"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.
Biloxi’s Margaritaville Casino & Restaurant will waste away by mid-September, with the casino saying it can’t raise more money because the landlord won’t renegotiate the lease. The casino announced that it will close on or before Sept. 19.
In the NFL the NFC East figures to be the wildest crapshoot of all the divisions. This division used to be one of the sturdy kingpins of the NFL, with Philly, Washington, Dallas and the N.Y. Giants.
Bally Technologies Inc. (BYI) announced Monday it was partnering with Mohegan Sun in Uncasville, Connecticut to install the world’s largest table game progress jackpots.
A building plan for a $925 million MGM casino and hotel near the nation’s capital has been approved by local officials in Maryland. A Prince George’s County panel meeting in Upper Marlboro voted 8-1 for the plan at National Harbor Monday.
The Iowa Supreme Court has potentially given the Argosy riverboat casino in Sioux City more time to stay open. The high court granted an emergency stay of a district court order requiring the casino to close July 22.
- I'm betting Colts, Eagles and Saints in pro football
- NFC East figures to be the wildest crapshoot
- Angels could mess up A's and Dodgers match
- GamingToday Casino Games and Poker
- GamingToday Play Free Video Poker
- 20th race in NASCAR season is Brickyard 400
- A look at my pro football statistics formula
- Follow GamingToday on Twitter
- Like GamingToday on Facebook