Financial problems soar for Red Hawk Casino
By Dale Kasler, Sacramento Bee
Red Hawk Casino’s financial woes show few signs of abating – a situation that illustrates both the harsh new business reality confronting Indian gambling and the murky legal issues that arise when a tribe can’t pay its bills.
The company that runs Red Hawk said Wednesday that the management fees it gets from the Shingle Springs casino declined during the first quarter compared with a year ago. The fees are directly tied to the casino’s profits.
That same company, Lakes Entertainment Inc. of Minneapolis, revealed in March that Red Hawk had halted payments on a $66 million loan from Lakes. That made Red Hawk the latest in a series of tribal casinos to experience significant debt woes in the past two years.
“Until fairly recently, tribal casino growth was just phenomenal,” said Nelson Rose, an expert on Indian gambling law at Whittier College.
I can’t say that I’m disappointed things aren’t working out for Red Hawk Casino, considering the impact it has had on Lake Tahoe’s gaming and our Supervisor’s initial failure to anticipate this. What I am disappointed in, is that Tribes aren’t as accountable as the rest of us for their debts. The present economy is tough on ALL of us…ALL OF US…incuding sovereign nations…that seems like true “equality” to me.
The rumors about Red Hawk Casino are false. They can’t help it if they are so popular that people have to spread false rumors to try and shine negative light. Everytime I am there the place is a hub of activity and excitment! And their slots and promotions pay out!!
The debt is not tied to the casino’s success – rather, is due to the selfish tribe’s development of a tribal hospital on the property. The tribe already has a successful tribal clinic in Shingle Springs, yet opted to put $100 million into building an unnecessary tribal hospital next to the casino. This medical facility is designed to help nobody but the tribe. I hope that the lawsuit by sharp gaming against the shingle springs rancheria for $100 million goes through as to teach these injuns a lesson.
The Medical facility was built with a federal grant not tribe money. The tribe hasn’t made anything, because of there greed.
They treat their employees like 3rd class citizens Karma is the reason for their failures. I hope they lose the lawsuit.