mohegan Sun emerged as the strongest partner.” He did not say who else sought the naming rights, but said the sponsorship money will be reinvested in the building.
The arena opened in November 1999 as the Northeastern Pennsylvania Civic Arena and Convention Center, and two months later, First Union Bank became the first naming rights partner until Wachovia Bank acquired First Union in 2003.
Its 10th anniversary season this year featured Elton John, AC/DC, Jeff Dunham, Barry Manilow, The Dead and Walking with Dinosaurs. In past, it has offered Neil Diamond, The Eagles, Simon and Garfunkel, Cher, Bon Jovi, Trans-Siberian Orchestra, Rod Stewart and Bette Midler.
Wednesday, November 11, 2009
Las Vegas, Atlantic City Report Slower Declines In Revenue
Feather News
The state of Nevada reported a decline of 9 percent in its casino revenues in September compared to the same month last year while Atlantic City's casino revenue fell by 6.5 percent in October.
The Las Vegas strip, included in the state of Nevada's statistics and the number one gambling destination in the country, reported a 3.6 percent decline in revenues which is the lowest monthly decline in the last 15 months.
Atlantic City's decline marked the second consecutive month that revenues declined by single digits. In September, Atlantic City's casinos reported a decline of 5.8 percent compared to September 2008.
The state of Nevada reported a decline of 9 percent in its casino revenues in September compared to the same month last year while Atlantic City's casino revenue fell by 6.5 percent in October.
The Las Vegas strip, included in the state of Nevada's statistics and the number one gambling destination in the country, reported a 3.6 percent decline in revenues which is the lowest monthly decline in the last 15 months.
Atlantic City's decline marked the second consecutive month that revenues declined by single digits. In September, Atlantic City's casinos reported a decline of 5.8 percent compared to September 2008.
Tuesday, November 10, 2009
Rhode Island Slot Parlor To Begin Round-The-Clock Gambling
Feather News
Rhode Island's Twin River racetrack-slot parlor will begin 24-hour gambling, beginning November 19th.
Rhode Island Governor Don Carcieri gave permission last week for Twin River to extend its hours on the weekdays. Twin River currently operates 24-hours a day on weekdays and holidays but was seeking the round-the-clock gambling on weekdays also as an effort to stem losses.
Rhode Island's Twin River racetrack-slot parlor will begin 24-hour gambling, beginning November 19th.
Rhode Island Governor Don Carcieri gave permission last week for Twin River to extend its hours on the weekdays. Twin River currently operates 24-hours a day on weekdays and holidays but was seeking the round-the-clock gambling on weekdays also as an effort to stem losses.
Time Change For Spirit Lake Intertribal Social This Saturday
Feather News
The Spirit Lake Foundation's intertribal social this Saturday will begin at 2 p.m. and not at noon as was previously publicized. The social will be held at the City Municipal Building, 295 Meridian Street, Groton, CT. and will last until 8 p.m.
The Mystic River Singers will be the host drum. The event will feature Indian singing, dancing, food, arts and crafts.
The Spirit Lake Foundation's intertribal social this Saturday will begin at 2 p.m. and not at noon as was previously publicized. The social will be held at the City Municipal Building, 295 Meridian Street, Groton, CT. and will last until 8 p.m.
The Mystic River Singers will be the host drum. The event will feature Indian singing, dancing, food, arts and crafts.
Friday, November 6, 2009
The Latest News On Possible Hotel On Mohegan's Pennsylvania Property
Feather News
This installment of The Tribe In The Media is an article in Pennsylvania's Time Leader newspaper on a possible hotel at the Mohegan racetrack-slot parlor in Pennsylvania.
November 5
Lot eyed for casino’s proposed hotel
First public hearing for Mohegan Sun’s 300-room conference center/hotel set for Nov. 16.
By Jerry Lynott
Times Leader
November 5, 2009
PLAINS TWP. – Right now, there’s not much there except some pavement, landscaping and room for approximately 325 cars.
The parking area west of the main entrance of the Mohegan Sun at Pocono Downs is being eyed as the site for a 300-room hotel and conference center.
A preliminary land development plan includes an architectural drawing of a nine-story hotel and accompanying 25,000 square feet of convention space and meeting rooms.
Plains Township Zoning Hearing Board will hold a meeting at 8 p.m. on Nov. 16 to consider Mohegan Sun’s request for a variance that allows it to connect the proposed hotel and conference center to the adjacent 300,000-square-foot casino.
The plan, submitted to the township last month, is the start of the process to obtain permits for the project, said Bobby Soper, president and chief executive officer of Mohegan Sun.
Soper Wednesday said that there has been no decision to build and stressed the drawing is conceptual. Once Mohegan officials have an understanding of what they want the final design to be, they can move forward, he said.
“If and when that happens, that can easily be altered,” said Soper of the architectural drawing.
Talk of the proposed hotel has picked up with the debate over the addition of table games in Pennsylvania casinos.
The state Legislature plugged $200 million revenue from the games into the 2009-10 budget. Gov. Ed Rendell tasked lawmakers with presenting him a table games bill before Nov. 10.
Mohegan Sun has been planning to fit the games within its casino that now holds more than 2,460 slot machines.
A traffic impact analysis and parking study done for the proposed hotel and conference center included the introduction of table games and concluded there is enough space to accommodate additional parking even with the loss of the 325 spots, according to a letter Connolly Engineering Inc. of Kingston submitted to the township.
Connolly also asked that the township exempt Mohegan Sun from conducting an environmental impact study for the proposed project
“It is Mohegan Sun’s belief … that the project will not have a negative impact on the natural environment and the quality of life throughout Plains Township and its environs,” wrote Connolly.
The hotel, including the revised lobby area, will have a building footprint of approximately 82,750 square feet, according to the preliminary plan.
At 300 rooms, it would be the largest in Luzerne County. The nearby Woodlands Inn & Resort on state Route 315 has 179 rooms. The Ramada Hotel in Wilkes-Barre has 177 rooms. At 156 rooms the East Mountain Inn, also in Plains Township, rounds out the top three hotels in terms of the number of rooms.
JCJ Architecture Inc. of Hartford, Conn., which designed the $208 million Project Sunrise casino that opened last year at Mohegan Sun at Pocono Downs, prepared the site drawings for the proposed hotel and conference center.
The firm still has to compete for the job if casino management decides to build, said Brian Davis, a Wyoming Seminary graduate, Dallas Township native and lead designer for Project Sunrise. He described the Mohegan Tribal Gaming Authority that owns the casino as a very good and very demanding client.
“This is intended to be a casino/hotel that is not only extremely convenient and has all the amenities, it’s also one that is going to be part of a memorable experience,” Davis said.
An outside developer will build the structure and lease the land from Mohegan Sun at Pocono Downs, according to the preliminary plan.
This installment of The Tribe In The Media is an article in Pennsylvania's Time Leader newspaper on a possible hotel at the Mohegan racetrack-slot parlor in Pennsylvania.
November 5
Lot eyed for casino’s proposed hotel
First public hearing for Mohegan Sun’s 300-room conference center/hotel set for Nov. 16.
By Jerry Lynott
Times Leader
November 5, 2009
PLAINS TWP. – Right now, there’s not much there except some pavement, landscaping and room for approximately 325 cars.
The parking area west of the main entrance of the Mohegan Sun at Pocono Downs is being eyed as the site for a 300-room hotel and conference center.
A preliminary land development plan includes an architectural drawing of a nine-story hotel and accompanying 25,000 square feet of convention space and meeting rooms.
Plains Township Zoning Hearing Board will hold a meeting at 8 p.m. on Nov. 16 to consider Mohegan Sun’s request for a variance that allows it to connect the proposed hotel and conference center to the adjacent 300,000-square-foot casino.
The plan, submitted to the township last month, is the start of the process to obtain permits for the project, said Bobby Soper, president and chief executive officer of Mohegan Sun.
Soper Wednesday said that there has been no decision to build and stressed the drawing is conceptual. Once Mohegan officials have an understanding of what they want the final design to be, they can move forward, he said.
“If and when that happens, that can easily be altered,” said Soper of the architectural drawing.
Talk of the proposed hotel has picked up with the debate over the addition of table games in Pennsylvania casinos.
The state Legislature plugged $200 million revenue from the games into the 2009-10 budget. Gov. Ed Rendell tasked lawmakers with presenting him a table games bill before Nov. 10.
Mohegan Sun has been planning to fit the games within its casino that now holds more than 2,460 slot machines.
A traffic impact analysis and parking study done for the proposed hotel and conference center included the introduction of table games and concluded there is enough space to accommodate additional parking even with the loss of the 325 spots, according to a letter Connolly Engineering Inc. of Kingston submitted to the township.
Connolly also asked that the township exempt Mohegan Sun from conducting an environmental impact study for the proposed project
“It is Mohegan Sun’s belief … that the project will not have a negative impact on the natural environment and the quality of life throughout Plains Township and its environs,” wrote Connolly.
The hotel, including the revised lobby area, will have a building footprint of approximately 82,750 square feet, according to the preliminary plan.
At 300 rooms, it would be the largest in Luzerne County. The nearby Woodlands Inn & Resort on state Route 315 has 179 rooms. The Ramada Hotel in Wilkes-Barre has 177 rooms. At 156 rooms the East Mountain Inn, also in Plains Township, rounds out the top three hotels in terms of the number of rooms.
JCJ Architecture Inc. of Hartford, Conn., which designed the $208 million Project Sunrise casino that opened last year at Mohegan Sun at Pocono Downs, prepared the site drawings for the proposed hotel and conference center.
The firm still has to compete for the job if casino management decides to build, said Brian Davis, a Wyoming Seminary graduate, Dallas Township native and lead designer for Project Sunrise. He described the Mohegan Tribal Gaming Authority that owns the casino as a very good and very demanding client.
“This is intended to be a casino/hotel that is not only extremely convenient and has all the amenities, it’s also one that is going to be part of a memorable experience,” Davis said.
An outside developer will build the structure and lease the land from Mohegan Sun at Pocono Downs, according to the preliminary plan.
Tuesday, November 3, 2009
Mohegan To Meet With Zoning Board On Possible Hotel At Pennsylvania Property
Feather News
The following installment of The Tribe In The Media is an article in the Pennsylvania Times Leader newspaper on the Tribe's meeting with town officials on a possible hotel at their Pennsylvania racetrack-slot parlor.
Mohegan Sun eyes 9-story hotel, conference center
By Jerry Lynott
Times Leader
November 3, 2009
PLAINS TWP. – Many of the details for an expansion of the Mohegan Sun at Pocono Downs still have to be worked out, but the casino and harness racing track is getting things in order for a nine-story hotel and conference center.
A hearing is scheduled for 8 p.m. Nov. 16 before the Plains Township Zoning Board for the proposed project.
Bobby Soper, president and chief executive officer of Mohegan Sun at Pocono Downs, said Monday the expansion is at the very preliminary stage.
“What we’re doing now is submitting a land development plan,” he said.
The hotel and conference center would be located next to the existing $208 million casino that opened in July 2008.
The casino owners filed a request for a zoning variance to proceed with obtaining the required permits for construction, Soper said.
Still to be decided is whether Mohegan will seek a partner to build and operate the hotel, Soper said.
“We’re not sure if there’ll be a flag tied to it,” he said.
The expansion appears to be contingent on the addition of table games to the slot machines in place at the casino.
Last week, Gov. Ed Rendell indicated he wanted legislators to have a table games bill on his desk before Nov. 10.
The games would provide an estimated $200 million in much needed revenue to the state and the figure helped with the passage of the 2009-2010 budget reached last month after a 101-day stalemate.
Since the summer, Mohegan has been planning to add poker, blackjack, roulette and craps for gamblers. In July, Soper said he believed the table games could be in place within six months of the passage of legislation approving the games.
The hotel and conference center will take longer, much to the satisfaction of Mitch Kornfeld, whose family owns and operates the nearby Woodlands Inn & Resort.
“I just hope it takes a long time,” he said with a laugh.
He acknowledged that talk of a hotel at the casino has been around for years. The passage of a table games bill will likely make it a reality.
“I think on a macro level, it’s good,” Kornfeld said. The area will benefit with the addition of the games through jobs and people going to the casino, he added.
The following installment of The Tribe In The Media is an article in the Pennsylvania Times Leader newspaper on the Tribe's meeting with town officials on a possible hotel at their Pennsylvania racetrack-slot parlor.
Mohegan Sun eyes 9-story hotel, conference center
By Jerry Lynott
Times Leader
November 3, 2009
PLAINS TWP. – Many of the details for an expansion of the Mohegan Sun at Pocono Downs still have to be worked out, but the casino and harness racing track is getting things in order for a nine-story hotel and conference center.
A hearing is scheduled for 8 p.m. Nov. 16 before the Plains Township Zoning Board for the proposed project.
Bobby Soper, president and chief executive officer of Mohegan Sun at Pocono Downs, said Monday the expansion is at the very preliminary stage.
“What we’re doing now is submitting a land development plan,” he said.
The hotel and conference center would be located next to the existing $208 million casino that opened in July 2008.
The casino owners filed a request for a zoning variance to proceed with obtaining the required permits for construction, Soper said.
Still to be decided is whether Mohegan will seek a partner to build and operate the hotel, Soper said.
“We’re not sure if there’ll be a flag tied to it,” he said.
The expansion appears to be contingent on the addition of table games to the slot machines in place at the casino.
Last week, Gov. Ed Rendell indicated he wanted legislators to have a table games bill on his desk before Nov. 10.
The games would provide an estimated $200 million in much needed revenue to the state and the figure helped with the passage of the 2009-2010 budget reached last month after a 101-day stalemate.
Since the summer, Mohegan has been planning to add poker, blackjack, roulette and craps for gamblers. In July, Soper said he believed the table games could be in place within six months of the passage of legislation approving the games.
The hotel and conference center will take longer, much to the satisfaction of Mitch Kornfeld, whose family owns and operates the nearby Woodlands Inn & Resort.
“I just hope it takes a long time,” he said with a laugh.
He acknowledged that talk of a hotel at the casino has been around for years. The passage of a table games bill will likely make it a reality.
“I think on a macro level, it’s good,” Kornfeld said. The area will benefit with the addition of the games through jobs and people going to the casino, he added.
Mashantucket Pequot's New Tribal Council Chairman
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The following installment of The Tribes In The Media is an article in The Day newspaper on the new chairman of the Mashantucket Pequot Nation.
Rodney Butler, 32, has business background; will lead financially troubled tribe
By Brian Hallenbeck
The Day
November 3, 2009
Mashantucket - Rodney A. Butler, treasurer of the Mashantucket Pequot Tribal Council, was elected chairman Sunday after winning a third three-year term on the council, the tribe announced in a statement.
Steven Thomas and Crystal Whipple also won seats on the seven-member council in balloting among tribal members. Charlene Jones, the council's secretary, lost her bid for a fourth term.
The council governs the tribe and oversees its gaming enterprise, which includes Foxwoods Resort Casino and MGM Grand at Foxwoods. The Mashantuckets, dealing with the recession's crippling effect on casino revenues, are seeking to restructure a debt load of more than $2 billion.
Butler's term as chairman will begin Jan. 1, with the new council's inauguration expected to take place Jan. 4, the first business day of 2010. The chairmanship is currently vacant, the result of the council's recent expulsion of former Chairman Michael Thomas, whom the council condemned in August for pledging to put funding for tribal government and "incentive" payments to tribal members ahead of the tribe's financial obligations.
The 35-year-old Steven Thomas is Michael Thomas' younger brother.
After Butler, Steven Thomas and Whipple emerged as the top three vote-getters among 18 candidates, a second round of voting was held to select a chairman. Butler, Whipple and Marjorie Colebut-Jackson, one of four councilors not up for election, were nominated from the floor.
Butler outpolled Whipple by a fairly small margin to win the chairman's post, according to a source who asked not to be named. Observers have described the reserved Butler as bright and focused rather than charismatic, which was Michael Thomas' stock in trade. The two are said to have favored markedly different approaches to what Thomas called the "dire financial times" facing the tribe.
Butler lives outside the tribe's reservation in North Stonington.
"I am honored and deeply humbled that my family has chosen me to serve as the Chairman of the Tribal Council," Butler said in the tribal statement. "We have a proud and rich history and the membership has elected strong representatives to help drive the Tribe's continued success. Working with the Tribal Council, I will look to protect and advance the sovereign rights of our Tribal Nation and strengthen and preserve the cultural, social and economic foundation that will support subsequent generations of Mashantucket Pequots.
"These are challenging times on a number of fronts," Butler continued, "but throughout history, our Nation has encountered many challenges and has always emerged on the other side brighter, stronger and more independent than before."
Butler, 32, was an outstanding football player at Montville High School and went on to letter in the sport at the University of Connecticut, where he studied finance. Before beginning his first term on the council in 2004, he worked as a financial analyst at Foxwoods and later served as chairman of the tribe's business advisory board. He could not be reached for further comment.
Steven Thomas, who spoke briefly to a reporter Sunday evening, said he was working in the table games department at Foxwoods and had previously worked in the tribe's natural resources department.
"The tribe has spoken," the tribe's statement quoted him as saying.
Whipple, who has worked in tribal government, could not be reached to comment.
"I feel a tremendous amount of joy that the membership has chosen me as one of their leaders during such a challenging time for our Nation," she was quoted as saying. "... It's time for change and I think the people have demonstrated that today."
While the tribe released no vote totals or other details of the balloting, which took place at the tribe's community center, sources said turnout was heavy. About 450 tribal members over the age of 18 were eligible.
The following installment of The Tribes In The Media is an article in The Day newspaper on the new chairman of the Mashantucket Pequot Nation.
Rodney Butler, 32, has business background; will lead financially troubled tribe
By Brian Hallenbeck
The Day
November 3, 2009
Mashantucket - Rodney A. Butler, treasurer of the Mashantucket Pequot Tribal Council, was elected chairman Sunday after winning a third three-year term on the council, the tribe announced in a statement.
Steven Thomas and Crystal Whipple also won seats on the seven-member council in balloting among tribal members. Charlene Jones, the council's secretary, lost her bid for a fourth term.
The council governs the tribe and oversees its gaming enterprise, which includes Foxwoods Resort Casino and MGM Grand at Foxwoods. The Mashantuckets, dealing with the recession's crippling effect on casino revenues, are seeking to restructure a debt load of more than $2 billion.
Butler's term as chairman will begin Jan. 1, with the new council's inauguration expected to take place Jan. 4, the first business day of 2010. The chairmanship is currently vacant, the result of the council's recent expulsion of former Chairman Michael Thomas, whom the council condemned in August for pledging to put funding for tribal government and "incentive" payments to tribal members ahead of the tribe's financial obligations.
The 35-year-old Steven Thomas is Michael Thomas' younger brother.
After Butler, Steven Thomas and Whipple emerged as the top three vote-getters among 18 candidates, a second round of voting was held to select a chairman. Butler, Whipple and Marjorie Colebut-Jackson, one of four councilors not up for election, were nominated from the floor.
Butler outpolled Whipple by a fairly small margin to win the chairman's post, according to a source who asked not to be named. Observers have described the reserved Butler as bright and focused rather than charismatic, which was Michael Thomas' stock in trade. The two are said to have favored markedly different approaches to what Thomas called the "dire financial times" facing the tribe.
Butler lives outside the tribe's reservation in North Stonington.
"I am honored and deeply humbled that my family has chosen me to serve as the Chairman of the Tribal Council," Butler said in the tribal statement. "We have a proud and rich history and the membership has elected strong representatives to help drive the Tribe's continued success. Working with the Tribal Council, I will look to protect and advance the sovereign rights of our Tribal Nation and strengthen and preserve the cultural, social and economic foundation that will support subsequent generations of Mashantucket Pequots.
"These are challenging times on a number of fronts," Butler continued, "but throughout history, our Nation has encountered many challenges and has always emerged on the other side brighter, stronger and more independent than before."
Butler, 32, was an outstanding football player at Montville High School and went on to letter in the sport at the University of Connecticut, where he studied finance. Before beginning his first term on the council in 2004, he worked as a financial analyst at Foxwoods and later served as chairman of the tribe's business advisory board. He could not be reached for further comment.
Steven Thomas, who spoke briefly to a reporter Sunday evening, said he was working in the table games department at Foxwoods and had previously worked in the tribe's natural resources department.
"The tribe has spoken," the tribe's statement quoted him as saying.
Whipple, who has worked in tribal government, could not be reached to comment.
"I feel a tremendous amount of joy that the membership has chosen me as one of their leaders during such a challenging time for our Nation," she was quoted as saying. "... It's time for change and I think the people have demonstrated that today."
While the tribe released no vote totals or other details of the balloting, which took place at the tribe's community center, sources said turnout was heavy. About 450 tribal members over the age of 18 were eligible.
Monday, November 2, 2009
Flash: Mashantucket Pequots Elect New Chairman
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The Mashantucket Pequot Tribe installed treasurer Rodney Butler as their chairman yesterday as well as electing two new tribal councilors: Crystal M. Whipple and Steven Thomas.
It was reported that Butler, who attended Montville High School and studied finance at the University of Connecticut, was elected chairman over two other contenders for the post, Whipple and Marjorie Colebut-Jackson.
The Mashantucket Tribal membership elects the tribal council officers which is different from the Mohegan Tribe where its officers are selected by the nine tribal councilors.
The three will serve three-year terms on the seven-member tribal council, beginning January 1st.
The Mashantucket Pequot Tribe installed treasurer Rodney Butler as their chairman yesterday as well as electing two new tribal councilors: Crystal M. Whipple and Steven Thomas.
It was reported that Butler, who attended Montville High School and studied finance at the University of Connecticut, was elected chairman over two other contenders for the post, Whipple and Marjorie Colebut-Jackson.
The Mashantucket Tribal membership elects the tribal council officers which is different from the Mohegan Tribe where its officers are selected by the nine tribal councilors.
The three will serve three-year terms on the seven-member tribal council, beginning January 1st.
Friday, October 30, 2009
Mashantucket Pequot Election On Sunday
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This installment of The Tribes In The Media is an article from The Day newspaper on Sunday's tribal council election on the Mashantucket Pequot Reservation. On a trip to the Mashantucket Pequot Museum for an archeaology conference last week I saw about a dozen campaign signs on the edges of the short span of Tribal roadway that leads to the museum.
Sunday's tribal council vote a turning point for Mashantuckets
By Brian Hallenbeck
The Day
October 30, 2009
Mashantucket - Serene despite the talk of financial upheaval that has buffeted it lately, the Mashantucket Pequot Indian reservation bore a striking resemblance Thursday to other places where democracy is scheduled to play out next week.
Fallen leaves colored the ground and stuck to less-traveled roadways. Campaign placards sprouted near parking lots and intersections. Tidy and well-manicured, it could have passed for an upscale subdivision anywhere in Connecticut.
The quiet belied the stakes at hand though.
In just three days, the tribe would hold an election that would yield at least one and as many as three new tribal councilors as well as a new council chairman. Nothing less than the fate of the tribe and its world-class gaming enterprise - Foxwoods Resort Casino and MGM Grand at Foxwoods - would await the seven-member council that takes office Jan. 1.
What qualities should the electorate - about 450 tribal adults 18 and older - be looking for in the candidates? Aside from the obvious one, the effect of the casinos' declining revenues on the tribe's finances, what are the issues?
The slogans on the campaign signs only hinted at answers. For outsiders, they would have to do.
"Bring honor, respect and honesty back to Tribal Council," read one candidate's signs, evoking a common theme. "Vote for Jim Walker."
Theresa Hayward Bell, whose brother, Richard "Skip" Hayward, has been credited with almost single-handedly resurrecting the tribe in the 1970s, listed her qualifications on her signs: "Experienced. Dedicated. Openness. Honest. Fair."
Bell worked in tribal government in the 1970s and '80s and was named executive director of the Mashantucket Pequot Museum and Research Center years before it opened in 1998. When she stepped down in 2006, she told a reporter she'd grown tired of working for people who failed to grasp the significance of their heritage.
She said then that the casino-borne cash had been a curse as well as a boon and wondered aloud whether it could last forever. She doubted it.
Reached by phone this week, she declined to discuss her candidacy. The tribe's business is private, she said.
Anthony M. "Tony" Beltran, who served a term on the council from 1998 to 2000, might have spoken about his bid to return to the council if he hadn't been dealing with a bad back when a reporter called. His campaign signs had begun to appear in late summer, dominating the reservation's landscape for weeks.
"Haven't we had enough yet?" his signs asked, even before word of the tribe's financial woes surfaced.
Like the signs of several of the 18 candidates - one has dropped out of the record field of 19 that declared themselves Oct. 1 - Beltran's suggest the tribal council is a ship that's badly off course and in need of righting.
"Equal Voices & Equal Opportunities," Michael Sebastian's signs promise.
Those of L. Brian Sebastian claim he offers "Unrivaled experience, unmatched dedication."
Both Karen Hatcher, former head of the tribe's Pequot Health Care, and Clifford Sebastian III, at one time the tribal police chief, would put tribal members "first," their signs say.
The two councilors seeking re-election state their cases, too.
"Re-elect Charlene Jones," the council secretary urges. "Dedicated to Community, Culture, Health & Education."
Rodney Butler, the council treasurer, keeps it simple. "Vote for Rodney," his signs advise.
Up until September, the ballot figured to list a third incumbent, Michael Thomas, whose seven-year reign as council chairman ended amid controversy over his response to the financial crisis. His pledge to put tribal government and "incentive" payments to tribal members ahead of payments to creditors soared like a cement glider in the financial world and, for that matter, Indian Country.
His fellow councilors wasted no time distancing themselves from such a notion, first placing Thomas on administrative leave and eventually voting to expel him.
No one with the tribe would say Thursday what's to become of Thomas' seat between now and the end of his term Dec. 31. Presumably, it will simply remain vacant until the new council takes over.
Sunday's first round of voting at the tribe's community center will conclude at noon. Then, once the three top vote-getters are identified, the membership will elect a chairman from among those three and the four councilors not up for election - Vice Chairman Richard E. Sebastian, Marjorie Colebut-Jackson, Maureen Sebastian and James Jackson.
There were no signs Thursday to suggest who the new chairman might be.
This installment of The Tribes In The Media is an article from The Day newspaper on Sunday's tribal council election on the Mashantucket Pequot Reservation. On a trip to the Mashantucket Pequot Museum for an archeaology conference last week I saw about a dozen campaign signs on the edges of the short span of Tribal roadway that leads to the museum.
Sunday's tribal council vote a turning point for Mashantuckets
By Brian Hallenbeck
The Day
October 30, 2009
Mashantucket - Serene despite the talk of financial upheaval that has buffeted it lately, the Mashantucket Pequot Indian reservation bore a striking resemblance Thursday to other places where democracy is scheduled to play out next week.
Fallen leaves colored the ground and stuck to less-traveled roadways. Campaign placards sprouted near parking lots and intersections. Tidy and well-manicured, it could have passed for an upscale subdivision anywhere in Connecticut.
The quiet belied the stakes at hand though.
In just three days, the tribe would hold an election that would yield at least one and as many as three new tribal councilors as well as a new council chairman. Nothing less than the fate of the tribe and its world-class gaming enterprise - Foxwoods Resort Casino and MGM Grand at Foxwoods - would await the seven-member council that takes office Jan. 1.
What qualities should the electorate - about 450 tribal adults 18 and older - be looking for in the candidates? Aside from the obvious one, the effect of the casinos' declining revenues on the tribe's finances, what are the issues?
The slogans on the campaign signs only hinted at answers. For outsiders, they would have to do.
"Bring honor, respect and honesty back to Tribal Council," read one candidate's signs, evoking a common theme. "Vote for Jim Walker."
Theresa Hayward Bell, whose brother, Richard "Skip" Hayward, has been credited with almost single-handedly resurrecting the tribe in the 1970s, listed her qualifications on her signs: "Experienced. Dedicated. Openness. Honest. Fair."
Bell worked in tribal government in the 1970s and '80s and was named executive director of the Mashantucket Pequot Museum and Research Center years before it opened in 1998. When she stepped down in 2006, she told a reporter she'd grown tired of working for people who failed to grasp the significance of their heritage.
She said then that the casino-borne cash had been a curse as well as a boon and wondered aloud whether it could last forever. She doubted it.
Reached by phone this week, she declined to discuss her candidacy. The tribe's business is private, she said.
Anthony M. "Tony" Beltran, who served a term on the council from 1998 to 2000, might have spoken about his bid to return to the council if he hadn't been dealing with a bad back when a reporter called. His campaign signs had begun to appear in late summer, dominating the reservation's landscape for weeks.
"Haven't we had enough yet?" his signs asked, even before word of the tribe's financial woes surfaced.
Like the signs of several of the 18 candidates - one has dropped out of the record field of 19 that declared themselves Oct. 1 - Beltran's suggest the tribal council is a ship that's badly off course and in need of righting.
"Equal Voices & Equal Opportunities," Michael Sebastian's signs promise.
Those of L. Brian Sebastian claim he offers "Unrivaled experience, unmatched dedication."
Both Karen Hatcher, former head of the tribe's Pequot Health Care, and Clifford Sebastian III, at one time the tribal police chief, would put tribal members "first," their signs say.
The two councilors seeking re-election state their cases, too.
"Re-elect Charlene Jones," the council secretary urges. "Dedicated to Community, Culture, Health & Education."
Rodney Butler, the council treasurer, keeps it simple. "Vote for Rodney," his signs advise.
Up until September, the ballot figured to list a third incumbent, Michael Thomas, whose seven-year reign as council chairman ended amid controversy over his response to the financial crisis. His pledge to put tribal government and "incentive" payments to tribal members ahead of payments to creditors soared like a cement glider in the financial world and, for that matter, Indian Country.
His fellow councilors wasted no time distancing themselves from such a notion, first placing Thomas on administrative leave and eventually voting to expel him.
No one with the tribe would say Thursday what's to become of Thomas' seat between now and the end of his term Dec. 31. Presumably, it will simply remain vacant until the new council takes over.
Sunday's first round of voting at the tribe's community center will conclude at noon. Then, once the three top vote-getters are identified, the membership will elect a chairman from among those three and the four councilors not up for election - Vice Chairman Richard E. Sebastian, Marjorie Colebut-Jackson, Maureen Sebastian and James Jackson.
There were no signs Thursday to suggest who the new chairman might be.
Massachusetts Legislative Committee Holds Gambling Hearing
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The following Tribe In The Media installment is a South Coast article on yesterday's hearing held by a Massachusetts legislative committee on the issue regarding the possibility of expanded gaming in that state. The Mashpee Wampanoag chairman said at the hearing that the Tribe could be interested in a commercial casino license should gaming be approved but noted that it still pursues a casino on tribal land permitted under federal Indian Gaming law.
Proponents, foes of expanded gaming make their cases before state committee
By Steve Decosta
South Coast
October 29, 2009
BOSTON -- In a steady stream they approached the microphone, singly and in groups, to make their impassioned or dispassionate, facts-and-figures pleas for and against the most divisive issue currently facing the Massachusetts Legislature: expanded gaming.
Under the pall of the state’s rising unemployment and shrinking revenues, dozens of partisans made their arguments before the Legislature’s Committee on Economic Development and Emerging Technologies on Thursday in a hearing that began at 10:10 a.m. and lost steam by mid-afternoon; a similar hearing last year stretched more than 14 hours.
Those testifying in favor of expanded gaming outnumbered opponents, but it remained unclear whether any minds were changed. Several committee members clearly expressed their biases on the issue, while others sat stone-faced listening to the testimony in three-minute bursts.
Membership on the committee has turned over dramatically, as has the speakership of the House, since the gaming issue was last addressed – and overwhelmingly defeated -- in March 2008.
The state’s economic woes were cited Thursday as both the prime reason and the worst excuse to expand gaming.
While Gov. Deval Patrick was announcing the latest round of state budget cuts in Worcester, state Sen. Marc Pacheco argued that: “A million dollars a day – a day – we have lost,” because the Legislature has failed to authorize expanded gaming.
Carrying the mantle of opponents from her seat on the panel, Sen. Susan Tucker, countered: “I don’t know how it would help our economy to have people dumping millions of dollars into slot machines and having the profits shipped out of state.”
Officially, the hearing was conducted to review 16 specific pieces of pending legislation that would expand gaming in one form or another, but ostensibly it focused on two broad topics: “It’s all about jobs and money,” state Sen. Joan Menard said.
From the corporate headquarters of the Mohegan Sun to the kitchen of a typical family of Bridgewater, those who testified offered myriad theories about how many jobs would be created, how much revenue would be raised, how soon gaming facilities could be set up and how much the Bay State would suffer, primarily in social costs, but there was little in the ways of consensus.
Proponents, primarily union representatives and casino developers, promised new jobs and the recapture of millions of dollars in lost revenues, while opponents predicted a litany of horrors, including increased crime and addition and the domination of a predatory industry that could not be controlled by any regulatory agency.
“The initial proposal is always based on what people hope and what people hope is never what happens in the end,” said Cape and Islands Sen. Robert O’Leary. “Once these facilities are built, they own you as much as you own them.”
When the meeting was called to order, the auditorium was about two-thirds full and there was little in the way of the spectacle that pervaded a similar hearing on the issue in March 2008.
Hardhatted union demonstrators gathered outside, bearing signs claiming “Casinos equal 20,000 Massachusetts jobs.” Inside, there were a few T-shirted shows of force, notably several dozen in turquoise from Plainridge Race Course in Plainville and those from western Massachussetts who donned equations claiming “Casino + Palmer = Jobs,” but nothing like last year, when red-shirted union members filled about half the seats in the room.
The governor didn’t hit lead off, as he did last year, but representatives of his administration made a strong pitch for casinos to drive economic development and recapture revenue being gambled and spent elsewhere by Massachusetts residents.
Gaming opponents, clearly outnumbered in the room, proclaimed themselves at a distinct disadvantage to well-financed industry supporters and said they welcomed the public hearing forum to make their case. “We don’t have millions of dollars so this is how we get our message out,” said Kathleen Conley Norbut, resident of United to Stop Slots in Massachusetts.
Asked is she thought any minds were being changed at the hearing, Norbut said, “There are some (legislators) who are convinced on one side and others who are convinced on the other side, but I think there are plenty of legislators in the middle who are looking for a reason to vote no.”
At Thursday’s hearing, committee members were able to take in the testimony without the glaring disapproval of former House Speaker Salvatore DiMasi, an avowed gaming opponent now under indictment on a separate issue. His successor, Robert DeLeo, supported by the governor and the Senate president, has promised a single gaming bill for consideration early next year.
While the 2008 hearing has a decidedly SouthCoast flavor, only a few of those testifying Thursday had SouthCoast connections. The only SouthCoast legislators to offer testimony were Sens. Pacheco and Menard.
Summarizing the findings of the UMass Dartmouth Center for Policy Analysis’ New England Gaming Behavior Survey, director Clyde W. Barrow told the committee, “Massachusetts residents have listened to the arguments for 14 years now and they have come to the conclusion that the benefits of casinos outweigh the costs.”
Also appearing before the committee was Cedric Cromwell , chairman of the Mashpee Wampanoag tribe, which was the catalyst of last year’s debate after proposing a resort casino on sovereign land in Middleboro. That plan has been stymied by a Supreme Court decision, but Cromwell said, “we are very confident about the process being fixed” by pending federal legislation and it remains the tribe’s primary intention.
Still, Cromwell said the tribe would consider seeking a state gaming license, should one become available. “The tribe is open to talking with the state to determine what the best route is, (but) it’s premature for us to talk without knowing what the specifics are. We want to keep that dialog open. We’d love to sit and talk with you.”
While there was little discussion of where any casinos might be located, New Bedford Democratic Rep. Robert Koczera used his seat on the panel to push the interest of SouthCoast. “There are regions of this state, mine included, whose economies are hurting,” he said. “The economic benefits of locating a casino there are important.”
As the hearing wound to a close and the testimony became more personal and poignant, committee members -- including House chairman Brian Dempsey -- drifted out of the room until only a handful were left.
The following Tribe In The Media installment is a South Coast article on yesterday's hearing held by a Massachusetts legislative committee on the issue regarding the possibility of expanded gaming in that state. The Mashpee Wampanoag chairman said at the hearing that the Tribe could be interested in a commercial casino license should gaming be approved but noted that it still pursues a casino on tribal land permitted under federal Indian Gaming law.
Proponents, foes of expanded gaming make their cases before state committee
By Steve Decosta
South Coast
October 29, 2009
BOSTON -- In a steady stream they approached the microphone, singly and in groups, to make their impassioned or dispassionate, facts-and-figures pleas for and against the most divisive issue currently facing the Massachusetts Legislature: expanded gaming.
Under the pall of the state’s rising unemployment and shrinking revenues, dozens of partisans made their arguments before the Legislature’s Committee on Economic Development and Emerging Technologies on Thursday in a hearing that began at 10:10 a.m. and lost steam by mid-afternoon; a similar hearing last year stretched more than 14 hours.
Those testifying in favor of expanded gaming outnumbered opponents, but it remained unclear whether any minds were changed. Several committee members clearly expressed their biases on the issue, while others sat stone-faced listening to the testimony in three-minute bursts.
Membership on the committee has turned over dramatically, as has the speakership of the House, since the gaming issue was last addressed – and overwhelmingly defeated -- in March 2008.
The state’s economic woes were cited Thursday as both the prime reason and the worst excuse to expand gaming.
While Gov. Deval Patrick was announcing the latest round of state budget cuts in Worcester, state Sen. Marc Pacheco argued that: “A million dollars a day – a day – we have lost,” because the Legislature has failed to authorize expanded gaming.
Carrying the mantle of opponents from her seat on the panel, Sen. Susan Tucker, countered: “I don’t know how it would help our economy to have people dumping millions of dollars into slot machines and having the profits shipped out of state.”
Officially, the hearing was conducted to review 16 specific pieces of pending legislation that would expand gaming in one form or another, but ostensibly it focused on two broad topics: “It’s all about jobs and money,” state Sen. Joan Menard said.
From the corporate headquarters of the Mohegan Sun to the kitchen of a typical family of Bridgewater, those who testified offered myriad theories about how many jobs would be created, how much revenue would be raised, how soon gaming facilities could be set up and how much the Bay State would suffer, primarily in social costs, but there was little in the ways of consensus.
Proponents, primarily union representatives and casino developers, promised new jobs and the recapture of millions of dollars in lost revenues, while opponents predicted a litany of horrors, including increased crime and addition and the domination of a predatory industry that could not be controlled by any regulatory agency.
“The initial proposal is always based on what people hope and what people hope is never what happens in the end,” said Cape and Islands Sen. Robert O’Leary. “Once these facilities are built, they own you as much as you own them.”
When the meeting was called to order, the auditorium was about two-thirds full and there was little in the way of the spectacle that pervaded a similar hearing on the issue in March 2008.
Hardhatted union demonstrators gathered outside, bearing signs claiming “Casinos equal 20,000 Massachusetts jobs.” Inside, there were a few T-shirted shows of force, notably several dozen in turquoise from Plainridge Race Course in Plainville and those from western Massachussetts who donned equations claiming “Casino + Palmer = Jobs,” but nothing like last year, when red-shirted union members filled about half the seats in the room.
The governor didn’t hit lead off, as he did last year, but representatives of his administration made a strong pitch for casinos to drive economic development and recapture revenue being gambled and spent elsewhere by Massachusetts residents.
Gaming opponents, clearly outnumbered in the room, proclaimed themselves at a distinct disadvantage to well-financed industry supporters and said they welcomed the public hearing forum to make their case. “We don’t have millions of dollars so this is how we get our message out,” said Kathleen Conley Norbut, resident of United to Stop Slots in Massachusetts.
Asked is she thought any minds were being changed at the hearing, Norbut said, “There are some (legislators) who are convinced on one side and others who are convinced on the other side, but I think there are plenty of legislators in the middle who are looking for a reason to vote no.”
At Thursday’s hearing, committee members were able to take in the testimony without the glaring disapproval of former House Speaker Salvatore DiMasi, an avowed gaming opponent now under indictment on a separate issue. His successor, Robert DeLeo, supported by the governor and the Senate president, has promised a single gaming bill for consideration early next year.
While the 2008 hearing has a decidedly SouthCoast flavor, only a few of those testifying Thursday had SouthCoast connections. The only SouthCoast legislators to offer testimony were Sens. Pacheco and Menard.
Summarizing the findings of the UMass Dartmouth Center for Policy Analysis’ New England Gaming Behavior Survey, director Clyde W. Barrow told the committee, “Massachusetts residents have listened to the arguments for 14 years now and they have come to the conclusion that the benefits of casinos outweigh the costs.”
Also appearing before the committee was Cedric Cromwell , chairman of the Mashpee Wampanoag tribe, which was the catalyst of last year’s debate after proposing a resort casino on sovereign land in Middleboro. That plan has been stymied by a Supreme Court decision, but Cromwell said, “we are very confident about the process being fixed” by pending federal legislation and it remains the tribe’s primary intention.
Still, Cromwell said the tribe would consider seeking a state gaming license, should one become available. “The tribe is open to talking with the state to determine what the best route is, (but) it’s premature for us to talk without knowing what the specifics are. We want to keep that dialog open. We’d love to sit and talk with you.”
While there was little discussion of where any casinos might be located, New Bedford Democratic Rep. Robert Koczera used his seat on the panel to push the interest of SouthCoast. “There are regions of this state, mine included, whose economies are hurting,” he said. “The economic benefits of locating a casino there are important.”
As the hearing wound to a close and the testimony became more personal and poignant, committee members -- including House chairman Brian Dempsey -- drifted out of the room until only a handful were left.
Wednesday, October 28, 2009
Indian Military Veterans Invited to Ceremony At Mashantucket Pequot Museum On Nov 14th
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In recognition of Veteran's Day, the Mashantucket Pequots will hold their annual honoring cemerony for veterans on Saturday, November 14th from noon to 2 p.m.
Native veterans are asked to register by November 12th by calling Trudie Lamb Richmond, the director of programs for the Mashantucket museum, at (860) 396-6862 or Jean Little at (860) 396-6938.
The master of ceremonie is Buddy Gwin (Hidatsa/Mandan). Guest speakers include Mashantucket Pequot Tribal Elder and Pequot War Chief Stan Harris. Kenny Merrick (Mandan/Dakota) of the Mystic River Singers will do honoring songs on the hand drum.
In recognition of Veteran's Day, the Mashantucket Pequots will hold their annual honoring cemerony for veterans on Saturday, November 14th from noon to 2 p.m.
Native veterans are asked to register by November 12th by calling Trudie Lamb Richmond, the director of programs for the Mashantucket museum, at (860) 396-6862 or Jean Little at (860) 396-6938.
The master of ceremonie is Buddy Gwin (Hidatsa/Mandan). Guest speakers include Mashantucket Pequot Tribal Elder and Pequot War Chief Stan Harris. Kenny Merrick (Mandan/Dakota) of the Mystic River Singers will do honoring songs on the hand drum.
Mohegan Gaming Authority Makes Presentation Today
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The Mohegan Tribal Gaming Authority is to make a presentation today to the Wells Fargo Securities 2009 Consumer Growth Conference at the New York Palace Hotel.
MTGA is to begin the presentation by pointing out that the Mohegan Sun has 53 percent of the Connecticut market share compared to Foxwoods' 47 percent market share despite the Sun having given away $28 million in free slot play while Foxwoods gave out twice that amount in free slot play.
Out of a database of 4 million rated customers, 37 percent are from Connecticut, 23 percent come from Massachusetts, another 23 percent from New York, 4 percent from Rhode Island and 13 percent from other parts.
Pocono Downs has a database of 400,000 rated customers with 77 percent from Pennsylvania, 11 percent are from New York, 5 percent from New Jersey and 7 percent from other parts (including 1 percent from Connecticut).
MTGA is projecting a decline of about 8 percent in net revenues for fiscal year 2010, which are the twelve months of October 1, 2009 through September 30, 2010, from $1.57 billion to $1.46 billion. If revenues do decline by 8 percent, then profits could likely decline much more.
Forecasted maintenance capital expenditures are estimated at $21 million this fiscal year (2010), which is about less than half of the $45 million average spent for fiscal years 2005 - 2008.
One chart shows the breakdown of due dates that MTGA must repay debt principle. Of special note is that $760 million will be due in 2012, or about half of MTGA's $1.6 billion in total debt. The balance of the debt is to be paid between 2013 through 2017. In 2013 $250 million is due, in 2014 $225 million is due, in 2015 $150 million is due while the last remaining piece - the $200 million that was borrowed in Ocotober - comes due in 2017.
Leo Chupaska, CFO of MTGA and Peter Roberti, VP Finance of MTGA, are to make the presentation.
The Mohegan Tribal Gaming Authority is to make a presentation today to the Wells Fargo Securities 2009 Consumer Growth Conference at the New York Palace Hotel.
MTGA is to begin the presentation by pointing out that the Mohegan Sun has 53 percent of the Connecticut market share compared to Foxwoods' 47 percent market share despite the Sun having given away $28 million in free slot play while Foxwoods gave out twice that amount in free slot play.
Out of a database of 4 million rated customers, 37 percent are from Connecticut, 23 percent come from Massachusetts, another 23 percent from New York, 4 percent from Rhode Island and 13 percent from other parts.
Pocono Downs has a database of 400,000 rated customers with 77 percent from Pennsylvania, 11 percent are from New York, 5 percent from New Jersey and 7 percent from other parts (including 1 percent from Connecticut).
MTGA is projecting a decline of about 8 percent in net revenues for fiscal year 2010, which are the twelve months of October 1, 2009 through September 30, 2010, from $1.57 billion to $1.46 billion. If revenues do decline by 8 percent, then profits could likely decline much more.
Forecasted maintenance capital expenditures are estimated at $21 million this fiscal year (2010), which is about less than half of the $45 million average spent for fiscal years 2005 - 2008.
One chart shows the breakdown of due dates that MTGA must repay debt principle. Of special note is that $760 million will be due in 2012, or about half of MTGA's $1.6 billion in total debt. The balance of the debt is to be paid between 2013 through 2017. In 2013 $250 million is due, in 2014 $225 million is due, in 2015 $150 million is due while the last remaining piece - the $200 million that was borrowed in Ocotober - comes due in 2017.
Leo Chupaska, CFO of MTGA and Peter Roberti, VP Finance of MTGA, are to make the presentation.
Mashantuckets And Lenders Agree To Truce Until January 20
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The Mashantucket Pequot Tribe's senior lenders agreed not to take action on possible defaults - such as non-payments or violating loan conditions - by the Tribe until after January 20, 2010 while Tribal debt restructuring negotiations continue.
The Mashantuckets have a $700-million revolver loan due in July 2010. The Mashantucket's total debt is believed to be around $2.5 billion, which includes $500 million in bonds at 8.5 percent interest that mature in 2015 and $250 million of bonds at 5.9 percent interest rate that are due in 2021.
A $21 million interest payment is scheduled to become due next month on the $500 million (Year 2015) bonds mentioned above.
The Mashantucket Pequot Tribe's senior lenders agreed not to take action on possible defaults - such as non-payments or violating loan conditions - by the Tribe until after January 20, 2010 while Tribal debt restructuring negotiations continue.
The Mashantuckets have a $700-million revolver loan due in July 2010. The Mashantucket's total debt is believed to be around $2.5 billion, which includes $500 million in bonds at 8.5 percent interest that mature in 2015 and $250 million of bonds at 5.9 percent interest rate that are due in 2021.
A $21 million interest payment is scheduled to become due next month on the $500 million (Year 2015) bonds mentioned above.
Sunday, October 25, 2009
Local Newsaper: Tribal Stipends Under Scrutiny
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Today's front page headline in The Day newspaper of New London reads, "Tribal Stipends Under Scrutiny." The article is printed below as part of The Tribe In The Media series:
Tribal stipends under scrutiny
By Brian Hallenbeck
The Day
October 25,2009
Times were flush when the Mohegans sought the U.S. Bureau of Indian Affairs' approval of the tribe's plan for distributing gaming revenues.
After ensuring that the plan provided adequate funding for tribal government and economic development, among other things, the deputy commissioner of Indian Affairs signed off on the plan on July 16, 2001. It calls for 40 to 50 percent of the tribe's net gaming revenues from Mohegan Sun to be distributed to the tribe's adult members on a quarterly basis.
More recently, on Jan. 4, 2008, the office of the secretary of the Department of the Interior approved a Gaming Revenue Allocation Plan submitted by the Mashantucket Pequots. Under the plan, up to 30 percent of the net gaming revenues generated by Foxwoods Resort Casino (including MGM Grand at Foxwoods, which opened in May 2008) are to be distributed to tribal adults "to help advance their personal health, safety and welfare."
The plans, which the BIA requires of tribes that choose to make so-called per capita payments to members, have come under scrutiny in recent weeks, particularly in the case of the Mashantucket Pequots, who are seeking to restructure a debt load of more than $2 billion. Gaming industry analysts and the Mashantuckets' creditors are more interested than ever in how the tribe distributes its gaming revenue.
The creditors were alarmed in late August when Mashantucket Chairman Michael Thomas, addressing tribal members about the "dire financial times" facing the tribe, vowed to protect funding for tribal government and per capita "incentive" payments from further cuts. The pledge, which many within and without Indian Country considered irresponsible, cost Thomas his chairmanship. Placed on administrative leave and facing a tribal council vote to expel him from the council, Thomas announced he would not seek re-election Nov. 1.
"He's not that relevant at the moment," Jane Pedreira, a gaming analyst with Rye, N.Y.-based Clear Sights Research, said last week.
With Thomas out of the picture, the investment world is keen to learn about the tribe's funding of its tribal operations and the payouts its members receive. If they're having trouble finding such information, "it's not for our lack of looking," one investor said.
Plans' percentage breakdowns
Copies of the revenue-allocation plans, which The Day obtained from the BIA through a federal Freedom of Information Act request, detail the percentage breakdown of the tribes' allocation of their net gaming revenues. The Mohegans' 10-page plan specifies that 30 to 40 percent of the tribe's revenue is to be dedicated to tribal-government operations and programs, including investments and education; 5 to 15 percent to the general welfare of tribal members, including investments, health, housing, social services and youth services programs; and 10 to 20 percent to economic development, both gaming and non-gaming related.
The plan also provides for charitable contributions, funding for local government and "any purpose authorized by the Indian Gaming Regulatory Act" in amounts "deemed appropriate by the Tribal Council."
The per capita distributions - 40 to 50 percent of the tribe's gaming revenue - "shall be provided to qualified tribal members in equal amounts, unless determined otherwise by the Tribal Council," the plan says. Per capita benefits for minors are placed in trust.
The Mashantuckets' six-page plan specifies that 25 percent of the tribe's revenue is to be allocated to tribal government; 15 percent to the general welfare of tribal members; 25 percent to economic development; 5 percent to charitable contributions and 30 percent to per capita distributions.
Mashantucket per capita payments are paid monthly in amounts that vary based on a tribal member's age. Adult members, of which there are about 450, are divided into three age groups - 18 to 34; 35 to 54; and those considered tribal elders, 55 and above. Fifty percent of the payment for those 18 to 24 is determined by whether they are employed full time, enrolled full time in "a qualified school," in military service or in the ministry.
The plan specifies that the tribe provides full medical care and payment of educational expenses, including tuition, for those under 18.
A spokesman for the Mashantuckets did not respond last week to requests for comment on the subject of revenue allocation plans. Lynn Malerba, the newly elected chairwoman of the Mohegan Tribal Council, was traveling much of the week and conveyed answers to questions e-mailed through Chuck Bunnell, the tribe's chief of staff.
Malerba said her tribe does not publicly discuss details of its plan, and characterized the Mohegans' per capita payments as "modest." Reportedly, the payments are about $28,000 a year, a figure Bunnell would neither confirm nor deny. About 800 adult members of the 2,000-member tribe are eligible for the payments.
The Mohegan Tribal Gaming Authority, which operates Mohegan Sun, released preliminary financial results for its 2009 fiscal year in advance of last week's private sale of $200 million in senior secured notes. The authority said its distribution of casino revenues to the tribe during the fiscal year, which ended Sept. 30, totaled $72 million, and that it expects to distribute between $59 million and $64 million to the tribe in fiscal 2010.
"Much of the distribution ... funds tribal services and programs," Malerba said. "Our philosophy has been to support cultural preservation, education, health care, elder care and child care above all. Our priority is programs."
The chairwoman said the projected reduction in the authority's distribution to the tribe "is directly tied to decreases in casino revenues, which are an effect of the global economic downturn. … We remain deeply committed to honoring all our financial obligations."
Pequot payments higher
While the Mashantuckets have never disclosed their per capita payments, it's long been believed that they are considerably higher than those paid by the Mohegans. In August, a source who discussed the Mashantuckets' finances with The Day on condition of anonymity said the payments have been reduced in recent years and now range between $90,000 and $120,000 a year. Tribal members who spoke to The Day confirmed that payments are in that range.
Unlike the Mohegans, the Mashantuckets do not register their debt with the U.S. Securities and Exchange Commission and are not obligated to report their financial results. Sources, however, have said the tribe counts on $90 million to $100 million a year in Foxwoods casino revenues to fund tribal government and per capita payments.
Given the Mashantuckets' need to restructure their debt and the prospect that Connecticut's casinos will face increasing competition from virtually every direction in the years ahead, some analysts have questioned whether the tribe can maintain its current level of funding for tribal expenses.
"I personally don't have a problem with the tribe providing support to tribal members if they want to go to college, say, or to get training for better jobs," said Pedreira, the gaming analyst. "But I would object to 'disincentiving' them by paying them for doing nothing. You don't want to undermine them.
"What if Massachusetts (casinos) come in a big way and tribal members aren't prepared for careers? They miss the boat. … I'd rather see them keep it (gaming revenues) for a rainy day fund and to provide for training and education so members can stand on their own two legs. Perhaps in economic times like this you come in and help out."
Today's front page headline in The Day newspaper of New London reads, "Tribal Stipends Under Scrutiny." The article is printed below as part of The Tribe In The Media series:
Tribal stipends under scrutiny
By Brian Hallenbeck
The Day
October 25,2009
Times were flush when the Mohegans sought the U.S. Bureau of Indian Affairs' approval of the tribe's plan for distributing gaming revenues.
After ensuring that the plan provided adequate funding for tribal government and economic development, among other things, the deputy commissioner of Indian Affairs signed off on the plan on July 16, 2001. It calls for 40 to 50 percent of the tribe's net gaming revenues from Mohegan Sun to be distributed to the tribe's adult members on a quarterly basis.
More recently, on Jan. 4, 2008, the office of the secretary of the Department of the Interior approved a Gaming Revenue Allocation Plan submitted by the Mashantucket Pequots. Under the plan, up to 30 percent of the net gaming revenues generated by Foxwoods Resort Casino (including MGM Grand at Foxwoods, which opened in May 2008) are to be distributed to tribal adults "to help advance their personal health, safety and welfare."
The plans, which the BIA requires of tribes that choose to make so-called per capita payments to members, have come under scrutiny in recent weeks, particularly in the case of the Mashantucket Pequots, who are seeking to restructure a debt load of more than $2 billion. Gaming industry analysts and the Mashantuckets' creditors are more interested than ever in how the tribe distributes its gaming revenue.
The creditors were alarmed in late August when Mashantucket Chairman Michael Thomas, addressing tribal members about the "dire financial times" facing the tribe, vowed to protect funding for tribal government and per capita "incentive" payments from further cuts. The pledge, which many within and without Indian Country considered irresponsible, cost Thomas his chairmanship. Placed on administrative leave and facing a tribal council vote to expel him from the council, Thomas announced he would not seek re-election Nov. 1.
"He's not that relevant at the moment," Jane Pedreira, a gaming analyst with Rye, N.Y.-based Clear Sights Research, said last week.
With Thomas out of the picture, the investment world is keen to learn about the tribe's funding of its tribal operations and the payouts its members receive. If they're having trouble finding such information, "it's not for our lack of looking," one investor said.
Plans' percentage breakdowns
Copies of the revenue-allocation plans, which The Day obtained from the BIA through a federal Freedom of Information Act request, detail the percentage breakdown of the tribes' allocation of their net gaming revenues. The Mohegans' 10-page plan specifies that 30 to 40 percent of the tribe's revenue is to be dedicated to tribal-government operations and programs, including investments and education; 5 to 15 percent to the general welfare of tribal members, including investments, health, housing, social services and youth services programs; and 10 to 20 percent to economic development, both gaming and non-gaming related.
The plan also provides for charitable contributions, funding for local government and "any purpose authorized by the Indian Gaming Regulatory Act" in amounts "deemed appropriate by the Tribal Council."
The per capita distributions - 40 to 50 percent of the tribe's gaming revenue - "shall be provided to qualified tribal members in equal amounts, unless determined otherwise by the Tribal Council," the plan says. Per capita benefits for minors are placed in trust.
The Mashantuckets' six-page plan specifies that 25 percent of the tribe's revenue is to be allocated to tribal government; 15 percent to the general welfare of tribal members; 25 percent to economic development; 5 percent to charitable contributions and 30 percent to per capita distributions.
Mashantucket per capita payments are paid monthly in amounts that vary based on a tribal member's age. Adult members, of which there are about 450, are divided into three age groups - 18 to 34; 35 to 54; and those considered tribal elders, 55 and above. Fifty percent of the payment for those 18 to 24 is determined by whether they are employed full time, enrolled full time in "a qualified school," in military service or in the ministry.
The plan specifies that the tribe provides full medical care and payment of educational expenses, including tuition, for those under 18.
A spokesman for the Mashantuckets did not respond last week to requests for comment on the subject of revenue allocation plans. Lynn Malerba, the newly elected chairwoman of the Mohegan Tribal Council, was traveling much of the week and conveyed answers to questions e-mailed through Chuck Bunnell, the tribe's chief of staff.
Malerba said her tribe does not publicly discuss details of its plan, and characterized the Mohegans' per capita payments as "modest." Reportedly, the payments are about $28,000 a year, a figure Bunnell would neither confirm nor deny. About 800 adult members of the 2,000-member tribe are eligible for the payments.
The Mohegan Tribal Gaming Authority, which operates Mohegan Sun, released preliminary financial results for its 2009 fiscal year in advance of last week's private sale of $200 million in senior secured notes. The authority said its distribution of casino revenues to the tribe during the fiscal year, which ended Sept. 30, totaled $72 million, and that it expects to distribute between $59 million and $64 million to the tribe in fiscal 2010.
"Much of the distribution ... funds tribal services and programs," Malerba said. "Our philosophy has been to support cultural preservation, education, health care, elder care and child care above all. Our priority is programs."
The chairwoman said the projected reduction in the authority's distribution to the tribe "is directly tied to decreases in casino revenues, which are an effect of the global economic downturn. … We remain deeply committed to honoring all our financial obligations."
Pequot payments higher
While the Mashantuckets have never disclosed their per capita payments, it's long been believed that they are considerably higher than those paid by the Mohegans. In August, a source who discussed the Mashantuckets' finances with The Day on condition of anonymity said the payments have been reduced in recent years and now range between $90,000 and $120,000 a year. Tribal members who spoke to The Day confirmed that payments are in that range.
Unlike the Mohegans, the Mashantuckets do not register their debt with the U.S. Securities and Exchange Commission and are not obligated to report their financial results. Sources, however, have said the tribe counts on $90 million to $100 million a year in Foxwoods casino revenues to fund tribal government and per capita payments.
Given the Mashantuckets' need to restructure their debt and the prospect that Connecticut's casinos will face increasing competition from virtually every direction in the years ahead, some analysts have questioned whether the tribe can maintain its current level of funding for tribal expenses.
"I personally don't have a problem with the tribe providing support to tribal members if they want to go to college, say, or to get training for better jobs," said Pedreira, the gaming analyst. "But I would object to 'disincentiving' them by paying them for doing nothing. You don't want to undermine them.
"What if Massachusetts (casinos) come in a big way and tribal members aren't prepared for careers? They miss the boat. … I'd rather see them keep it (gaming revenues) for a rainy day fund and to provide for training and education so members can stand on their own two legs. Perhaps in economic times like this you come in and help out."
Friday, October 23, 2009
Federal Recognition Likely For Six Virginia Tribes And The Lumbee Tribe Of North Carolina
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The U.S. Senate Indian Affairs Committee approved a bill yesterday that would give federal recognition to six tribes in Virginia and the 55,000-member Lumbee Tribe of North Carolina.
The U.S. House of Representatives approved a similar piece of legislation earlier this year for these tribes. The bill bars the tribes from having Indian casinos.
The six tribes in Virginia are the Eastern Chickahominy, Chickahominy, Upper Mattaponi, Rappahannock, Monacan and Nansemond.
The Obama administration has not made any public statements about the Virginia tribes though President Obama has said that he supports federal recognition for the Lumbee Tribe.
The legislation bypasses the Interior Department's federal recognition petitioning process, which the Senate Indian Affairs Committee chairman Sen. Byron Dorgan, D-ND, says is broken.
The U.S. Senate Indian Affairs Committee approved a bill yesterday that would give federal recognition to six tribes in Virginia and the 55,000-member Lumbee Tribe of North Carolina.
The U.S. House of Representatives approved a similar piece of legislation earlier this year for these tribes. The bill bars the tribes from having Indian casinos.
The six tribes in Virginia are the Eastern Chickahominy, Chickahominy, Upper Mattaponi, Rappahannock, Monacan and Nansemond.
The Obama administration has not made any public statements about the Virginia tribes though President Obama has said that he supports federal recognition for the Lumbee Tribe.
The legislation bypasses the Interior Department's federal recognition petitioning process, which the Senate Indian Affairs Committee chairman Sen. Byron Dorgan, D-ND, says is broken.
Wednesday, October 21, 2009
Mohegan Gaming Authority Sells $200 Million In Debt Notes
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Updated
Reuters is reporting that the Mohegan Tribal Gaming Authority sold the $200 million of debt notes today. The proceeds of the sale will be used to pay down loans with MTGA's prime bankers.
The final coupon interest rate on the notes is 11.5 percent but a sold at a discount of 96.2 cents to every dollar, pushing the effective yield to 12.25 percent. The second lien senior secured notes are due in 2017.
See Reuter's at http://www.reuters.com/article/marketsNews/idUSN1446730220091021
Updated
Reuters is reporting that the Mohegan Tribal Gaming Authority sold the $200 million of debt notes today. The proceeds of the sale will be used to pay down loans with MTGA's prime bankers.
The final coupon interest rate on the notes is 11.5 percent but a sold at a discount of 96.2 cents to every dollar, pushing the effective yield to 12.25 percent. The second lien senior secured notes are due in 2017.
See Reuter's at http://www.reuters.com/article/marketsNews/idUSN1446730220091021
New York Governor Asks Feds For Help In Charging State Taxes On Cigarettes Sold On Indian Reservations
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New York Governor David Paterson has asked the federal government for help if confrontations result from the state's intent to collect state taxes on tax-free cigarettes sold on Indian reservations in that state.
Gov. Paterson's letter to U.S. Attorneys in Brooklyn, Syracuse and Buffalo noted the "likelihood of violence and civil unrest" if he began enforcing the state tax on Indian reservations in New York. Recent New York governors have chosen not to collect the tax but projected state budget deficits are adding pressure on officials to enforce the tax collection.
The following installment of The Tribes In The Media is an article in yesterday's Buffalo News:
Paterson asks feds to weigh risks of collecting taxes on Indian cigarettes
By Tom Precious
Buffalo News
News Albany Bureau
October 20, 2009
ALBANY -- Gov. David A. Paterson has asked the U.S. Justice Department for a "threat assessment" if he were to begin trying to collect taxes on cigarette sales by Indian tribes, including the Seneca Nation.
In a letter to top federal prosecutors, the governor also suggests he might need help from Washington in putting down any possible unrest by Indian tribes if the tax collection starts.
The unusual request, dated September 23 to the U.S. Attorneys in New York state, including Buffalo, seeks the federal government's assistance to the "likelihood of violence and civil unrest" if he began enforcing the state's collection on the tax-free cigarette sales.
"Furthermore, I would appreciate your operational commitment to help mitigate any disturbances that might occur in each of your districts if implementation were to occur," Paterson wrote to the U.S. Attorneys in Brooklyn, Syracuse and Buffalo. He did not elaborate.
"We are going to let the letter speak for itself," Morgan Hook, a spokesman for Paterson, said when asked today about the letter.
A copy of the letter was obtained by The Buffalo News.
The governor said it is his "intent" to continue to try to negotiate agreements with the tribes over their long-standing refusal to collect taxes on the cigarette sales, which amount to hundreds of millions of cigarettes sold tax-free each year at smoke shops, in the mail and over the internet.
But Paterson is under mounting pressure from some legislators to begin collecting the tax. Some lawmakers say the state is losing upwards of $1 billion by not collecting the taxes on the Indian sold cigarettes.
The state faces a $3 billion deficit and lawmakers are desperately looking for ways to slash the red ink without resorting to spending cuts, such as to education, that the governor proposed last week.
Word of the letter comes just a week before the state Senate is to hold hearings on the issue of the uncollected sales.
Sources said the Seneca Nation was told last month by Paterson's office about the letter to U.S. Attorney Kathleen Mehltretter of the Western District of New York, as well as Andrew Baxter in Syracuse and Benton Campbell in Brooklyn.
"We see the letter as nothing more than the Governor doing his job to assess the historic consequences of what happens when the state tries to violate our treaty rights,'' said Richard Nephew, chairman of the Seneca Nation Council.
Paterson begins his letter asking the top federal prosecutors for "your guidance as to the potential consequences" if the state were to begin collecting the tax. The U.S. Supreme Court in 1994 said the state had the legal right to collect taxes on cigarette sales by Indians to non-Indians.
The governor noted past unrest, including battles in 1997 along the New York Thruway when then-Gov. George Pataki tried to collect the taxes.
"As a result of such unrest, a policy of forbearance was put in place" by the state tax department, Paterson wrote.
Governors, going back to Mario Cuomo and continuing to Paterson, have avoided resolving the tax issue. The matter has intensified as the state over the years has sharply raised tobacco excise taxes, giving Indian retailers a major leg up on the competition, raising the criticism of non-Indian retails and health groups, who maintain the state's goal of raising taxes to help dampen consumption has been undermined.
New York Governor David Paterson has asked the federal government for help if confrontations result from the state's intent to collect state taxes on tax-free cigarettes sold on Indian reservations in that state.
Gov. Paterson's letter to U.S. Attorneys in Brooklyn, Syracuse and Buffalo noted the "likelihood of violence and civil unrest" if he began enforcing the state tax on Indian reservations in New York. Recent New York governors have chosen not to collect the tax but projected state budget deficits are adding pressure on officials to enforce the tax collection.
The following installment of The Tribes In The Media is an article in yesterday's Buffalo News:
Paterson asks feds to weigh risks of collecting taxes on Indian cigarettes
By Tom Precious
Buffalo News
News Albany Bureau
October 20, 2009
ALBANY -- Gov. David A. Paterson has asked the U.S. Justice Department for a "threat assessment" if he were to begin trying to collect taxes on cigarette sales by Indian tribes, including the Seneca Nation.
In a letter to top federal prosecutors, the governor also suggests he might need help from Washington in putting down any possible unrest by Indian tribes if the tax collection starts.
The unusual request, dated September 23 to the U.S. Attorneys in New York state, including Buffalo, seeks the federal government's assistance to the "likelihood of violence and civil unrest" if he began enforcing the state's collection on the tax-free cigarette sales.
"Furthermore, I would appreciate your operational commitment to help mitigate any disturbances that might occur in each of your districts if implementation were to occur," Paterson wrote to the U.S. Attorneys in Brooklyn, Syracuse and Buffalo. He did not elaborate.
"We are going to let the letter speak for itself," Morgan Hook, a spokesman for Paterson, said when asked today about the letter.
A copy of the letter was obtained by The Buffalo News.
The governor said it is his "intent" to continue to try to negotiate agreements with the tribes over their long-standing refusal to collect taxes on the cigarette sales, which amount to hundreds of millions of cigarettes sold tax-free each year at smoke shops, in the mail and over the internet.
But Paterson is under mounting pressure from some legislators to begin collecting the tax. Some lawmakers say the state is losing upwards of $1 billion by not collecting the taxes on the Indian sold cigarettes.
The state faces a $3 billion deficit and lawmakers are desperately looking for ways to slash the red ink without resorting to spending cuts, such as to education, that the governor proposed last week.
Word of the letter comes just a week before the state Senate is to hold hearings on the issue of the uncollected sales.
Sources said the Seneca Nation was told last month by Paterson's office about the letter to U.S. Attorney Kathleen Mehltretter of the Western District of New York, as well as Andrew Baxter in Syracuse and Benton Campbell in Brooklyn.
"We see the letter as nothing more than the Governor doing his job to assess the historic consequences of what happens when the state tries to violate our treaty rights,'' said Richard Nephew, chairman of the Seneca Nation Council.
Paterson begins his letter asking the top federal prosecutors for "your guidance as to the potential consequences" if the state were to begin collecting the tax. The U.S. Supreme Court in 1994 said the state had the legal right to collect taxes on cigarette sales by Indians to non-Indians.
The governor noted past unrest, including battles in 1997 along the New York Thruway when then-Gov. George Pataki tried to collect the taxes.
"As a result of such unrest, a policy of forbearance was put in place" by the state tax department, Paterson wrote.
Governors, going back to Mario Cuomo and continuing to Paterson, have avoided resolving the tax issue. The matter has intensified as the state over the years has sharply raised tobacco excise taxes, giving Indian retailers a major leg up on the competition, raising the criticism of non-Indian retails and health groups, who maintain the state's goal of raising taxes to help dampen consumption has been undermined.
Mashpee Wampanoag Indians Scale Back Size Of Possible Casino
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In today's Boston Globe, the Mashpeee Wampanoag Tribe discuss the status of the relationship with their investors and building a smaller casino once state and/or federal legislation allows them to take land into trust for a casino or the state selects the Mashpees for a commercial casino license.
The Tribe In The Media:
Wampanoag tribe cuts size of casino project
By Christine Legere
The Boston Globe
October 21, 2009
MIDDLEBOROUGH - Leaders of the Mashpee Wampanoag tribe have scaled back plans to build a billion-dollar resort casino in Middleborough, saying they would start small with a facility that simply offers some gambling choices and food.
Primarily because of the slow economy, the vision for the project has changed, a tribal council member said yesterday, following a Monday meeting with town officials.
Amenities, such as a hotel, would come later, and its size would be dictated by need, officials said.
The tribe’s proposal in 2007 for a glitzy resort was crafted along the lines of Mohegan Sun in Connecticut. Plans called for a sprawling casino with 4,000 slot machines and 125 gaming tables. Other amenities included a 1,100 room luxury hotel, a living museum rivaling Plimoth Plantation, a golf course, a complex of restaurants and shops, and other recreational facilities, including water parks.
Tribal council vice chairman Aaron Tobey said plans will not be formalized until the tribe is within six months to a year of construction.
“Realistically, that’s when we will do a feasibility study,’’ Tobey said. “We are not going to transplant Vegas into Middleborough. We’ll do something that represents the tribe and the town.’’
Tobey added that the tribe wants to see an adequate return on investment and wishes “to do something affordable.’’
Eric Cederholm, chairman of the Middleborough Resort Advisory Committee, said that at their meeting with tribe officials on Monday, “they gave every indication the project will move forward, but on a smaller scale than before.’’
“They gave no hard details, but said they would use a phased-in approach,’’ he said. “I got the impression that until they have their own issues worked out, a lot is still up in the air.’’
In addition to the shaky economy, the tribe faces several obstacles. A disagreement with investors has halted potential funding, and a Supreme Court ruling in February, called the Carcieri decision, barred land from being placed into federal trust for tribes recognized after 1934. The Mashpee tribe achieved federal recognition in 2007.
Washington lawmakers are working to amend the Indian Reorganization Act of 1934 through legislation that would affirm the interior secretary’s authority to take land into trust for all tribes, regardless of when they were recognized.
The Mashpee Wampanoag tribe hopes that issues related to the Carcieri decision can be addressed on Nov. 5, when tribal council chairman Cedric Cromwell and representatives from other tribes meet with President Obama.
“The biggest thing that’s near and dear to Indian country is sovereignty and getting land back by having it put in federal trust,’’ Cromwell said yesterday. “We feel very confident it’s only a matter of time until our land will be placed into trust.’’
The mood among Massachusetts lawmakers has also bolstered tribal confidence. After rejecting casino gambling last year, state officials appeared to be more supportive of the prospect.
What they decide regarding slots at racetracks or commercial casinos will affect the plans of the Wampanoag, Tobey said.
Tribal leaders have had no conversations with Governor Deval Patrick regarding their casino proposal, but Tobey said they hope the project will remain a front-runner when casino licensing is discussed.
“We’d like to think that because we are natives and from Massachusetts, it would make good business sense to say the Wampanoag are the ones to get first consideration for a casino in Massachusetts,’’ Tobey said.
Regarding the dispute between investors and the Mashpee Wampanoag, Cromwell said both sides have pledged not to talk about ongoing negotiations, but issues are expected to be resolved.
Middleborough Selectmen chairman Patrick Rogers said his board had been previously told by Cromwell that the project would be smaller, so it was not surprising to hear about Monday’s discussion with the Resort Advisory Committee.
“The site will support future growth,’’ Rogers said. “For now, I would think they would build something suitable for the times. It makes good business sense.’’
Payments to the town, based on the 2007 agreement approved by Middleborough voters, are tied to some extent to the size of the casino operation. The town would get $7 million annually, plus 4 percent of hotel revenue. That latter amount was expected to drive the yearly total above $10 million.
Clyde Barrow, a professor at the Center for Policy Analysis at the University of Massachusetts at Dartmouth and an analyst on casinos, characterized the Wampanoag’s initial billion-dollar casino proposal as “a little over the top.’’
“With talk of two or three resorts in the state and slots at the tracks, you would almost have to scale back the project,’’ Barrow said.
“The average casino in Atlantic City is a $250 to $350 million operation, so what the tribe is talking about is the size of an Atlantic City casino,’’ he said. “It’s not small.’’
In today's Boston Globe, the Mashpeee Wampanoag Tribe discuss the status of the relationship with their investors and building a smaller casino once state and/or federal legislation allows them to take land into trust for a casino or the state selects the Mashpees for a commercial casino license.
The Tribe In The Media:
Wampanoag tribe cuts size of casino project
By Christine Legere
The Boston Globe
October 21, 2009
MIDDLEBOROUGH - Leaders of the Mashpee Wampanoag tribe have scaled back plans to build a billion-dollar resort casino in Middleborough, saying they would start small with a facility that simply offers some gambling choices and food.
Primarily because of the slow economy, the vision for the project has changed, a tribal council member said yesterday, following a Monday meeting with town officials.
Amenities, such as a hotel, would come later, and its size would be dictated by need, officials said.
The tribe’s proposal in 2007 for a glitzy resort was crafted along the lines of Mohegan Sun in Connecticut. Plans called for a sprawling casino with 4,000 slot machines and 125 gaming tables. Other amenities included a 1,100 room luxury hotel, a living museum rivaling Plimoth Plantation, a golf course, a complex of restaurants and shops, and other recreational facilities, including water parks.
Tribal council vice chairman Aaron Tobey said plans will not be formalized until the tribe is within six months to a year of construction.
“Realistically, that’s when we will do a feasibility study,’’ Tobey said. “We are not going to transplant Vegas into Middleborough. We’ll do something that represents the tribe and the town.’’
Tobey added that the tribe wants to see an adequate return on investment and wishes “to do something affordable.’’
Eric Cederholm, chairman of the Middleborough Resort Advisory Committee, said that at their meeting with tribe officials on Monday, “they gave every indication the project will move forward, but on a smaller scale than before.’’
“They gave no hard details, but said they would use a phased-in approach,’’ he said. “I got the impression that until they have their own issues worked out, a lot is still up in the air.’’
In addition to the shaky economy, the tribe faces several obstacles. A disagreement with investors has halted potential funding, and a Supreme Court ruling in February, called the Carcieri decision, barred land from being placed into federal trust for tribes recognized after 1934. The Mashpee tribe achieved federal recognition in 2007.
Washington lawmakers are working to amend the Indian Reorganization Act of 1934 through legislation that would affirm the interior secretary’s authority to take land into trust for all tribes, regardless of when they were recognized.
The Mashpee Wampanoag tribe hopes that issues related to the Carcieri decision can be addressed on Nov. 5, when tribal council chairman Cedric Cromwell and representatives from other tribes meet with President Obama.
“The biggest thing that’s near and dear to Indian country is sovereignty and getting land back by having it put in federal trust,’’ Cromwell said yesterday. “We feel very confident it’s only a matter of time until our land will be placed into trust.’’
The mood among Massachusetts lawmakers has also bolstered tribal confidence. After rejecting casino gambling last year, state officials appeared to be more supportive of the prospect.
What they decide regarding slots at racetracks or commercial casinos will affect the plans of the Wampanoag, Tobey said.
Tribal leaders have had no conversations with Governor Deval Patrick regarding their casino proposal, but Tobey said they hope the project will remain a front-runner when casino licensing is discussed.
“We’d like to think that because we are natives and from Massachusetts, it would make good business sense to say the Wampanoag are the ones to get first consideration for a casino in Massachusetts,’’ Tobey said.
Regarding the dispute between investors and the Mashpee Wampanoag, Cromwell said both sides have pledged not to talk about ongoing negotiations, but issues are expected to be resolved.
Middleborough Selectmen chairman Patrick Rogers said his board had been previously told by Cromwell that the project would be smaller, so it was not surprising to hear about Monday’s discussion with the Resort Advisory Committee.
“The site will support future growth,’’ Rogers said. “For now, I would think they would build something suitable for the times. It makes good business sense.’’
Payments to the town, based on the 2007 agreement approved by Middleborough voters, are tied to some extent to the size of the casino operation. The town would get $7 million annually, plus 4 percent of hotel revenue. That latter amount was expected to drive the yearly total above $10 million.
Clyde Barrow, a professor at the Center for Policy Analysis at the University of Massachusetts at Dartmouth and an analyst on casinos, characterized the Wampanoag’s initial billion-dollar casino proposal as “a little over the top.’’
“With talk of two or three resorts in the state and slots at the tracks, you would almost have to scale back the project,’’ Barrow said.
“The average casino in Atlantic City is a $250 to $350 million operation, so what the tribe is talking about is the size of an Atlantic City casino,’’ he said. “It’s not small.’’
Lawmakers Agree On $15 Million Table Game License Fee For Pennsylvania Slot Parlors
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Pennsylvania passed a budget that included revenue from table games but no laws have yet been passed that allows table games to be implemented.
Talks continue between lawmakers on passing legislation that will make table games a reality. They have not agreed on what tax rate should apply to table game revenue but one political leader said yesterday that lawmakers have agreed on a one-time licensing fee of $15 million that the slot parlors must pay to have table games at their facilities.
Officials for the Mohegan's Pocono Downs racetrack-slot parlor have publicly stated that they want to add table games if approved by the state.
The following Pittsburgh Post-Gazette article is the latest installment of The Tribe In The Media series:
Legislators agree on $15 million, one-time fee for table games in casinos
By Tom Barnes
Pittsburgh Post-Gazette
Tuesday, October 20, 2009
HARRISBURG -- Several crucial details remain unresolved in a bill to legalize table games at slots casinos, but one element seems to be set: a $15 million licensing fee.
House Speaker Keith McCall, D-Carbon, said yesterday there is agreement among legislators about the size of that one-time, upfront fee that casinos will have to pay the state to add table games.
But legislators still haven't reached an agreement on what tax rate will be applied to gross revenue from table games, and whether all the money will go to the state or whether a small portion will go to the casinos' host counties and municipalities.
Casino officials want a tax rate of no more than 12 percent. They also want a license fee of $10 million, but it appears they won't get that.
A Senate bill on table games sets the tax rate at 14 percent -- 12 percent for the state's general fund and 1 percent each for the local governments. Gov. Ed Rendell said yesterday the state's tax rate should be a minimum of 16 percent to generate the $200 million or more in annual revenue the state needs from table games.
Other legislators favor a tax rate ranging from 18 percent 34 percent. Some casino officials say they won't add table games if the rate is too high because table games are labor intensive, which increases costs.
The governor met yesterday with legislative leaders in an effort to get table game details ironed out so the Legislature can vote on a bill. Mr. Rendell said he'd like to have an agreement on the bill by Friday, but Mr. McCall and House Democratic Leader Todd Eachus didn't promise that.
"We are still negotiating the terms of the table games bill," Mr. Eachus told reporters after the meeting. "We're still working on the numbers."
The House doesn't have a formal voting session planned until Nov. 9. Mr. Rendell said he'd like action before that. The chamber is on a "six-hour call," meaning members can be called back to vote within six hours if a deal on a bill comes together.
"We won't bring the House back until we have an agreement on all aspects," Mr. McCall said. "We have to make sure the math (on tax revenue) adds up."
Until legislation for table games is approved, the state can't distribute $730 million in state aid to institutions such as Penn State University, the University of Pittsburgh, Temple University, Carnegie Museums and 24 other medical, educational and arts groups around the state.
Mr. Rendell said the table games bill must generate a sufficient amount of recurring revenue to balance the state budget in 2009-10 and 2010-11. Revenue estimates are for $200 million this year and at least $250 million next year.
Besides the questions over the tax rate and local share, several other important issues are still unsettled:
• Whether to include approval for table games as part of overall reforms to the state's 2004 gaming law or as a separate bill;
• Whether two resort casinos authorized by the state can have table games or increase above the limit of 500 slot machines.
• Whether tax revenue from table games should go into the general fund permanently or shift to property tax relief after three years.
Pennsylvania passed a budget that included revenue from table games but no laws have yet been passed that allows table games to be implemented.
Talks continue between lawmakers on passing legislation that will make table games a reality. They have not agreed on what tax rate should apply to table game revenue but one political leader said yesterday that lawmakers have agreed on a one-time licensing fee of $15 million that the slot parlors must pay to have table games at their facilities.
Officials for the Mohegan's Pocono Downs racetrack-slot parlor have publicly stated that they want to add table games if approved by the state.
The following Pittsburgh Post-Gazette article is the latest installment of The Tribe In The Media series:
Legislators agree on $15 million, one-time fee for table games in casinos
By Tom Barnes
Pittsburgh Post-Gazette
Tuesday, October 20, 2009
HARRISBURG -- Several crucial details remain unresolved in a bill to legalize table games at slots casinos, but one element seems to be set: a $15 million licensing fee.
House Speaker Keith McCall, D-Carbon, said yesterday there is agreement among legislators about the size of that one-time, upfront fee that casinos will have to pay the state to add table games.
But legislators still haven't reached an agreement on what tax rate will be applied to gross revenue from table games, and whether all the money will go to the state or whether a small portion will go to the casinos' host counties and municipalities.
Casino officials want a tax rate of no more than 12 percent. They also want a license fee of $10 million, but it appears they won't get that.
A Senate bill on table games sets the tax rate at 14 percent -- 12 percent for the state's general fund and 1 percent each for the local governments. Gov. Ed Rendell said yesterday the state's tax rate should be a minimum of 16 percent to generate the $200 million or more in annual revenue the state needs from table games.
Other legislators favor a tax rate ranging from 18 percent 34 percent. Some casino officials say they won't add table games if the rate is too high because table games are labor intensive, which increases costs.
The governor met yesterday with legislative leaders in an effort to get table game details ironed out so the Legislature can vote on a bill. Mr. Rendell said he'd like to have an agreement on the bill by Friday, but Mr. McCall and House Democratic Leader Todd Eachus didn't promise that.
"We are still negotiating the terms of the table games bill," Mr. Eachus told reporters after the meeting. "We're still working on the numbers."
The House doesn't have a formal voting session planned until Nov. 9. Mr. Rendell said he'd like action before that. The chamber is on a "six-hour call," meaning members can be called back to vote within six hours if a deal on a bill comes together.
"We won't bring the House back until we have an agreement on all aspects," Mr. McCall said. "We have to make sure the math (on tax revenue) adds up."
Until legislation for table games is approved, the state can't distribute $730 million in state aid to institutions such as Penn State University, the University of Pittsburgh, Temple University, Carnegie Museums and 24 other medical, educational and arts groups around the state.
Mr. Rendell said the table games bill must generate a sufficient amount of recurring revenue to balance the state budget in 2009-10 and 2010-11. Revenue estimates are for $200 million this year and at least $250 million next year.
Besides the questions over the tax rate and local share, several other important issues are still unsettled:
• Whether to include approval for table games as part of overall reforms to the state's 2004 gaming law or as a separate bill;
• Whether two resort casinos authorized by the state can have table games or increase above the limit of 500 slot machines.
• Whether tax revenue from table games should go into the general fund permanently or shift to property tax relief after three years.
Tuesday, October 20, 2009
Leo Mugford Passes On
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Leo Mugford passed away over the weekend and a service will take place today at the burial grounds at Shantok at 2 p.m. The following is an excerpt from Leo Mugford's obituary:
Leo Sherman Mugford October 29, 1947 - October 18, 2009
UNCASVILLE - Leo Sherman Mugford, 61, was born on 29 October 1947 in Hono-lulu, Hawaii. He died at Backus Hospital in Norwich, CT, on October 18, 2009. He was the youngest of three children born to Alfred and Margery Mugford. Leo's heritage included Native blood from opposite sides of America; Hawaiian from his father and Mohegan from his mother. Leo graduated from Kalani High School in Honolulu in 1965. He loved to surf and he loved to make things. The latter led to his profession as a Master Carpenter. Leo built houses and commercial buildings, cabinets and furniture. He had a good eye for measurement as well as aesthetics. Leo spent most of his life in Hawaii, but left Hawaii in 1995 to join his parents in Colorado where they had been living for a few years, then preceded them to Uncasville, Connecticut, where the family was anxious to become involved in Mohegan tribal activities. He worked as a carpenter for the Tribe's Public Words Department until he was disabled from an accident while on the job. Leo loved people and was loved dearly in return. He made friends easily and loved giving gifts. This led to his Mohegan name, Miyawin, The Giver, which had not yet been bestowed by the Council of Elders. Leo had no children of his own, but loved his nieces and nephews and their children. Leo will be buried at the Mohegan Burial Grounds at Fort Shantok on Tuesday, October 20th at 2:00 pm. Church & Allen Funeral Home has been entrusted with these arrangements.
Leo Mugford passed away over the weekend and a service will take place today at the burial grounds at Shantok at 2 p.m. The following is an excerpt from Leo Mugford's obituary:
Leo Sherman Mugford October 29, 1947 - October 18, 2009
UNCASVILLE - Leo Sherman Mugford, 61, was born on 29 October 1947 in Hono-lulu, Hawaii. He died at Backus Hospital in Norwich, CT, on October 18, 2009. He was the youngest of three children born to Alfred and Margery Mugford. Leo's heritage included Native blood from opposite sides of America; Hawaiian from his father and Mohegan from his mother. Leo graduated from Kalani High School in Honolulu in 1965. He loved to surf and he loved to make things. The latter led to his profession as a Master Carpenter. Leo built houses and commercial buildings, cabinets and furniture. He had a good eye for measurement as well as aesthetics. Leo spent most of his life in Hawaii, but left Hawaii in 1995 to join his parents in Colorado where they had been living for a few years, then preceded them to Uncasville, Connecticut, where the family was anxious to become involved in Mohegan tribal activities. He worked as a carpenter for the Tribe's Public Words Department until he was disabled from an accident while on the job. Leo loved people and was loved dearly in return. He made friends easily and loved giving gifts. This led to his Mohegan name, Miyawin, The Giver, which had not yet been bestowed by the Council of Elders. Leo had no children of his own, but loved his nieces and nephews and their children. Leo will be buried at the Mohegan Burial Grounds at Fort Shantok on Tuesday, October 20th at 2:00 pm. Church & Allen Funeral Home has been entrusted with these arrangements.
Mohegan's Pennsylvania Slot Revenue Flat
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For much of the past year, slot machine revenue at the Tribe's racetrack-slot parlor in Pennsylvania has shown increases over the same period in the prior year. Those year-over-year increases in monthly slot machine revenue at the Pennsylvania facility are likely to change.
Those monthly increases in slot revenue over the past year have been based on double the amount of slot machines in use at the Pennsylvania facility over the last year compared to half that number in use in the previous year. The doubling of slot machines, to about 2,500 machines, certainly contributed to the increased slot machine revenue at the Pennsylvania facility while that same logic did not apply to Mohegan Sun, where the additional 650 approximate slot machine expansion in the August 2008 Casino of the Wind did not stem the year-over-year losses in its monthly slot reports.
One year has elapsed since the Tribe doubled the number of slot machines at its racetrack-slot parlor in Pennsylvania so now the facility will be comparing slot revenue based on approximately the same number of machines in use for the prior year.
Since the expansion took place just over a year ago in July 2008, this past August was the first full month in which a slot revenue comparison can be done to the same month in the prior year that included approximately the same number of slot machines.
Just over a year ago in August 2008, the first full month after doubling the number of slot machines to about 2,500 machines, was about $20 million. That same month this year, August 2009, slot machine revenue declined to $19 million.
Monthly slot machine revenue is often compared to the same month of the prior year because of the cyclicle nature of the revenues, always higher in the summer months and always lower in the winter months.
These figures are based on the money won from customers during those months less promotional slot play and does not take into account any expenses, including taxes which eat up about half of those slot revenues alone.
While August showed a small decline in revenue over August 2008, this past September saw a modest slot revenue increase over September 2008.
Slot machine revenue for September 2008 was about $17 million and in September 2009 slot revenue was about $18 million.
Slot revenues are the Mohegan Tribal Gaming Authority's largest source of revenue. MTGA reported last week that fiscal year 2009 combined gross slot revenues at both the Pennsylvania facility and Mohegan Sun are "expected to range between $977 million and $1.02 billion, a decrease of between 1% and 5% compared to fiscal 2008." The decline in slot revenue at Mohegan Sun was partially offset by the increase at Pocono Downs.
The Pennsylvania racetrack-slot parlor also substantially increased its slot play promotions since last year. These slot play promotion figures are deducted from slot revenue to arrive at the figures described above as slot revenue. In August 2008, slot play promotions totaled $566,000 while in August 2009 that figure grew to $3.3 million. In September 2008, slot play promotions were $897,000 while September 2009 slot play promotions totaled $3.3 million.
If anything is a sure bet in Pennsylvania its that the state will allow table games at the slot parlors. The addition of table games will attract a broader customer base and could allow some relief to the high tax rates paid by the slot parlors.
For much of the past year, slot machine revenue at the Tribe's racetrack-slot parlor in Pennsylvania has shown increases over the same period in the prior year. Those year-over-year increases in monthly slot machine revenue at the Pennsylvania facility are likely to change.
Those monthly increases in slot revenue over the past year have been based on double the amount of slot machines in use at the Pennsylvania facility over the last year compared to half that number in use in the previous year. The doubling of slot machines, to about 2,500 machines, certainly contributed to the increased slot machine revenue at the Pennsylvania facility while that same logic did not apply to Mohegan Sun, where the additional 650 approximate slot machine expansion in the August 2008 Casino of the Wind did not stem the year-over-year losses in its monthly slot reports.
One year has elapsed since the Tribe doubled the number of slot machines at its racetrack-slot parlor in Pennsylvania so now the facility will be comparing slot revenue based on approximately the same number of machines in use for the prior year.
Since the expansion took place just over a year ago in July 2008, this past August was the first full month in which a slot revenue comparison can be done to the same month in the prior year that included approximately the same number of slot machines.
Just over a year ago in August 2008, the first full month after doubling the number of slot machines to about 2,500 machines, was about $20 million. That same month this year, August 2009, slot machine revenue declined to $19 million.
Monthly slot machine revenue is often compared to the same month of the prior year because of the cyclicle nature of the revenues, always higher in the summer months and always lower in the winter months.
These figures are based on the money won from customers during those months less promotional slot play and does not take into account any expenses, including taxes which eat up about half of those slot revenues alone.
While August showed a small decline in revenue over August 2008, this past September saw a modest slot revenue increase over September 2008.
Slot machine revenue for September 2008 was about $17 million and in September 2009 slot revenue was about $18 million.
Slot revenues are the Mohegan Tribal Gaming Authority's largest source of revenue. MTGA reported last week that fiscal year 2009 combined gross slot revenues at both the Pennsylvania facility and Mohegan Sun are "expected to range between $977 million and $1.02 billion, a decrease of between 1% and 5% compared to fiscal 2008." The decline in slot revenue at Mohegan Sun was partially offset by the increase at Pocono Downs.
The Pennsylvania racetrack-slot parlor also substantially increased its slot play promotions since last year. These slot play promotion figures are deducted from slot revenue to arrive at the figures described above as slot revenue. In August 2008, slot play promotions totaled $566,000 while in August 2009 that figure grew to $3.3 million. In September 2008, slot play promotions were $897,000 while September 2009 slot play promotions totaled $3.3 million.
If anything is a sure bet in Pennsylvania its that the state will allow table games at the slot parlors. The addition of table games will attract a broader customer base and could allow some relief to the high tax rates paid by the slot parlors.
Monday, October 19, 2009
Schagticoke Indians Lose Court Appeal
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A federal Circuit Court of Appeals ruled today that the denial of the Schagticoke Tribe's federal recognition was not a result of improper political influence.
The appeals court decision says the Connecticut Tribe failed to prove its allegations of improper political influence by Connecticut's congressional delegation and others to block the Tribe's federal recognition.
The U.S. Department of Interior's Bureau of Indian Affairs issued a final determination for the Schagticoke's federal recognition in January 2004 but that decision was reversed in 2005. The Tribe sought to overturn that reversal in federal court but it was struck down in August 2008. The appeal decision issued today reaffirms that 2008 lower court decision.
The Schagticoke Tribe is recognized by the state of Connecticut.
A federal Circuit Court of Appeals ruled today that the denial of the Schagticoke Tribe's federal recognition was not a result of improper political influence.
The appeals court decision says the Connecticut Tribe failed to prove its allegations of improper political influence by Connecticut's congressional delegation and others to block the Tribe's federal recognition.
The U.S. Department of Interior's Bureau of Indian Affairs issued a final determination for the Schagticoke's federal recognition in January 2004 but that decision was reversed in 2005. The Tribe sought to overturn that reversal in federal court but it was struck down in August 2008. The appeal decision issued today reaffirms that 2008 lower court decision.
The Schagticoke Tribe is recognized by the state of Connecticut.
Mohegan Gaming Authority Announces Deal With Bankers To Allow For Possible Hotel In The Poconos
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The Mohegan Tribal Gaming Authority announced an agreement with its prime bankers that, among other things, gives MTGA the flexibility to consider a hotel on the site of its racetrack-slot parlor in Pennsylvania as long as MTGA follows through with its proposed borrowing of $200 million that was announced last week. Proceeds of the $200 million proposed borrowing would be used to pay down some of MTGA's debt with those primary bankers.
The following is an excerpt of MTGA's announcement:
Mohegan Tribal Gaming Authority Receives Requisite Consent to Amend Its Bank Credit Facility
UNCASVILLE, Conn., Oct. 16, 2009 (GLOBE NEWSWIRE) -- The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs, announced today that it has received the requisite consent of its bank lending group, led by Bank of America, N.A., as Administrative Agent, to amend its bank credit facility. Among other things, the Authority has received requisite consent to:
*Modify the terms of the Authority's total leverage ratio covenant to increase the covenant by 25 basis points for the quarterly periods ending March 31, 2010, June 30, 2010, June 30, 2011, September 30, 2011 and December 31, 2011, and by 50 basis points for the quarterly periods ending September 30, 2010, December 31, 2010 and March 31, 2011.
*Modify the terms of the Authority's senior leverage ratio covenant to increase the covenant by 25 basis points for the quarterly periods ending March 31, 2010 and continuing through December 31, 2011.
*Gain the ability to obtain a release from liens securing the bank credit facility of a portion of the land on which Pocono Downs is sited to permit its sale or lease to a third-party in connection with the development of a potential hotel project, consisting of a minimum of 200 rooms, subject to the satisfaction of customary conditions.
*Modify the terms of the Authority's covenant relating to its incurrence of permitted indebtedness to allow the Authority or its subsidiaries to incur additional debt (which may consist of capital lease obligations) in an aggregate amount not to exceed $55 million, at any one time outstanding, in connection with the development of the potential hotel project at Pocono Downs.
*Modify the terms of the Authority's permitted capital expenditures covenant to affirmatively allow for the existing $125 million of permitted capital expenditures to be utilized for Pocono Downs in addition to Mohegan Sun and related businesses, including the payment of licensing fees associated with those operations.
*Permanently reduce the revolving commitments by $25 million.
*Modify the terms of the applicable pricing rates. The Authority's modified rates will be as follows: (i) the applicable rate for base rate loans will be between 1.25% and 2.75%; (2) the applicable rate for Eurodollar rate loans will be between 2.50% and 4.00%; and (iii) the applicable rate for commitment fees will be between 0.20% and 0.50%.
The effectiveness of these amendments is conditioned, in part, on the consummation of the Authority's proposed offering of $200 million aggregate principal amount of second lien senior secured notes due 2017 in a private offering to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as described in the Authority's press release dated October 14, 2009, and satisfaction of other customary conditions.
See press release at http://www.reuters.com/article/pressRelease/idUS188744+16-Oct-2009+GNW20091016 for full details.
The Mohegan Tribal Gaming Authority announced an agreement with its prime bankers that, among other things, gives MTGA the flexibility to consider a hotel on the site of its racetrack-slot parlor in Pennsylvania as long as MTGA follows through with its proposed borrowing of $200 million that was announced last week. Proceeds of the $200 million proposed borrowing would be used to pay down some of MTGA's debt with those primary bankers.
The following is an excerpt of MTGA's announcement:
Mohegan Tribal Gaming Authority Receives Requisite Consent to Amend Its Bank Credit Facility
UNCASVILLE, Conn., Oct. 16, 2009 (GLOBE NEWSWIRE) -- The Mohegan Tribal Gaming Authority, or the Authority, the owner and operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs, announced today that it has received the requisite consent of its bank lending group, led by Bank of America, N.A., as Administrative Agent, to amend its bank credit facility. Among other things, the Authority has received requisite consent to:
*Modify the terms of the Authority's total leverage ratio covenant to increase the covenant by 25 basis points for the quarterly periods ending March 31, 2010, June 30, 2010, June 30, 2011, September 30, 2011 and December 31, 2011, and by 50 basis points for the quarterly periods ending September 30, 2010, December 31, 2010 and March 31, 2011.
*Modify the terms of the Authority's senior leverage ratio covenant to increase the covenant by 25 basis points for the quarterly periods ending March 31, 2010 and continuing through December 31, 2011.
*Gain the ability to obtain a release from liens securing the bank credit facility of a portion of the land on which Pocono Downs is sited to permit its sale or lease to a third-party in connection with the development of a potential hotel project, consisting of a minimum of 200 rooms, subject to the satisfaction of customary conditions.
*Modify the terms of the Authority's covenant relating to its incurrence of permitted indebtedness to allow the Authority or its subsidiaries to incur additional debt (which may consist of capital lease obligations) in an aggregate amount not to exceed $55 million, at any one time outstanding, in connection with the development of the potential hotel project at Pocono Downs.
*Modify the terms of the Authority's permitted capital expenditures covenant to affirmatively allow for the existing $125 million of permitted capital expenditures to be utilized for Pocono Downs in addition to Mohegan Sun and related businesses, including the payment of licensing fees associated with those operations.
*Permanently reduce the revolving commitments by $25 million.
*Modify the terms of the applicable pricing rates. The Authority's modified rates will be as follows: (i) the applicable rate for base rate loans will be between 1.25% and 2.75%; (2) the applicable rate for Eurodollar rate loans will be between 2.50% and 4.00%; and (iii) the applicable rate for commitment fees will be between 0.20% and 0.50%.
The effectiveness of these amendments is conditioned, in part, on the consummation of the Authority's proposed offering of $200 million aggregate principal amount of second lien senior secured notes due 2017 in a private offering to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as described in the Authority's press release dated October 14, 2009, and satisfaction of other customary conditions.
See press release at http://www.reuters.com/article/pressRelease/idUS188744+16-Oct-2009+GNW20091016 for full details.
Friday, October 16, 2009
First Snowfall Of Season In Uncasville
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Snow was seen falling lightly yesterday in Uncasville but leaving no accumulation in a storm that set records as the earliest snowfall in some parts of the northeast. A second storm is expected to begin tomorrow and has triggered fload warnings along the Connecticut coastline and snow inland. The snow also affected the Pocono Mountains in Pennsylvania yesterday, the location of the Tribe's Pocono Downs racetrack-slot parlor.
Snow was seen falling lightly yesterday in Uncasville but leaving no accumulation in a storm that set records as the earliest snowfall in some parts of the northeast. A second storm is expected to begin tomorrow and has triggered fload warnings along the Connecticut coastline and snow inland. The snow also affected the Pocono Mountains in Pennsylvania yesterday, the location of the Tribe's Pocono Downs racetrack-slot parlor.
The Status Of Table Games At Pennsylvania Slot Parlors
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The following Philadelphia Inquirer article provides an update as to the status of table games at Pennsylvania slot parlors, including the Tribe's Pocono Downs racetrack-slot parlor:
Deadlock over taxing table games chokes off help
By Suzette Parmley, Mario F. Cattabiani, and Susan Snyder
Philadelphia Inquirer
October 15, 2009
A seemingly small but unresolved piece of the state budget has delayed millions of dollars in aid for state-supported colleges, museums, and hospitals.
The holdup is "table games" - poker, blackjack, and other games being added to Pennsylvania casinos. Though Gov. Rendell signed the other bills comprising the $27.8 billion budget last Friday after a 101-day impasse, legislators still haven't decided how much to tax the new games.
Until they do, aid to colleges and others has to wait.
The situation prompted testy words yesterday between the Republican-controlled state Senate and the Democratic-led House. It has also left officials reeling at Temple, Penn State, the University of Pittsburgh, and Lincoln University - the four "state-related" colleges due to get more than $600 million from the state this fiscal year to help educate 158,000 students.
"I understand that they have to find the money to pay for everything, but our higher-education institutions are more important than gambling is," said Arthur Hochner, president of Temple's faculty union. The school is due about $183 million in state aid.
Penn State is awaiting a monthly $30 million check. The state's flagship university says it has had to dig into cash reserves and has taken a hit on investment earnings as a result of the delay. "We just hope it's resolved quickly," said spokeswoman Lisa Powers.
Gary Tuma, press secretary for Rendell, said the governor could not sign the bills to get colleges' aid flowing until the table-games legislation, with its projection of $200 million in revenue, was in place. "We see this more as a timing issue than anything else," Tuma said.
The delay prompted the Senate majority leader, Dominic Pileggi (R., Delaware), and its president pro tempore, Joe Scarnati (R., Jefferson), to write to House Speaker Keith McCall (D., Carbon) yesterday urging him to call the House back into session to take up table games and the delayed appropriations bill for colleges and others.
"There is simply no good reason to withhold this critical funding," the senators wrote.
The House is not scheduled to return to session until Nov. 9, but House members were put on six-hour call, meaning they could get called back to Harrisburg on short notice.
"We are hopeful we can resolve our differences quickly," said Brett Marcy, spokesman for House Majority Leader Todd A. Eachus (D., Luzerne). "We are hopeful we can find a middle ground on these issues so that we can complete these last pieces of the budget."
The state Senate passed a bill late Friday that would tax the games at a rate of 12 percent, plus an additional 2 percent to local municipalities, and charge each casino a $15 million license fee; smaller "resort casinos" would pay half that amount.
Pileggi said yesterday that he thought Senate Republicans could agree to a 15 percent tax rate. A Democrat-backed House bill calls for 34 percent, but Democrats have signaled they would settle for the high teens.
"We would have preferred to have reached a compromise on table games," Rep. Bill DeWeese (D., Greene), the House majority whip, said yesterday. "But we did not, so in order to fund the traditional state budget, every other measure was included in the appropriations bill and fiscal code, except for the table games" and the bills freeing up money for state-related colleges, hospitals, and museums.
Unlike, say, the state police, the colleges are merely "state-related," not state-run. "They can only be funded if there is money available," explained Johnna A. Pro, spokeswoman for State Rep. Dwight Evans (D., Phila.), the House appropriations chairman.
In all, 28 institutions fall into that category. They range from Penn State and Temple to the Franklin Institute, the Academy of Natural Sciences, and Children's Hospital of Philadelphia. Their state aid this fiscal year adds up to about $730 million.
School officials say they are dismayed that their funding has become entangled in the table-games debate.
"The state-related institutions are still without a budget because of the battle over table games," said Temple president Ann Weaver Hart, speaking at the Coalition of Urban and Metropolitan Universities conference in Philadelphia on Monday. "We have no appropriation, and it is now October."
Meanwhile, casino operators throughout Pennsylvania want a resolution soon, too. They are hoping to have poker and other games running by spring.
The Pennsylvania Casino Association, which represents three of the state's casinos - SugarHouse in Philadelphia, Mount Airy in the Poconos, and The Rivers in Pittsburgh - has insisted all along on a tax rate of 12 percent for table games.
The rate "will determine the number of tables that we see," said the group's executive director, Ken Smukler.
Just get it done, said Michael Hill, vice president for development and external relations at Lincoln University in Chester County, awaiting nearly $14 million in state funding. In other words, 22 percent of Lincoln's budget.
Hill said the school had frozen its hiring and cut back on travel.
"The issue of gaming is not the issue. It's the issue of resolving," Hill said. "Get together and resolve whatever issues to allow us to continue to educate our students."
The following Philadelphia Inquirer article provides an update as to the status of table games at Pennsylvania slot parlors, including the Tribe's Pocono Downs racetrack-slot parlor:
Deadlock over taxing table games chokes off help
By Suzette Parmley, Mario F. Cattabiani, and Susan Snyder
Philadelphia Inquirer
October 15, 2009
A seemingly small but unresolved piece of the state budget has delayed millions of dollars in aid for state-supported colleges, museums, and hospitals.
The holdup is "table games" - poker, blackjack, and other games being added to Pennsylvania casinos. Though Gov. Rendell signed the other bills comprising the $27.8 billion budget last Friday after a 101-day impasse, legislators still haven't decided how much to tax the new games.
Until they do, aid to colleges and others has to wait.
The situation prompted testy words yesterday between the Republican-controlled state Senate and the Democratic-led House. It has also left officials reeling at Temple, Penn State, the University of Pittsburgh, and Lincoln University - the four "state-related" colleges due to get more than $600 million from the state this fiscal year to help educate 158,000 students.
"I understand that they have to find the money to pay for everything, but our higher-education institutions are more important than gambling is," said Arthur Hochner, president of Temple's faculty union. The school is due about $183 million in state aid.
Penn State is awaiting a monthly $30 million check. The state's flagship university says it has had to dig into cash reserves and has taken a hit on investment earnings as a result of the delay. "We just hope it's resolved quickly," said spokeswoman Lisa Powers.
Gary Tuma, press secretary for Rendell, said the governor could not sign the bills to get colleges' aid flowing until the table-games legislation, with its projection of $200 million in revenue, was in place. "We see this more as a timing issue than anything else," Tuma said.
The delay prompted the Senate majority leader, Dominic Pileggi (R., Delaware), and its president pro tempore, Joe Scarnati (R., Jefferson), to write to House Speaker Keith McCall (D., Carbon) yesterday urging him to call the House back into session to take up table games and the delayed appropriations bill for colleges and others.
"There is simply no good reason to withhold this critical funding," the senators wrote.
The House is not scheduled to return to session until Nov. 9, but House members were put on six-hour call, meaning they could get called back to Harrisburg on short notice.
"We are hopeful we can resolve our differences quickly," said Brett Marcy, spokesman for House Majority Leader Todd A. Eachus (D., Luzerne). "We are hopeful we can find a middle ground on these issues so that we can complete these last pieces of the budget."
The state Senate passed a bill late Friday that would tax the games at a rate of 12 percent, plus an additional 2 percent to local municipalities, and charge each casino a $15 million license fee; smaller "resort casinos" would pay half that amount.
Pileggi said yesterday that he thought Senate Republicans could agree to a 15 percent tax rate. A Democrat-backed House bill calls for 34 percent, but Democrats have signaled they would settle for the high teens.
"We would have preferred to have reached a compromise on table games," Rep. Bill DeWeese (D., Greene), the House majority whip, said yesterday. "But we did not, so in order to fund the traditional state budget, every other measure was included in the appropriations bill and fiscal code, except for the table games" and the bills freeing up money for state-related colleges, hospitals, and museums.
Unlike, say, the state police, the colleges are merely "state-related," not state-run. "They can only be funded if there is money available," explained Johnna A. Pro, spokeswoman for State Rep. Dwight Evans (D., Phila.), the House appropriations chairman.
In all, 28 institutions fall into that category. They range from Penn State and Temple to the Franklin Institute, the Academy of Natural Sciences, and Children's Hospital of Philadelphia. Their state aid this fiscal year adds up to about $730 million.
School officials say they are dismayed that their funding has become entangled in the table-games debate.
"The state-related institutions are still without a budget because of the battle over table games," said Temple president Ann Weaver Hart, speaking at the Coalition of Urban and Metropolitan Universities conference in Philadelphia on Monday. "We have no appropriation, and it is now October."
Meanwhile, casino operators throughout Pennsylvania want a resolution soon, too. They are hoping to have poker and other games running by spring.
The Pennsylvania Casino Association, which represents three of the state's casinos - SugarHouse in Philadelphia, Mount Airy in the Poconos, and The Rivers in Pittsburgh - has insisted all along on a tax rate of 12 percent for table games.
The rate "will determine the number of tables that we see," said the group's executive director, Ken Smukler.
Just get it done, said Michael Hill, vice president for development and external relations at Lincoln University in Chester County, awaiting nearly $14 million in state funding. In other words, 22 percent of Lincoln's budget.
Hill said the school had frozen its hiring and cut back on travel.
"The issue of gaming is not the issue. It's the issue of resolving," Hill said. "Get together and resolve whatever issues to allow us to continue to educate our students."
Thursday, October 15, 2009
Mohegan Sun Reports 11.3% Decline In September Slot Revenue, Foxwoods Reports 2.8 Percent Decline
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The Mohegan Tribal Gaming Authority reported today that its September slot revenue declined 11.3 percent when compared to the month of September 2008 while Foxwoods reported a decline of 2.8 percent.
Since the Mohegan Sun opened its Casino of the Wind expansion at the end of August 2008, the September slot revenue report is the first to compare current monthly figures with a prior period that includes the approximately 650 slot machines that went into operation when the Casino of the Wind opened.
The comparison that is always done with the same month in the prior year is now more of comparing "apples to apples" because the comparison is between two periods that include about the same number of slot machines in operation.
Casinos had an extra boost this September because Labor Day weekend landed in September whereas last year the holiday weekend was in August.
In terms of dollars, slot revenue for the month of September at Mohegan Sun was $59.4 million and Foxwoods was $54.8 million. Both casinos pay 25 percent of their slot revenue to the State of Connecticut.
Figures for free slot play promotions at both casinos, given away to lure customers, were not available at this time.
The Mohegan Tribal Gaming Authority reported today that its September slot revenue declined 11.3 percent when compared to the month of September 2008 while Foxwoods reported a decline of 2.8 percent.
Since the Mohegan Sun opened its Casino of the Wind expansion at the end of August 2008, the September slot revenue report is the first to compare current monthly figures with a prior period that includes the approximately 650 slot machines that went into operation when the Casino of the Wind opened.
The comparison that is always done with the same month in the prior year is now more of comparing "apples to apples" because the comparison is between two periods that include about the same number of slot machines in operation.
Casinos had an extra boost this September because Labor Day weekend landed in September whereas last year the holiday weekend was in August.
In terms of dollars, slot revenue for the month of September at Mohegan Sun was $59.4 million and Foxwoods was $54.8 million. Both casinos pay 25 percent of their slot revenue to the State of Connecticut.
Figures for free slot play promotions at both casinos, given away to lure customers, were not available at this time.
Bloomberg News On Mohegan's $200 Million Debt Offering
Feather News
The following article appeared in Bloomberg News yesterday. Note that 100 basis points would be equal to 1 percentage point. So when the article refers to 972 basis points that is equivalent to 9.72 percent.
Mohegan to Sell First Tribal Gaming Debt in 18 Months (Update1)
Bloomberg News
By Beth Jinks, John Detrixhe
October 14, 2009
Mohegan Tribal Gaming Authority, in the first bond sale by an American Indian gaming company in more than a year, plans a $200 million private offering of notes.
Proceeds of the second-lien, senior secured debt due in 2017 may be used to repay term loans and revolving credit, the Uncasville, Connecticut-based casino operator said today in a statement. Gambling-company bond yields widened 3 basis points relative to comparable-maturity Treasuries to 972 basis points yesterday, according to Merrill Lynch & Co.’s U.S. High Yield Gaming index. Spreads narrowed to 910 basis points on Sept. 24, the tightest this year, the data show.
Mohegan is offering notes almost two months after the chairman of the Mashantucket Western Pequot Tribe, owner of the Foxwoods Resort Casino located about 10 miles from Mohegan Sun, spooked bondholders by reportedly telling his constituents that they would be paid before creditors in a restructuring. Bonds of the tribe plunged on Aug. 27. Five days later, the tribal council said it placed Chairman Michael Thomas on administrative leave pending an internal review after backing away from his comments.
Moody’s Investors Service and Standard & Poor’s cut their ratings on Mashantucket’s estimated $1.5 billion of debt by four steps on Aug. 26. They said the gradings could be lowered further.
Previous Issue
FireKeepers Development Authority, an unincorporated subdivision of the Nottawaseppi Huron Band of the Potawatomi, was the last American Indian casino to sell bonds, issuing $340 million of seven-year, 13.875 percent notes on April 22, 2008, according to data compiled by Bloomberg. The debt priced at 96 cents on the dollar to yield 14.95 percent, or a spread of 11.52 percentage points.
The notes traded yesterday at 105 cents on the dollar to yield 12.4 percent, or a spread of 10.47 percentage points, according to Merrill Lynch data.
Lenders may “retrench” from American Indian gaming if a restructuring impairs existing creditors while protecting tribal cash distributions, Moody’s said on Aug. 31. That would make “it difficult for other Native American gaming issuers to raise additional funds in the capital markets,” the debt-rating service said.
Leo Chupaska, Mohegan’s chief financial officer, couldn’t immediately be reached for comment.
The following article appeared in Bloomberg News yesterday. Note that 100 basis points would be equal to 1 percentage point. So when the article refers to 972 basis points that is equivalent to 9.72 percent.
Mohegan to Sell First Tribal Gaming Debt in 18 Months (Update1)
Bloomberg News
By Beth Jinks, John Detrixhe
October 14, 2009
Mohegan Tribal Gaming Authority, in the first bond sale by an American Indian gaming company in more than a year, plans a $200 million private offering of notes.
Proceeds of the second-lien, senior secured debt due in 2017 may be used to repay term loans and revolving credit, the Uncasville, Connecticut-based casino operator said today in a statement. Gambling-company bond yields widened 3 basis points relative to comparable-maturity Treasuries to 972 basis points yesterday, according to Merrill Lynch & Co.’s U.S. High Yield Gaming index. Spreads narrowed to 910 basis points on Sept. 24, the tightest this year, the data show.
Mohegan is offering notes almost two months after the chairman of the Mashantucket Western Pequot Tribe, owner of the Foxwoods Resort Casino located about 10 miles from Mohegan Sun, spooked bondholders by reportedly telling his constituents that they would be paid before creditors in a restructuring. Bonds of the tribe plunged on Aug. 27. Five days later, the tribal council said it placed Chairman Michael Thomas on administrative leave pending an internal review after backing away from his comments.
Moody’s Investors Service and Standard & Poor’s cut their ratings on Mashantucket’s estimated $1.5 billion of debt by four steps on Aug. 26. They said the gradings could be lowered further.
Previous Issue
FireKeepers Development Authority, an unincorporated subdivision of the Nottawaseppi Huron Band of the Potawatomi, was the last American Indian casino to sell bonds, issuing $340 million of seven-year, 13.875 percent notes on April 22, 2008, according to data compiled by Bloomberg. The debt priced at 96 cents on the dollar to yield 14.95 percent, or a spread of 11.52 percentage points.
The notes traded yesterday at 105 cents on the dollar to yield 12.4 percent, or a spread of 10.47 percentage points, according to Merrill Lynch data.
Lenders may “retrench” from American Indian gaming if a restructuring impairs existing creditors while protecting tribal cash distributions, Moody’s said on Aug. 31. That would make “it difficult for other Native American gaming issuers to raise additional funds in the capital markets,” the debt-rating service said.
Leo Chupaska, Mohegan’s chief financial officer, couldn’t immediately be reached for comment.
Its Official: No Cost Of Living Increase In Social Security Payments This Year
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The federal government announced today that Social Security recipients will not receive a cost-of-living increase in their checks this January, marking the first time that automatic cost-of-living adjustments to Social Security recipients will not be paid out since the rule was adopted in 1975.
Last January, the automatic cost-of-living increase was 5.8 percent, the highest increase in about 25 years.
In reaction to the news, President Obama suggested that the federal government issue one-time checks of $250 to the nearly 60 million citizens who not only receive Social Security but also to those who receive veteran's and disability benefits, railroad retirees, and retired public employees who don't receive Social Security.
The annual cost-of-living adjustment is determined by the inrease or decrease in prices of a number of products during the three-month period of July through September. The price of gasoline, one of the items in the index, dropped so much since last year that it has been predicted for months that Social Security would not issue a cost-of-living increase in January and possibly for the next few years.
The federal government announced today that Social Security recipients will not receive a cost-of-living increase in their checks this January, marking the first time that automatic cost-of-living adjustments to Social Security recipients will not be paid out since the rule was adopted in 1975.
Last January, the automatic cost-of-living increase was 5.8 percent, the highest increase in about 25 years.
In reaction to the news, President Obama suggested that the federal government issue one-time checks of $250 to the nearly 60 million citizens who not only receive Social Security but also to those who receive veteran's and disability benefits, railroad retirees, and retired public employees who don't receive Social Security.
The annual cost-of-living adjustment is determined by the inrease or decrease in prices of a number of products during the three-month period of July through September. The price of gasoline, one of the items in the index, dropped so much since last year that it has been predicted for months that Social Security would not issue a cost-of-living increase in January and possibly for the next few years.
Wednesday, October 14, 2009
Flash: Mohegan Gaming Authority Issues Preliminary Earnings Report For 4th Quarter
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Updated
The Mohegan Tribal Gaming Authority today issued a press release announcing the preliminary operating results for the last quarter of fiscal year 2009, which are the months of July through September, and for the entire fiscal year 2009, which are the 12 months beginning October 1, 2008 and ending on September 30, 2009.
FISCAL YEAR RESULTS:
Net revenues for fiscal year 2009 are "expected to range between $1.43 billion and $1.48 billion, a decrease of between 6% and 9% compared to fiscal 2008" and net income (or profits) are "expected to range between $115 million and $120 million, a decrease of between 20% and 23% compared to fiscal 2008," according to the press release.
For the year, slot revenues are expected to show a decrease of between 1% and 5% and table game revenue is expected to show a decrease of between 17% and 20% when compared to the previous fiscal year. Total gaming revenue, which is both slot revenues and table game revenues combined, is expected to decrease between 5% and 8% according to the press release (MTGA's slot revenue amounts to just over three times the amount of revenue derived from table games).
QUARTER OF JULY 1ST THROUGH SEPTEMBER 30TH:
For the three months of July through September 2009, net income (profit) "is expected to range between $63 million and $66 million, a decrease of between 24% and 27% compared to the fourth quarter of fiscal 2008." Net revenues are expected to decrease between 10% and 14% compared to the same three-month period last year while the slot revenue component is expected to decrease between 6% and 10%.
OTHER:
In other highlights of today's press release, MTGA stated that distributions to the Mohegan Tribal government "totaled approximately $72 million for the fiscal year ended September 30, 2009." Further, "distributions to the Tribe are anticipated to approximate between $59 million and $64 million for fiscal 2010."
MTGA's total debt is $1.64 billion while the interest expense on that debt for the fiscal year is expected to total between $107 and $112 million, an increase of between 15% and 19% over fiscal year 2008.
It is important to note that the projected figures may differ from the actual results. MTGA adds a disclaimer in its press release saying that they "cannot assure you that projected results or events will be achieved."
See press release at http://www.globenewswire.com/newsroom/news.html?d=175419 for complete details. MTGA's distribution to the Tribal government does not include utilities and reimbursed expenditures, such as reimbursed gaming commission expenses and public safety-related reimbursements.
Updated
The Mohegan Tribal Gaming Authority today issued a press release announcing the preliminary operating results for the last quarter of fiscal year 2009, which are the months of July through September, and for the entire fiscal year 2009, which are the 12 months beginning October 1, 2008 and ending on September 30, 2009.
FISCAL YEAR RESULTS:
Net revenues for fiscal year 2009 are "expected to range between $1.43 billion and $1.48 billion, a decrease of between 6% and 9% compared to fiscal 2008" and net income (or profits) are "expected to range between $115 million and $120 million, a decrease of between 20% and 23% compared to fiscal 2008," according to the press release.
For the year, slot revenues are expected to show a decrease of between 1% and 5% and table game revenue is expected to show a decrease of between 17% and 20% when compared to the previous fiscal year. Total gaming revenue, which is both slot revenues and table game revenues combined, is expected to decrease between 5% and 8% according to the press release (MTGA's slot revenue amounts to just over three times the amount of revenue derived from table games).
QUARTER OF JULY 1ST THROUGH SEPTEMBER 30TH:
For the three months of July through September 2009, net income (profit) "is expected to range between $63 million and $66 million, a decrease of between 24% and 27% compared to the fourth quarter of fiscal 2008." Net revenues are expected to decrease between 10% and 14% compared to the same three-month period last year while the slot revenue component is expected to decrease between 6% and 10%.
OTHER:
In other highlights of today's press release, MTGA stated that distributions to the Mohegan Tribal government "totaled approximately $72 million for the fiscal year ended September 30, 2009." Further, "distributions to the Tribe are anticipated to approximate between $59 million and $64 million for fiscal 2010."
MTGA's total debt is $1.64 billion while the interest expense on that debt for the fiscal year is expected to total between $107 and $112 million, an increase of between 15% and 19% over fiscal year 2008.
It is important to note that the projected figures may differ from the actual results. MTGA adds a disclaimer in its press release saying that they "cannot assure you that projected results or events will be achieved."
See press release at http://www.globenewswire.com/newsroom/news.html?d=175419 for complete details. MTGA's distribution to the Tribal government does not include utilities and reimbursed expenditures, such as reimbursed gaming commission expenses and public safety-related reimbursements.
Mohegan Gaming Authority Seeks To Borrow $200 Million
Feather News
The Mohegan Tribal Gaming Authority issued a press release today about its intent to borrow $200 million to largely pay off existing debt. Under the title, "Mohegan Tribal Gaming Authority Announces Proposed Private Offering of $200 Million of Second Lien Senior Secured Notes Due 2017," MTGA provides the following information:
The Mohegan Tribal Gaming Authority, or the Authority, announced today that it intends to offer, subject to market and other conditions, $200 million aggregate principal amount of second lien senior secured notes due 2017, or the Notes, in a private offering to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, or the Securities Act. The Authority is the owner and operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs.
The Authority intends to use the net proceeds from this offering to repay all of its existing term loans under its bank credit facility, of which $147 million in aggregate principal amount is outstanding, to repay $48 million of revolving loans under its bank credit facility, including a $25 million permanent reduction in the commitment, and to pay related transaction costs and expenses. The Notes will be collateralized by a second lien on substantially all of the Authority's property and assets, and that of its existing and future guarantor subsidiaries, or the Guarantors, and will be fully guaranteed, jointly and severally, on a second lien senior secured basis, by the Guarantors.
The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes.
UNCASVILLE, Conn., Oct. 14, 2009 GLOBE NEWSWIRE
Source: http://www.globenewswire.com/newsroom/news.html?d=175418
The Mohegan Tribal Gaming Authority issued a press release today about its intent to borrow $200 million to largely pay off existing debt. Under the title, "Mohegan Tribal Gaming Authority Announces Proposed Private Offering of $200 Million of Second Lien Senior Secured Notes Due 2017," MTGA provides the following information:
The Mohegan Tribal Gaming Authority, or the Authority, announced today that it intends to offer, subject to market and other conditions, $200 million aggregate principal amount of second lien senior secured notes due 2017, or the Notes, in a private offering to be conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended, or the Securities Act. The Authority is the owner and operator of a gaming and entertainment complex located near Uncasville, Connecticut, known as Mohegan Sun, and a gaming and entertainment facility offering slot machines and harness racing in Plains Township, Pennsylvania, known as Mohegan Sun at Pocono Downs, or Pocono Downs.
The Authority intends to use the net proceeds from this offering to repay all of its existing term loans under its bank credit facility, of which $147 million in aggregate principal amount is outstanding, to repay $48 million of revolving loans under its bank credit facility, including a $25 million permanent reduction in the commitment, and to pay related transaction costs and expenses. The Notes will be collateralized by a second lien on substantially all of the Authority's property and assets, and that of its existing and future guarantor subsidiaries, or the Guarantors, and will be fully guaranteed, jointly and severally, on a second lien senior secured basis, by the Guarantors.
The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes.
UNCASVILLE, Conn., Oct. 14, 2009 GLOBE NEWSWIRE
Source: http://www.globenewswire.com/newsroom/news.html?d=175418
Electricity Goes Out In Montville
Feather News
About 90 percent of the residents in Montville lost power yesterday afternoon. A spokesman for Connecticut Light and Power said the power outage happened around 11:15 in the morning and was restored at 12:30 p.m.
About 90 percent of the residents in Montville lost power yesterday afternoon. A spokesman for Connecticut Light and Power said the power outage happened around 11:15 in the morning and was restored at 12:30 p.m.
Tuesday, October 13, 2009
Phoenix Wins WNBA Championship
Feather News
Phoenix beat Indiana in game five of the WNBA basketball championship, winning the series 3 games out of the five-game series. The Mohegan's team, the Connecticut Sun, did not qualify for the playoffs this year.
Phoenix beat Indiana in game five of the WNBA basketball championship, winning the series 3 games out of the five-game series. The Mohegan's team, the Connecticut Sun, did not qualify for the playoffs this year.
Monday, October 12, 2009
"If The Casino Goes Belly Up, Creditors Can't Take The Land," Says Chupaska
Feather News
Wow. The Mohegan Tribal Gaming Authority announced in Sunday's edition of the Norwich Bulletin that it is "considering" the restructuring of its debt. Mohegan Sun chief financial officer Leo Chupaska says, "If the casino goes belly up, creditors can't take the land." The article, while reporting the Mashantucket's debt, does not mention that MTGA's debt is $1.6 billion. The Feather News reported last year that MTGA would soon need to restructure its existing debt.
Mashantuckets, Mohegans lack flexibility when dealing with debts
Indian Gaming Act restricts solutions
By William Sokolic
The Norwich Bulletin
October 11, 2009
In May 1978, Resorts opened in Atlantic City, N.J., as the first casino outside Nevada.
A decade later, Merv Griffin bought the property. Almost a decade after that, Griffin sold the company to Sun International, which sold it to Colony Capital in 2001 for a huge loss.
Each new owner assumed the debt of the previous ownership.
This year, the creditors are seeking to take over ownership from Colony Capital for failure to pay its debt service.
At the center of all these changes was debt — an issue very much on the minds of the Mashantucket Pequot Tribe, owners of Foxwoods and MGM Grand at Foxwoods, and the Mohegan Gaming Tribal Authority, which owns Mohegan Sun.
Millions, billions owed
The Mashantuckets reportedly have debt obligations of more than $2 billion. The Mohegans have to repay $150 million in $30 million increments, beginning next year, the result of an agreement with the bank to retire a $330 million note.
Neither tribe can seek any of the options available to previous owners of Resorts. They cannot look for a buyer to take the load off their shoulders. Or sell off a gaming hall to reduce debt. The Indian Gaming Regulatory Act says only a tribe can own a casino, said Shawn P. Pensoneau, a spokesman for the National Indian Gaming Commission. If property is on the reservation, the land is owned and held in trust by the federal government.
The Mashantuckets have retained Miller Buckfire & Co. LLC as a financial and restructuring adviser and Weil, Gotshal & Manges LLP as legal counsel to provide professional services in connection to restructuring its large debt.
Mohegan Sun faces similar approaches.
“We’ll have difficulty making those payments on the $150 million, so we are considering debt restructuring,” said Leo Chupaska, Mohegan Sun’s chief financial officer. “We are studying what we can do to take care of the issue.”
More options
Nontribal gaming companies have more options. They can issue additional debt or stock, he said.
“The tribes can’t sell off or convert anything to equity,” said Clyde W. Barrow, director of the Center for Policy Analysis at the University of Massachusetts Dartmouth.
Said Chupaska, “If the casino goes belly up, creditors can’t take the land.”
And while tribes can lease land for retail and restaurant operations — and can hire a company to manage the casino — it cannot sell its casino assets to a nontribal entity.
There are a lot of private operators on Indian reservations, Chupaska said. Mohegan Sun has a number of third-party retailers who pay a leasing fee. Most pay a percentage of revenue, he said.
“The regulatory act is specific for Indian gaming, not for retail,” Pensoneau said.
So what’s a financially strapped tribe to do?
If a tribe went into default, creditors could hire someone to run the casino, but the management team would have to be licensed by the National Indian Gaming Commission, Chupaska said.
“It’s difficult to pass muster with the NIGC,” he said. “The only thing we can do to raise money is to go into debt markets or issue bonds, so we’re at a little disadvantage.”
Like foreign nation
Barrow likens it to trying to collect on a debt from a foreign government.
“You can cut them off,” he said. “But if they do not have money, you can’t get blood from a stone.”
They may declare bankruptcy.
“But don’t expect an Obama bailout,” he said.
If banks are so inclined, they can write off the debt as they do for mortgages, restructure to lower interest rates, or lengthen the time to pay to back, Barrow said. Those steps are in the bank’s self-interest, since they cannot take over a casino.
Meantime, it’s business as usual, Chupaska said.
“We do not anticipate that the financial restructuring being considered by the tribe will affect our employees, customers, vendors or business partners,” he said. “The tribe does not plan to make any additional comments regarding this matter at this time.”
Source: http://www.norwichbulletin.com/casinos/x1128407612/Mashantuckets-Mohegans-lack-flexibility-when-dealing-with-debts
Wow. The Mohegan Tribal Gaming Authority announced in Sunday's edition of the Norwich Bulletin that it is "considering" the restructuring of its debt. Mohegan Sun chief financial officer Leo Chupaska says, "If the casino goes belly up, creditors can't take the land." The article, while reporting the Mashantucket's debt, does not mention that MTGA's debt is $1.6 billion. The Feather News reported last year that MTGA would soon need to restructure its existing debt.
Mashantuckets, Mohegans lack flexibility when dealing with debts
Indian Gaming Act restricts solutions
By William Sokolic
The Norwich Bulletin
October 11, 2009
In May 1978, Resorts opened in Atlantic City, N.J., as the first casino outside Nevada.
A decade later, Merv Griffin bought the property. Almost a decade after that, Griffin sold the company to Sun International, which sold it to Colony Capital in 2001 for a huge loss.
Each new owner assumed the debt of the previous ownership.
This year, the creditors are seeking to take over ownership from Colony Capital for failure to pay its debt service.
At the center of all these changes was debt — an issue very much on the minds of the Mashantucket Pequot Tribe, owners of Foxwoods and MGM Grand at Foxwoods, and the Mohegan Gaming Tribal Authority, which owns Mohegan Sun.
Millions, billions owed
The Mashantuckets reportedly have debt obligations of more than $2 billion. The Mohegans have to repay $150 million in $30 million increments, beginning next year, the result of an agreement with the bank to retire a $330 million note.
Neither tribe can seek any of the options available to previous owners of Resorts. They cannot look for a buyer to take the load off their shoulders. Or sell off a gaming hall to reduce debt. The Indian Gaming Regulatory Act says only a tribe can own a casino, said Shawn P. Pensoneau, a spokesman for the National Indian Gaming Commission. If property is on the reservation, the land is owned and held in trust by the federal government.
The Mashantuckets have retained Miller Buckfire & Co. LLC as a financial and restructuring adviser and Weil, Gotshal & Manges LLP as legal counsel to provide professional services in connection to restructuring its large debt.
Mohegan Sun faces similar approaches.
“We’ll have difficulty making those payments on the $150 million, so we are considering debt restructuring,” said Leo Chupaska, Mohegan Sun’s chief financial officer. “We are studying what we can do to take care of the issue.”
More options
Nontribal gaming companies have more options. They can issue additional debt or stock, he said.
“The tribes can’t sell off or convert anything to equity,” said Clyde W. Barrow, director of the Center for Policy Analysis at the University of Massachusetts Dartmouth.
Said Chupaska, “If the casino goes belly up, creditors can’t take the land.”
And while tribes can lease land for retail and restaurant operations — and can hire a company to manage the casino — it cannot sell its casino assets to a nontribal entity.
There are a lot of private operators on Indian reservations, Chupaska said. Mohegan Sun has a number of third-party retailers who pay a leasing fee. Most pay a percentage of revenue, he said.
“The regulatory act is specific for Indian gaming, not for retail,” Pensoneau said.
So what’s a financially strapped tribe to do?
If a tribe went into default, creditors could hire someone to run the casino, but the management team would have to be licensed by the National Indian Gaming Commission, Chupaska said.
“It’s difficult to pass muster with the NIGC,” he said. “The only thing we can do to raise money is to go into debt markets or issue bonds, so we’re at a little disadvantage.”
Like foreign nation
Barrow likens it to trying to collect on a debt from a foreign government.
“You can cut them off,” he said. “But if they do not have money, you can’t get blood from a stone.”
They may declare bankruptcy.
“But don’t expect an Obama bailout,” he said.
If banks are so inclined, they can write off the debt as they do for mortgages, restructure to lower interest rates, or lengthen the time to pay to back, Barrow said. Those steps are in the bank’s self-interest, since they cannot take over a casino.
Meantime, it’s business as usual, Chupaska said.
“We do not anticipate that the financial restructuring being considered by the tribe will affect our employees, customers, vendors or business partners,” he said. “The tribe does not plan to make any additional comments regarding this matter at this time.”
Source: http://www.norwichbulletin.com/casinos/x1128407612/Mashantuckets-Mohegans-lack-flexibility-when-dealing-with-debts
No Deal Yet On Mohegan Pocono Hotel
Feather News
An official for the Mohegan's Pennsylvania racetrack-slot parlor discussed the possibility of adding a hotel to the location in Saturday's edition of a Pennsylvania newspaper.
Mohegan Sun considers plan for 300-room hotel
By Nicholas Sohr
The Times-Tribune
October 10, 2009
PLAINS TWP. - Mohegan Sun at Pocono Downs has applied for preliminary construction approvals for a 300-room hotel and convention center after hoteliers approached the casino about forming a partnership, a casino official confirmed Friday.
"We're very preliminary right now," said Jim Wise, a Mohegan Sun vice president. "It is not an indication we have a direct timeline to build a hotel. We are trying to cross all the t's, dot all the i's and go through the preparation hurdles so that if a deal would be struck, it would allow us or any sort of partnership to begin working sooner."
Space for a hotel is included in the casino's master plan between the two main entrances.
Mr. Wise said discussions with the hoteliers began about a year ago.
"Those conversations are starting to become a little more frequent and a little more detailed," he said. "Although people appear interested, I don't know if that's going to lead to a contractual agreement."
According to the documents filed, the hotel would have about 300 rooms and space for a convention center.
Mr. Wise said the details are all hypothetical.
"It's a framework - could go down or could go up - but that is in the ballpark," he said. "There's dozens of details that we've made no determination on yet."
Mohegan Sun opened its $208 million Project Sunrise expansion in July 2008. The circular, 300,000-square-foot facility more than doubled the number of slot machines, added dining, retail and entertainment options, and has consistently boosted revenue since its opening.
In September, the state Gaming Control Board reported $227 million in wagers at Mohegan Sun, compared to $190 million a year earlier and $183 million in September 2007.
Mr. Wise said Mohegan Sun officials are keeping a watchful eye on a bill legalizing table games - poker, blackjack, roulette, craps and other dice and card games - as part of the state budget package.
"Adding tables expands our offering and makes us closer to being that type of full-service gaming operation we've always wanted to be," he said.
An official for the Mohegan's Pennsylvania racetrack-slot parlor discussed the possibility of adding a hotel to the location in Saturday's edition of a Pennsylvania newspaper.
Mohegan Sun considers plan for 300-room hotel
By Nicholas Sohr
The Times-Tribune
October 10, 2009
PLAINS TWP. - Mohegan Sun at Pocono Downs has applied for preliminary construction approvals for a 300-room hotel and convention center after hoteliers approached the casino about forming a partnership, a casino official confirmed Friday.
"We're very preliminary right now," said Jim Wise, a Mohegan Sun vice president. "It is not an indication we have a direct timeline to build a hotel. We are trying to cross all the t's, dot all the i's and go through the preparation hurdles so that if a deal would be struck, it would allow us or any sort of partnership to begin working sooner."
Space for a hotel is included in the casino's master plan between the two main entrances.
Mr. Wise said discussions with the hoteliers began about a year ago.
"Those conversations are starting to become a little more frequent and a little more detailed," he said. "Although people appear interested, I don't know if that's going to lead to a contractual agreement."
According to the documents filed, the hotel would have about 300 rooms and space for a convention center.
Mr. Wise said the details are all hypothetical.
"It's a framework - could go down or could go up - but that is in the ballpark," he said. "There's dozens of details that we've made no determination on yet."
Mohegan Sun opened its $208 million Project Sunrise expansion in July 2008. The circular, 300,000-square-foot facility more than doubled the number of slot machines, added dining, retail and entertainment options, and has consistently boosted revenue since its opening.
In September, the state Gaming Control Board reported $227 million in wagers at Mohegan Sun, compared to $190 million a year earlier and $183 million in September 2007.
Mr. Wise said Mohegan Sun officials are keeping a watchful eye on a bill legalizing table games - poker, blackjack, roulette, craps and other dice and card games - as part of the state budget package.
"Adding tables expands our offering and makes us closer to being that type of full-service gaming operation we've always wanted to be," he said.
Wednesday, October 7, 2009
Mohegan Indian To Head Up Indian Business Development Agency In The U.S. Department Of Commerce
Feather News
Mohegan Tribal member Don Chapman II was appointed to lead the U.S. Department of Commerce's Office of Native American Business Development.
The office, located in Washington, D.C., has a broad function serving as the primary interface with all Tribes and other federal agencies, including the U.S. Department of the Interior and U.S. Housing and Urban Development, concerning business development and trade promotion for Indians. The office also leads the way on International Import-Export and Tourism development on behalf of Indian Country and the Department of Commerce.
The office was created in 2000 under legislation sponsored by former Colorado Senator Ben Nighthorse Campbell and is designed to promote economic self-sufficiency and political self-determination for Indian tribes and members of Indian tribes.
The office's duties also include reporting to Congress and advising the Secretary of Commerce on legislation, according to the law that created the Office of Native American Business Development.
Chapman will replace Kay Bills, an Osage Indian, who is retiring. He has served in an executive capacity to four different Alaska Native Corporations and the Wyandotte Tribe of Oklahoma. Chapman currently serves as an expert advisor on tribal federal business development to the Tuck/Dartmouth School of Business's Minority Business Program and on the boards of directors of other businesses, including tribally-owned and individually native-owned businesses.
Numerous recommendations by tribes and organizations around the nation were sent on Chapman's behalf to the Secretary of Commerce.
Chapman will continue serving as a guest speaker and lecturer at Indian Country business outreach seminars. His office is located at the US Department of Commerce, Office of Native American Business Development, 1401 Constitution Ave., NW, Room 5093, Washington, DC 20230.
Mohegan Tribal member Don Chapman II was appointed to lead the U.S. Department of Commerce's Office of Native American Business Development.
The office, located in Washington, D.C., has a broad function serving as the primary interface with all Tribes and other federal agencies, including the U.S. Department of the Interior and U.S. Housing and Urban Development, concerning business development and trade promotion for Indians. The office also leads the way on International Import-Export and Tourism development on behalf of Indian Country and the Department of Commerce.
The office was created in 2000 under legislation sponsored by former Colorado Senator Ben Nighthorse Campbell and is designed to promote economic self-sufficiency and political self-determination for Indian tribes and members of Indian tribes.
The office's duties also include reporting to Congress and advising the Secretary of Commerce on legislation, according to the law that created the Office of Native American Business Development.
Chapman will replace Kay Bills, an Osage Indian, who is retiring. He has served in an executive capacity to four different Alaska Native Corporations and the Wyandotte Tribe of Oklahoma. Chapman currently serves as an expert advisor on tribal federal business development to the Tuck/Dartmouth School of Business's Minority Business Program and on the boards of directors of other businesses, including tribally-owned and individually native-owned businesses.
Numerous recommendations by tribes and organizations around the nation were sent on Chapman's behalf to the Secretary of Commerce.
Chapman will continue serving as a guest speaker and lecturer at Indian Country business outreach seminars. His office is located at the US Department of Commerce, Office of Native American Business Development, 1401 Constitution Ave., NW, Room 5093, Washington, DC 20230.
Tuesday, October 6, 2009
The New Tribal Council
Feather News
This installment of The Tribes In The Media is an article in The Day newspaper on yesterday's change in leadership of the Mohegan Tribal Council.
Mohegan tribe has a new leader
Malerba is first woman to serve as chair of tribal government
By Brian Hallenbeck
The Day
October 6, 2009
Mohegan - She could describe herself as a feminist, the embodiment of a woman's right to achieve. But she'd rather put it another way.
”I'm an 'equalist,' “ Lynn Malerba said Monday after the nine-member Mohegan Tribal Council elected her chairwoman, making her the first woman to lead a tribe whose centuries-long history features the contributions of strong women.
”I am absolutely thrilled … and proud to be the first female chair of this tribe,” she said. “It's a dream come true.”
The 56-year-old Malerba, vice chairwoman of the tribe since 2005, had been expected to ascend to the council's top spot after winning the most votes in tribe-wide balloting for five council seats this summer. Bruce “Two Dogs” Bozsum, the chairman since 2005, finished second in the voting and was elected vice chairman by the council Monday.
Mashantucket Pequot Tribal Council members congratulated Malerba on her election, saying, in a statement, “We look forward to our continuing relationship with the Mohegan tribe.”
Malerba invoked the memory and example of Gladys Tantaquidgeon and other Mohegan women, including her own mother, Loretta Roberge, a tribal councilor for 30 years; her great aunt, Loretta F. Schultz, and Schultz's daughters; Katy Strickland, who died last week; and Virginia Damon.
”We must all stand in love for the tribe,” Malerba said, quoting Tantaquidgeon, the much-accomplished medicine woman who died in 2005 at the age of 106.
”I'm thankful to the men, too,” Malerba said. “We have been well regarded by men.”
Earlier Monday, Malerba, Bozsum and the other councilors elected in August - incumbents William Quidgeon and James Gessner and newcomer Kathy Regan-Pyne - were sworn in during a private ceremony in the Mohegan Church. Bob Soper Sr., chairman of the tribe's council of elders, administered the oath.
Malerba called the election outcome “a real strong vote of confidence” in the council, which has presided amid “unprecedented economic and legislative challenges.” She said she and Bozsum have been “a great team” and would continue to share responsibilities.
The new chairwoman worked as director and later executive director of the tribe's Health and Human Services Department from 1997 to 2005, and before that spent 21 years at Lawrence & Memorial Hospital, where she continues to serve as a director. She has a master's degree in public administration from the University of Connecticut.
Malerba acknowledged that more challenges lie ahead, given the economy's continued effect on gaming in general and Mohegan Sun, the tribe's casino, in particular.
”We study the financials daily,” she said, with an eye toward making judgments based on whether ventures return value to the tribal community. She said the tribe is prepared to introduce table games at Mohegan Sun at Pocono Downs, the racetrack casino it owns in Pennsylvania, where the legislature is poised to approve the expansion of gambling.
The tribe is also monitoring the situation in Massachusetts, where it has proposed building a resort casino in Palmer if the legislature legalizes casinos. Closer to home, Malerba said no decisions have yet been made regarding Project Horizon, the Mohegan Sun expansion project suspended a year ago, or the resumption of construction on the tribe's government building/community center on Crow Hill. That project was halted early this year.
”We need to have the economy rebound and that hasn't happened yet,” she said, adding, “If the recession has taught us anything, it's that we need to diversify (beyond gaming).”
She declined to say what other projects the tribe might pursue.
Also Monday, the council elected Thayne Hutchins Jr. treasurer. Hutchins succeeds Quidgeon, who sought to relinquish the office while continuing to serve as a councilor. Other officers include Allison D. Johnson, recording secretary; Gessner, corresponding secretary; and former Chairman Mark Brown, ambassador. Cheryl Todd also serves as a councilor.
Regan-Pyne, the lone new face on the council, has been the tribe's career development manager. Previously, she worked in the insurance industry, holding management positions at Lincoln Financial Group and Cigna Property & Casualty. She has been elected to the Connecticut Women's Basketball Hall of Fame and the Eastern Connecticut State University Athletic Hall of Fame. After college, she played professional basketball in Europe.
This installment of The Tribes In The Media is an article in The Day newspaper on yesterday's change in leadership of the Mohegan Tribal Council.
Mohegan tribe has a new leader
Malerba is first woman to serve as chair of tribal government
By Brian Hallenbeck
The Day
October 6, 2009
Mohegan - She could describe herself as a feminist, the embodiment of a woman's right to achieve. But she'd rather put it another way.
”I'm an 'equalist,' “ Lynn Malerba said Monday after the nine-member Mohegan Tribal Council elected her chairwoman, making her the first woman to lead a tribe whose centuries-long history features the contributions of strong women.
”I am absolutely thrilled … and proud to be the first female chair of this tribe,” she said. “It's a dream come true.”
The 56-year-old Malerba, vice chairwoman of the tribe since 2005, had been expected to ascend to the council's top spot after winning the most votes in tribe-wide balloting for five council seats this summer. Bruce “Two Dogs” Bozsum, the chairman since 2005, finished second in the voting and was elected vice chairman by the council Monday.
Mashantucket Pequot Tribal Council members congratulated Malerba on her election, saying, in a statement, “We look forward to our continuing relationship with the Mohegan tribe.”
Malerba invoked the memory and example of Gladys Tantaquidgeon and other Mohegan women, including her own mother, Loretta Roberge, a tribal councilor for 30 years; her great aunt, Loretta F. Schultz, and Schultz's daughters; Katy Strickland, who died last week; and Virginia Damon.
”We must all stand in love for the tribe,” Malerba said, quoting Tantaquidgeon, the much-accomplished medicine woman who died in 2005 at the age of 106.
”I'm thankful to the men, too,” Malerba said. “We have been well regarded by men.”
Earlier Monday, Malerba, Bozsum and the other councilors elected in August - incumbents William Quidgeon and James Gessner and newcomer Kathy Regan-Pyne - were sworn in during a private ceremony in the Mohegan Church. Bob Soper Sr., chairman of the tribe's council of elders, administered the oath.
Malerba called the election outcome “a real strong vote of confidence” in the council, which has presided amid “unprecedented economic and legislative challenges.” She said she and Bozsum have been “a great team” and would continue to share responsibilities.
The new chairwoman worked as director and later executive director of the tribe's Health and Human Services Department from 1997 to 2005, and before that spent 21 years at Lawrence & Memorial Hospital, where she continues to serve as a director. She has a master's degree in public administration from the University of Connecticut.
Malerba acknowledged that more challenges lie ahead, given the economy's continued effect on gaming in general and Mohegan Sun, the tribe's casino, in particular.
”We study the financials daily,” she said, with an eye toward making judgments based on whether ventures return value to the tribal community. She said the tribe is prepared to introduce table games at Mohegan Sun at Pocono Downs, the racetrack casino it owns in Pennsylvania, where the legislature is poised to approve the expansion of gambling.
The tribe is also monitoring the situation in Massachusetts, where it has proposed building a resort casino in Palmer if the legislature legalizes casinos. Closer to home, Malerba said no decisions have yet been made regarding Project Horizon, the Mohegan Sun expansion project suspended a year ago, or the resumption of construction on the tribe's government building/community center on Crow Hill. That project was halted early this year.
”We need to have the economy rebound and that hasn't happened yet,” she said, adding, “If the recession has taught us anything, it's that we need to diversify (beyond gaming).”
She declined to say what other projects the tribe might pursue.
Also Monday, the council elected Thayne Hutchins Jr. treasurer. Hutchins succeeds Quidgeon, who sought to relinquish the office while continuing to serve as a councilor. Other officers include Allison D. Johnson, recording secretary; Gessner, corresponding secretary; and former Chairman Mark Brown, ambassador. Cheryl Todd also serves as a councilor.
Regan-Pyne, the lone new face on the council, has been the tribe's career development manager. Previously, she worked in the insurance industry, holding management positions at Lincoln Financial Group and Cigna Property & Casualty. She has been elected to the Connecticut Women's Basketball Hall of Fame and the Eastern Connecticut State University Athletic Hall of Fame. After college, she played professional basketball in Europe.
Monday, October 5, 2009
Photo: Mohegan Congregational Church
The Mohegan Congregational Church moments before the swearing-in of five Tribal councilors today. Sources indicate that Lynn Malerba and Bruce Bozsum switched positions, with Lynn now the chair of the Tribal Council, and Thayne Hutchins became the new treasurer after a vote among the newly-constituted Tribal Council after this morning's swearing-in ceremony took place.
Indiana Beats Phoenix 86 - 85 In WNBA Finals
Feather News
Indiana beat Phoenix in the third game of the WNBA finals yesterday by a score of 86-85. Indiana has won two of the three games played so far in the five-game series.
The next game will be on Wednesday night at 7:30 on Channel ESPN2.
Indiana beat Phoenix in the third game of the WNBA finals yesterday by a score of 86-85. Indiana has won two of the three games played so far in the five-game series.
The next game will be on Wednesday night at 7:30 on Channel ESPN2.
Pennsylvania Legislators Discuss Table Game Bill
Feather News
This installment of The Tribes In The Media is an AP article on the status of table game legislation in Pennsylvania.
Pa. House takes break from 11-hr debate over games
By Mark Levy
Associated Press
HARRISBURG — State House members worked to advance a bill to legalize table games at Pennsylvania's slot-machine casinos in an unusual Sunday session, as the politically divided Legislature struggled to finalize a government budget that is already three months late.
The proposal is a key element of lawmakers' efforts to find new tax revenue to offset the state government's huge, recession-driven revenue shortfall. On the sidelines of the debate, Gov. Ed Rendell worked to repair a rift between Senate Republicans and House Democrats after last week's collapse of a handshake budget deal between leaders.
Leaving the Capitol on Sunday night, Rendell reported "significant progress" but would not give details of his discussions.
Meanwhile, the Democratic-penned measure met with staunch Republican opposition in a long, sometimes testy debate that was to continue Monday to finish sorting through dozens of proposed amendments. Sunday's session ended at 11 p.m. after eight hours of debate.
A final vote on the bill was not expected before Tuesday.
Even if it does pass, it faces changes in the Senate. Leaders of the Republican-controlled Senate favor legalizing and taxing table games to help close the state's multibillion-dollar budget hole, but they oppose some crucial aspects of the House bill.
Democrats hope to raise about $240 million from a 34 percent tax rate on the casinos take from table games and a $20 million fee that casinos must pay for the right to operate the games. However, casinos say those costs may be too high to run a profitable enterprise, and Senate Republicans agree.
Debate quickly became heated.
"I think it's a sad day in Pennsylvania when the members of the House of Representatives are called to Harrisburg to debate gaming on a Sunday afternoon," admonished Rep. Kathy Rapp, R-Warren.
Democrats fired back.
"When you're elected a member of the Legislature, you're expected to be here every day of the week, especially when we don't have a budget," said Rep. Christopher Sainato, D-Lawrence.
During the debate, the chamber approved a few amendments — including doubling the minimum amount of money given to compulsive gambling treatment programs to $4 million — but rejected most others, including ones written by Republicans to ban ATM machines in casinos and force casinos to close on Christmas and each day between 2 a.m. and 6 a.m.
Rep. Joseph Preston, D-Allegheny, accused Republicans of mounting a self-righteous and hypocritical opposition, noting they are not moving to limit other forms of gambling, such as the lottery and church bingo.
"We need to really start practicing what we preach," Preston said.
That brought an immediate rebuke from Minority Whip Mike Turzai, R-Allegheny, who called Preston's comments "out of line."
Aside from legalizing table games, the bill would triple the number of slot machines allowed at the state's miniature "resort" casinos to 1,500, a provision opposed by Senate Republicans and the state's larger casinos.
It also would impose provisions to combat corruption, including thickening walls between state gambling regulators and the casino companies and restoring a ban on political campaign contributions from the gambling industry.
The Supreme Court struck down the previous ban in April, saying a complete prohibition on contributions went further in practice than called for by the 2004 law that legalized slot-machine casinos.
This installment of The Tribes In The Media is an AP article on the status of table game legislation in Pennsylvania.
Pa. House takes break from 11-hr debate over games
By Mark Levy
Associated Press
HARRISBURG — State House members worked to advance a bill to legalize table games at Pennsylvania's slot-machine casinos in an unusual Sunday session, as the politically divided Legislature struggled to finalize a government budget that is already three months late.
The proposal is a key element of lawmakers' efforts to find new tax revenue to offset the state government's huge, recession-driven revenue shortfall. On the sidelines of the debate, Gov. Ed Rendell worked to repair a rift between Senate Republicans and House Democrats after last week's collapse of a handshake budget deal between leaders.
Leaving the Capitol on Sunday night, Rendell reported "significant progress" but would not give details of his discussions.
Meanwhile, the Democratic-penned measure met with staunch Republican opposition in a long, sometimes testy debate that was to continue Monday to finish sorting through dozens of proposed amendments. Sunday's session ended at 11 p.m. after eight hours of debate.
A final vote on the bill was not expected before Tuesday.
Even if it does pass, it faces changes in the Senate. Leaders of the Republican-controlled Senate favor legalizing and taxing table games to help close the state's multibillion-dollar budget hole, but they oppose some crucial aspects of the House bill.
Democrats hope to raise about $240 million from a 34 percent tax rate on the casinos take from table games and a $20 million fee that casinos must pay for the right to operate the games. However, casinos say those costs may be too high to run a profitable enterprise, and Senate Republicans agree.
Debate quickly became heated.
"I think it's a sad day in Pennsylvania when the members of the House of Representatives are called to Harrisburg to debate gaming on a Sunday afternoon," admonished Rep. Kathy Rapp, R-Warren.
Democrats fired back.
"When you're elected a member of the Legislature, you're expected to be here every day of the week, especially when we don't have a budget," said Rep. Christopher Sainato, D-Lawrence.
During the debate, the chamber approved a few amendments — including doubling the minimum amount of money given to compulsive gambling treatment programs to $4 million — but rejected most others, including ones written by Republicans to ban ATM machines in casinos and force casinos to close on Christmas and each day between 2 a.m. and 6 a.m.
Rep. Joseph Preston, D-Allegheny, accused Republicans of mounting a self-righteous and hypocritical opposition, noting they are not moving to limit other forms of gambling, such as the lottery and church bingo.
"We need to really start practicing what we preach," Preston said.
That brought an immediate rebuke from Minority Whip Mike Turzai, R-Allegheny, who called Preston's comments "out of line."
Aside from legalizing table games, the bill would triple the number of slot machines allowed at the state's miniature "resort" casinos to 1,500, a provision opposed by Senate Republicans and the state's larger casinos.
It also would impose provisions to combat corruption, including thickening walls between state gambling regulators and the casino companies and restoring a ban on political campaign contributions from the gambling industry.
The Supreme Court struck down the previous ban in April, saying a complete prohibition on contributions went further in practice than called for by the 2004 law that legalized slot-machine casinos.
Saturday, October 3, 2009
Nonner Lamphere Passes Away
Feather News
The following is an excerpt from the obituary that appeared today in The Day newspaper on the passing of Nonner Katy Lamphere. Our sympathies go out to all family and friends:
Montville - Catherine A. (Strickland) Lamphere, 79, of Uncasville, passed away suddenly at The William W. Backus Hospital in Norwich on Wednesday, Sept. 30, 2009.
Kate was a life-long resident of Uncasville and an active and respected member of the Mohegan Tribe; she was a Nonner and former Tribal Council member.
Kate graduated from NFA in 1948 and married Charles Lamphere on Aug. 26, 1950, at the former Uncasville Methodist Church; he survives her.
She enjoyed doing crafts with her fellow residents of Fort Hill, was her grandchildren and great-grandchildren's number one fan at all their sporting events, and was a member of the Mohegan Congregational Church.
A 10 a.m. graveside memorial service will be held on Wednesday, Oct. 7, 2009, at Fort Shantok Cemetery.
In lieu of flowers, donations in Kate's name may be made to Families of Spinal Muscular Atrophy, PO Box 196, Libertyville IL 60048.
The Church and Allen Funeral Home has been entrusted with Kate's care.
The following is an excerpt from the obituary that appeared today in The Day newspaper on the passing of Nonner Katy Lamphere. Our sympathies go out to all family and friends:
Montville - Catherine A. (Strickland) Lamphere, 79, of Uncasville, passed away suddenly at The William W. Backus Hospital in Norwich on Wednesday, Sept. 30, 2009.
Kate was a life-long resident of Uncasville and an active and respected member of the Mohegan Tribe; she was a Nonner and former Tribal Council member.
Kate graduated from NFA in 1948 and married Charles Lamphere on Aug. 26, 1950, at the former Uncasville Methodist Church; he survives her.
She enjoyed doing crafts with her fellow residents of Fort Hill, was her grandchildren and great-grandchildren's number one fan at all their sporting events, and was a member of the Mohegan Congregational Church.
A 10 a.m. graveside memorial service will be held on Wednesday, Oct. 7, 2009, at Fort Shantok Cemetery.
In lieu of flowers, donations in Kate's name may be made to Families of Spinal Muscular Atrophy, PO Box 196, Libertyville IL 60048.
The Church and Allen Funeral Home has been entrusted with Kate's care.
Friday, October 2, 2009
Tribal Council To Elect Chairperson Next Week
Feather News
Members of the Mohegan Tribe that were elected to the Tribal Council in August will be sworn in Monday at the Mohegan Congregational Church and the full Tribal Council will, later, appoint its own officers, including the title of chairperson.
A sometimes shaky source - my intuition - tells me that Lynn Malerba will be the next chairperson, replacing Bruce Bozsum. Lynn furthered her education while serving on the Tribal Council, earning a master's degree in public policy.
Bozsum has served as the chair of the Tribal Council since 2005.
The Tribal Council will also elect among themselves who will serve as vice-chairperson, recording secretary, corresponding secretary and treasurer.
The Tribal Council is not required to appoint one of its body to the role of ambassador, a position not listed in the Constitution as are other officer positions, but could do so next week at the same time it appoints the officers.
Members of the Mohegan Tribe that were elected to the Tribal Council in August will be sworn in Monday at the Mohegan Congregational Church and the full Tribal Council will, later, appoint its own officers, including the title of chairperson.
A sometimes shaky source - my intuition - tells me that Lynn Malerba will be the next chairperson, replacing Bruce Bozsum. Lynn furthered her education while serving on the Tribal Council, earning a master's degree in public policy.
Bozsum has served as the chair of the Tribal Council since 2005.
The Tribal Council will also elect among themselves who will serve as vice-chairperson, recording secretary, corresponding secretary and treasurer.
The Tribal Council is not required to appoint one of its body to the role of ambassador, a position not listed in the Constitution as are other officer positions, but could do so next week at the same time it appoints the officers.
Indiana Ties Phoenix In WNBA Final Series
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Indiana beat Phoenix last night by a score of 93-84 tying the series at 1-1. The third game of the five-game WNBA championship series will be Sunday at 4 p.m. and will be televised on channel ESPN2.
Indiana beat Phoenix last night by a score of 93-84 tying the series at 1-1. The third game of the five-game WNBA championship series will be Sunday at 4 p.m. and will be televised on channel ESPN2.
Thursday, October 1, 2009
Prospect Of Casinos In Massachusetts
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This installmnet of The Tribes In The Media is an article from the State House News Service in Massachusetts on the prospect of casinos in Massachusetts.
Mohegan eyes reduced licensing fees, two-year window until opening
By Jim O'Sullivan
State House News Service
October 1, 2009
BOSTON - The state should charge casino licensing fees between $25 million and $50 million and level tax rates in the low 20-percent range on gambling revenues, according to a top executive at the Mohegan Sun casino firm, one of several business interests circling as the Legislature considers gambling legislation.
A full-scale facility could be up and running in Palmer within two years of receiving a license, said Jeffrey Hartmann, Mohegan Sun’s chief operating officer. Hartmann said the company would pay fully for associated infrastructure costs around the Palmer site and expects to create between 2,500 and 3,000 permanent jobs, including 500 white-collar positions.
Hartmann said Mohegan was willing to suffer some lost business at its Connecticut facility, spying in Palmer a “recapture opportunity” and calling it an ideal locale for job creation.
Options for building up the Palmer casino in the future, Hartmann said, would hinge on the market. “Business levels will dictate future expansion,” he told the News Service during an interview in the Boston offices of O’Neill and Associates, Mohegan’s lobbying firm.
Lawmakers are preparing legislation sanctioning casinos and racetrack slot machines, with the expectation that a bill will be considered next year.
Hartmann’s proposed fee and tax rates are significantly lower than the numbers in the plan Gov. Deval Patrick filed in 2007, when he called for minimum licensing fees of $200 million and annual taxes on gross gaming revenues of 27 percent. Prospective bidders are expected to watch those figures closely as they develop their proposals.
Since 2007, the casino industry has seen a broad decline, the recession reversing long-running positive profit trends, lowering expectations both for what the state can demand from the industry and what it can expect in return.
Hartmann declined to say what state-levied charges would be high enough to sour Mohegan’s enthusiasm. Higher fees and taxes, he said, would limit economic development opportunities by inhibiting property investment.
Rep. Brian Dempsey, House chair of the Economic Development Committee charged with vetting gambling legislation, said, “The tax question is the single most important decision that we’ll make in terms of the long-term success of gaming, of revenue, of investment, cap investment, and the kinds of infrastructure we’d like to see.”
“Everything’s on the table. We’re going to look carefully. I don’t want to give any numbers,” Dempsey said. “But we are mindful of the fact that we certainly are in a different climate than we were a couple years ago. We’re also aware that Massachusetts is also a very strong market for gaming.”
Under Patrick’s earlier plan, leading bids were not guaranteed one of the three licenses. A gaming authority would weigh proposals on about a dozen factors. And the fee and tax thresholds in his bill would have been subject to change in the House and Senate.
Senate President Pro Tempore Stanley Rosenberg, designated the Senate’s lead casino policy analyst, said pinpointing payment levels was premature.
Patrick’s bill died in the House on a 108-46 vote in March 2008, amid a dramatically different political and economic climate. Lawmakers who opposed the bill then say the state’s revenue crash could change their minds this time. Further, House Speaker Robert DeLeo is an active proponent of racetrack slot machines and casinos, while then-Speaker Salvatore DiMasi worked to swing votes against the Patrick plan, after helping muscle an adverse report from the Economic Development and Emerging Technology Committee.
“[L]et's please not forget that the true arm-twisting Sal had to do in last year's casino debate was just to get a negative report from the committee,” a source who worked with House leadership on casino strategy said in an email. “He always had the votes on the floor. So the hand dealt DeLeo … is much worse. He has to flip 30 or more votes. That's no small task when every rep in the building is terrified they will be tossed out next year.”
Lawmakers are often leery of changing votes, especially in the wake of this month’s vote to grant Patrick power to appoint an interim U.S. senator, which saw 58 House members change their votes.
If legislation does clear the Legislature, numerous choices await any decision-making body the new law could create. Suffolk Downs and Wonderland have lined up political backing for an East Boston casino, announcing support Wednesday from that neighborhood’s chamber of commerce, while Plainridge Racecourse and Raynham-Taunton Greyhound Park are angling for slot machines – and could still receive financial backing for a full-scale casino bid.
“If they believe that racinos should turn into casinos, we’ll be there ... Obviously, we’re going to be interested in that,” said Plainridge owner Gary Piontkowski. “Whatever the powers-that-be think is the most opportune for this region after their study, we’re supportive.”
Scott Ferson, a spokesman for Raynham-Taunton, said, “Raynham is more than capable of handling a full-blown casino on the site … They’ll take this one step at a time.”
Suffolk Downs workers are confident that, with support from Boston Mayor Thomas Menino and other political interests, their bid could capitalize on estimates that the state capital provides a healthy casino market.
Another factor is the Mashpee Wampanoag tribe, which has sought casino rights but been hobbled by organizational problems. A Supreme Court ruling earlier this year cast doubt on the tribe’s casino rights. Dempsey said the shape of a congressional response to the ruling was unclear and “evolving.”
As the momentum behind expanded gambling appears to mount, uncertainty around how the market will interact with state government as both push toward new gambling facilities, has sparked as much speculation on Beacon Hill as whether a bill will pass.
“If you ask me, there are a multitude of questions,” said Sen. Michael Morrissey, the Quincy Democrat who has long played a role in gambling policy in the Legislature.
Mohegan’s push in Palmer, where the firm envisions a 600-room hotel and resort complex on 152 acres, includes a commitment to pay for infrastructure upgrades and a storefront that opened there with fanfare earlier this year.
“We’ve spent probably two years preparing for the process in terms of the site, accessibility, a resort product that fits on the destination,” Hartmann said, adding that he expected Mohegan’s spadework to give it a head start on other successful bidders.
“Two years from a selection date, we can be open,” said Hartmann.
Rosenberg said the national average timeline from site selection to open casino doors was two years and four months, calling Hartmann’s projection “in the ballpark.”
“That assumes that everything falls into place, and we’d be state number 37, so there’s a lot of wheels we don’t have to invent,” Rosenberg said.
Hartmann rejected suggestions that Mohegan’s designs on the western Massachusetts site constituted a flank-guarding exercise, intended to protect its interests in Connecticut, where Mohegan Sun employs about 7,000 people and does battle with nearby Foxwoods. Mohegan also operates a slots casino at Pocono Downs in Pennsylvania.
“We really think it’s a two-fold opportunity, to import new gaming customers into the Commonwealth, from New York and Albany, Vermont and New Hampshire,” Hartmann said. “Obviously there’s a recapture opportunity for those customers of the Commonwealth that are going to Rhode Island and Connecticut.”
“Our business will be impacted slightly,” Hartmann said. About 22 percent of the Connecticut casino’s business comes from Massachusetts with about 70 percent from New York and Connecticut, he said.
Morrissey said he preferred a casino on a publicly owned site, where the state could peddle a long-term lease or outright sale of the property.
“I don’t know that Palmer’s a done deal. I think out west is a done deal,” Morrissey said, speaking on the presumption of a bill’s passage. “Warren comes to mind, Holyoke comes to mind, Springfield comes to mind.”
“What does Palmer do for us? Enrich a private landowner,” Morrissey said.
DeLeo and Senate President Therese Murray said Monday that action on casino legislation would likely wait until 2010. A hearing on expanded gambling bills will be held sometime in October, according to DeLeo.
Editor's Note: O'Neill & Associates advertises in the News Service's Weekly Roundup.
This installmnet of The Tribes In The Media is an article from the State House News Service in Massachusetts on the prospect of casinos in Massachusetts.
Mohegan eyes reduced licensing fees, two-year window until opening
By Jim O'Sullivan
State House News Service
October 1, 2009
BOSTON - The state should charge casino licensing fees between $25 million and $50 million and level tax rates in the low 20-percent range on gambling revenues, according to a top executive at the Mohegan Sun casino firm, one of several business interests circling as the Legislature considers gambling legislation.
A full-scale facility could be up and running in Palmer within two years of receiving a license, said Jeffrey Hartmann, Mohegan Sun’s chief operating officer. Hartmann said the company would pay fully for associated infrastructure costs around the Palmer site and expects to create between 2,500 and 3,000 permanent jobs, including 500 white-collar positions.
Hartmann said Mohegan was willing to suffer some lost business at its Connecticut facility, spying in Palmer a “recapture opportunity” and calling it an ideal locale for job creation.
Options for building up the Palmer casino in the future, Hartmann said, would hinge on the market. “Business levels will dictate future expansion,” he told the News Service during an interview in the Boston offices of O’Neill and Associates, Mohegan’s lobbying firm.
Lawmakers are preparing legislation sanctioning casinos and racetrack slot machines, with the expectation that a bill will be considered next year.
Hartmann’s proposed fee and tax rates are significantly lower than the numbers in the plan Gov. Deval Patrick filed in 2007, when he called for minimum licensing fees of $200 million and annual taxes on gross gaming revenues of 27 percent. Prospective bidders are expected to watch those figures closely as they develop their proposals.
Since 2007, the casino industry has seen a broad decline, the recession reversing long-running positive profit trends, lowering expectations both for what the state can demand from the industry and what it can expect in return.
Hartmann declined to say what state-levied charges would be high enough to sour Mohegan’s enthusiasm. Higher fees and taxes, he said, would limit economic development opportunities by inhibiting property investment.
Rep. Brian Dempsey, House chair of the Economic Development Committee charged with vetting gambling legislation, said, “The tax question is the single most important decision that we’ll make in terms of the long-term success of gaming, of revenue, of investment, cap investment, and the kinds of infrastructure we’d like to see.”
“Everything’s on the table. We’re going to look carefully. I don’t want to give any numbers,” Dempsey said. “But we are mindful of the fact that we certainly are in a different climate than we were a couple years ago. We’re also aware that Massachusetts is also a very strong market for gaming.”
Under Patrick’s earlier plan, leading bids were not guaranteed one of the three licenses. A gaming authority would weigh proposals on about a dozen factors. And the fee and tax thresholds in his bill would have been subject to change in the House and Senate.
Senate President Pro Tempore Stanley Rosenberg, designated the Senate’s lead casino policy analyst, said pinpointing payment levels was premature.
Patrick’s bill died in the House on a 108-46 vote in March 2008, amid a dramatically different political and economic climate. Lawmakers who opposed the bill then say the state’s revenue crash could change their minds this time. Further, House Speaker Robert DeLeo is an active proponent of racetrack slot machines and casinos, while then-Speaker Salvatore DiMasi worked to swing votes against the Patrick plan, after helping muscle an adverse report from the Economic Development and Emerging Technology Committee.
“[L]et's please not forget that the true arm-twisting Sal had to do in last year's casino debate was just to get a negative report from the committee,” a source who worked with House leadership on casino strategy said in an email. “He always had the votes on the floor. So the hand dealt DeLeo … is much worse. He has to flip 30 or more votes. That's no small task when every rep in the building is terrified they will be tossed out next year.”
Lawmakers are often leery of changing votes, especially in the wake of this month’s vote to grant Patrick power to appoint an interim U.S. senator, which saw 58 House members change their votes.
If legislation does clear the Legislature, numerous choices await any decision-making body the new law could create. Suffolk Downs and Wonderland have lined up political backing for an East Boston casino, announcing support Wednesday from that neighborhood’s chamber of commerce, while Plainridge Racecourse and Raynham-Taunton Greyhound Park are angling for slot machines – and could still receive financial backing for a full-scale casino bid.
“If they believe that racinos should turn into casinos, we’ll be there ... Obviously, we’re going to be interested in that,” said Plainridge owner Gary Piontkowski. “Whatever the powers-that-be think is the most opportune for this region after their study, we’re supportive.”
Scott Ferson, a spokesman for Raynham-Taunton, said, “Raynham is more than capable of handling a full-blown casino on the site … They’ll take this one step at a time.”
Suffolk Downs workers are confident that, with support from Boston Mayor Thomas Menino and other political interests, their bid could capitalize on estimates that the state capital provides a healthy casino market.
Another factor is the Mashpee Wampanoag tribe, which has sought casino rights but been hobbled by organizational problems. A Supreme Court ruling earlier this year cast doubt on the tribe’s casino rights. Dempsey said the shape of a congressional response to the ruling was unclear and “evolving.”
As the momentum behind expanded gambling appears to mount, uncertainty around how the market will interact with state government as both push toward new gambling facilities, has sparked as much speculation on Beacon Hill as whether a bill will pass.
“If you ask me, there are a multitude of questions,” said Sen. Michael Morrissey, the Quincy Democrat who has long played a role in gambling policy in the Legislature.
Mohegan’s push in Palmer, where the firm envisions a 600-room hotel and resort complex on 152 acres, includes a commitment to pay for infrastructure upgrades and a storefront that opened there with fanfare earlier this year.
“We’ve spent probably two years preparing for the process in terms of the site, accessibility, a resort product that fits on the destination,” Hartmann said, adding that he expected Mohegan’s spadework to give it a head start on other successful bidders.
“Two years from a selection date, we can be open,” said Hartmann.
Rosenberg said the national average timeline from site selection to open casino doors was two years and four months, calling Hartmann’s projection “in the ballpark.”
“That assumes that everything falls into place, and we’d be state number 37, so there’s a lot of wheels we don’t have to invent,” Rosenberg said.
Hartmann rejected suggestions that Mohegan’s designs on the western Massachusetts site constituted a flank-guarding exercise, intended to protect its interests in Connecticut, where Mohegan Sun employs about 7,000 people and does battle with nearby Foxwoods. Mohegan also operates a slots casino at Pocono Downs in Pennsylvania.
“We really think it’s a two-fold opportunity, to import new gaming customers into the Commonwealth, from New York and Albany, Vermont and New Hampshire,” Hartmann said. “Obviously there’s a recapture opportunity for those customers of the Commonwealth that are going to Rhode Island and Connecticut.”
“Our business will be impacted slightly,” Hartmann said. About 22 percent of the Connecticut casino’s business comes from Massachusetts with about 70 percent from New York and Connecticut, he said.
Morrissey said he preferred a casino on a publicly owned site, where the state could peddle a long-term lease or outright sale of the property.
“I don’t know that Palmer’s a done deal. I think out west is a done deal,” Morrissey said, speaking on the presumption of a bill’s passage. “Warren comes to mind, Holyoke comes to mind, Springfield comes to mind.”
“What does Palmer do for us? Enrich a private landowner,” Morrissey said.
DeLeo and Senate President Therese Murray said Monday that action on casino legislation would likely wait until 2010. A hearing on expanded gambling bills will be held sometime in October, according to DeLeo.
Editor's Note: O'Neill & Associates advertises in the News Service's Weekly Roundup.
Wednesday, September 30, 2009
Phoenix Beats Indiana In First Game Of WNBA Finals
Feather News
Phoenix beat Indiana last night in the first game of the WNBA finals by a score of 120-116.
The second game of the five-game series will be tomorrow night at 9 p.m. on Channel ESPN2.
Phoenix beat Indiana last night in the first game of the WNBA finals by a score of 120-116.
The second game of the five-game series will be tomorrow night at 9 p.m. on Channel ESPN2.
Monday, September 28, 2009
IRS Considers Taxing Tribal Members' Health Care Benefits
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During an oversight hearing held by the U.S. Senate Committee on Indian Affairs in September, an Internal Revenue Service official pointed out that certain health care benefits provided to members of Indian tribes are taxable.
The IRS is scrutinizing the health care benefits provided by tribal governments to its members and could result in a tax to tribal members who are receiving those benefits.
"It is well-documented that we, as the federal government, are failing in meeting our obligation to provide health care to Native Americans," said Sen. Tom Udall. As a result, many tribal governments are providing medical benefits to supplement what is offered through the federal Indian Health Service. Should those benefits be taxed, then the government would be profiting "from not living up to its duty" to provide adequate health care to Indians, according to some.
The IRS contends that a law needs to be passed by Congress specifically excluding tribal health benefits from taxes. Others contend that the IRS can make the change as it has done by excluding from taxes aid given by the Department of Veterans Affairs and the Indian Health Service.
During an oversight hearing held by the U.S. Senate Committee on Indian Affairs in September, an Internal Revenue Service official pointed out that certain health care benefits provided to members of Indian tribes are taxable.
The IRS is scrutinizing the health care benefits provided by tribal governments to its members and could result in a tax to tribal members who are receiving those benefits.
"It is well-documented that we, as the federal government, are failing in meeting our obligation to provide health care to Native Americans," said Sen. Tom Udall. As a result, many tribal governments are providing medical benefits to supplement what is offered through the federal Indian Health Service. Should those benefits be taxed, then the government would be profiting "from not living up to its duty" to provide adequate health care to Indians, according to some.
The IRS contends that a law needs to be passed by Congress specifically excluding tribal health benefits from taxes. Others contend that the IRS can make the change as it has done by excluding from taxes aid given by the Department of Veterans Affairs and the Indian Health Service.
Senate Contemplates "Carcieri Fix"
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The U.S. Supreme Court's landmark decision last year that prohibits the Interior Department from taking land into trust as reservation land for tribes that were federally recognized after 1934 would be fixed if a bill co-sponsored by U.S. Senator Byron Dorgan is acted upon.
The Supreme Court case involved the Narragansett Tribe and the governor of Rhode Islan (Carcieri) but the court's decision affected many tribes, including the Mashpee Wampanoag Tribe in Massachusetts. The Mashpees were federally recognized in 2007 and applied to have 539 acres in Middleborough taken into trust for a proposed casino as well as 140 acres in Mashpee, Massachusetts. Since the Mashpee Tribe was federally recognized after 1934, the Supreme Court's decision made it impossible for the Interior Department to act on the Mashpee land application.
The bill proposed by Sen. Dorgan seeks to change a 1934 law so that the Secretary of the Interior Department can take land into trust for any federally recognized Indian tribe and not just those tribes recognized prior to 1934.
Senator Dorgan explains the proposed amendment in his own words:
"On February 24, 2009, the Supreme Court issued its decision in the Carcieri v. Salazar case. In that decision the Supreme Court held that the Secretary of the Interior exceeded his authority in taking land into trust for a tribe that was not under federal jurisdiction, or recognized, at the time the Indian Reorganization Act was enacted in 1934.
"The legislation I’m introducing today is necessary to reaffirm the Secretary’s authority to take lands into trust for Indian tribes, regardless of when they were recognized by the federal government. The amendment ratifies the prior trust acquisitions of the Secretary, who for the past 75 years has been exercising his authority to take lands into trust, as intended by the Indian Reorganization Act.
"On May 21, 2009, the Senate Committee on Indian Affairs held a hearing to examine the executive branch’s authority to take land into trust for Indian tribes. At that hearing, it became clear that Congress needs to act to resolve the uncertainty created by the Supreme Court’s decision. Therefore, this legislation was developed in consultation with interested parties to clarify the Secretary’s authority.
"Inaction by Congress could significantly impact planned development projects on Indian trust lands, including the building of homes and community centers; result in a loss of jobs in an already challenging economic environment; and create costly and unnecessary litigation.
"Further, if the decision stands, it would have the effect of creating two classes of Indian tribes – those who were recognized as of 1934, for whom land may be taken into trust, and those recognized after 1934 that would be unable to have land taken into trust status. Creating two classes of tribes is unacceptable and is contrary to prior Acts of this Congress. In 1994, Congress passed the Federally Recognized Indian Tribe List Act to ensure that all tribes are treated equally, regardless of their date of recognition.
I want to thank Senators Tester, Inouye, Akaka, Baucus, Udall, Bingaman and Franken for their support on this legislation. My co-sponsors are well aware of the resulting impact this decision could have on our Native American communities. Affected tribes deserve our timely consideration of this bill. I urge my colleagues to join me in supporting the passage of this legislation."
The U.S. Supreme Court's landmark decision last year that prohibits the Interior Department from taking land into trust as reservation land for tribes that were federally recognized after 1934 would be fixed if a bill co-sponsored by U.S. Senator Byron Dorgan is acted upon.
The Supreme Court case involved the Narragansett Tribe and the governor of Rhode Islan (Carcieri) but the court's decision affected many tribes, including the Mashpee Wampanoag Tribe in Massachusetts. The Mashpees were federally recognized in 2007 and applied to have 539 acres in Middleborough taken into trust for a proposed casino as well as 140 acres in Mashpee, Massachusetts. Since the Mashpee Tribe was federally recognized after 1934, the Supreme Court's decision made it impossible for the Interior Department to act on the Mashpee land application.
The bill proposed by Sen. Dorgan seeks to change a 1934 law so that the Secretary of the Interior Department can take land into trust for any federally recognized Indian tribe and not just those tribes recognized prior to 1934.
Senator Dorgan explains the proposed amendment in his own words:
"On February 24, 2009, the Supreme Court issued its decision in the Carcieri v. Salazar case. In that decision the Supreme Court held that the Secretary of the Interior exceeded his authority in taking land into trust for a tribe that was not under federal jurisdiction, or recognized, at the time the Indian Reorganization Act was enacted in 1934.
"The legislation I’m introducing today is necessary to reaffirm the Secretary’s authority to take lands into trust for Indian tribes, regardless of when they were recognized by the federal government. The amendment ratifies the prior trust acquisitions of the Secretary, who for the past 75 years has been exercising his authority to take lands into trust, as intended by the Indian Reorganization Act.
"On May 21, 2009, the Senate Committee on Indian Affairs held a hearing to examine the executive branch’s authority to take land into trust for Indian tribes. At that hearing, it became clear that Congress needs to act to resolve the uncertainty created by the Supreme Court’s decision. Therefore, this legislation was developed in consultation with interested parties to clarify the Secretary’s authority.
"Inaction by Congress could significantly impact planned development projects on Indian trust lands, including the building of homes and community centers; result in a loss of jobs in an already challenging economic environment; and create costly and unnecessary litigation.
"Further, if the decision stands, it would have the effect of creating two classes of Indian tribes – those who were recognized as of 1934, for whom land may be taken into trust, and those recognized after 1934 that would be unable to have land taken into trust status. Creating two classes of tribes is unacceptable and is contrary to prior Acts of this Congress. In 1994, Congress passed the Federally Recognized Indian Tribe List Act to ensure that all tribes are treated equally, regardless of their date of recognition.
I want to thank Senators Tester, Inouye, Akaka, Baucus, Udall, Bingaman and Franken for their support on this legislation. My co-sponsors are well aware of the resulting impact this decision could have on our Native American communities. Affected tribes deserve our timely consideration of this bill. I urge my colleagues to join me in supporting the passage of this legislation."
Friday, September 25, 2009
Editorial: Twin River
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The following editorial is in today's Valley Breeze newspaper about Twin River, a Rhode Island racetrack-slot parlor, that wants to give its executives bonuses during its bankruptcy reorganization.
Twin River bonuses? Are they kidding?
By Tom Ward
The Valley Breeze
September 23, 2009
Twin River bonuses? Are they kidding?
The fact that attorneys for Twin River casino in Lincoln are asking a federal bankruptcy judge to hand out bonuses totalling $1.3 million to eight top officials there ought to infuriate you.
Can we really just turn out backs in exasperation and say "It's just Rhode Island" again?
According to Saturday's Providence Journal, the judge is being asked to approve "a compensation plan that would give the top eight executives...about $3 million in annual pay and bonuses." Later, reporter Paul Grimaldi explains that the bonuses total $1.3 million. Now do the math. The pay portion averages $212,500 per employee. No doubt, the folks at the very top get more, and some less, but really, bonuses averaging another $162,500 each?
I'd write "Is there no shame?" but of course, I know that answer. No, for the connected in Rhode Island, there's no shame at all.
All this takes place against the backdrop of vendors, many of them small local businesses, who will be stiffed by Twin River during bankruptcy proceedings.
Let me be fair. I've noted in previous columns that Twin River has the worst deal in America, having been shaken down by the General Assembly through the years to the point of giving more than 60 percent of the revenue to the state. It's a bad deal. Amplified by the current recession and joblessness, Twin River has spiraled into it's current predicament. The executive staff are not to blame for the mess, and certainly should not be punished. That said, they shouldn't be getting bonuses, either. If there's an extra $1.3 million sitting around, pay off the little guy.
As for the well-worn threat that top executives might leave Twin River in a competitive marketplace, I say go! Head to Macau for all I care. There are plenty of talented Rhode Islanders who would be happy to take a $200,000 job at Twin River.
I trust the judge will laugh this request out of his court.
* Time will tell if Rhode Island's new political party, the Moderate Party, gains any traction. New party Executive Director Christine Hunsinger tells the Journal, "I was a registered Democrat up until last week. I feel my party at the state level has left me. In Rhode Island, we see such a control of one party. It's actually become the party of self interest and special interest, and not the public interest."
Hells, bells! Rhode Island's Democratic Party has been "the party of self interest and special interest" for two generations now, and has the highest unemployment rate in New England to show for it! But I'll be listening to them in the months ahead, and learning what they're all about. I just wish they didn't have such a warm and fuzzy name.
* Just in case you thought there was no media bias by the big newspapers and TV networks, last week's exposé of the scandalous ACORN by a pair of kids with a hidden video camera should put that thought to rest. Even I was stunned by the blatant bias more than the video.
In case you missed it, a young man and younger girl posed as a hooker and her pimp, going to several ACORN offices to ask for money to buy a home. In all cases, they told staffers they were in the prostitution business, and in Baltimore made it clear they were importing young teenage girls from El Salvador to turn tricks. The pair purposely told as bad a story as they could imagine, and over and over, ACORN, the "community organizers" group which President Obama wanted to give $8 billion of your tax money in stimulus funds, instructed the pair on how to break the law.
ACORN is a filthy, corrupt, and useless organization that doesn't deserve even a penny of tax dollars, and the media, outside of Fox News which broke the story, is silent.
Even our own Sen. Sheldon Whitehouse cast an embarrassingly sycophantic vote on the matter. When all in the Senate, including may clear-thinking Democrats, voted 83-7 to cut off funding for ACORN last week, Whitehouse defended this indefensible group. Yes, Rhode Island's former chief law enforcement officer, ex-Attorney General Sheldon Whitehouse, voted to continue funding a group which instructs hookers and pimps on how to open a sex slave business in Baltimore. Hey, it's only your money.
ACORN is finished thanks to two enterprising young reporters, and no thanks to Sheldon Whitehouse. Lucky for Whitehouse, he's got three more years in his term for all of us to forget this.
I recall the old days, when CBS-TV's "60 Minutes" would have relished the ACORN story, but no more. Not today. Now, it's clear that organizations like CBS, MSNBC, The New York Times, Washington Post and others simply choose to ignore news that harms the people they worked so hard to elect.
And they wonder why big-city newspaper circulation is plunging, and MSNBC ratings are in the toilet. Maybe they should try doing their jobs.
Tom Ward is the publisher of the Valley Breeze newspapers
The following editorial is in today's Valley Breeze newspaper about Twin River, a Rhode Island racetrack-slot parlor, that wants to give its executives bonuses during its bankruptcy reorganization.
Twin River bonuses? Are they kidding?
By Tom Ward
The Valley Breeze
September 23, 2009
Twin River bonuses? Are they kidding?
The fact that attorneys for Twin River casino in Lincoln are asking a federal bankruptcy judge to hand out bonuses totalling $1.3 million to eight top officials there ought to infuriate you.
Can we really just turn out backs in exasperation and say "It's just Rhode Island" again?
According to Saturday's Providence Journal, the judge is being asked to approve "a compensation plan that would give the top eight executives...about $3 million in annual pay and bonuses." Later, reporter Paul Grimaldi explains that the bonuses total $1.3 million. Now do the math. The pay portion averages $212,500 per employee. No doubt, the folks at the very top get more, and some less, but really, bonuses averaging another $162,500 each?
I'd write "Is there no shame?" but of course, I know that answer. No, for the connected in Rhode Island, there's no shame at all.
All this takes place against the backdrop of vendors, many of them small local businesses, who will be stiffed by Twin River during bankruptcy proceedings.
Let me be fair. I've noted in previous columns that Twin River has the worst deal in America, having been shaken down by the General Assembly through the years to the point of giving more than 60 percent of the revenue to the state. It's a bad deal. Amplified by the current recession and joblessness, Twin River has spiraled into it's current predicament. The executive staff are not to blame for the mess, and certainly should not be punished. That said, they shouldn't be getting bonuses, either. If there's an extra $1.3 million sitting around, pay off the little guy.
As for the well-worn threat that top executives might leave Twin River in a competitive marketplace, I say go! Head to Macau for all I care. There are plenty of talented Rhode Islanders who would be happy to take a $200,000 job at Twin River.
I trust the judge will laugh this request out of his court.
* Time will tell if Rhode Island's new political party, the Moderate Party, gains any traction. New party Executive Director Christine Hunsinger tells the Journal, "I was a registered Democrat up until last week. I feel my party at the state level has left me. In Rhode Island, we see such a control of one party. It's actually become the party of self interest and special interest, and not the public interest."
Hells, bells! Rhode Island's Democratic Party has been "the party of self interest and special interest" for two generations now, and has the highest unemployment rate in New England to show for it! But I'll be listening to them in the months ahead, and learning what they're all about. I just wish they didn't have such a warm and fuzzy name.
* Just in case you thought there was no media bias by the big newspapers and TV networks, last week's exposé of the scandalous ACORN by a pair of kids with a hidden video camera should put that thought to rest. Even I was stunned by the blatant bias more than the video.
In case you missed it, a young man and younger girl posed as a hooker and her pimp, going to several ACORN offices to ask for money to buy a home. In all cases, they told staffers they were in the prostitution business, and in Baltimore made it clear they were importing young teenage girls from El Salvador to turn tricks. The pair purposely told as bad a story as they could imagine, and over and over, ACORN, the "community organizers" group which President Obama wanted to give $8 billion of your tax money in stimulus funds, instructed the pair on how to break the law.
ACORN is a filthy, corrupt, and useless organization that doesn't deserve even a penny of tax dollars, and the media, outside of Fox News which broke the story, is silent.
Even our own Sen. Sheldon Whitehouse cast an embarrassingly sycophantic vote on the matter. When all in the Senate, including may clear-thinking Democrats, voted 83-7 to cut off funding for ACORN last week, Whitehouse defended this indefensible group. Yes, Rhode Island's former chief law enforcement officer, ex-Attorney General Sheldon Whitehouse, voted to continue funding a group which instructs hookers and pimps on how to open a sex slave business in Baltimore. Hey, it's only your money.
ACORN is finished thanks to two enterprising young reporters, and no thanks to Sheldon Whitehouse. Lucky for Whitehouse, he's got three more years in his term for all of us to forget this.
I recall the old days, when CBS-TV's "60 Minutes" would have relished the ACORN story, but no more. Not today. Now, it's clear that organizations like CBS, MSNBC, The New York Times, Washington Post and others simply choose to ignore news that harms the people they worked so hard to elect.
And they wonder why big-city newspaper circulation is plunging, and MSNBC ratings are in the toilet. Maybe they should try doing their jobs.
Tom Ward is the publisher of the Valley Breeze newspapers
Thursday, September 24, 2009
Mashpee Wampanoag Tribe Cuts Budget
Feather News
This installment of The Tribes In The Media is a Cape Cod Times article on the Mashpee Wampanoag's current financial situation.
Mashpee Wampanoag elders gather outside tribal headquarters yesterday, seeking information about the tribe's finances since Chairman Cedric Cromwell took over.
By George Brennan
Cape Cod Times
By George Brennan
September 24, 2009
MASHPEE — Nine tribe elders staged a sit-in at Mashpee Wampanoag Tribal Headquarters yesterday, a second attempt in as many days to get answers about how the tribe's money is spent.
The elders were inside when tribal council Chairman Cedric Cromwell arrived with his wife, Cheryl Frye Cromwell, just after 9:30 a.m., but never confronted him. Instead, Cromwell was greeted by hugs and well-wishes from a half-dozen tribe members, one of them kissing him on his cheek, saying, "Hang in there."
The elders, referring to themselves as the "Golden Elders" because they are all over 62, say tribe financial records are unclear and incomplete.
The elders released a copy of them yesterday that shows the tribe's general fund at just over $200,000 as of May. It also indicates that some funds from an education grant may have been deposited in the tribe's general fund.
Cromwell said the tribal council is trying to sort through the financial mess it inherited from a previous administration. Those leaders left office amid a financial scandal that landed former Chairman Glenn Marshall in federal prison for embezzling money from the tribe's casino investors.
That's just an excuse, said Patricia Oakley, the tribe's former genealogist, who organized the rally. "We're not here to talk about previous administrations. We're talking about now," she said. "We've come here to get answers and if we don't get them today, we'll be back tomorrow."
Several of the elders assembled yesterday were either employed by or on the tribal council with the previous administrations. Chief among them are Oakley, who was fired after Cromwell took over, former tribe treasurer Nellie Ramos and former tribal council member Norman Dias.
In recent months, the tribe's investors on a proposed Middleboro Indian casino have stopped making payments and the tribe's relationship with them is in limbo, further depleting the tribe's funds.
"The backers dumped us," elder Ann Peters Brown said. "They don't want to have anything to do with us."
While elders complained that the financial reports only go through May, Cromwell said that's because the tribe is doing an audit to determine if any grant funds were misappropriated. "If any money was spent from grants on things that they shouldn't have been spent on, we're going to self-report on it," he said.
Elders also complained the tribe is no longer funding youth programs or the food pantry.
The tribal council has had to make difficult budget cuts, including temporarily halting those programs, Cromwell said.
Other cuts include suspending his pay and the pay of other tribal council members, he said. "It was the right thing to do until we can get through this tough fiscal and financial time," he said.
This installment of The Tribes In The Media is a Cape Cod Times article on the Mashpee Wampanoag's current financial situation.
Mashpee Wampanoag elders gather outside tribal headquarters yesterday, seeking information about the tribe's finances since Chairman Cedric Cromwell took over.
By George Brennan
Cape Cod Times
By George Brennan
September 24, 2009
MASHPEE — Nine tribe elders staged a sit-in at Mashpee Wampanoag Tribal Headquarters yesterday, a second attempt in as many days to get answers about how the tribe's money is spent.
The elders were inside when tribal council Chairman Cedric Cromwell arrived with his wife, Cheryl Frye Cromwell, just after 9:30 a.m., but never confronted him. Instead, Cromwell was greeted by hugs and well-wishes from a half-dozen tribe members, one of them kissing him on his cheek, saying, "Hang in there."
The elders, referring to themselves as the "Golden Elders" because they are all over 62, say tribe financial records are unclear and incomplete.
The elders released a copy of them yesterday that shows the tribe's general fund at just over $200,000 as of May. It also indicates that some funds from an education grant may have been deposited in the tribe's general fund.
Cromwell said the tribal council is trying to sort through the financial mess it inherited from a previous administration. Those leaders left office amid a financial scandal that landed former Chairman Glenn Marshall in federal prison for embezzling money from the tribe's casino investors.
That's just an excuse, said Patricia Oakley, the tribe's former genealogist, who organized the rally. "We're not here to talk about previous administrations. We're talking about now," she said. "We've come here to get answers and if we don't get them today, we'll be back tomorrow."
Several of the elders assembled yesterday were either employed by or on the tribal council with the previous administrations. Chief among them are Oakley, who was fired after Cromwell took over, former tribe treasurer Nellie Ramos and former tribal council member Norman Dias.
In recent months, the tribe's investors on a proposed Middleboro Indian casino have stopped making payments and the tribe's relationship with them is in limbo, further depleting the tribe's funds.
"The backers dumped us," elder Ann Peters Brown said. "They don't want to have anything to do with us."
While elders complained that the financial reports only go through May, Cromwell said that's because the tribe is doing an audit to determine if any grant funds were misappropriated. "If any money was spent from grants on things that they shouldn't have been spent on, we're going to self-report on it," he said.
Elders also complained the tribe is no longer funding youth programs or the food pantry.
The tribal council has had to make difficult budget cuts, including temporarily halting those programs, Cromwell said.
Other cuts include suspending his pay and the pay of other tribal council members, he said. "It was the right thing to do until we can get through this tough fiscal and financial time," he said.
Tuesday, September 22, 2009
Tribal Casino Financing
Feather News
This installment of The Tribes In The Media is an article in yesterday's issue of the The Day newspaper on the Mohegans and Mashantuckets their financial reporting requirements. While the Mohegan Tribal Gaming Authority, the Tribe's business arm, is required to publicly disclose financial statements, the Mohegan government's finances are not publicly disclosed by the Tribe.
Casinos go separate financing directions
Mashantuckets give information to select few; Mohegans report regularly to SEC
By Brian Hallenbeck
The Day
September 21, 2009
One is “closely held,” the other's an “open book.”
That's one way to distinguish Connecticut's tribally owned casinos.
When it comes to disclosing their finances, the Mashantucket Pequot Tribe, which owns Foxwoods Resort Casino and MGM Grand at Foxwoods, tells its lenders and financial analysts what it thinks they need to know. It tells everyone else little or nothing beyond the casinos' monthly slot-machine revenues, which the state makes public.
But the Mohegan Tribal Gaming Authority, having registered with the U.S. Securities and Exchange Commission, files quarterly, annual and current reports that the SEC posts on its Web site. Most recently, for example, the authority filed a so-called 8-K form on the results of the Mohegan Tribal Council's Aug. 30 elections.
Each approach has its advantages, according to analysts and bondholders, some of whom expressed frustration with the Mashantuckets' lack of transparency in the wake of the tribe's announcement that they're seeking to restructure a debt load of more than $2 billion.
The Mashantuckets, who have not registered with the SEC, communicate via IntraLinks, a secure online service accessible to those who hold their debt. The tribe also allows securities analysts to access the information, analysts say.
”We have many gaming credits that follow this same procedure, said Jane Pedreira, a gaming analyst with Clear Sights Research. “Many tribal entities report this way, so it's not unusual. … It really depends on the comfort zone of the organization. Companies that want their information to remain private use IntraLinks.”
The Mohegan authority, which operates Mohegan Sun, has long embraced the transparency that comes with registering with the SEC, according to Jeffrey Hartmann, its chief operating officer.
”We filed when the (Mohegan) tribe sold its first tranche of debt in 1995,” he said. “I think over the years it's helped us build support with Wall Street …. We're an open book.”
Costs associated with SEC registration have grown in recent years because of additional reporting and auditing requirements imposed following the Enron debacle, Hartmann said. “But we've never regretted (registering). We enjoy a good relationship with our bankers and bondholders and part of that is our filings.”
Tribes that register can be publicly traded, meaning the bonds they issue to raise capital are available to most investors, according to Kent Richey, a securities attorney with Faegre Benson, a Minneapolis firm with a practice in Indian law.
”Theoretically,” he said, “if the Mashantuckets were registered, you could call your broker and say you want to buy some of those Mashantucket bonds. But they didn't register, so you can't.”
Nonregistered bonds can only be traded among so-called QUIBS - institutional investors holding at least $100 million in securities investments, Richey said.
There are three reasons why a tribe might choose not to register, he said.
”First, there may be a feeling that since it's a sovereign government, its business is its own business. It's a matter of privacy. Second, it puts you at a competitive disadvantage - you don't want your competition to know what you're doing. And third, there's the cost of compliance, which can be more than a million dollars a year.”
Pedreira, the gaming analyst, said the Mashantuckets have become more investor-friendly as they've become more accustomed to the needs of the bond market.
”I would say bondholders probably prefer registration, but it's not a huge issue,” she said.
"Regional"
This installment of The Tribes In The Media is an article in yesterday's issue of the The Day newspaper on the Mohegans and Mashantuckets their financial reporting requirements. While the Mohegan Tribal Gaming Authority, the Tribe's business arm, is required to publicly disclose financial statements, the Mohegan government's finances are not publicly disclosed by the Tribe.
Casinos go separate financing directions
Mashantuckets give information to select few; Mohegans report regularly to SEC
By Brian Hallenbeck
The Day
September 21, 2009
One is “closely held,” the other's an “open book.”
That's one way to distinguish Connecticut's tribally owned casinos.
When it comes to disclosing their finances, the Mashantucket Pequot Tribe, which owns Foxwoods Resort Casino and MGM Grand at Foxwoods, tells its lenders and financial analysts what it thinks they need to know. It tells everyone else little or nothing beyond the casinos' monthly slot-machine revenues, which the state makes public.
But the Mohegan Tribal Gaming Authority, having registered with the U.S. Securities and Exchange Commission, files quarterly, annual and current reports that the SEC posts on its Web site. Most recently, for example, the authority filed a so-called 8-K form on the results of the Mohegan Tribal Council's Aug. 30 elections.
Each approach has its advantages, according to analysts and bondholders, some of whom expressed frustration with the Mashantuckets' lack of transparency in the wake of the tribe's announcement that they're seeking to restructure a debt load of more than $2 billion.
The Mashantuckets, who have not registered with the SEC, communicate via IntraLinks, a secure online service accessible to those who hold their debt. The tribe also allows securities analysts to access the information, analysts say.
”We have many gaming credits that follow this same procedure, said Jane Pedreira, a gaming analyst with Clear Sights Research. “Many tribal entities report this way, so it's not unusual. … It really depends on the comfort zone of the organization. Companies that want their information to remain private use IntraLinks.”
The Mohegan authority, which operates Mohegan Sun, has long embraced the transparency that comes with registering with the SEC, according to Jeffrey Hartmann, its chief operating officer.
”We filed when the (Mohegan) tribe sold its first tranche of debt in 1995,” he said. “I think over the years it's helped us build support with Wall Street …. We're an open book.”
Costs associated with SEC registration have grown in recent years because of additional reporting and auditing requirements imposed following the Enron debacle, Hartmann said. “But we've never regretted (registering). We enjoy a good relationship with our bankers and bondholders and part of that is our filings.”
Tribes that register can be publicly traded, meaning the bonds they issue to raise capital are available to most investors, according to Kent Richey, a securities attorney with Faegre Benson, a Minneapolis firm with a practice in Indian law.
”Theoretically,” he said, “if the Mashantuckets were registered, you could call your broker and say you want to buy some of those Mashantucket bonds. But they didn't register, so you can't.”
Nonregistered bonds can only be traded among so-called QUIBS - institutional investors holding at least $100 million in securities investments, Richey said.
There are three reasons why a tribe might choose not to register, he said.
”First, there may be a feeling that since it's a sovereign government, its business is its own business. It's a matter of privacy. Second, it puts you at a competitive disadvantage - you don't want your competition to know what you're doing. And third, there's the cost of compliance, which can be more than a million dollars a year.”
Pedreira, the gaming analyst, said the Mashantuckets have become more investor-friendly as they've become more accustomed to the needs of the bond market.
”I would say bondholders probably prefer registration, but it's not a huge issue,” she said.
"Regional"
Mohegan Sun Official Talks To Massachusetts Residents
Feather News
This installment of The Tribe In The Media is an article from the Massachusetts newspaper The Republican on an event in which a Mohegan Sun official, Peter Schultz, discussed the Tribe's proposed casino in Palmer, Massachusetts:
Mohegan Sun: Palmer or bust
By Nancy H. Gonter
The Republican
September 22, 2009
WARE - A representative of Mohegan Sun, the group that wants to build a $1 billion casino off Thorndike Street in Palmer, faced questions from senior citizens Monday, telling them the company is firmly committed to the site.
Peter J. Schultz, project coordinator, also heard concerns about traffic and job preference for Palmer residents. More than 20 people attended the event at the Senior Center, some of them members of the Quaboag Valley Against Casinos, which opposes the project.
Grace A. Sheehan of Palmer, a member of the group, said she is worried about gang activity increasing in town, as well as the effect of the casino on downtown restaurants and traffic.
"I don't think it's going to help our property taxes. Once they are up they are not going to go down. And I don't think our property will be worth as much," Sheehan said.
Linda J. Francis of Palmer, said she supports casinos believes property values will go up if the casino is built.
Schultz made it clear that having a casino is far from a done deal, and even if it is sited here, it could be four years before it opens. The state Legislature is expected to take up the issue of legalizing gambling in the next few weeks.
If it is legalized, there will still be a site selection process to determine where casinos will be allowed, Schultz said.
"Mohegan Sun is committed to Palmer. If Palmer doesn't get it (a casino), we're done," Schultz said.
Schultz tried to allay concerns expressed by those at the meeting, saying that potential traffic problems and water supply issues are being studied and should be resolved at no cost to taxpayers. The casino owners also would pay for construction of an exit directly from the Massachusetts Turnpike, he said.
The Mohegan Sun proposal calls for the casino to be on 152 acres between Thorndike and Breckenridge streets. It would include a 600-room hotel and an entertainment venue and would provide 2,400 jobs once fully operational, Schultz said.
Schultz stressed that he believed many of the casino employees would come from this area because there is a large labor pool and high unemployment. He said the idea of giving Palmer residents preference would be considered.
Maria N. Thomson of Brimfield, a member of the group opposing casinos, said she believes businesses near casinos in Connecticut had lost business after the casinos opened. Thomson said the casino would increase the number of people who are addicted to gambling and who would become impoverished.
"I suggest you go down and talk directly with the mayor of Montville," said Schultz, in reference to the Mohegan Sun facility there.
This installment of The Tribe In The Media is an article from the Massachusetts newspaper The Republican on an event in which a Mohegan Sun official, Peter Schultz, discussed the Tribe's proposed casino in Palmer, Massachusetts:
Mohegan Sun: Palmer or bust
By Nancy H. Gonter
The Republican
September 22, 2009
WARE - A representative of Mohegan Sun, the group that wants to build a $1 billion casino off Thorndike Street in Palmer, faced questions from senior citizens Monday, telling them the company is firmly committed to the site.
Peter J. Schultz, project coordinator, also heard concerns about traffic and job preference for Palmer residents. More than 20 people attended the event at the Senior Center, some of them members of the Quaboag Valley Against Casinos, which opposes the project.
Grace A. Sheehan of Palmer, a member of the group, said she is worried about gang activity increasing in town, as well as the effect of the casino on downtown restaurants and traffic.
"I don't think it's going to help our property taxes. Once they are up they are not going to go down. And I don't think our property will be worth as much," Sheehan said.
Linda J. Francis of Palmer, said she supports casinos believes property values will go up if the casino is built.
Schultz made it clear that having a casino is far from a done deal, and even if it is sited here, it could be four years before it opens. The state Legislature is expected to take up the issue of legalizing gambling in the next few weeks.
If it is legalized, there will still be a site selection process to determine where casinos will be allowed, Schultz said.
"Mohegan Sun is committed to Palmer. If Palmer doesn't get it (a casino), we're done," Schultz said.
Schultz tried to allay concerns expressed by those at the meeting, saying that potential traffic problems and water supply issues are being studied and should be resolved at no cost to taxpayers. The casino owners also would pay for construction of an exit directly from the Massachusetts Turnpike, he said.
The Mohegan Sun proposal calls for the casino to be on 152 acres between Thorndike and Breckenridge streets. It would include a 600-room hotel and an entertainment venue and would provide 2,400 jobs once fully operational, Schultz said.
Schultz stressed that he believed many of the casino employees would come from this area because there is a large labor pool and high unemployment. He said the idea of giving Palmer residents preference would be considered.
Maria N. Thomson of Brimfield, a member of the group opposing casinos, said she believes businesses near casinos in Connecticut had lost business after the casinos opened. Thomson said the casino would increase the number of people who are addicted to gambling and who would become impoverished.
"I suggest you go down and talk directly with the mayor of Montville," said Schultz, in reference to the Mohegan Sun facility there.
Monday, September 21, 2009
Obama Administration To Rethink Bush Policy On Off-Reservation Indian Gaming
Feather News
This installment of The Tribes In The Media is a Wall Street Journal article discussing the possibility that the Obama administration may change the Bush administration's criteria on off-reservation gaming. A rule was created in January 2008 that resulted in the federal government's denial of proposed Indian casinos if that proposed casino was determined to be on land that is not within a commutable distance of the reservation.
It is also mentioned that the Malaysian family that backed the Mashantuckets have bought in to a proposed St. Regis Mohawk casino that would be built in the Catskill Mountains of New York. The St. Regis Mohawk's proposed casino in the Catskills was one of the ten proposed off-reservation casinos that were denied by the Interior Department in January 2008 under the then-new Bush administration rules. The article says that the Malaysian family will buy nearly 50 percent of Empire Resorts, which also operates the Monticello Raceway (now with VLT slot machines) in the Catskills.
Tribal Casino Rules Revisited
White House Considers Altering Policy to Allow Gambling Far From ReservationsArticle By A.D. Pruitt and Peter Grant
Wall Street Journal
September 21, 2009
The Obama administration may make it easier for Indian tribes to build casinos on land far from their reservations, a move likely to spur a wave of new casino development.
The Interior Department, which runs the Bureau of Indian Affairs, is reconsidering a Bush administration directive requiring that off-reservation casino sites be within commuting distance of the reservation. Many tribes, struggling with high unemployment and poverty on their reservations, are looking to casinos for jobs and other economic benefits.
See where tribes have filed applicationsn for off-reservation gaming.
"It's an important issue. It's a controversial issue and they're rethinking it," George Skibine, a deputy assistant secretary at the bureau, said in an interview last week. He added he expected a decision on whether to change the policy "fairly soon."
Some governors, including Democrat David Paterson of New York and Republican Arnold Schwarzenegger of California, have come out in favor of certain projects in recent months.
A reversal would pose more competition to existing casinos that are getting pummeled by the economic downturn. Owners of some of those casinos and their supporters in Congress are putting pressure on the Interior Department to maintain the restrictions on new developments off tribal lands. But have-not tribes are hoping the Obama administration will view casino development as a cheap way to stimulate the economy without tax dollars.
"Some governors have embraced this as a way to close their budget deficits," said Larry Rosenthal, a partner at Ietan Consulting LLC, a lobbying firm that represents Indian tribes.
About 22 Indian casinos on non-reservation land exist, and about 20 tribes have off-reservation plans in the works.
The Confederated Tribes of Warm Springs of Oregon wants to develop a casino along the Columbia River Gorge, and the St. Regis Mohawks has plans for a site in the Catskill Mountains, about 350 miles away from the tribe's reservation -- not within the required commuting distance -- but less than a two-hour drive from New York City.
Some tribes note that the off-reservation sites they have identified are actually on their ancestral lands.
"We'd just be going back home," said Lewis Pitt, spokesman for the Warm Springs tribes in Oregon.
Even if the Obama administration reverses the policy, some tribes will face a rough time developing casinos anytime soon. With casinos across the country running into financial problems, many lenders are loath to finance new projects.
Indian casinos can be particularly problematic when they run into financial trouble. One example: Foxwoods Resort Casino in Connecticut, which is in talks with lenders to restructure an enormous debt load.
Moody's Investor Service has warned that lenders have limited recourse because, under U.S. law, they can't seize Indian casino assets in the case of a default or bankruptcy.
The anxieties of Foxwoods creditors were further stoked late last month after the New London Day reported that Michael Thomas, the chairman of the Mashantucket Pequot Tribal Council, which controls Foxwoods, sent a letter pledging to protect the payments to the tribal government and tribe members and saying that they would be "paid first."
The council subsequently put Mr. Thomas on administrative leave "pending the outcome of an internal review." It says it is pursuing a "mutually beneficial resolution with its banks and bondholders."
Mr. Thomas couldn't be reached for comment Sunday afternoon.
Despite these concerns, some off-reservation casino projects, especially those near major population centers, have been able to line up financing.
Kien Huat Realty III Ltd., an investment company owned by a Malaysian family that has financed start-ups of major Indian casinos in Connecticut and New York, is acquiring a near 50% stake in Empire Resorts Inc., the company that has been working with the St. Regis Mohawks on plans for a casino in Monticello, N.Y.
About 300 casinos have been developed by tribes since a watershed U.S. Supreme Court ruling in 1987 that greatly loosened state restrictions on such operations. In 1988, Congress said tribes could develop off-reservation casinos that were in the best interest of the tribe and not detrimental to the local community.
Some of the tribes that developed casinos early on have joined with Las Vegas and Atlantic City gambling interests to try to block off-reservation gaming.
Last week five senators from Nevada, California and Arizona wrote Interior Secretary Ken Salazar to oppose off-reservation gaming, saying it "violates the spirit" of Indian gaming law.
This installment of The Tribes In The Media is a Wall Street Journal article discussing the possibility that the Obama administration may change the Bush administration's criteria on off-reservation gaming. A rule was created in January 2008 that resulted in the federal government's denial of proposed Indian casinos if that proposed casino was determined to be on land that is not within a commutable distance of the reservation.
It is also mentioned that the Malaysian family that backed the Mashantuckets have bought in to a proposed St. Regis Mohawk casino that would be built in the Catskill Mountains of New York. The St. Regis Mohawk's proposed casino in the Catskills was one of the ten proposed off-reservation casinos that were denied by the Interior Department in January 2008 under the then-new Bush administration rules. The article says that the Malaysian family will buy nearly 50 percent of Empire Resorts, which also operates the Monticello Raceway (now with VLT slot machines) in the Catskills.
Tribal Casino Rules Revisited
White House Considers Altering Policy to Allow Gambling Far From ReservationsArticle By A.D. Pruitt and Peter Grant
Wall Street Journal
September 21, 2009
The Obama administration may make it easier for Indian tribes to build casinos on land far from their reservations, a move likely to spur a wave of new casino development.
The Interior Department, which runs the Bureau of Indian Affairs, is reconsidering a Bush administration directive requiring that off-reservation casino sites be within commuting distance of the reservation. Many tribes, struggling with high unemployment and poverty on their reservations, are looking to casinos for jobs and other economic benefits.
See where tribes have filed applicationsn for off-reservation gaming.
"It's an important issue. It's a controversial issue and they're rethinking it," George Skibine, a deputy assistant secretary at the bureau, said in an interview last week. He added he expected a decision on whether to change the policy "fairly soon."
Some governors, including Democrat David Paterson of New York and Republican Arnold Schwarzenegger of California, have come out in favor of certain projects in recent months.
A reversal would pose more competition to existing casinos that are getting pummeled by the economic downturn. Owners of some of those casinos and their supporters in Congress are putting pressure on the Interior Department to maintain the restrictions on new developments off tribal lands. But have-not tribes are hoping the Obama administration will view casino development as a cheap way to stimulate the economy without tax dollars.
"Some governors have embraced this as a way to close their budget deficits," said Larry Rosenthal, a partner at Ietan Consulting LLC, a lobbying firm that represents Indian tribes.
About 22 Indian casinos on non-reservation land exist, and about 20 tribes have off-reservation plans in the works.
The Confederated Tribes of Warm Springs of Oregon wants to develop a casino along the Columbia River Gorge, and the St. Regis Mohawks has plans for a site in the Catskill Mountains, about 350 miles away from the tribe's reservation -- not within the required commuting distance -- but less than a two-hour drive from New York City.
Some tribes note that the off-reservation sites they have identified are actually on their ancestral lands.
"We'd just be going back home," said Lewis Pitt, spokesman for the Warm Springs tribes in Oregon.
Even if the Obama administration reverses the policy, some tribes will face a rough time developing casinos anytime soon. With casinos across the country running into financial problems, many lenders are loath to finance new projects.
Indian casinos can be particularly problematic when they run into financial trouble. One example: Foxwoods Resort Casino in Connecticut, which is in talks with lenders to restructure an enormous debt load.
Moody's Investor Service has warned that lenders have limited recourse because, under U.S. law, they can't seize Indian casino assets in the case of a default or bankruptcy.
The anxieties of Foxwoods creditors were further stoked late last month after the New London Day reported that Michael Thomas, the chairman of the Mashantucket Pequot Tribal Council, which controls Foxwoods, sent a letter pledging to protect the payments to the tribal government and tribe members and saying that they would be "paid first."
The council subsequently put Mr. Thomas on administrative leave "pending the outcome of an internal review." It says it is pursuing a "mutually beneficial resolution with its banks and bondholders."
Mr. Thomas couldn't be reached for comment Sunday afternoon.
Despite these concerns, some off-reservation casino projects, especially those near major population centers, have been able to line up financing.
Kien Huat Realty III Ltd., an investment company owned by a Malaysian family that has financed start-ups of major Indian casinos in Connecticut and New York, is acquiring a near 50% stake in Empire Resorts Inc., the company that has been working with the St. Regis Mohawks on plans for a casino in Monticello, N.Y.
About 300 casinos have been developed by tribes since a watershed U.S. Supreme Court ruling in 1987 that greatly loosened state restrictions on such operations. In 1988, Congress said tribes could develop off-reservation casinos that were in the best interest of the tribe and not detrimental to the local community.
Some of the tribes that developed casinos early on have joined with Las Vegas and Atlantic City gambling interests to try to block off-reservation gaming.
Last week five senators from Nevada, California and Arizona wrote Interior Secretary Ken Salazar to oppose off-reservation gaming, saying it "violates the spirit" of Indian gaming law.
Saturday, September 19, 2009
Nonner Meryl Heberding Passes On
Feather News
The following is an excerpt from the notice of Meryl's passing that was given in The Day newspaper today. Please note that a funeral procession will gather at 9:30 a.m. on Monday for an 11 a.m. graveside service at Fort Shantok Cemetery in Uncasville. Our sympathies go out to Meryl's family and friends.
Montville - Mohegan Nonner Meryl “Grey Owl” Jean Heberding, 76, of Uncasville, passed away at The William W. Backus Hospital in Norwich on Sept. 17, 2009.
She was born on July 14, 1933, in San Diego, Calif., to the late Burill and Vivian (Beatrice) Fielding.
She married her loving husband, Milton Heberding, on Sept. 27, 1952, at the Montville Methodist Church in Montville.
Meryl had a love for her family as well as the many children that she baby-sat throughout her life. She was an elder and was recently appointed Nonner of the Mohegan Tribe. She rejuvenated the local Pow-Wow as well as assisted with the one in Tucson, Ariz., where she had many friends. She was also a member of the Federal Recognition Committee for the Mohegan Tribe and a deaconess and trustee for the Mohegan Congregational Church. She enjoyed cooking, baking, and was an avid collector of Native American dolls.
Family and friends may visit from 2 to 4 p.m. and 6 to 8 p.m. on Sunday at the Church and Allen Funeral Home, 136 Sachem St., Norwich. A funeral procession will gather at 9:30 a.m. on Monday for an 11 a.m. graveside service at Fort Shantok Cemetery in Uncasville.
In lieu of flowers, donations may be made in Meryl's honor to the Muscular Dystrophy Association, 1952 Whitney Ave., #220, Hamden CT 06517.
The following is an excerpt from the notice of Meryl's passing that was given in The Day newspaper today. Please note that a funeral procession will gather at 9:30 a.m. on Monday for an 11 a.m. graveside service at Fort Shantok Cemetery in Uncasville. Our sympathies go out to Meryl's family and friends.
Montville - Mohegan Nonner Meryl “Grey Owl” Jean Heberding, 76, of Uncasville, passed away at The William W. Backus Hospital in Norwich on Sept. 17, 2009.
She was born on July 14, 1933, in San Diego, Calif., to the late Burill and Vivian (Beatrice) Fielding.
She married her loving husband, Milton Heberding, on Sept. 27, 1952, at the Montville Methodist Church in Montville.
Meryl had a love for her family as well as the many children that she baby-sat throughout her life. She was an elder and was recently appointed Nonner of the Mohegan Tribe. She rejuvenated the local Pow-Wow as well as assisted with the one in Tucson, Ariz., where she had many friends. She was also a member of the Federal Recognition Committee for the Mohegan Tribe and a deaconess and trustee for the Mohegan Congregational Church. She enjoyed cooking, baking, and was an avid collector of Native American dolls.
Family and friends may visit from 2 to 4 p.m. and 6 to 8 p.m. on Sunday at the Church and Allen Funeral Home, 136 Sachem St., Norwich. A funeral procession will gather at 9:30 a.m. on Monday for an 11 a.m. graveside service at Fort Shantok Cemetery in Uncasville.
In lieu of flowers, donations may be made in Meryl's honor to the Muscular Dystrophy Association, 1952 Whitney Ave., #220, Hamden CT 06517.
Massachusetts Officials Push For Casinos
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The three top politicians in the state of Massachusetts have publicly said they want casino gaming that will create jobs and bring needed revenue to the state treasury. There is not any concensus among the governor and key figures in the state legisture as to what form the gaming will take. This installment of The Tribe In The Media is a Boston Globe article on the status of proposed gaming in Massachusetts.
Casinos get boost as DeLeo signs on
Joins Patrick, Murray in push for gaming
By Matt Viser
The Boston Globe Staff
September 19, 2009
House Speaker Robert A. DeLeo expressed strong support yesterday for bringing resort-style casinos to Massachusetts, one of the clearest indications yet that lawmakers are poised to expand gambling as they seek fresh revenues in a down economy.
In a separate speech yesterday morning, Senate President Therese Murray also made the case that Massachusetts should legalize casinos, asserting that they would bring hundreds of new jobs and capture money currently going to Foxwoods and Mohegan Sun in Connecticut.
The comments by DeLeo and Murray put the state’s top three political leaders on similar ground in support of resort-style casinos for the first time as the Legislature plans to begin considering a major bill as early as next month.
DeLeo has been a supporter of expanded gambling, but in the past has put an emphasis on installing slot machines at racetracks instead of building resort-style casinos complete with amenities such as hotels, shops, and golf courses.
“Given the importance of economic development, as well as the vital need for revenue, I have expanded my thinking,’’ DeLeo said in an address in Waltham to a meeting of Associated Industries of Massachusetts. “In addition to my backing of slots, I now support resort casinos.’’
At about the same time, Murray, speaking to the Plymouth Area Chamber of Commerce, said: “The reality is that hundreds of millions of dollars are going to Connecticut casinos from Massachusetts residents every year. We need to explore ways how we can capture that revenue.’’
She said building casinos would means hundreds of construction jobs, as well as permanent employment once the casinos open.
In an interview yesterday, DeLeo said House lawmakers are drafting legislation, with hearings likely to begin next month.
A debate before the full House, he said, could begin before lawmakers recess in mid-November, but seems more likely early next year.
Governor Deval Patrick’s plan to license three resort casinos was defeated last year, in large part because of opposition by House Speaker Salvatore F. DiMasi.
With DiMasi now out of office, the debate has shifted dramatically: It is no longer about whether Massachusetts will see expanded gaming, but when and in what form.
“What has interested me all along is the jobs and the revenue,’’ Patrick told reporters yesterday in the Berkshires. “And I think there is a way to do this that maximizes the jobs and revenues and minimizes - not eliminates, minimizes - the adverse impacts.’’
Still, the casino industry has struggled mightily with the economic downturn, forcing many developers to scale back projects and focus on retaining their current properties, rather than on adding new ones.
The Globe reported Sunday that Foxwoods in Connecticut, which has long been a success story in the casino industry, laid off about 6 percent of its workforce last year and saw its revenues from slot machines plunge 13 percent in July, compared with the previous year.
Nonetheless, DeLeo cast the plan yesterday as a ministimulus package for Massachusetts, one he said would bring in new revenues and create jobs as the state seeks to recover economically.
“I’m still trying to formulate my ideas, but I’m hoping this will not just be a gaming bill, but also an economic development one,’’ DeLeo said in the interview.
“I’m just really concerned about the future,’’ he said. “I think the only way we’re going to get out of this economy is jobs, jobs, and more jobs.’’
He also said that lagging state revenues are an incentive to find a new source of money.
That argument may have more urgency after Patrick announced yesterday that he expects to make further spending cuts this year because of falling revenues.
“I don’t see an appetite for new taxes, and we don’t have much left in the rainy day fund,’’ DeLeo said. “We need to bring in new revenue.’’
He also argued that slot machines could be installed quickly at the racetracks, bringing in new revenues, while giving casino companies more time to build resort casinos, which would create new construction jobs.
DeLeo said one option that may be considered involves the licensing of two casinos, one in Eastern Massachusetts, one in Western Massachusetts, and then allowing slots at Plainridge and Raynham Park racetracks.
But when asked about installing slots at racetracks, Murray said she is “not hot on that, but I’m going to listen.’’
“That’s fast money,’’ she said in an interview. “But is it sustainable?’’
She cited Twin River in Rhode Island, which relies on slots and filed for bankruptcy in June.
She said several senators have been working on different proposals over the summer, but added that it will take time to put together the regulatory framework that would allow casino developers to begin building.
“It’s really a three-year process,’’ she said. “If we’re going to do it, we need to start.’’
Many specifics have to be worked out, including how many casinos would be licensed, whether there would be any preference given to a Native American tribe, and how potential developers would secure the rights to build.
Casino developers have been closely monitoring the gambling debate in Massachusetts and have scoured the state for land and partnerships.
Mohegan Sun in Connecticut has been laying the groundwork to build a casino in Palmer, a small community near Springfield. Several developers have looked at land in neighboring Warren.
Suffolk Downs in East Boston has been jockeying for the past two years, securing key political backing and trying to ensure that it has the inside track on a Boston-area casino. Wonderland Greyhound Park in Revere has joined with Suffolk Downs to compete for one casino license.
One potential wrinkle is the Mashpee Wampanoag Tribe, whose attempt to use its federal rights to open a casino in Middleborough has been derailed by a US Supreme Court ruling.
There are several other developers who have hired lobbyists and expressed interest in Massachusetts previously, but have not announced specific plans.
Andrea Estes of the Globe staff contributed to this report.
The three top politicians in the state of Massachusetts have publicly said they want casino gaming that will create jobs and bring needed revenue to the state treasury. There is not any concensus among the governor and key figures in the state legisture as to what form the gaming will take. This installment of The Tribe In The Media is a Boston Globe article on the status of proposed gaming in Massachusetts.
Casinos get boost as DeLeo signs on
Joins Patrick, Murray in push for gaming
By Matt Viser
The Boston Globe Staff
September 19, 2009
House Speaker Robert A. DeLeo expressed strong support yesterday for bringing resort-style casinos to Massachusetts, one of the clearest indications yet that lawmakers are poised to expand gambling as they seek fresh revenues in a down economy.
In a separate speech yesterday morning, Senate President Therese Murray also made the case that Massachusetts should legalize casinos, asserting that they would bring hundreds of new jobs and capture money currently going to Foxwoods and Mohegan Sun in Connecticut.
The comments by DeLeo and Murray put the state’s top three political leaders on similar ground in support of resort-style casinos for the first time as the Legislature plans to begin considering a major bill as early as next month.
DeLeo has been a supporter of expanded gambling, but in the past has put an emphasis on installing slot machines at racetracks instead of building resort-style casinos complete with amenities such as hotels, shops, and golf courses.
“Given the importance of economic development, as well as the vital need for revenue, I have expanded my thinking,’’ DeLeo said in an address in Waltham to a meeting of Associated Industries of Massachusetts. “In addition to my backing of slots, I now support resort casinos.’’
At about the same time, Murray, speaking to the Plymouth Area Chamber of Commerce, said: “The reality is that hundreds of millions of dollars are going to Connecticut casinos from Massachusetts residents every year. We need to explore ways how we can capture that revenue.’’
She said building casinos would means hundreds of construction jobs, as well as permanent employment once the casinos open.
In an interview yesterday, DeLeo said House lawmakers are drafting legislation, with hearings likely to begin next month.
A debate before the full House, he said, could begin before lawmakers recess in mid-November, but seems more likely early next year.
Governor Deval Patrick’s plan to license three resort casinos was defeated last year, in large part because of opposition by House Speaker Salvatore F. DiMasi.
With DiMasi now out of office, the debate has shifted dramatically: It is no longer about whether Massachusetts will see expanded gaming, but when and in what form.
“What has interested me all along is the jobs and the revenue,’’ Patrick told reporters yesterday in the Berkshires. “And I think there is a way to do this that maximizes the jobs and revenues and minimizes - not eliminates, minimizes - the adverse impacts.’’
Still, the casino industry has struggled mightily with the economic downturn, forcing many developers to scale back projects and focus on retaining their current properties, rather than on adding new ones.
The Globe reported Sunday that Foxwoods in Connecticut, which has long been a success story in the casino industry, laid off about 6 percent of its workforce last year and saw its revenues from slot machines plunge 13 percent in July, compared with the previous year.
Nonetheless, DeLeo cast the plan yesterday as a ministimulus package for Massachusetts, one he said would bring in new revenues and create jobs as the state seeks to recover economically.
“I’m still trying to formulate my ideas, but I’m hoping this will not just be a gaming bill, but also an economic development one,’’ DeLeo said in the interview.
“I’m just really concerned about the future,’’ he said. “I think the only way we’re going to get out of this economy is jobs, jobs, and more jobs.’’
He also said that lagging state revenues are an incentive to find a new source of money.
That argument may have more urgency after Patrick announced yesterday that he expects to make further spending cuts this year because of falling revenues.
“I don’t see an appetite for new taxes, and we don’t have much left in the rainy day fund,’’ DeLeo said. “We need to bring in new revenue.’’
He also argued that slot machines could be installed quickly at the racetracks, bringing in new revenues, while giving casino companies more time to build resort casinos, which would create new construction jobs.
DeLeo said one option that may be considered involves the licensing of two casinos, one in Eastern Massachusetts, one in Western Massachusetts, and then allowing slots at Plainridge and Raynham Park racetracks.
But when asked about installing slots at racetracks, Murray said she is “not hot on that, but I’m going to listen.’’
“That’s fast money,’’ she said in an interview. “But is it sustainable?’’
She cited Twin River in Rhode Island, which relies on slots and filed for bankruptcy in June.
She said several senators have been working on different proposals over the summer, but added that it will take time to put together the regulatory framework that would allow casino developers to begin building.
“It’s really a three-year process,’’ she said. “If we’re going to do it, we need to start.’’
Many specifics have to be worked out, including how many casinos would be licensed, whether there would be any preference given to a Native American tribe, and how potential developers would secure the rights to build.
Casino developers have been closely monitoring the gambling debate in Massachusetts and have scoured the state for land and partnerships.
Mohegan Sun in Connecticut has been laying the groundwork to build a casino in Palmer, a small community near Springfield. Several developers have looked at land in neighboring Warren.
Suffolk Downs in East Boston has been jockeying for the past two years, securing key political backing and trying to ensure that it has the inside track on a Boston-area casino. Wonderland Greyhound Park in Revere has joined with Suffolk Downs to compete for one casino license.
One potential wrinkle is the Mashpee Wampanoag Tribe, whose attempt to use its federal rights to open a casino in Middleborough has been derailed by a US Supreme Court ruling.
There are several other developers who have hired lobbyists and expressed interest in Massachusetts previously, but have not announced specific plans.
Andrea Estes of the Globe staff contributed to this report.
Thursday, September 17, 2009
Bush's Interior Secretary Investigated For Corruption
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A corruption case involving President G.W. Bush's first Secretary of the Interior, Gale Norton, was referred by the Interior Department's Inspector General to the Justice Department.
At issue in the case is whether Norton violated a law that prohibits federal employees from discussing employment with a company if they are involved in government dealings that could benefit the company. Royal Dutch Shell, PLC, hired Norton within months after she left the post of Secretary of the Interior. Prior to leaving, the Interior Department awarded to Royal Dutch Shell multiple oil shale leases that could generated hundreds of billions of dollars for the company.
Investigators are also determining whether Norton broke a federal "denial of honest services" law, which states that a government official can be prosecuted for violating the public trust, including steering government business to favored firms or friends.
A corruption case involving President G.W. Bush's first Secretary of the Interior, Gale Norton, was referred by the Interior Department's Inspector General to the Justice Department.
At issue in the case is whether Norton violated a law that prohibits federal employees from discussing employment with a company if they are involved in government dealings that could benefit the company. Royal Dutch Shell, PLC, hired Norton within months after she left the post of Secretary of the Interior. Prior to leaving, the Interior Department awarded to Royal Dutch Shell multiple oil shale leases that could generated hundreds of billions of dollars for the company.
Investigators are also determining whether Norton broke a federal "denial of honest services" law, which states that a government official can be prosecuted for violating the public trust, including steering government business to favored firms or friends.
Mohegan Sun's 11% Decline In August Slot Revenue Is On Top Of Last August's 7% Drop Over August 2007
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The Mohegan Sun reported earlier this week that its August slot revenue declined by 11 percent when compared to August 2008.
Last August, in August 2008, the Mohegan Sun reported a 7 percent decline in its slot revenues when compared to August 2007 even though the Casino of the Wind opened at the end of last August on the day before Labor Day weekend. The Saturday and Sunday of Labor Day weekend landed in August last year while it was in September this year and also landed in September in the year 2007.
The Mohegan Sun's total slot revenue for the last 12 months, through July 2009 and before August's numbers are calculated, had dropped by 8.8 percent over the previous year.
The Mohegan Sun reported earlier this week that its August slot revenue declined by 11 percent when compared to August 2008.
Last August, in August 2008, the Mohegan Sun reported a 7 percent decline in its slot revenues when compared to August 2007 even though the Casino of the Wind opened at the end of last August on the day before Labor Day weekend. The Saturday and Sunday of Labor Day weekend landed in August last year while it was in September this year and also landed in September in the year 2007.
The Mohegan Sun's total slot revenue for the last 12 months, through July 2009 and before August's numbers are calculated, had dropped by 8.8 percent over the previous year.
Tribes' Promotional Slot Play Agreement With State Not To Cost Much To Mohegan
By Ken Davison
Feather News
Updated
The state announced in late August that it settled with the Mohegan and Mashantucket Pequot Tribes over how much they should pay the state for their recent slot machine free play promotions.
Within a few months after the Mashantucket's began giving its Foxwoods casino customers free play coupons to play on the slot machines in 2006, the state filed a lawsuit and asserted that the state was entitled to 25 percent of the value of the free play coupons given to customers just as the state is entitled to 25 percent of the casino's slot machine revenues. The Mohegan Tribe, though not part of the lawsuit, agreed to accept the terms of any settlement reached between the state and the Mashantuckets.
The key part of the August agreement states that if the amount of free play coupons (or eBonus coupons as given by Mohegan Sun) exceeds 5.5 percent of slot revenue for the month then the casinos must pay the state 25 percent of the value of the coupons that exceed that 5.5 percent threshold. This portion of the agreement didn't make it into some articles in the local newspapers.
A year after the Mashantuckets began their free play program, the Mohegan Sun began its own free play program by giving out what they called eBonus to customers. According to a Feather News analysis, the Mohegan Sun could continue to run their eBonus program as they have been and not end up paying the state anything on the promotional program.
Both casinos have been giving out free play on a monthly basis for a few years now. The Mohegan Sun has spent an average of almost $1.5 million a month on the program since it began in November 2007. In only two of the 21 months since the program began, the Mohegan Sun has only given out twice an amount of free play that exceeded 5.5 percent of its slot revenue for that month.
The last time the Mohegan Sun gave out more than 5.5 percent of its slot revenue in any given month was in June 2007 when it gave out almost $4 million in eBonus free play, which amounted to 5.8 percent of its roughly $68 million in slot revenue for that month. According to the terms of the new agreement, anything over 5.5 percent of the slot revenues for the month would be taxable so that would mean that .3 percent is subject to the state's 25 percent tariff.
The last monthly numbers that are available are for July 2009. The Mohegan Sun gave away about 4.3 percent of its July slot revenue in eBonus slot play while Foxwoods gave away in Free Play about 7.6 percent of their total July 2009 slot revenue. In that instance, Foxwoods would have to pay the state 25 percent on 2.1 percent (7.6 percent minus 5.5 percent) of their slot revenues.
Foxwoods has given out over $150 million in its Free Play program since inception, incuding the famous giveaway of $23 million during the month of December 2007, which amounted to a whopping 42 percent of its slot revenue of $56 million that month and led to changes in the executive management of the Foxwoods.
Feather News
Updated
The state announced in late August that it settled with the Mohegan and Mashantucket Pequot Tribes over how much they should pay the state for their recent slot machine free play promotions.
Within a few months after the Mashantucket's began giving its Foxwoods casino customers free play coupons to play on the slot machines in 2006, the state filed a lawsuit and asserted that the state was entitled to 25 percent of the value of the free play coupons given to customers just as the state is entitled to 25 percent of the casino's slot machine revenues. The Mohegan Tribe, though not part of the lawsuit, agreed to accept the terms of any settlement reached between the state and the Mashantuckets.
The key part of the August agreement states that if the amount of free play coupons (or eBonus coupons as given by Mohegan Sun) exceeds 5.5 percent of slot revenue for the month then the casinos must pay the state 25 percent of the value of the coupons that exceed that 5.5 percent threshold. This portion of the agreement didn't make it into some articles in the local newspapers.
A year after the Mashantuckets began their free play program, the Mohegan Sun began its own free play program by giving out what they called eBonus to customers. According to a Feather News analysis, the Mohegan Sun could continue to run their eBonus program as they have been and not end up paying the state anything on the promotional program.
Both casinos have been giving out free play on a monthly basis for a few years now. The Mohegan Sun has spent an average of almost $1.5 million a month on the program since it began in November 2007. In only two of the 21 months since the program began, the Mohegan Sun has only given out twice an amount of free play that exceeded 5.5 percent of its slot revenue for that month.
The last time the Mohegan Sun gave out more than 5.5 percent of its slot revenue in any given month was in June 2007 when it gave out almost $4 million in eBonus free play, which amounted to 5.8 percent of its roughly $68 million in slot revenue for that month. According to the terms of the new agreement, anything over 5.5 percent of the slot revenues for the month would be taxable so that would mean that .3 percent is subject to the state's 25 percent tariff.
The last monthly numbers that are available are for July 2009. The Mohegan Sun gave away about 4.3 percent of its July slot revenue in eBonus slot play while Foxwoods gave away in Free Play about 7.6 percent of their total July 2009 slot revenue. In that instance, Foxwoods would have to pay the state 25 percent on 2.1 percent (7.6 percent minus 5.5 percent) of their slot revenues.
Foxwoods has given out over $150 million in its Free Play program since inception, incuding the famous giveaway of $23 million during the month of December 2007, which amounted to a whopping 42 percent of its slot revenue of $56 million that month and led to changes in the executive management of the Foxwoods.
President Andrew Jackson's 1829 Letter To Choctaw And Chickasaw Leaders Found
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In an 1829 letter to the leaders of the Choctaw and Chickasaw Indian nations that was found this summer, President Andrew Jackson tells these Tribes to move west to the present day state of Oklahoma. The letter was given to Major David Haley and is a request for the Tribes to leave Alabama and Mississippi. The letter preceded the Indian Removal Act by a matter of months.
Prior to the letter's discovery, a draft version of the letter had been published but there are differences between the two letters.
Jackson's letter says, ". . . Tell them to listen," Jackson wrote. "[The proposed plan] is the only one by which [they can be] perpetuated as a nation . . . the only one by which they can expect to preserve their own laws, & be benefitted by the care and humane attention of the United States. I am very respectfully yr. friend, & the friend of my Choctaw & Chickasaw brethren. Andrew Jackson."
In the draft version, Jackson used the phrase "preserve their nation." Further, Jackson wrote:
"Say to them as friends and brothers to listen[to] the voice of their father, & friend," Jackson wrote. "Where [they] now are, they and my white children are too near each other to live in harmony & peace. Their game is destroyed and many of their people will not work & till the earth. Beyond the great river Mississippi, where a part of their nation has gone, their father has provided a co[untry] large enough for them all, and he ad[vises] them to go to it."
Choctaw Chief David Folsom received the message on Nov. 29, 1829 and rejected it two weeks later. By May 1830, the Indian Removal Act became law and the Choctaw were the first of five southeastern Tribes to be relocated west. After the Choctaws, the Seminoles, Creeks, Chickasaws went west and then the "Trail of Tears" for the Cherokees.
The letter was found in a private collection and sold to a Philadelphia dealer which sold the letter last week to a collector in New Jersey. "This is a once-in-a-lifetime find," said a spokesman for the Philadelphia dealer. "It's one of the most important documents in American history. To discover it after nearly two centuries is nothing short of breathtaking."
In an 1829 letter to the leaders of the Choctaw and Chickasaw Indian nations that was found this summer, President Andrew Jackson tells these Tribes to move west to the present day state of Oklahoma. The letter was given to Major David Haley and is a request for the Tribes to leave Alabama and Mississippi. The letter preceded the Indian Removal Act by a matter of months.
Prior to the letter's discovery, a draft version of the letter had been published but there are differences between the two letters.
Jackson's letter says, ". . . Tell them to listen," Jackson wrote. "[The proposed plan] is the only one by which [they can be] perpetuated as a nation . . . the only one by which they can expect to preserve their own laws, & be benefitted by the care and humane attention of the United States. I am very respectfully yr. friend, & the friend of my Choctaw & Chickasaw brethren. Andrew Jackson."
In the draft version, Jackson used the phrase "preserve their nation." Further, Jackson wrote:
"Say to them as friends and brothers to listen[to] the voice of their father, & friend," Jackson wrote. "Where [they] now are, they and my white children are too near each other to live in harmony & peace. Their game is destroyed and many of their people will not work & till the earth. Beyond the great river Mississippi, where a part of their nation has gone, their father has provided a co[untry] large enough for them all, and he ad[vises] them to go to it."
Choctaw Chief David Folsom received the message on Nov. 29, 1829 and rejected it two weeks later. By May 1830, the Indian Removal Act became law and the Choctaw were the first of five southeastern Tribes to be relocated west. After the Choctaws, the Seminoles, Creeks, Chickasaws went west and then the "Trail of Tears" for the Cherokees.
The letter was found in a private collection and sold to a Philadelphia dealer which sold the letter last week to a collector in New Jersey. "This is a once-in-a-lifetime find," said a spokesman for the Philadelphia dealer. "It's one of the most important documents in American history. To discover it after nearly two centuries is nothing short of breathtaking."
Wednesday, September 16, 2009
WNBA Playoffs Begin Tonight
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The first two WNBA playoff games will be televised tonight on ESPN2. The first game is to begin at 8 p.m. between Atlanta and Detroit followed by a 10 p.m. game between Los Angeles and Seattle.
Two other playoff games will be shown tomorrow night (Thursday) on ESPN2. At 7 p.m., Washington will play Indiana and at 9 p.m. Phoenix will play San Antonio.
All of the above games are the first in a series of three games that marks the first round of playoff action. Winners of the three-game series will advance to the next round of the playoffs.
The Connecticut Sun did not qualify for the playoffs this year.
The first two WNBA playoff games will be televised tonight on ESPN2. The first game is to begin at 8 p.m. between Atlanta and Detroit followed by a 10 p.m. game between Los Angeles and Seattle.
Two other playoff games will be shown tomorrow night (Thursday) on ESPN2. At 7 p.m., Washington will play Indiana and at 9 p.m. Phoenix will play San Antonio.
All of the above games are the first in a series of three games that marks the first round of playoff action. Winners of the three-game series will advance to the next round of the playoffs.
The Connecticut Sun did not qualify for the playoffs this year.
Wynn Seen As Favorite In Bid For New York City's First Slot Parlor
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New York officials are close to choosing the winning biddder to develop and manage a slot parlor at the Aqueduct Racetrack in Queens, NY. In conjunction with installing at least 4,500 VLT slot machines, the bidders are offering to add other entertainment features to the 200-acre site. This article from Gaming Insider suggests that Steve Wynn is a favorite to win the bidding for the Aqueduct concession.
Wynn on track for Aqueduct racino
By Phil Hevener
Gaming Insider
September 15, 2009
Steve Wynn is seen as the favorite to get the right to operate 4,500 slots at Aqueduct, the 115-year-old New York City landmark and casino-in-the-making that is a subway ride away from some eight million people.
The Wynn Resorts chairman and New York’s Aqueduct racetrack in the south Queens may not appear to be the most natural of marriages, but who can argue with the chance to set up shop in New York City and then see what may spring from future legislative action.
It’s an opportunity that has Wynn talking about re-inventing the racino concept. Of course, he first has to get the bid and although he is seen as the favorite, according to a well-placed source, this is a decision that will be based on the best thinking of a group of politicians.
Which means everything is subject to change with very little notice, but Wynn’s recent tireless effort to sell his vision and reach into his company’s very deep pockets without having to go through a complicated borrowing process has probably helped his case.
"We’ve got the money," he said during a recent interview. "There is no need to borrow anything from anyone."
But Wynn is not the only well-credentialed gaming industry heavyweight taking a shot at all the potential offered by Aqueduct. The usual cast of big names is present along with partners selected just for this occasion: MGM MIRAGE, Harrah’s, Penn National, Larry Woolf’s Navegante Group and the Seminoles with their Hard Rock brand.
Wynn’s plan, as he recently explained it, is to take the plain vanilla racino concept, add a liberal dose of imagination and shape it into something that goes beyond most current thinking, making (Aqueduct) a fun place to spend time at, even for people who do not play slots.
What he envisions is, "A place that integrates food and beverage and retail and entertainment and makes it fun to go to, even if you are not a video lottery terminal player, a place that is a compliment to its neighborhood, a fun and exciting location for recreational activities."
Tax rates don’t get any more onerous than the 60 to 70 percent sliding scale state levy that will be the price of doing business at Aqueduct, but there are reportedly allowances written into the deal for development and marketing.
Well-connected sources believe the number of slots Aqueduct can operate will he increased to some unknown number in excess of 4,500 as the situation evolves, which it seems certain to do. There’s a lot of room for imagination and power politics to roam at Aqueduct, considering the complex has nearly 200 acres.
New York officials are close to choosing the winning biddder to develop and manage a slot parlor at the Aqueduct Racetrack in Queens, NY. In conjunction with installing at least 4,500 VLT slot machines, the bidders are offering to add other entertainment features to the 200-acre site. This article from Gaming Insider suggests that Steve Wynn is a favorite to win the bidding for the Aqueduct concession.
Wynn on track for Aqueduct racino
By Phil Hevener
Gaming Insider
September 15, 2009
Steve Wynn is seen as the favorite to get the right to operate 4,500 slots at Aqueduct, the 115-year-old New York City landmark and casino-in-the-making that is a subway ride away from some eight million people.
The Wynn Resorts chairman and New York’s Aqueduct racetrack in the south Queens may not appear to be the most natural of marriages, but who can argue with the chance to set up shop in New York City and then see what may spring from future legislative action.
It’s an opportunity that has Wynn talking about re-inventing the racino concept. Of course, he first has to get the bid and although he is seen as the favorite, according to a well-placed source, this is a decision that will be based on the best thinking of a group of politicians.
Which means everything is subject to change with very little notice, but Wynn’s recent tireless effort to sell his vision and reach into his company’s very deep pockets without having to go through a complicated borrowing process has probably helped his case.
"We’ve got the money," he said during a recent interview. "There is no need to borrow anything from anyone."
But Wynn is not the only well-credentialed gaming industry heavyweight taking a shot at all the potential offered by Aqueduct. The usual cast of big names is present along with partners selected just for this occasion: MGM MIRAGE, Harrah’s, Penn National, Larry Woolf’s Navegante Group and the Seminoles with their Hard Rock brand.
Wynn’s plan, as he recently explained it, is to take the plain vanilla racino concept, add a liberal dose of imagination and shape it into something that goes beyond most current thinking, making (Aqueduct) a fun place to spend time at, even for people who do not play slots.
What he envisions is, "A place that integrates food and beverage and retail and entertainment and makes it fun to go to, even if you are not a video lottery terminal player, a place that is a compliment to its neighborhood, a fun and exciting location for recreational activities."
Tax rates don’t get any more onerous than the 60 to 70 percent sliding scale state levy that will be the price of doing business at Aqueduct, but there are reportedly allowances written into the deal for development and marketing.
Well-connected sources believe the number of slots Aqueduct can operate will he increased to some unknown number in excess of 4,500 as the situation evolves, which it seems certain to do. There’s a lot of room for imagination and power politics to roam at Aqueduct, considering the complex has nearly 200 acres.
Tuesday, September 15, 2009
New York Times Business Columnist On Government Regulators
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A business section article in Sunday's NY Times that was written by Gretchen Morgenson reminds us that the shoddy regulatory oversight that resulted in a near banking sector collapse has still yet to be corrected.
But Who Is Watching Regulators?
Gretchen Morgenson
New York Times
September 13, 2009
Even though calamitous lending practices laid waste to the nation’s economy, surprisingly little has changed about how the financial arena operates and is supervised. Sure, a couple of venerable brokerage firms have vanished, but many of the same players remain on the scene, in the same positions of power.
Senior regulators who stood idly by for years as financial firms built their houses of cards have been rewarded with even bigger jobs or are jockeying for increased responsibilities. The Federal Reserve Board, for example, wants to become the financial system’s uber-regulator, even though its officials did nothing as banks made deadly decisions to lend recklessly and leverage themselves to the max.
Awarding increased power to those who failed in their oversight duties flies in the face of all notions of accountability. Imagine hiring Angelo R. Mozilo, the former chief of Countrywide Financial, to run a global financial institution, or installing E. Stanley O’Neal, who presided over a disastrous period at Merrill Lynch, at the helm of a major investment firm.
Yet those in the public sector ask us to believe that regulators who snoozed during the credit bubble will be alert to emerging problems on their beats when the next mania begins.
That’s asking a lot, isn’t it?
Here’s a novel thought. Instead of creating more regulations to try to prevent this kind of mess from recurring, why not figure out how to hold regulators accountable when they perform as poorly as they did in recent years?
Edward J. Kane, a professor of finance at Boston College and an authority on the ethical and operational aspects of regulatory failure, has some ideas about how to do this and right our damaged system in the process. He outlined them in a recent paper titled “Unmet Duties in Managing Financial Safety Nets.”
This ugly financial episode we’ve all had to live through makes clear, Mr. Kane says, that taxpayers must protect themselves against two things: the corrupting influence of bureaucratic self-interest among regulators and the political clout wielded by the large institutions they are supposed to police. Finally, he argues, taxpayers must demand that the government publicize the costs of efforts taken to save the financial system from itself.
“That authorities and financiers could so callously violate common-law duties of loyalty, competence, and care they owe taxpayers and financial-institution customers is evidence of a massive incentive breakdown in industry and government,” Mr. Kane writes. “This breakdown cannot be repaired merely by replacing the governing political party or by changing the jurisdictions and mission statements of regulatory agencies.”
It’s tough, however, to assign responsibility to regulators who routinely fend off or stymie anyone attempting to scrutinize how the cops on the beat functioned in the years preceding the financial meltdown. So everyday Americans need to kick and scream if they want some light shed on this critical epoch in our financial history.
To bring accountability to regulatory performance, Mr. Kane suggests that financial supervisors take an oath of office in which they agree to perform four duties. First is the duty of vision, under which they would promise to adapt their surveillance practices to respond to the creative ways financial institutions hide their dubious practices. Regulators must also promise to take prompt corrective action, and to perform their work efficiently. Finally, there is what Mr. Kane calls the duty of “conscientious representation,” whereby regulators swear to put the interests of the community ahead of their own.
This last promise gets to the heart of a continued erosion of trust in our system, Mr. Kane argues. “If real world supervisors were perfectly virtuous, they would make themselves politically and financially accountable for the ways in which they exercise their discretion,” he writes. “Perfectly virtuous supervisors would fearlessly bond themselves to disclose enough information about their decision making to allow the community or interested outsiders to determine whether and how badly they neglect, abuse, or mishandle their responsibilities.”
Instead, our regulators refuse to produce complete documentation and accounts of the actions they took during the crisis. And keeping taxpayers in the dark isn’t exemplary ethical behavior. Rather, it is characteristic of what Mr. Kane calls an elitist regulator, one who uses crises to cover up mistakes and expand his or her jurisdiction.
“According to this standard,” Mr. Kane writes, “Fed efforts to use the crisis as a platform for self-congratulation and for securing enlarged systemic-risk authority sidetracks, rather than promotes, effective reform.”
To ensure that regulators live up to the promises they make, Mr. Kane suggests that inspectors general at each agency be charged with regularly auditing the performance of financial overseers. A crucial component of those reviews would be exploring attempts by regulated entities to influence the officials who oversee them. That’s because in financial crises, Mr. Kane explained, crippled institutions pressure the government to rescue them and force other parties (usually the taxpayers) to share their pain.
“We’ve got a very comfortable equilibrium here where Wall Street praises the authorities and the authorities give Wall Street more or less what it wants and they hope that the public really doesn’t understand the depth of the cynicism involved,” Mr. Kane said in an interview. “You keep reading about how wonderful it is that we didn’t have a Great Depression. Well, if they can sell that point of view, then nothing will change.”
A business section article in Sunday's NY Times that was written by Gretchen Morgenson reminds us that the shoddy regulatory oversight that resulted in a near banking sector collapse has still yet to be corrected.
But Who Is Watching Regulators?
Gretchen Morgenson
New York Times
September 13, 2009
Even though calamitous lending practices laid waste to the nation’s economy, surprisingly little has changed about how the financial arena operates and is supervised. Sure, a couple of venerable brokerage firms have vanished, but many of the same players remain on the scene, in the same positions of power.
Senior regulators who stood idly by for years as financial firms built their houses of cards have been rewarded with even bigger jobs or are jockeying for increased responsibilities. The Federal Reserve Board, for example, wants to become the financial system’s uber-regulator, even though its officials did nothing as banks made deadly decisions to lend recklessly and leverage themselves to the max.
Awarding increased power to those who failed in their oversight duties flies in the face of all notions of accountability. Imagine hiring Angelo R. Mozilo, the former chief of Countrywide Financial, to run a global financial institution, or installing E. Stanley O’Neal, who presided over a disastrous period at Merrill Lynch, at the helm of a major investment firm.
Yet those in the public sector ask us to believe that regulators who snoozed during the credit bubble will be alert to emerging problems on their beats when the next mania begins.
That’s asking a lot, isn’t it?
Here’s a novel thought. Instead of creating more regulations to try to prevent this kind of mess from recurring, why not figure out how to hold regulators accountable when they perform as poorly as they did in recent years?
Edward J. Kane, a professor of finance at Boston College and an authority on the ethical and operational aspects of regulatory failure, has some ideas about how to do this and right our damaged system in the process. He outlined them in a recent paper titled “Unmet Duties in Managing Financial Safety Nets.”
This ugly financial episode we’ve all had to live through makes clear, Mr. Kane says, that taxpayers must protect themselves against two things: the corrupting influence of bureaucratic self-interest among regulators and the political clout wielded by the large institutions they are supposed to police. Finally, he argues, taxpayers must demand that the government publicize the costs of efforts taken to save the financial system from itself.
“That authorities and financiers could so callously violate common-law duties of loyalty, competence, and care they owe taxpayers and financial-institution customers is evidence of a massive incentive breakdown in industry and government,” Mr. Kane writes. “This breakdown cannot be repaired merely by replacing the governing political party or by changing the jurisdictions and mission statements of regulatory agencies.”
It’s tough, however, to assign responsibility to regulators who routinely fend off or stymie anyone attempting to scrutinize how the cops on the beat functioned in the years preceding the financial meltdown. So everyday Americans need to kick and scream if they want some light shed on this critical epoch in our financial history.
To bring accountability to regulatory performance, Mr. Kane suggests that financial supervisors take an oath of office in which they agree to perform four duties. First is the duty of vision, under which they would promise to adapt their surveillance practices to respond to the creative ways financial institutions hide their dubious practices. Regulators must also promise to take prompt corrective action, and to perform their work efficiently. Finally, there is what Mr. Kane calls the duty of “conscientious representation,” whereby regulators swear to put the interests of the community ahead of their own.
This last promise gets to the heart of a continued erosion of trust in our system, Mr. Kane argues. “If real world supervisors were perfectly virtuous, they would make themselves politically and financially accountable for the ways in which they exercise their discretion,” he writes. “Perfectly virtuous supervisors would fearlessly bond themselves to disclose enough information about their decision making to allow the community or interested outsiders to determine whether and how badly they neglect, abuse, or mishandle their responsibilities.”
Instead, our regulators refuse to produce complete documentation and accounts of the actions they took during the crisis. And keeping taxpayers in the dark isn’t exemplary ethical behavior. Rather, it is characteristic of what Mr. Kane calls an elitist regulator, one who uses crises to cover up mistakes and expand his or her jurisdiction.
“According to this standard,” Mr. Kane writes, “Fed efforts to use the crisis as a platform for self-congratulation and for securing enlarged systemic-risk authority sidetracks, rather than promotes, effective reform.”
To ensure that regulators live up to the promises they make, Mr. Kane suggests that inspectors general at each agency be charged with regularly auditing the performance of financial overseers. A crucial component of those reviews would be exploring attempts by regulated entities to influence the officials who oversee them. That’s because in financial crises, Mr. Kane explained, crippled institutions pressure the government to rescue them and force other parties (usually the taxpayers) to share their pain.
“We’ve got a very comfortable equilibrium here where Wall Street praises the authorities and the authorities give Wall Street more or less what it wants and they hope that the public really doesn’t understand the depth of the cynicism involved,” Mr. Kane said in an interview. “You keep reading about how wonderful it is that we didn’t have a Great Depression. Well, if they can sell that point of view, then nothing will change.”
Mohegan Sun Reports 11% Decline In August Slot Revenue; Foxwoods Reports 13% Decline
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The Mohegan Sun reported an 11 percent drop in its slot revenue for August compared to the same month last year while Foxwoods reported a 13.3 percent decline in August slot revenues.
Mohegan Sun reported almost $69 million in slot revenue for August. Foxwoods slot revenue for August was $63.1 million.
Both Tribal casinos pay the state of Connecticut 25 percent of their slot revenue.
The Mohegan Sun reported an 11 percent drop in its slot revenue for August compared to the same month last year while Foxwoods reported a 13.3 percent decline in August slot revenues.
Mohegan Sun reported almost $69 million in slot revenue for August. Foxwoods slot revenue for August was $63.1 million.
Both Tribal casinos pay the state of Connecticut 25 percent of their slot revenue.
State Attorney General Signs With Victim In Mohegan Liability Court Case
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Updated
The Tribe's sovereignty may be further defined in a state appeals court action that will challenge whether the Tribe can continue to claim sovereign immunity from state court action in cases involving casino customers who have been over-served alcohol that resulted in accidents after they left the casino.
Connecticut Attorney General Richard Blumenthal filed a brief supporting the position of the family of Emily Vanstaen-Holland, who was 16 when she was hit while walking along the side of a Quaker Hill road about two years ago in October 2007. The driver is alleged to be Glenn Lavigne, a former Tribal Councilor who had been drinking at the casino that night with a friend.
The case is against the Mohegan Tribal Gaming Authority, Tribal officials and Lavigne and seeks monetary damages.
The attorney representing the Vanstaen-Holland family, Michael Reardon, said, "Since tribes have to obtain and apply for liquor permits, our position is they submit to the jurisdiction of the state courts." Reardon has previously said publicly that he would not go into a tribal court.
Mr. Blumenthal said, "Tribal casinos are not immune from the state's Dram Shop Act and other laws that bar reckless dispensing of alcohol." He is asking the appellate court to overturn a trial court ruling that ... held that tribal casinos are exempt from certain liquor laws intended to protect the public safety, according to his press release.
Will the Tribe fight the appeal? Or will the Tribe decide not to fight for the Tribe's sovereignty because it would result in an embarrassing public trial of a former Tribal official. It is believed that unlimited drinks are available for free to former councilors and their guests in parts of the casino. So far, the Tribe hasn't yielded from its position that those harmed by accidents caused by drunk drivers can take up the matter in tribal court.
Although the Tribe maintains that they can be sued in Tribal Court, Blumenthal said, "Generally there are limits in tribal courts as to how much can be recovered and the rights are different procedurally and rules of evidence and other legal procedures are different. The rights of innocent victims can be vindicated in state court under more effective protections provided by state law. An innocent victim whose life is irreparably and often brutally altered by a drunk driving crash should have rights in state court where a jury can assess the facts and a judge can decide the law."
Later in the day, according to The Day newspaper, Lavigne, 49, accepted a plea and "was sentenced to five years in prison suspended after two years served, followed by three years probation for felony evading responsibilty.
Updated
The Tribe's sovereignty may be further defined in a state appeals court action that will challenge whether the Tribe can continue to claim sovereign immunity from state court action in cases involving casino customers who have been over-served alcohol that resulted in accidents after they left the casino.
Connecticut Attorney General Richard Blumenthal filed a brief supporting the position of the family of Emily Vanstaen-Holland, who was 16 when she was hit while walking along the side of a Quaker Hill road about two years ago in October 2007. The driver is alleged to be Glenn Lavigne, a former Tribal Councilor who had been drinking at the casino that night with a friend.
The case is against the Mohegan Tribal Gaming Authority, Tribal officials and Lavigne and seeks monetary damages.
The attorney representing the Vanstaen-Holland family, Michael Reardon, said, "Since tribes have to obtain and apply for liquor permits, our position is they submit to the jurisdiction of the state courts." Reardon has previously said publicly that he would not go into a tribal court.
Mr. Blumenthal said, "Tribal casinos are not immune from the state's Dram Shop Act and other laws that bar reckless dispensing of alcohol." He is asking the appellate court to overturn a trial court ruling that ... held that tribal casinos are exempt from certain liquor laws intended to protect the public safety, according to his press release.
Will the Tribe fight the appeal? Or will the Tribe decide not to fight for the Tribe's sovereignty because it would result in an embarrassing public trial of a former Tribal official. It is believed that unlimited drinks are available for free to former councilors and their guests in parts of the casino. So far, the Tribe hasn't yielded from its position that those harmed by accidents caused by drunk drivers can take up the matter in tribal court.
Although the Tribe maintains that they can be sued in Tribal Court, Blumenthal said, "Generally there are limits in tribal courts as to how much can be recovered and the rights are different procedurally and rules of evidence and other legal procedures are different. The rights of innocent victims can be vindicated in state court under more effective protections provided by state law. An innocent victim whose life is irreparably and often brutally altered by a drunk driving crash should have rights in state court where a jury can assess the facts and a judge can decide the law."
Later in the day, according to The Day newspaper, Lavigne, 49, accepted a plea and "was sentenced to five years in prison suspended after two years served, followed by three years probation for felony evading responsibilty.
Monday, September 14, 2009
Photo: Autumn Leaves Starting To Be Seen At Mohegan
The leaves start changing color on the Mohegan Reservation's western border fronting Route 32 in Uncasville.
State Gaming Policy Board Minutes
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The following are the draft June minutes from the state of Connecticut's gaming policy board held in Newington, Connecticut. The gaming policy board is part of the Division of Special Revenue that serves as the state government's gambling oversight panel.
Links to monthly meeting minutes of the gaming policy board are can be found in a section on the right-hand side of this website.
The minutes are somewhat dated so it is important to note that Keno was not included in the state's budget:
MEETING MINUTES:
Interim Reports
Gambling Regulation: Mr. Tontini briefly reviewed the changes to the hours of operation in the off-track betting system since the Board’s last meeting.
Update: Off-Track Betting – there were seven track approvals completed during the month of May 2009.
The new non-simulcasting site at Milford OTB opened on March 31st. During the second full month of operation it did significantly better than the first month with a total of $282,000 for the month.
Governor Rell signed legislation on June 18th allowing both Milford and Putnam to become simulcast facilities, pending municipal, Gaming Policy Board and Division approval.
Lottery – there were two Instant Games that received preliminary approval and four Instant Games that received final approval during the month of May 2009. Sales started for the new on-line game, Lucky for Life, on March 29, 2009. The eight drawings in May 2009 produced $2.8 million.
Mohegan Sun – there were 80 jackpots of $25,000 or more; six paid $100,000 or more and one jackpot was a wide-area progressive jackpot for the month of May 2009. At the end of May 2009 there were 6,743 slot machines on the floor.
Foxwoods – there were 36 jackpots of $25,000 or more for the month of May 2009. There were three jackpots of $100,000 or more for the same period. There were two wide-area jackpots as well. As of the end of May 2009 Foxwoods had a total of 7,600 slot machines on the floor.
Integrity Assurance: Mr. Virnelli noted that the Board has received the financial statements in their mailed material.
Mr. Virnelli continued saying he performed a brief review of selected state revenue services for the past five fiscal years, and for the ten months of the current fiscal year. He said the review shows that gaming has been one of the four top revenue sources for that time period. It was actually the third highest source until three years ago when the corporation tax surpassed it. Through the first ten months of this year it has drawn back ahead of the corporation tax. The tax figures do not include refunds.
In each year, the personal income tax and the sales and use tax were, by far, the top two highest sources of revenue combined with over 60% of everything that the state received. Personal income tax alone varied between 37% and 45%. By contrast, gaming revenue has been 5-1/4% of all revenue. Even when it was the third highest source, it was still a distant third, about $2.5 billion behind sales and use tax, which was second highest. Gaming revenue, after hitting a peak in fiscal year 2006, dropped in both 2007 and 2008, albeit by less than half a percentage point in 2007 and about 2.14% last year.
Charitable Games: Mr. Bernstein provided the following update on the Charitable Games activity for the months of May and June 2009. On Friday, May 29th, correspondence was sent to bazaar permittees, municipal officials and equipment dealers to inform them that Blower Ball Cash games are now authorized under Public Act No. 09-34. A Blower Ball game is a game of chance where the players wager on a color or number and the winner is determined by the drawing of a colored or numbered ball from a ball blower machine that mixes ping pong balls with blown air. A blower ball machine is the same machine that is used to draw balls at bingo. Blower Ball games were already approved for use with merchandise prize awards; however, this new law now allows for cash prizes up to $50.00 each to be awarded, as well. The new Blower Ball Cash games replace the popular money-wheel games, which were lost in 2003. They are the first cash prize replacement games since the money-wheel’s repeal. The Division has had several calls during June, from organizations interested in conducting Blower Ball games. Thus far, the Division approved six permits for events with such games.
During this period, DAS Procurement Services released the Request for Proposals for a new sealed ticket vendor to potential sealed ticket bidders. A total of twenty-eight questions were received from the interested parties. The Charitable Games staff prepared the requisite responses, which DAS has transmitted to each vendor, along with all questions, for their information. The deadline date for proposals is Tuesday, July 7th.
The last three sealed ticket games ordered for this fiscal year were received on Tuesday, May 19th. They were sent to our independent laboratory for testing. Testing on two of the games has been completed, and they have met all standards, meaning they may be placed on sale when needed.
The proposed Administrative Regulations Governing Amusement And Recreation Bingo For Parent Teacher Associations, approved by the Attorney General in April, were submitted to the Legislative Regulation Review Committee on Monday, June 1st. These proposals will be considered during the Committee’s July meeting, on Tuesday, the 28th.
Preparation is underway for the annual bingo and sealed ticket permit renewals. Fully completed permit applications are transmitted to each permittee, facilitating their completion. Staff spends considerable time reviewing files with our date processing analyst, ensuring that all files are current and correct. The renewal mailings are scheduled to go out on Wednesday, July 22nd.
Legislation: Mr. Bernstein provided a brief update on legislation as follows:
The 2009 regular session of the General Assembly ended on Wednesday, June 3rd. Only two gaming-related proposals affecting the Division were approved.
Public Act No. 09-34, authorizing cash prizes for blower ball games, was passed and signed by the Governor. It took effect from passage.
Also approved was House Bill No. 6358 ‘An Act Concerning Additional Off-Track Betting Branch Facilities’. It was passed by the House on Wednesday, May 6th (116-30), and by the Senate on Friday, May 29th (26-10). It has been assigned Public Act No. 09-132, and was approved by the Governor on Thursday, June 18th. This is the proposal which would increase the number of OTB facilities allowed to have simulcasting, from ten to twelve, by allowing for simulcasting at facilities in
Milford and Putnam, with requisite municipal and state approvals. It was effective from passage.
Many proposals approved by one or more committees died on the calendars of the Senate and House.
Security & Licensing: Mr. Kleber asked Lt. Camarco to present the reports for the Security and Licensing Unit marking his retirement from state service.
Lt. Camarco noted that the Board has received the statistical data prepared by the Division and the Connecticut State Police and offered to answer questions, if any.
Lt. Camarco continued with the following update: one of the biggest issues the Division is looking at is the Connecticut State Police Casino Unit’s retirement program. Most of the Unit is taking advantage of the retirement incentive program. He said Chief Kleber is working with members of the State Police staff to create new liaisons and establish new protocol in communications.
Keno is a proposal for the state. The Division is looking at the best way to license new vendors if it is established. There is a possibility of approximately 500 initial licenses for Keno vendors. Cross training will be necessary in the Security and Licensing Unit.
The Division has seen a slight increase in the hiring of licensees at both casinos due to the summer season. He continued saying that the Division is keeping current with the new licensees, and the Connecticut State Police is current as well. There has been a slight increase in the pending background investigations at the Connecticut State Police that is probably due to the transition as well.
Chairman Farrell asked about the cooperation of the Connecticut State Police regarding the background investigations as they proceed with their transition. Chief Kleber said he has been in contact with Lt. Petrunew and a new lieutenant has been chosen to replace him. Division staff will meet with the new lieutenant and establish the communication process. Chairman Farrell
noted that the Board is deeply concerned with the background checks as it is a serious situation and must be maintained.
Chairman Farrell, on behalf of the Board, wished Mr. Camarco many years of health and happiness in his retirement.
Mr. Camarco thanked the Board for all their support and assistance in the past.
Administrative Hearings: Mrs. Stiber noted that Tiffani Smith, legal typist with the
Hearing Section, had a baby June 13th. Both mom and baby are doing well. Tiffani will return to work in October.
Mrs. Stiber provided the hearing report for the month of May as well as the Freedom of Information reports.
Executive Director’s Report: Executive Director Young provided the following update for the Board: Bruce Kemble, the Division’s CFO, is retiring. He has worked for every Executive Director for the Division. Executive Director Young noted that Bruce is the individual responsible for all behind the scenes work performed to assure that our budgets are intact. He said Bruce has been a great advisor and mentor. Executive Director Young stated that with all the other employees retiring, he will miss Bruce as well.
He continued saying that at the present time there are 23 employees who have filed their papers to retire from the Division. There is no budget as yet for the state, and the Governor has asked all Commissioners to tow the line as long as they can, in hopes that a budget will be in place soon.
Keno is part of the Governor’s budget, however, we will have to wait and see what happens. If Keno is passed, the Division will regulate it.
The Gaming Study is, in essence, complete. It was electronically sent to the Division yesterday. The hard copies should be delivered, hopefully, within the next 24-hours and they will be delivered to the Governor’s office as well as the legislative leadership. Upon receipt of the Study it is up to the Governor’s office and the Public Safety Committee to decide the next step. Executive Director Young said for approximately the next 60 days or so the focus will probably be the budget.
Executive Director Young further stated that there isn’t anything in the study that is a significant surprise. It has documented issues of concern to the Division. The study will memorialize those issues as a state. If modifications to policy are necessary, they will be made.
Chairman Farrell, on behalf of the Board, thanked Bruce for his service to the state and dedication behind the scenes. He wished him many years of health and happiness in his retirement.
New Business: Chairman Farrell asked Executive Director Young and Mr. Osswalt to present the citations to both Paul Bernstein and Bruce Kemble. Both individuals received a citation from the Governor’s office and Paul Bernstein received a citation from the Connecticut General Assembly.
The following are the draft June minutes from the state of Connecticut's gaming policy board held in Newington, Connecticut. The gaming policy board is part of the Division of Special Revenue that serves as the state government's gambling oversight panel.
Links to monthly meeting minutes of the gaming policy board are can be found in a section on the right-hand side of this website.
The minutes are somewhat dated so it is important to note that Keno was not included in the state's budget:
MEETING MINUTES:
Interim Reports
Gambling Regulation: Mr. Tontini briefly reviewed the changes to the hours of operation in the off-track betting system since the Board’s last meeting.
Update: Off-Track Betting – there were seven track approvals completed during the month of May 2009.
The new non-simulcasting site at Milford OTB opened on March 31st. During the second full month of operation it did significantly better than the first month with a total of $282,000 for the month.
Governor Rell signed legislation on June 18th allowing both Milford and Putnam to become simulcast facilities, pending municipal, Gaming Policy Board and Division approval.
Lottery – there were two Instant Games that received preliminary approval and four Instant Games that received final approval during the month of May 2009. Sales started for the new on-line game, Lucky for Life, on March 29, 2009. The eight drawings in May 2009 produced $2.8 million.
Mohegan Sun – there were 80 jackpots of $25,000 or more; six paid $100,000 or more and one jackpot was a wide-area progressive jackpot for the month of May 2009. At the end of May 2009 there were 6,743 slot machines on the floor.
Foxwoods – there were 36 jackpots of $25,000 or more for the month of May 2009. There were three jackpots of $100,000 or more for the same period. There were two wide-area jackpots as well. As of the end of May 2009 Foxwoods had a total of 7,600 slot machines on the floor.
Integrity Assurance: Mr. Virnelli noted that the Board has received the financial statements in their mailed material.
Mr. Virnelli continued saying he performed a brief review of selected state revenue services for the past five fiscal years, and for the ten months of the current fiscal year. He said the review shows that gaming has been one of the four top revenue sources for that time period. It was actually the third highest source until three years ago when the corporation tax surpassed it. Through the first ten months of this year it has drawn back ahead of the corporation tax. The tax figures do not include refunds.
In each year, the personal income tax and the sales and use tax were, by far, the top two highest sources of revenue combined with over 60% of everything that the state received. Personal income tax alone varied between 37% and 45%. By contrast, gaming revenue has been 5-1/4% of all revenue. Even when it was the third highest source, it was still a distant third, about $2.5 billion behind sales and use tax, which was second highest. Gaming revenue, after hitting a peak in fiscal year 2006, dropped in both 2007 and 2008, albeit by less than half a percentage point in 2007 and about 2.14% last year.
Charitable Games: Mr. Bernstein provided the following update on the Charitable Games activity for the months of May and June 2009. On Friday, May 29th, correspondence was sent to bazaar permittees, municipal officials and equipment dealers to inform them that Blower Ball Cash games are now authorized under Public Act No. 09-34. A Blower Ball game is a game of chance where the players wager on a color or number and the winner is determined by the drawing of a colored or numbered ball from a ball blower machine that mixes ping pong balls with blown air. A blower ball machine is the same machine that is used to draw balls at bingo. Blower Ball games were already approved for use with merchandise prize awards; however, this new law now allows for cash prizes up to $50.00 each to be awarded, as well. The new Blower Ball Cash games replace the popular money-wheel games, which were lost in 2003. They are the first cash prize replacement games since the money-wheel’s repeal. The Division has had several calls during June, from organizations interested in conducting Blower Ball games. Thus far, the Division approved six permits for events with such games.
During this period, DAS Procurement Services released the Request for Proposals for a new sealed ticket vendor to potential sealed ticket bidders. A total of twenty-eight questions were received from the interested parties. The Charitable Games staff prepared the requisite responses, which DAS has transmitted to each vendor, along with all questions, for their information. The deadline date for proposals is Tuesday, July 7th.
The last three sealed ticket games ordered for this fiscal year were received on Tuesday, May 19th. They were sent to our independent laboratory for testing. Testing on two of the games has been completed, and they have met all standards, meaning they may be placed on sale when needed.
The proposed Administrative Regulations Governing Amusement And Recreation Bingo For Parent Teacher Associations, approved by the Attorney General in April, were submitted to the Legislative Regulation Review Committee on Monday, June 1st. These proposals will be considered during the Committee’s July meeting, on Tuesday, the 28th.
Preparation is underway for the annual bingo and sealed ticket permit renewals. Fully completed permit applications are transmitted to each permittee, facilitating their completion. Staff spends considerable time reviewing files with our date processing analyst, ensuring that all files are current and correct. The renewal mailings are scheduled to go out on Wednesday, July 22nd.
Legislation: Mr. Bernstein provided a brief update on legislation as follows:
The 2009 regular session of the General Assembly ended on Wednesday, June 3rd. Only two gaming-related proposals affecting the Division were approved.
Public Act No. 09-34, authorizing cash prizes for blower ball games, was passed and signed by the Governor. It took effect from passage.
Also approved was House Bill No. 6358 ‘An Act Concerning Additional Off-Track Betting Branch Facilities’. It was passed by the House on Wednesday, May 6th (116-30), and by the Senate on Friday, May 29th (26-10). It has been assigned Public Act No. 09-132, and was approved by the Governor on Thursday, June 18th. This is the proposal which would increase the number of OTB facilities allowed to have simulcasting, from ten to twelve, by allowing for simulcasting at facilities in
Milford and Putnam, with requisite municipal and state approvals. It was effective from passage.
Many proposals approved by one or more committees died on the calendars of the Senate and House.
Security & Licensing: Mr. Kleber asked Lt. Camarco to present the reports for the Security and Licensing Unit marking his retirement from state service.
Lt. Camarco noted that the Board has received the statistical data prepared by the Division and the Connecticut State Police and offered to answer questions, if any.
Lt. Camarco continued with the following update: one of the biggest issues the Division is looking at is the Connecticut State Police Casino Unit’s retirement program. Most of the Unit is taking advantage of the retirement incentive program. He said Chief Kleber is working with members of the State Police staff to create new liaisons and establish new protocol in communications.
Keno is a proposal for the state. The Division is looking at the best way to license new vendors if it is established. There is a possibility of approximately 500 initial licenses for Keno vendors. Cross training will be necessary in the Security and Licensing Unit.
The Division has seen a slight increase in the hiring of licensees at both casinos due to the summer season. He continued saying that the Division is keeping current with the new licensees, and the Connecticut State Police is current as well. There has been a slight increase in the pending background investigations at the Connecticut State Police that is probably due to the transition as well.
Chairman Farrell asked about the cooperation of the Connecticut State Police regarding the background investigations as they proceed with their transition. Chief Kleber said he has been in contact with Lt. Petrunew and a new lieutenant has been chosen to replace him. Division staff will meet with the new lieutenant and establish the communication process. Chairman Farrell
noted that the Board is deeply concerned with the background checks as it is a serious situation and must be maintained.
Chairman Farrell, on behalf of the Board, wished Mr. Camarco many years of health and happiness in his retirement.
Mr. Camarco thanked the Board for all their support and assistance in the past.
Administrative Hearings: Mrs. Stiber noted that Tiffani Smith, legal typist with the
Hearing Section, had a baby June 13th. Both mom and baby are doing well. Tiffani will return to work in October.
Mrs. Stiber provided the hearing report for the month of May as well as the Freedom of Information reports.
Executive Director’s Report: Executive Director Young provided the following update for the Board: Bruce Kemble, the Division’s CFO, is retiring. He has worked for every Executive Director for the Division. Executive Director Young noted that Bruce is the individual responsible for all behind the scenes work performed to assure that our budgets are intact. He said Bruce has been a great advisor and mentor. Executive Director Young stated that with all the other employees retiring, he will miss Bruce as well.
He continued saying that at the present time there are 23 employees who have filed their papers to retire from the Division. There is no budget as yet for the state, and the Governor has asked all Commissioners to tow the line as long as they can, in hopes that a budget will be in place soon.
Keno is part of the Governor’s budget, however, we will have to wait and see what happens. If Keno is passed, the Division will regulate it.
The Gaming Study is, in essence, complete. It was electronically sent to the Division yesterday. The hard copies should be delivered, hopefully, within the next 24-hours and they will be delivered to the Governor’s office as well as the legislative leadership. Upon receipt of the Study it is up to the Governor’s office and the Public Safety Committee to decide the next step. Executive Director Young said for approximately the next 60 days or so the focus will probably be the budget.
Executive Director Young further stated that there isn’t anything in the study that is a significant surprise. It has documented issues of concern to the Division. The study will memorialize those issues as a state. If modifications to policy are necessary, they will be made.
Chairman Farrell, on behalf of the Board, thanked Bruce for his service to the state and dedication behind the scenes. He wished him many years of health and happiness in his retirement.
New Business: Chairman Farrell asked Executive Director Young and Mr. Osswalt to present the citations to both Paul Bernstein and Bruce Kemble. Both individuals received a citation from the Governor’s office and Paul Bernstein received a citation from the Connecticut General Assembly.
Pennsylvania Governor Ed Rendell Says He'll Sign Off On Budget That Includes Table Games
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Up until Saturday, Pennsylvania Governor Ed Rendell has said that he didn't want table games added to the slot parlors until all of the 14 approved slot parlors were up and running.
The large projected state budget deficits may have changed his mind. Gov. Rendell said at a news conference on budget Saturday that "economic exigencies facing the state make a bill to expand to table games seemingly unavoidable."
"I'm not a huge fan of table games but I would sign it," Rendell said.
Nine of the 14 approved slot parlors are operating. Two of the larger proposed slot parlors that will be located in the city of Philadelphia have not yet been built.
The state legislature in their attempts to put a budget proposal together are projecting revenue from table games in the current fiscal year, figures that Rendell say are too optimistic.
The tax rate on table games is a matter of controversy. Currently, a 12 percent and 21 percent figure have been floating around. Slot machine revenues are now taxed at about 55 percent. It takes more staff to operate table games and it will take more state regulators to monitor the games than it does for slot machines. Other gaming issues are also a matter of contention in the legislature, such as the investigatory authority now held by the state's gaming commission. The state gaming commission, known as the Pennsylvania Gaming Control Board, acknowledged that it would take time to train new staff should table games be permitted.
One of the table games bills in discussion forecasts $200 - $300 million a year in state revenue generated from table games, with a tax rate of 21 percent along with a $10 million initial license fee.
The manager of Mohegan Sun at Pocono Downs, Bobby Soper, told the Standard Speaker media outlet that "Mohegan would initially rearrange its existing facility to add tables, potentially cutting down the number of slot machines on site."
Up until Saturday, Pennsylvania Governor Ed Rendell has said that he didn't want table games added to the slot parlors until all of the 14 approved slot parlors were up and running.
The large projected state budget deficits may have changed his mind. Gov. Rendell said at a news conference on budget Saturday that "economic exigencies facing the state make a bill to expand to table games seemingly unavoidable."
"I'm not a huge fan of table games but I would sign it," Rendell said.
Nine of the 14 approved slot parlors are operating. Two of the larger proposed slot parlors that will be located in the city of Philadelphia have not yet been built.
The state legislature in their attempts to put a budget proposal together are projecting revenue from table games in the current fiscal year, figures that Rendell say are too optimistic.
The tax rate on table games is a matter of controversy. Currently, a 12 percent and 21 percent figure have been floating around. Slot machine revenues are now taxed at about 55 percent. It takes more staff to operate table games and it will take more state regulators to monitor the games than it does for slot machines. Other gaming issues are also a matter of contention in the legislature, such as the investigatory authority now held by the state's gaming commission. The state gaming commission, known as the Pennsylvania Gaming Control Board, acknowledged that it would take time to train new staff should table games be permitted.
One of the table games bills in discussion forecasts $200 - $300 million a year in state revenue generated from table games, with a tax rate of 21 percent along with a $10 million initial license fee.
The manager of Mohegan Sun at Pocono Downs, Bobby Soper, told the Standard Speaker media outlet that "Mohegan would initially rearrange its existing facility to add tables, potentially cutting down the number of slot machines on site."
Editorial: Connecticut Sun Win Last Game Of Year Against Indiana 95-85
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The Connecticut Sun beat Indiana yesterday by a score of 95-85. That was the last regular season game and since the Sun did not make the playoffs, we won't see them until next year.
Yesterday's game attracted more fans than any other home game this year. Attendance was reported at just over 9,047, about 2,000 more people than the other home games.
In every game I watched this year and last year, the Sun seem to limit themselves to taking the riskier outside shots instead of driving to the basket for high-percentage layups. The Feather News noted this in an article last year too.
The Sun lost more games than it won this year. Their season record was 16-18. Fans of any team want their team to be a winner. Tribal members are fans and owners. The Tribe now has a new Tribal Councilor that was a star basketball player in college and perhaps she could act as a coach too. How cool would that be? I guarantee she would have that team driving to the basket and dominating the key around the basket.
Lost games also mean lost revenue. Adding up all of the empty seats for the home games you arrive at thousands and thousands of empty seats for the season. It is still our position that if there are seats available, why not offer them to Tribal members for free. Give the Tribal members something to wave at the game and call them volunteers so there would be no doubt that the free ticket isn't taxable to the Tribal member. The alternative is to let thousands of seats to remain vacant to keep the television audiences wondering why attendance is so low at the games. And to those Tribal members who bought season tickets, they should be refunded the cost as long as there were empty seats at the games in which they attended.
What should the team do about the Sun's head coach Mike Thibault? Is it time for new leadership? Will a Mohegan Tribal Councilor become a mentor or coach to the women's basketball team?
The Connecticut Sun beat Indiana yesterday by a score of 95-85. That was the last regular season game and since the Sun did not make the playoffs, we won't see them until next year.
Yesterday's game attracted more fans than any other home game this year. Attendance was reported at just over 9,047, about 2,000 more people than the other home games.
In every game I watched this year and last year, the Sun seem to limit themselves to taking the riskier outside shots instead of driving to the basket for high-percentage layups. The Feather News noted this in an article last year too.
The Sun lost more games than it won this year. Their season record was 16-18. Fans of any team want their team to be a winner. Tribal members are fans and owners. The Tribe now has a new Tribal Councilor that was a star basketball player in college and perhaps she could act as a coach too. How cool would that be? I guarantee she would have that team driving to the basket and dominating the key around the basket.
Lost games also mean lost revenue. Adding up all of the empty seats for the home games you arrive at thousands and thousands of empty seats for the season. It is still our position that if there are seats available, why not offer them to Tribal members for free. Give the Tribal members something to wave at the game and call them volunteers so there would be no doubt that the free ticket isn't taxable to the Tribal member. The alternative is to let thousands of seats to remain vacant to keep the television audiences wondering why attendance is so low at the games. And to those Tribal members who bought season tickets, they should be refunded the cost as long as there were empty seats at the games in which they attended.
What should the team do about the Sun's head coach Mike Thibault? Is it time for new leadership? Will a Mohegan Tribal Councilor become a mentor or coach to the women's basketball team?
Sunday, September 13, 2009
Pro Basketball Hall Of Famers Visit Mohegan Sun
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The day after Michael Jordan and others were inducted into the basketball hall of fame they gathered at Michael Jordan's Steakhouse at the Mohegan Sun for a private party Saturday night. Other hall of famers at Saturday's party were Karl Malone, David Robinson and John Stockton.
The day after Michael Jordan and others were inducted into the basketball hall of fame they gathered at Michael Jordan's Steakhouse at the Mohegan Sun for a private party Saturday night. Other hall of famers at Saturday's party were Karl Malone, David Robinson and John Stockton.
Boston Globe Article On Mashantucket
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This installment of The Tribes In The Media is a Boston Globe article that appeared in Sunday's newspaper about the events taking place at Mashantucket.
The wonder, and the fall
A source of pride, plenty for Pequots in boom times, struggling Foxwoods now a looming threat to tribe
By Jenn Abelson
The Boston Globe
September 13, 2009
Dozens of Pequots traveled from as far away as California and Hawaii to their native lands in southeastern Connecticut. Many came for the promise of a steady job, and to reconnect with a tribe that had come close to extinction. But Foxwoods did not just help revive the Pequot nation; it made it fabulously wealthy. Within a few years, Foxwoods was the world’s largest and most successful casino resort, an entertainment mecca that racked up more than $1 billion annually.
The fortune yielded nice homes, fancy cars, college degrees, community centers for tribal members, and a massive museum of native history. With the money came fame, as Foxwoods’ significance stretched beyond the tribe’s well-being. The Pequots had paved the way for more than 230 tribes across the country to launch their own gaming enterprises and finally become self-sufficient communities - and thus preserve their native unity.
But now Foxwoods faces financial problems that threaten to tear the tribe apart. Crushed by more than $2 billion in debt from exorbitant expansion, the resort is fighting an uphill battle against sliding revenues because of the economy and increased competition from newer venues. More than 700 layoffs in the last year, or about 6 percent of the workforce, failed to stem the bleeding as slot revenues at the casino continued to drop, plunging 13 percent in July to $63.2 million compared with a year ago.
Foxwoods - once the symbol of the Pequots’ greatest achievement - has become the subject of nationwide speculation that the largest Native American casino could fail.
“The casino helped bring this tribe together. People were so proud,’’ said Debbie Frankovitch, 55, a Pequot who has lived on the reservation her entire life and used to work as a tribal clerk. “Now, the casino is a big embarrassment. It’s just a lot of greed. People wanted more and more. It’s like a nightmare. It’s a shame it’s come to this.’’
The Pequots council chairman, an elected leader who serves at the head of tribal government and the casino, was placed on leave on Aug. 31 after he warned of Foxwoods’ “dire financial straits’’ and reportedly promised to preserve payouts for tribal members before paying off lenders. That set off jitters among creditors, and the fallout has already spread to other tribes. Their bonds are trading at lower prices following the Foxwoods debacle, sparking worries that native casinos such as Mohegan Sun will find it more expensive to borrow money. The tumult threatens to unravel years of unfettered success and tribal security, and dampen efforts to expand native gaming to other states, including Massachusetts.
Pequot leaders declined interviews about the crisis they face. In a statement, the council said: “We remain in compliance with our covenants and are current with regard to our debt obligations. As we continue through this process, the Tribe will be pursuing a mutually beneficial resolution with its banks and bondholders.’’
Discuss
COMMENTS (99)
Like so many other industries, casinos rode the wave of easy credit to success in the years leading up to the recession, and Foxwoods was no exception. The Pequots, who had to go to Malaysia to fund the initial $60 million casino because no one else would lend to them, soon had banks lining up with loan offers as Foxwoods raked in customers - and their cash. The tribe quickly expanded the resort, adding hotels, restaurants, and shops to the complex, which now stands at 4.7 million square feet, nearly 20 times its original size. The Pequots also spent big to acquire nearby businesses and invest in other industries, such as shipbuilding -an expensive effort that later flopped. The casino operation was also a major boon to Connecticut under an arrangement that provides 25 percent of gross slot revenues to the state or a minimum of $100 million annually.
“My job was to build as much as we could as quickly as we could, and make as much money for the tribe as we could,’’ said Mickey Brown, president of Foxwoods from 1993 to 1997.
Brown, a veteran gaming executive, said the debt the resort took on in the early years was sustainable given the huge revenues coming in from the casino. But many Pequots wanted an increasing share of the profits, and individual payments to tribal members, known as incentives or distributions, became part of the operation. At one time, the payments exceeded $120,000 annually for members. Brown said these kinds of distributions didn’t begin until near the end of his employment, but he declined to comment further.
“Over time, the tribe developed some different thoughts and philosophies on how to do things, and it was not a facility I could continue to work for, and they didn’t want me to continue to work,’’ Brown said.
As competition intensified from nearby casinos, such as Mohegan Sun in Uncasville and Twin River in Rhode Island, Foxwoods embarked on a $700 million project to create MGM Grand at Foxwoods, a partnership with one of the premier Las Vegas operators that was intended to redefine Foxwoods’ reputation as a destination for high-end rollers and star talent. As part of a deal announced in 2006, MGM Mirage promised to provide up to $200 million in loans to fund joint casino expansions in new cities, and had scoured for locations in Kansas and Massachusetts.
But by the time the MGM Grand at Foxwoods debuted in May 2008, the recession was well underway, and gambling receipts were dipping sharply nationwide. Plans to export the Pequots’ success to other states were scrapped, and the millions of dollars that Foxwoods expected from new ventures with MGM never materialized as the Las Vegas giant also began to teeter under the recession. Now, the shimmering tower stands as a symbol of excess, with unbooked rooms, empty stores, and a sparsely populated gaming floor. One measure of the slide: Even with the new slot machines at MGM Grand, Foxwoods’ annual contributions to the state have dropped 14 percent since the high of $205 million in 2005.
Discuss
COMMENTS (99)
“Yes, we spent too much money. Of course we made mistakes. We made the same mistakes that everyone else has made across the country,’’ said Roland Fahnbulleh Jr., 33, a tribal member who moved from Boston to the Pequot reservation more than a decade ago. “Why would people expect to hold us to a higher standard? We know we have to buckle down. More than anything, we have to come back together as a tribe.’’
The future of Foxwoods and the Pequots, which have swelled to 832 tribal members from 250 in 1992, has Fahnbulleh worried. The casino employs his wife as a special events coordinator and has helped him start his own multimedia business. Foxwoods is where they held a baby shower, meet up for family dinners, and watch shows. But it’s not just personal income and amusement. Revenues from Foxwoods support the entire community, funding a child-development center Fahnbulleh’s 7-month-old attends, a police force, a post office, and other services for tribal members. Already, the Pequots have seen their distributions slashed by about 30 percent, and many have lost jobs at the casino and are in danger of losing homes.
“The casino is not just equity. They don’t just own it,’’ said an adviser to the tribal council who is not authorized to speak publicly. “They are it.’’
So, dealing with the financial troubles at Foxwoods isn’t just about solving a business problem at a casino. It’s about finding a way to salvage the economic engine that sustains the Pequot nation. And if the Pequots - as one tribal leader suggested - decide to pay members before paying their bills, it could create serious problems for lenders. Because the casino is on reservation land that is considered, under federal law, part of a sovereign nation, lenders cannot turn to the typical remedies in the event of a default, such as foreclosing on Foxwoods and taking ownership. The Pequots have hired a financial firm to try to restructure their debt by cutting interest rates, extending due dates, and exploring whether a bankruptcy is even possible, according to the adviser.
Clyde Barrow, director of the Center for Policy Analysis at the University of Massachusetts at Dartmouth, said Foxwoods has been beset by various problems, and said he believes the casino’s lenders were not fully aware of the magnitude of debt that Foxwoods was accumulating. Other casinos, such as Mohegan Sun, have fared better because they suspended expansion plans when the economy crumbled.
Gaming analysts and casino operators say the ongoing struggles at Foxwoods and the threat of default could have a chilling effect on the entire industry.
“Everyone is reeling a bit from the Foxwoods issues. It has not made things easy,’’ said Leo Chupaska, chief financial officer for the Mohegan Tribal Gaming Authority. “What occurred at Foxwoods is a negative for the entire Native American gaming sector.’’
Across Foxwoods and the surrounding reservation, the anxiety and frustration are palpable. Nervous employees try to untangle rumors and express worries about job security. And some tribal members have talked of clashes within their own families over the right course of action. On almost every street corner, Tony Beltrane, who is running for tribal council in November, has stuck white signs emblazoned with the question: “Haven’t we had enough yet?’’
Charles Rogers, a Pequot who now lives in Groton, said the tribe looked at Foxwoods as a bottomless pit of money and it poisoned a community of people who suddenly achieved a lifestyle they had never imagined.
“The casino allowed people to come forward and admit who they are, and it offered a sense of pride and stability. But then it evolved into a sense of entitlement,’’ Rogers said. “This entitlement and one-upmanship and ego is really what’s ruining this tribe and ruining the casino. How much money is enough? At what point do you ask yourself that question? For some people, there’s never enough.’’
This installment of The Tribes In The Media is a Boston Globe article that appeared in Sunday's newspaper about the events taking place at Mashantucket.
The wonder, and the fall
A source of pride, plenty for Pequots in boom times, struggling Foxwoods now a looming threat to tribe
By Jenn Abelson
The Boston Globe
September 13, 2009
Dozens of Pequots traveled from as far away as California and Hawaii to their native lands in southeastern Connecticut. Many came for the promise of a steady job, and to reconnect with a tribe that had come close to extinction. But Foxwoods did not just help revive the Pequot nation; it made it fabulously wealthy. Within a few years, Foxwoods was the world’s largest and most successful casino resort, an entertainment mecca that racked up more than $1 billion annually.
The fortune yielded nice homes, fancy cars, college degrees, community centers for tribal members, and a massive museum of native history. With the money came fame, as Foxwoods’ significance stretched beyond the tribe’s well-being. The Pequots had paved the way for more than 230 tribes across the country to launch their own gaming enterprises and finally become self-sufficient communities - and thus preserve their native unity.
But now Foxwoods faces financial problems that threaten to tear the tribe apart. Crushed by more than $2 billion in debt from exorbitant expansion, the resort is fighting an uphill battle against sliding revenues because of the economy and increased competition from newer venues. More than 700 layoffs in the last year, or about 6 percent of the workforce, failed to stem the bleeding as slot revenues at the casino continued to drop, plunging 13 percent in July to $63.2 million compared with a year ago.
Foxwoods - once the symbol of the Pequots’ greatest achievement - has become the subject of nationwide speculation that the largest Native American casino could fail.
“The casino helped bring this tribe together. People were so proud,’’ said Debbie Frankovitch, 55, a Pequot who has lived on the reservation her entire life and used to work as a tribal clerk. “Now, the casino is a big embarrassment. It’s just a lot of greed. People wanted more and more. It’s like a nightmare. It’s a shame it’s come to this.’’
The Pequots council chairman, an elected leader who serves at the head of tribal government and the casino, was placed on leave on Aug. 31 after he warned of Foxwoods’ “dire financial straits’’ and reportedly promised to preserve payouts for tribal members before paying off lenders. That set off jitters among creditors, and the fallout has already spread to other tribes. Their bonds are trading at lower prices following the Foxwoods debacle, sparking worries that native casinos such as Mohegan Sun will find it more expensive to borrow money. The tumult threatens to unravel years of unfettered success and tribal security, and dampen efforts to expand native gaming to other states, including Massachusetts.
Pequot leaders declined interviews about the crisis they face. In a statement, the council said: “We remain in compliance with our covenants and are current with regard to our debt obligations. As we continue through this process, the Tribe will be pursuing a mutually beneficial resolution with its banks and bondholders.’’
Discuss
COMMENTS (99)
Like so many other industries, casinos rode the wave of easy credit to success in the years leading up to the recession, and Foxwoods was no exception. The Pequots, who had to go to Malaysia to fund the initial $60 million casino because no one else would lend to them, soon had banks lining up with loan offers as Foxwoods raked in customers - and their cash. The tribe quickly expanded the resort, adding hotels, restaurants, and shops to the complex, which now stands at 4.7 million square feet, nearly 20 times its original size. The Pequots also spent big to acquire nearby businesses and invest in other industries, such as shipbuilding -an expensive effort that later flopped. The casino operation was also a major boon to Connecticut under an arrangement that provides 25 percent of gross slot revenues to the state or a minimum of $100 million annually.
“My job was to build as much as we could as quickly as we could, and make as much money for the tribe as we could,’’ said Mickey Brown, president of Foxwoods from 1993 to 1997.
Brown, a veteran gaming executive, said the debt the resort took on in the early years was sustainable given the huge revenues coming in from the casino. But many Pequots wanted an increasing share of the profits, and individual payments to tribal members, known as incentives or distributions, became part of the operation. At one time, the payments exceeded $120,000 annually for members. Brown said these kinds of distributions didn’t begin until near the end of his employment, but he declined to comment further.
“Over time, the tribe developed some different thoughts and philosophies on how to do things, and it was not a facility I could continue to work for, and they didn’t want me to continue to work,’’ Brown said.
As competition intensified from nearby casinos, such as Mohegan Sun in Uncasville and Twin River in Rhode Island, Foxwoods embarked on a $700 million project to create MGM Grand at Foxwoods, a partnership with one of the premier Las Vegas operators that was intended to redefine Foxwoods’ reputation as a destination for high-end rollers and star talent. As part of a deal announced in 2006, MGM Mirage promised to provide up to $200 million in loans to fund joint casino expansions in new cities, and had scoured for locations in Kansas and Massachusetts.
But by the time the MGM Grand at Foxwoods debuted in May 2008, the recession was well underway, and gambling receipts were dipping sharply nationwide. Plans to export the Pequots’ success to other states were scrapped, and the millions of dollars that Foxwoods expected from new ventures with MGM never materialized as the Las Vegas giant also began to teeter under the recession. Now, the shimmering tower stands as a symbol of excess, with unbooked rooms, empty stores, and a sparsely populated gaming floor. One measure of the slide: Even with the new slot machines at MGM Grand, Foxwoods’ annual contributions to the state have dropped 14 percent since the high of $205 million in 2005.
Discuss
COMMENTS (99)
“Yes, we spent too much money. Of course we made mistakes. We made the same mistakes that everyone else has made across the country,’’ said Roland Fahnbulleh Jr., 33, a tribal member who moved from Boston to the Pequot reservation more than a decade ago. “Why would people expect to hold us to a higher standard? We know we have to buckle down. More than anything, we have to come back together as a tribe.’’
The future of Foxwoods and the Pequots, which have swelled to 832 tribal members from 250 in 1992, has Fahnbulleh worried. The casino employs his wife as a special events coordinator and has helped him start his own multimedia business. Foxwoods is where they held a baby shower, meet up for family dinners, and watch shows. But it’s not just personal income and amusement. Revenues from Foxwoods support the entire community, funding a child-development center Fahnbulleh’s 7-month-old attends, a police force, a post office, and other services for tribal members. Already, the Pequots have seen their distributions slashed by about 30 percent, and many have lost jobs at the casino and are in danger of losing homes.
“The casino is not just equity. They don’t just own it,’’ said an adviser to the tribal council who is not authorized to speak publicly. “They are it.’’
So, dealing with the financial troubles at Foxwoods isn’t just about solving a business problem at a casino. It’s about finding a way to salvage the economic engine that sustains the Pequot nation. And if the Pequots - as one tribal leader suggested - decide to pay members before paying their bills, it could create serious problems for lenders. Because the casino is on reservation land that is considered, under federal law, part of a sovereign nation, lenders cannot turn to the typical remedies in the event of a default, such as foreclosing on Foxwoods and taking ownership. The Pequots have hired a financial firm to try to restructure their debt by cutting interest rates, extending due dates, and exploring whether a bankruptcy is even possible, according to the adviser.
Clyde Barrow, director of the Center for Policy Analysis at the University of Massachusetts at Dartmouth, said Foxwoods has been beset by various problems, and said he believes the casino’s lenders were not fully aware of the magnitude of debt that Foxwoods was accumulating. Other casinos, such as Mohegan Sun, have fared better because they suspended expansion plans when the economy crumbled.
Gaming analysts and casino operators say the ongoing struggles at Foxwoods and the threat of default could have a chilling effect on the entire industry.
“Everyone is reeling a bit from the Foxwoods issues. It has not made things easy,’’ said Leo Chupaska, chief financial officer for the Mohegan Tribal Gaming Authority. “What occurred at Foxwoods is a negative for the entire Native American gaming sector.’’
Across Foxwoods and the surrounding reservation, the anxiety and frustration are palpable. Nervous employees try to untangle rumors and express worries about job security. And some tribal members have talked of clashes within their own families over the right course of action. On almost every street corner, Tony Beltrane, who is running for tribal council in November, has stuck white signs emblazoned with the question: “Haven’t we had enough yet?’’
Charles Rogers, a Pequot who now lives in Groton, said the tribe looked at Foxwoods as a bottomless pit of money and it poisoned a community of people who suddenly achieved a lifestyle they had never imagined.
“The casino allowed people to come forward and admit who they are, and it offered a sense of pride and stability. But then it evolved into a sense of entitlement,’’ Rogers said. “This entitlement and one-upmanship and ego is really what’s ruining this tribe and ruining the casino. How much money is enough? At what point do you ask yourself that question? For some people, there’s never enough.’’
Hammonassett Festival To Be Held October 3 - 4
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The Friends of Hammonassett will be holding their third bi-annual event at Hammonassett Beach State Park in Madison, Connecticut on October 3rd and 4th.
The festival celebrates nature and acquaints visitors with slices of Indian culture, including a workshop that will show you how to use an atlatl, a groomed rock that is held at the end of a spear to give it more speed when throwing it and was used prior to the bow and arrow. Artifacts from the area, some up to several thousand years old according to the sponsors of the festival, will be on display.
Others will demonstrate the art of making arrowheads (flint knapping) and other ancient technologies.
The U.S. Coast Guard will participate with the Native American Color Guard to begin the festival on Oct 3. The festival's Facebook profile describes the activities as "Two days of native American culture, art, music, dance, crafts, plus numerous exhibits relating to the environment and the world around us."
Connecticut DEP will hold a coyote exhibit and talk about living with coyotes. Taino Indians, from the Carribean, will display feathered headdresses, clay statues, gourds, weapons, musical instruments and other items from their culture.
The festival begins at 10 a.m. and its free.
The Friends of Hammonassett will be holding their third bi-annual event at Hammonassett Beach State Park in Madison, Connecticut on October 3rd and 4th.
The festival celebrates nature and acquaints visitors with slices of Indian culture, including a workshop that will show you how to use an atlatl, a groomed rock that is held at the end of a spear to give it more speed when throwing it and was used prior to the bow and arrow. Artifacts from the area, some up to several thousand years old according to the sponsors of the festival, will be on display.
Others will demonstrate the art of making arrowheads (flint knapping) and other ancient technologies.
The U.S. Coast Guard will participate with the Native American Color Guard to begin the festival on Oct 3. The festival's Facebook profile describes the activities as "Two days of native American culture, art, music, dance, crafts, plus numerous exhibits relating to the environment and the world around us."
Connecticut DEP will hold a coyote exhibit and talk about living with coyotes. Taino Indians, from the Carribean, will display feathered headdresses, clay statues, gourds, weapons, musical instruments and other items from their culture.
The festival begins at 10 a.m. and its free.
Saturday, September 12, 2009
Another View Of The Brothertown Indians Federal Recognition Hurdles
Feather News
This installment of The Tribes In The Media is an Indian Country Today article on the Bureau of Indian Affairs denial of the Brothertown Indians federal recognition bid. The Brothertown Indians' origin sprung, in part, from the Mohegan community.
The Feather News previously reported on the Brothertowns and noted a timeline prepared by Mohegan Archivist Faith Davison, "In 1773, at a general meeting of Christian New England Indians held at Mohegan, a decision was reached to send Joseph Johnson and Elijah Wampy along with representatives from the seven tribes to the Oneida Indians (in New York) to see if they would donate land for a settlement. It would offer these members an opportunity to maintain a semblance of traditional village life along with an autonomous Indian-supported Christian church."
The Brothertown Indians later left the lands acquired from the Oneidas in New York and moved to Wisconsin. Their departure westward was not at the behest of the federal government despite the federal Indian Removal Act being implemented near that time. According to the Brothertown Indian Tribe, "Five groups of Brothertown arrived in Wisconsin on ships at the port of Green Bay between 1831 and 1836."
BIA denies Brothertown federal acknowledgment
Bureau reverses 1993 Interior finding that tribe was not terminated in 1839
By Gale Courey Toensing
Indian Country Today
September 11, 2009
WASHINGTON – The Brothertown Indian Nation is determined to continue its quest for federal acknowledgment despite a BIA preliminary ruling to deny them federal status.
The BIA issued a Proposed Finding to deny the nation federal acknowledgment Aug. 17, stating that “evidence in the record demonstrates that the petitioner does not meet five of the seven mandatory criteria for federal acknowledgment” set forth in the statute.
“Therefore, the department proposes to decline to acknowledge the Brothertown petitioner,” the BIA said in a press release issued by Principal Deputy Assistant Secretary George Skibine, who oversaw the finding.
The Proposed Finding acknowledges that Brothertown was previously recognized by the federal government.
“The evidence in the record indicates that a Senate proviso to a treaty of 1831, a treaty of 1832 and an act of 1839 constitute ‘unambiguous previous federal acknowledgment’ of the Brothertown Indian tribe of Wisconsin,” the press release said.
But the BIA said the tribe lost its federal status in 1839.
“Congress, in the act of 1839, brought federal recognition of the relationship with the Brothertown Indian tribe of Wisconsin to an end. By expressly denying the Brothertown of Wisconsin any federal recognition of a right to act as a tribal political entity, Congress has forbidden the federal government from acknowledging the Brothertown as a government and from having a government-to-government relationship with the Brothertown as an Indian tribe,” read the press release.
The BIA’s finding that the tribe was terminated by the 1839 act of Congress is potentially the most fatal – and most controversial – roadblock to the Brothertown Indian Nation’s petition, because one of the seven mandatory criterion for federal acknowledgment is the tribe must not have been terminated by Congress.
In order to reach that conclusion, the BIA had to reinterpret a 1993 memorandum from the Interior Department’s Office of the Solicitor which concurred with an earlier finding by the Office of the Field Solicitor in Twin Cities that the act of 1839 “did not constitute termination of the Brothertown tribe. We find no reason to disagree with the Field Solicitor on this matter.”
The memorandum went on to say that the solicitor’s office had no information about whether the contemporary tribe would meet the criteria for federal acknowledgment, but it was eligible to try.
“Since we believe the Brothertown tribe was not terminated by the act of March 3, 1839, Stat. 349, the group calling themselves the Brothertown Indians is eligible to petition the department for federal acknowledgment as an Indian tribe pursuant to (the statutes),” the memo says.
“That’s our biggest concern,” said Brothertown tribal council Chairman Richard Schadewald. “In 1993 we were assured that we weren’t terminated or else why would we have spent the last 16 years doing all this work? And now all of a sudden they are throwing this back at us? So that’s a major disappointment because we were assured that we had the right to ask for acknowledgment through the Office of Federal Acknowledgement.”
Lee Fleming, OFA director, declined to explain the finding.
“I’d rather have the finding speak for itself. There’s quite a bit of discussion regarding this criterion that needs to be read by the petitioner, interested parties, and the general public because we’re in what is known as the 180-day public comment period in which we invite the parties to comment on our finding, and when we receive the comments then the petitioner has 60 days to read other people’s comments and respond to those, and then we move forward in reviewing all the comments and responses as we work on the final determination.”
The Brothertown Indian Nation is a unique tribe that was formed in 1785 by members of various eastern coastal nations battered almost to extinction by more than 100 years of European invasion, colonization, wars and disease. The members came from Connecticut, Rhode Island and Long Island tribes – Mohegan, Pequot, Narragansett, Montauk, Niantic and Tunxis – who moved to Oneida territory in upstate New York where the Oneida Indian Nation had set aside land for them. The Brothertown was formalized in 1785, and later moved to Wisconsin where a majority of members still live.
In addition to the termination finding, the Proposed Finding says Brothertown didn’t meet the criteria that require recognition as an American Indian “entity” on a “substantially continuous” basis; proof of continuous political authority; proof of continuous community; and proof that all the members descend from the historical tribe.
Kathleen A. Brown-Pérez, chair of the tribe’s federal acknowledgment committee, said the finding was “a huge disappointment.” Brown-Perez is an attorney and assistant professor of Native American Indian Studies at the University of Massachusetts, Amherst. She rewrote the tribe’s petition that was submitted in 2005 along with “10 banker’s boxes of evidence.
“You know, honestly, we thought we had it in the bag, we really did, so this ruling was a shock.”
The most frustrating thing, Brown-Perez said, was the finding of termination.
“If there’s any doubt at all whether a tribe was terminated – which there was with the Brothertown Indians – then Interior has to issue a ruling that the tribe was never terminated. We got that ruling and we spent countless years putting together our petition and waiting and waiting and waiting. Had we been told right off in 1993 that we’d been terminated, we would have appealed to Congress to un-terminate us. They didn’t do that. We wasted 16 years for the BIA to put us through the process and now they tell us, ‘You know what? We weren’t really serious when we told you you’d never been terminated.’ It’s horrible.
“I’m just wondering, once they decided that we were terminated, did they even really look at our petition and our supporting evidence?”
The tribe did all its own research and petition writing, Schadewald said.
“It was all a volunteer effort by our members. We’re not backed by any gaming promoters or any external group or anything. So that heightens our disappointment. We’re disappointed, but we’re determined. We’re going to take a good hard look at it and keep on going.”
This installment of The Tribes In The Media is an Indian Country Today article on the Bureau of Indian Affairs denial of the Brothertown Indians federal recognition bid. The Brothertown Indians' origin sprung, in part, from the Mohegan community.
The Feather News previously reported on the Brothertowns and noted a timeline prepared by Mohegan Archivist Faith Davison, "In 1773, at a general meeting of Christian New England Indians held at Mohegan, a decision was reached to send Joseph Johnson and Elijah Wampy along with representatives from the seven tribes to the Oneida Indians (in New York) to see if they would donate land for a settlement. It would offer these members an opportunity to maintain a semblance of traditional village life along with an autonomous Indian-supported Christian church."
The Brothertown Indians later left the lands acquired from the Oneidas in New York and moved to Wisconsin. Their departure westward was not at the behest of the federal government despite the federal Indian Removal Act being implemented near that time. According to the Brothertown Indian Tribe, "Five groups of Brothertown arrived in Wisconsin on ships at the port of Green Bay between 1831 and 1836."
BIA denies Brothertown federal acknowledgment
Bureau reverses 1993 Interior finding that tribe was not terminated in 1839
By Gale Courey Toensing
Indian Country Today
September 11, 2009
WASHINGTON – The Brothertown Indian Nation is determined to continue its quest for federal acknowledgment despite a BIA preliminary ruling to deny them federal status.
The BIA issued a Proposed Finding to deny the nation federal acknowledgment Aug. 17, stating that “evidence in the record demonstrates that the petitioner does not meet five of the seven mandatory criteria for federal acknowledgment” set forth in the statute.
“Therefore, the department proposes to decline to acknowledge the Brothertown petitioner,” the BIA said in a press release issued by Principal Deputy Assistant Secretary George Skibine, who oversaw the finding.
The Proposed Finding acknowledges that Brothertown was previously recognized by the federal government.
“The evidence in the record indicates that a Senate proviso to a treaty of 1831, a treaty of 1832 and an act of 1839 constitute ‘unambiguous previous federal acknowledgment’ of the Brothertown Indian tribe of Wisconsin,” the press release said.
But the BIA said the tribe lost its federal status in 1839.
“Congress, in the act of 1839, brought federal recognition of the relationship with the Brothertown Indian tribe of Wisconsin to an end. By expressly denying the Brothertown of Wisconsin any federal recognition of a right to act as a tribal political entity, Congress has forbidden the federal government from acknowledging the Brothertown as a government and from having a government-to-government relationship with the Brothertown as an Indian tribe,” read the press release.
The BIA’s finding that the tribe was terminated by the 1839 act of Congress is potentially the most fatal – and most controversial – roadblock to the Brothertown Indian Nation’s petition, because one of the seven mandatory criterion for federal acknowledgment is the tribe must not have been terminated by Congress.
In order to reach that conclusion, the BIA had to reinterpret a 1993 memorandum from the Interior Department’s Office of the Solicitor which concurred with an earlier finding by the Office of the Field Solicitor in Twin Cities that the act of 1839 “did not constitute termination of the Brothertown tribe. We find no reason to disagree with the Field Solicitor on this matter.”
The memorandum went on to say that the solicitor’s office had no information about whether the contemporary tribe would meet the criteria for federal acknowledgment, but it was eligible to try.
“Since we believe the Brothertown tribe was not terminated by the act of March 3, 1839, Stat. 349, the group calling themselves the Brothertown Indians is eligible to petition the department for federal acknowledgment as an Indian tribe pursuant to (the statutes),” the memo says.
“That’s our biggest concern,” said Brothertown tribal council Chairman Richard Schadewald. “In 1993 we were assured that we weren’t terminated or else why would we have spent the last 16 years doing all this work? And now all of a sudden they are throwing this back at us? So that’s a major disappointment because we were assured that we had the right to ask for acknowledgment through the Office of Federal Acknowledgement.”
Lee Fleming, OFA director, declined to explain the finding.
“I’d rather have the finding speak for itself. There’s quite a bit of discussion regarding this criterion that needs to be read by the petitioner, interested parties, and the general public because we’re in what is known as the 180-day public comment period in which we invite the parties to comment on our finding, and when we receive the comments then the petitioner has 60 days to read other people’s comments and respond to those, and then we move forward in reviewing all the comments and responses as we work on the final determination.”
The Brothertown Indian Nation is a unique tribe that was formed in 1785 by members of various eastern coastal nations battered almost to extinction by more than 100 years of European invasion, colonization, wars and disease. The members came from Connecticut, Rhode Island and Long Island tribes – Mohegan, Pequot, Narragansett, Montauk, Niantic and Tunxis – who moved to Oneida territory in upstate New York where the Oneida Indian Nation had set aside land for them. The Brothertown was formalized in 1785, and later moved to Wisconsin where a majority of members still live.
In addition to the termination finding, the Proposed Finding says Brothertown didn’t meet the criteria that require recognition as an American Indian “entity” on a “substantially continuous” basis; proof of continuous political authority; proof of continuous community; and proof that all the members descend from the historical tribe.
Kathleen A. Brown-Pérez, chair of the tribe’s federal acknowledgment committee, said the finding was “a huge disappointment.” Brown-Perez is an attorney and assistant professor of Native American Indian Studies at the University of Massachusetts, Amherst. She rewrote the tribe’s petition that was submitted in 2005 along with “10 banker’s boxes of evidence.
“You know, honestly, we thought we had it in the bag, we really did, so this ruling was a shock.”
The most frustrating thing, Brown-Perez said, was the finding of termination.
“If there’s any doubt at all whether a tribe was terminated – which there was with the Brothertown Indians – then Interior has to issue a ruling that the tribe was never terminated. We got that ruling and we spent countless years putting together our petition and waiting and waiting and waiting. Had we been told right off in 1993 that we’d been terminated, we would have appealed to Congress to un-terminate us. They didn’t do that. We wasted 16 years for the BIA to put us through the process and now they tell us, ‘You know what? We weren’t really serious when we told you you’d never been terminated.’ It’s horrible.
“I’m just wondering, once they decided that we were terminated, did they even really look at our petition and our supporting evidence?”
The tribe did all its own research and petition writing, Schadewald said.
“It was all a volunteer effort by our members. We’re not backed by any gaming promoters or any external group or anything. So that heightens our disappointment. We’re disappointed, but we’re determined. We’re going to take a good hard look at it and keep on going.”
Pennsylvania's Dance To Add Table Games To Its Slot Parlors Gains Momentum As Item In State Budget Projection
Feather News
This installment of The Tribes In The Media is a Philadelphia Inquirer article on the possibility of adding table games to the slot parlors in Pennsylvania. Should the state allow table games, a key question is: At what rate will revenues derived from table games be taxed? Two proposals, one asking for a 12 percent tax on table games and the other proposal almost double that rate at 21 percent, are currently floating around Harrisburgh. Table games are more expensive than slot machines to operate because of the added staff needed.
Odds improving for Pa. table games
By Suzette Parmley
The Philadelphia Inquirer
September 12, 2009
For those who are not fans of slot machines, Pennsylvania's casinos might soon beckon your business with the addition of blackjack, poker, or craps.
After months of opposition to adding table games at the state's slots-only casinos, leading lawmakers in Harrisburg have gotten on board and are proposing to legalize them.
Senate Majority Leader Dominic Pileggi (R., Delaware), a onetime foe, said the state's protracted budget impasse was partly the reason for the change.
A $28 billion budget accord unveiled yesterday in Harrisburg includes $200 million in the next fiscal year that would come from the addition of table games, such as those found in Atlantic City and Las Vegas.
Legislation would need to be passed in the next few weeks to provide budget help, but already, proponents say just having tables in the plan was recognition that they were moving closer to reality.
"The bold reality of the moment is a dire need for additional state revenue," said Rep. Bill DeWeese (D., Greene). He sponsored a plan to allow table games that stalled in committee in July.
He said he expected the final table-games legislation to be a hybrid between that bill and one backed by Sen. Tommy Tomlinson (R., Bucks).
Both bills require casino operators to each pay a $10 million licensing fee, but differ in tax rates on gross gambling revenue - the amount to go to the state. DeWeese's bill would tax table games 21 percent; Tomlinson's taxes them 12 percent.
A spokesman for Gov. Rendell, Gary Tuma, said last night: "Conceptually the governor is not opposed to legalizing table games."
He added: "The problem he saw in today's plan was ... lawmakers overestimated the revenues derived from table games in the current fiscal year."
If legislation allowing table games is signed into law, the state Gaming Control Board said it would take six to nine months to implement them. So far, nine of the 14 licensed venues have opened. Five more need to be built, including two on Philadelphia's waterfront.
At least one Pennsylvania casino operator says it would be ready. "If the tax rate is reasonable, table games will be a great addition for the Rivers Casino" in Pittsburgh, said its president and chief operating officer, Ed Fasulo.
But gambling opponent Paul Clymer (R., Bucks), a member of the House Gaming Oversight Committee, said table games would mean more social problems for the state.
"Tables games will just create more gambling addiction," he said. "Table games create a whole new venue for people who would not consider slot machines but like the competitiveness of table games."
Senate Majority Leader Pileggi said any effort to add table games should include certain gaming reforms.
He wants a lifetime ban on applicants with a felony conviction who seek a principal or key casino employee license.
"We said all along that table games could happen as long as it was done in an open and accessible process, and that reforms to the existing [gambling] law were enacted first," he said.
For Atlantic City's 11 casinos, which have lost a substantial amount of slots business to Pennsylvania, table games spell more trouble. About 30 percent of their gambling revenue comes from table games.
"Quantitatively, it means Atlantic City will face a continued decline in their gambling revenues, and now more so from tables than slots," said analyst Andrew Zarnett of Deutsche Bank. "By Pennsylvania offering table games, it takes away one of Atlantic City's competitive advantages."
This installment of The Tribes In The Media is a Philadelphia Inquirer article on the possibility of adding table games to the slot parlors in Pennsylvania. Should the state allow table games, a key question is: At what rate will revenues derived from table games be taxed? Two proposals, one asking for a 12 percent tax on table games and the other proposal almost double that rate at 21 percent, are currently floating around Harrisburgh. Table games are more expensive than slot machines to operate because of the added staff needed.
Odds improving for Pa. table games
By Suzette Parmley
The Philadelphia Inquirer
September 12, 2009
For those who are not fans of slot machines, Pennsylvania's casinos might soon beckon your business with the addition of blackjack, poker, or craps.
After months of opposition to adding table games at the state's slots-only casinos, leading lawmakers in Harrisburg have gotten on board and are proposing to legalize them.
Senate Majority Leader Dominic Pileggi (R., Delaware), a onetime foe, said the state's protracted budget impasse was partly the reason for the change.
A $28 billion budget accord unveiled yesterday in Harrisburg includes $200 million in the next fiscal year that would come from the addition of table games, such as those found in Atlantic City and Las Vegas.
Legislation would need to be passed in the next few weeks to provide budget help, but already, proponents say just having tables in the plan was recognition that they were moving closer to reality.
"The bold reality of the moment is a dire need for additional state revenue," said Rep. Bill DeWeese (D., Greene). He sponsored a plan to allow table games that stalled in committee in July.
He said he expected the final table-games legislation to be a hybrid between that bill and one backed by Sen. Tommy Tomlinson (R., Bucks).
Both bills require casino operators to each pay a $10 million licensing fee, but differ in tax rates on gross gambling revenue - the amount to go to the state. DeWeese's bill would tax table games 21 percent; Tomlinson's taxes them 12 percent.
A spokesman for Gov. Rendell, Gary Tuma, said last night: "Conceptually the governor is not opposed to legalizing table games."
He added: "The problem he saw in today's plan was ... lawmakers overestimated the revenues derived from table games in the current fiscal year."
If legislation allowing table games is signed into law, the state Gaming Control Board said it would take six to nine months to implement them. So far, nine of the 14 licensed venues have opened. Five more need to be built, including two on Philadelphia's waterfront.
At least one Pennsylvania casino operator says it would be ready. "If the tax rate is reasonable, table games will be a great addition for the Rivers Casino" in Pittsburgh, said its president and chief operating officer, Ed Fasulo.
But gambling opponent Paul Clymer (R., Bucks), a member of the House Gaming Oversight Committee, said table games would mean more social problems for the state.
"Tables games will just create more gambling addiction," he said. "Table games create a whole new venue for people who would not consider slot machines but like the competitiveness of table games."
Senate Majority Leader Pileggi said any effort to add table games should include certain gaming reforms.
He wants a lifetime ban on applicants with a felony conviction who seek a principal or key casino employee license.
"We said all along that table games could happen as long as it was done in an open and accessible process, and that reforms to the existing [gambling] law were enacted first," he said.
For Atlantic City's 11 casinos, which have lost a substantial amount of slots business to Pennsylvania, table games spell more trouble. About 30 percent of their gambling revenue comes from table games.
"Quantitatively, it means Atlantic City will face a continued decline in their gambling revenues, and now more so from tables than slots," said analyst Andrew Zarnett of Deutsche Bank. "By Pennsylvania offering table games, it takes away one of Atlantic City's competitive advantages."
Connecticut Sun Loses To Atlanta; Won't Go On To Playoffs
Feather News
The Connecticut Sun's loss to Atlanta last night by a score of 88-64 means the Sun will not make it to the playoffs for the first time since their relocation from Orlando in 2003.
The Sun (15-18) will play their last regular season game of the year against Indiana on Sunday at the Mohegan Sun Arena.
The Connecticut Sun's loss to Atlanta last night by a score of 88-64 means the Sun will not make it to the playoffs for the first time since their relocation from Orlando in 2003.
The Sun (15-18) will play their last regular season game of the year against Indiana on Sunday at the Mohegan Sun Arena.
Friday, September 11, 2009
Mashantucket Tribal Council Doesn't Act On Expelling Chairman
Feather News
The Day is reporting today that the Mashantucket Tribal Council has not acted on expelling their chairman, Michael Thomas, from the Tribal Council.
Councilors put Thomas on administrative leave after Thomas sent a letter to Tribal members in August on the Tribe's difficult financial situation and suggested that they could vote to oust him from the Tribal Council at a meeting to be held yesterday.
It is reported that Thomas will not resign and will not seek re-election this Fall.
The Day is reporting today that the Mashantucket Tribal Council has not acted on expelling their chairman, Michael Thomas, from the Tribal Council.
Councilors put Thomas on administrative leave after Thomas sent a letter to Tribal members in August on the Tribe's difficult financial situation and suggested that they could vote to oust him from the Tribal Council at a meeting to be held yesterday.
It is reported that Thomas will not resign and will not seek re-election this Fall.
Thursday, September 10, 2009
Local Wii Bowling Tournament Held In Cabaret
Feather News
This installment of The Tribes In The Media is a Norwich Bulletin article about a Wii bowling tournament held in the casino's Cabaret Theatre.
The Cabaret Theater at Mohegan Sun has basically been eliminated as one of the casino's busy music venues but other activities take place in the theatre, which was built as part of the 2001 expansion that added the Sky casino and hotel and the retail/restaurant corridor that links the Sky casino with the original Earth casino.
A Nintendo Wii bowling tournament was held in the Cabaret for seniors. The MTGA's Connecticut Sun basketball team furnished the prizes, including a first-place prize of a private booth at this weekend's Tony Orlando concert in the Wolf Den bar.
Seniors hit the virtual lanes at Mohegan Sun
Tournament brings together Wii bowlers from across the state
By Ryan Blessing
Norwich Bulletin
September 9, 2009
Mohegan, Conn. — There was excitement, good-spirited rivalry and even minor controversy at the Connecticut Sun’s Senior Wii Bowling Tournament Wednesday at Mohegan Sun.
The Sun’s first Wii tournament builds on the new trend of seniors getting together to challenge their peers in neighboring communities to bowling games on the Nintendo Wii video game console. Several senior citizen centers in Eastern Connecticut towns have acquired the Wii in the past year.
“They’re all bowling on the Wii now,” said Gwen Pointer, the Sun’s director of marketing. “It’s a great way to keep people active.”
Four women from Colchester who entered the tournament — Peg Coulombe, Ruth Tallman, Bethann Duff and Pat Nardella — bowled a score of 701 in their first round of play. Not terrible, but not great. They were convinced the sensor that reads their handheld controller’s movements was off-center, making it harder to toss a ball down the center of the lane on the video game screen.
“We do much better at home,” Duff said. “That’s a crooked TV.”
But the women said they had fun.
“Peg and I are getting ready for another tournament on the 22nd in Montville,” Duff said.
Twenty-one teams started the first round of play, held in the casino’s Cabaret in front of the stage. Four teams advanced to the semifinals, followed by two teams in the finals. The team with the highest total in the finals, the Lightning Strikes of Torrington, won the championship over the East Hartford Wizards.
The team’s prize, furnished by the Connecticut Sun, was a Tony Orlando prize pack — a private booth for Orlando’s Saturday show at Mohegan Sun and a chance to meet the singer. Second- and third-place teams received Connecticut Sun tickets and prize packs, while the team with the lowest score in round one got Dunkin’ Donuts gift cards.
Colchester and Griswold made it to the second round of play before being eliminated.
Griswold’s team, the Hooligans, was decked out in blue team shirts. Members waved inflatable Rally Rods to cheer their teammates. The team bowled a 666 and 689 in the first round.
Team member Lois Sprague, 76, was proud of her score of 202.
“I’m just good,” she said.
The players in the tournament will be recognized at Sunday’s Sun game, which is also a fan appreciation day.
This installment of The Tribes In The Media is a Norwich Bulletin article about a Wii bowling tournament held in the casino's Cabaret Theatre.
The Cabaret Theater at Mohegan Sun has basically been eliminated as one of the casino's busy music venues but other activities take place in the theatre, which was built as part of the 2001 expansion that added the Sky casino and hotel and the retail/restaurant corridor that links the Sky casino with the original Earth casino.
A Nintendo Wii bowling tournament was held in the Cabaret for seniors. The MTGA's Connecticut Sun basketball team furnished the prizes, including a first-place prize of a private booth at this weekend's Tony Orlando concert in the Wolf Den bar.
Seniors hit the virtual lanes at Mohegan Sun
Tournament brings together Wii bowlers from across the state
By Ryan Blessing
Norwich Bulletin
September 9, 2009
Mohegan, Conn. — There was excitement, good-spirited rivalry and even minor controversy at the Connecticut Sun’s Senior Wii Bowling Tournament Wednesday at Mohegan Sun.
The Sun’s first Wii tournament builds on the new trend of seniors getting together to challenge their peers in neighboring communities to bowling games on the Nintendo Wii video game console. Several senior citizen centers in Eastern Connecticut towns have acquired the Wii in the past year.
“They’re all bowling on the Wii now,” said Gwen Pointer, the Sun’s director of marketing. “It’s a great way to keep people active.”
Four women from Colchester who entered the tournament — Peg Coulombe, Ruth Tallman, Bethann Duff and Pat Nardella — bowled a score of 701 in their first round of play. Not terrible, but not great. They were convinced the sensor that reads their handheld controller’s movements was off-center, making it harder to toss a ball down the center of the lane on the video game screen.
“We do much better at home,” Duff said. “That’s a crooked TV.”
But the women said they had fun.
“Peg and I are getting ready for another tournament on the 22nd in Montville,” Duff said.
Twenty-one teams started the first round of play, held in the casino’s Cabaret in front of the stage. Four teams advanced to the semifinals, followed by two teams in the finals. The team with the highest total in the finals, the Lightning Strikes of Torrington, won the championship over the East Hartford Wizards.
The team’s prize, furnished by the Connecticut Sun, was a Tony Orlando prize pack — a private booth for Orlando’s Saturday show at Mohegan Sun and a chance to meet the singer. Second- and third-place teams received Connecticut Sun tickets and prize packs, while the team with the lowest score in round one got Dunkin’ Donuts gift cards.
Colchester and Griswold made it to the second round of play before being eliminated.
Griswold’s team, the Hooligans, was decked out in blue team shirts. Members waved inflatable Rally Rods to cheer their teammates. The team bowled a 666 and 689 in the first round.
Team member Lois Sprague, 76, was proud of her score of 202.
“I’m just good,” she said.
The players in the tournament will be recognized at Sunday’s Sun game, which is also a fan appreciation day.
Petitioning Rights Case To Be Heard In Mohegan Tribal Court On Friday At 2:30
Feather News
A hearing will be held tomorrow at 2:30 in the case of Michael Bartha v. The Mohegan Tribe, which is a case that questions the Tribal government's refusal last Spring to acknowledge a petition that sought to conduct a referendum on a freedom of information law drafted by Tribal members.
Last Spring, Tribal members petitioned to enact their own version of a Freedom of Information Ordinance which but the Tribe would not allow a referendum vote by Tribal members on the proposed ordinance. The reasons for denying the members a vote on the proposed ordinance is the subject of the case but tomorrow a hearing will be held on the Tribal government's motion to have the case dropped before it can be heard on its merits.
The substance of Bartha's case is that the Constitution allows for members to vote on ordinances created by Tribal members with a petition of 35 Tribal members signatures but the Tribe's election ordinance (created by the Tribal Council) has no provision for that civil right that is stated in the Mohegan Constitution. The petition was denied because the election ordinance makes no provision for that type of petition.
Article XII, Sectio
A hearing will be held tomorrow at 2:30 in the case of Michael Bartha v. The Mohegan Tribe, which is a case that questions the Tribal government's refusal last Spring to acknowledge a petition that sought to conduct a referendum on a freedom of information law drafted by Tribal members.
Last Spring, Tribal members petitioned to enact their own version of a Freedom of Information Ordinance which but the Tribe would not allow a referendum vote by Tribal members on the proposed ordinance. The reasons for denying the members a vote on the proposed ordinance is the subject of the case but tomorrow a hearing will be held on the Tribal government's motion to have the case dropped before it can be heard on its merits.
The substance of Bartha's case is that the Constitution allows for members to vote on ordinances created by Tribal members with a petition of 35 Tribal members signatures but the Tribe's election ordinance (created by the Tribal Council) has no provision for that civil right that is stated in the Mohegan Constitution. The petition was denied because the election ordinance makes no provision for that type of petition.
Article XII, Sectio