|
|
|
"Gambling and the Law®:
Indian Casino Bonds -- a House of Cards?
The former Chair of the Mashantucket Piquots, Michael Thomas, sent a small shock wave through the financial community when he announced that Foxwoods, one of the world’s largest casinos, was in danger of defaulting on its multi-billion-dollar loans. Unease grew when word leaked out that Thomas promised tribal members that gaming revenues would first be used to make payments to the tribe and its members, before lenders.
Thomas lost his job, and tribes across the nation renounced his position. But missed payments and misstatements like this have created real fear among investors.
For good reason. If a tribal casino defaults on its loans, there is a very good chance that lenders could find out that they cannot enforce any of the rights they thought they had."
The post goes on to pose some interesting questions relative to what happens if a tribe goes into bankruptcy.
|
|