Indian Gaming Now

Recession

No Rose-Colored Glasses for Mashantucket Pequot Chair

Posted by Kathryn Rand | Filed under:
Apr 12 2010
Rodney Butler, the new council chair for the Mashantucket Pequots, predicts more tribal casino closures and defaults on debts as the recession continues.

In an interview in Indian Country Today, Butler discussed the Pequots' restructuring of its own debt, as well as the tribe's downsized expansion plans.  He also urged continued focus on economic diversification in tribal communities, even in the face of decreased gaming revenue.

Indian Gaming in the Recession: Potawatomi Cutbacks

Posted by Kathryn Rand | Filed under:
Oct 19 2009
The Forest County Potawatomi Tribe has one of the very few off-reservation casinos in the nation.  It operates a casino in Milwaukee, and recently added a $240 million expansion, with estimated annual revenue of nearly $400 million -- a more than 9% increase in revenue over last year.  Sounds good, right?  But apparently it's not good enough -- the tribe's casino is feeling the recession and is making cutbacks.

The casino's 2600 employees won't get merit raises or holiday bonuses, and will have to give up free meals in the cafeteria.  Tribal members won't see as much in per capita payments this year, either.  (Reportedly, each tribal member receives $70,000 from the successful casino operation.)

Slipping into Bankruptcy? Foxwoods Struggles With Debt as Gaming Revenue Slumps

Posted by Kathryn Rand | Filed under:
Sep 3 2009
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).