HOT Stories more

Competitive pressures concern officials

Article

Major debt payment facing Foxwoods Resort

July 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."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.

GamingToday subscription ad

top stories

Fitch Ratings says there is nothing to suggest a “strong rebound” in Macau casinos through the rest of 2015.

​UNLV’s Center for Gaming Research is looking for former and current pit bosses to participate in an oral history project.

​Authorities are reporting an increase in casino-related crime as gaming revenues continue at lower levels and Beijing’s war on corruption has high rolling gamblers and others avoiding Macau and its casinos.

​Arlington Park GM Tony Petrillo says slot machines would be nice but an assortment of table games such as craps and 21 would be much nicer. The Chicago, area track has been struggling.

Nevada Gold & Casinos, Inc. announced the signing of a definitive agreement to acquire the Club Fortune Casino in Henderson, Nevada for $14.2 million in cash and 1.2 million shares of the Company's common stock.

Check out our writersCheck out our writers

GamingToday Race and Sports Futures

           Westgate Superbook  Stratosphere Sports Book  

                Wynn Sports Book  CG Technology