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Ruling could slow pace of Indian casino development


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By Steve Green, Las Vegas Sun

Wall Street analysts say a U.S. Supreme Court ruling could stall development of some Indian casinos around the country — a situation that casino opponents are already seizing upon.

The court on this month allowed a lawsuit to proceed in which a foe of the Gun Lake Casino in Michigan, David Patchak, is challenging the federal government’s decision to take land into trust on behalf of the Gun Lake tribe — a key step in establishment of Indian reservations and casinos.

The Gun Lake casino was developed in partnership with Station Casinos LLC of Las Vegas, which has a 50 percent interest in the casino management company. It opened in February 2011. Gun Lake won’t be affected anytime soon — if at all — by the court ruling since the court didn’t rule on the merits of the casino foe’s lawsuit. It simply allowed his suit to proceed.

Nevertheless, analysts at Fitch Ratings on Tuesday said the ruling could have ”several key credit implications for the gaming sector.”

The ruling is likely to increase challenges from Indian casino foes to land-into-trust decisions for tribes, Fitch said.

That’s partly because it lengthens the statute of limitations for court review of such decisions from 30 days to six years, the Fitch analysts said in a report.

”Raising capital for Native American casino projects could become more difficult/expensive, as investors are likely to have heightened concern about potential challenges regarding land-into-trust decisions,” Fitch said.

But in a bit of good news for established Indian gaming operations, the decision may benefit them by delaying competing projects, Fitch said.

Some of the tribes that could be affected are the Graton Rancheria and North Fork Rancheria in California, Fitch said.

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Comments (2)
  1. Hang Ups From Way Back says - Posted: June 24, 2012

    But in a bit of good news for established Indian gaming operations, the decision may benefit them by delaying competing projects.

    You snooze you lose,first foot in the doors got the best looking women while the stand in lines get the old shoes.
    New York investment analyst John Maxwell& Jefferies are Masters of getting the right investors to the table if you got the Product,money to back it up,it happen, you need to establish strong rapport between investment in community much greater financial operational flexibility for the Natives casinos ,hotels great customer service and top notched amenities attract the return customers with fat wallets.

    IT’S BEEN WORKING GREAT FOR THE ONES WHO DON’T MIND SPENDING MONEY TO MAKE MONEY.
    If your hands are tied do bad ideas,failed projects,self agendas your not getting a loan,pretty simple.
    The tribes will still be accruing long life after the bonds are paid off.When you can get 30 large institutional investors from around the country invested your on the road to Great Mah-zeh’-skah.(monies)
    From Bingo parlors to skyscrapers all in 20 years.Not bad for bunch Peyote eaters with a blessing of smoke from the eagle fethers that cross the sky.

  2. biggerpicture says - Posted: June 24, 2012

    Hang ups,
    The White man’s money will have as much or an even more detrimental effect on the Red man as alcohol did!