Major debt payment facing Foxwoods ResortJuly 05, 2010 9:32 AM by Ray Poirier
"Foxwoods is having money trouble? How could that be?" asked a New Hampshire resident who previously was a frequent visitor to the Connecticut tribal casino that at one time was the largest and most profitable casino in the world.
"When I went there," explained the former player, "I would have to stand in line for an hour to play a $1 slot machine."
But that was before the economic downturn…before the increased competition from nearby states…before the Mashantucket Pequot Tribe, owners of the facility, spent nearly a billion dollars to partner with MGM Resorts International (then known as MGM MIRAGE) to build a huge hotel/casino adjacent to their original building.
The tribe’s debt level reportedly is in the $2 billion range with a $700 million revolving credit facility provided by Merrill Lynch (now owned by Bank of America) that is coming due on July 13.
Tribal leaders have been negotiating with lenders to get a loan reduction since last year but no progress has been reported.
Causing concern to lenders around the country is the fact that federally-recognized tribes are considered sovereign nations protected by the federal government. Thus, according to recent court rulings, the casinos cannot be taken over by lenders as has happened with other defaulting casinos.
A further extension to the July deadline is expected while talks continue, say observers.
Full House Resorts Inc., the casino and hotel operator, said Wednesday that it is putting itself up for sale. The company, based in Las Vegas, evaluated strategic alternatives and decided that a sale was the best move. It is working on finding a buyer.
The four major professional sports leagues and the NCAA filed papers to stop New Jersey’s plan to allow legal sports betting beginning this weekend, when gamblers could become the first in the nation outside Nevada to wager on single games.
The Florida State Seminoles dropped from 5/1 to win this season’s college football championship to 7/1 Monday morning at the Westgate Las Vegas SuperBook. Despite a 31-27 come-from-behind victory over the fifth-ranked Notre Dame.
Pokin' Around | One final bit of unfinished business from the recent Global Gaming Expo involves a blackjack table game called Lucky 13s.
A well-known Chicago anti-crime fighter has warned that if Illinois doesn’t move quickly to eliminate the unregulated so-called “Sweepstakes Cafes,” Illinois could become known as “the sucker state.”
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