Monday, January 11, 2010

Seneca Tribe´s Loss Due To Halting Of Expansion

Feather News

The Seneca Indian Nation, operators of three casinos in upstate New York, reported in December that it lost $19.3 million in the last fiscal year.

Various newspapers noted that the Seneca Gaming Corporation reported a loss but what hadn´t been reported in those articles is that the Seneca Gaming Corporation included a $108 million expense related to its halting of expansion projects. Had the Seneca Gaming Corporation not booked that $108 million impairment charge then the Seneca Gaming Corporation would have reported a profit of about $87 million.

The Mohegan Tribal Gaming Authority has yet to record any impairment charge related to its halting of the construction on a high-rise hotel, a decision that was announced over a year ago.

The Seneca Gaming Corporation, like MTGA, must file their financial statements with the U.S. Securities and Exchange Commission due to both entities borrowing money through public bond markets.