"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.
Baseball Previews | This is the eighth of 30 MLB baseball preseason previews to the 2014 pro baseball season as seen by GamingToday sports editor Mark Mayer. Today, the Cleveland Indians. On deck: Colorado Rockies.
Palms Casino Resort is the first major hotel in the United States to offer a 24-hour checkout program. Guests can maximize their Las Vegas experience at no extra cost by booking the 24-hour checkout option on Superior, Premier and Ivory Suites.
Baseball Previews | This is the seventh of 30 MLB baseball preseason previews to the 2014 pro baseball season as seen by GamingToday sports editor Mark Mayer. Today, the Cincinnati Reds. On deck: Cleveland Indians.
NFL Analysis | Last winter’s NFL Football free agent period was a bit anticlimactic due in large part to the salary cap’s modest rise from $120.6 million in 2012 to just $123 million in 2013. This year’s crop is hoping that 2014 brings a reversal of fortune.
The Pennsylvania Gaming Control Board said Wednesday that revenue from slot machines in February totaled $181 million, down more than 7.5 percent. Regulators say bad winter weather once again kept gamblers away from Pennsylvania casinos.
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