The infamous Foxwoods Resort Casino is one of the largest casino resorts in the world.  Owned by the Mashantucket Pequot Tribe, it is one of two tribal casinos in Connecticut and is one of the most profitable Indian gaming operations in the country.

But Foxwoods has felt the recession.  As we noted in earlier posts, it laid off 700 workers last fall.  Its profits are down 13% in July as compared to last year.  And it has a $700 million line of credit that's coming due.

The Tribe is seeking to restructure its debt, hiring the law firm of Weil, Gotshal&Manges and the investment bank Miller Buckfire to negotiate the restructuring, according to the New York Times (Foxwoods Owner Wants to Restructure Its Debt, 8/27/09).

Stations Casinos' bankruptcy filing already showed that the casino industry isn't immune to a recession of this magnitude.  And other big players, like Harrah's and MGM Mirage, have negotiated with their creditors to ease the pressure.

Still, Foxwoods stands out.  It is, after all, a phenomenally successful casino by any measure -- one of the largest and most profitable in the world.  As a tribal casino, the application and operation of bankruptcy laws are unclear.  No tribal casino has filed for bankruptcy.  You can bet that the industry is paying close attention to how this situation plays out.