The expansion of Poarch Band of Creek Indians into the commercial gaming sector slid in diverse directions last week.
The sale of the Margaritaville Resort Casino in Bossier City, Louisiana, announced last year, appears in danger of falling through, according to court documents filed last week in federal court and obtained by a Louisiana TV station.
The legal question involves whether Poarch Creek Indian Gaming, which bought the casino from Bossier Casino Venture LLC (BCV) for $335 million last year is required to continue to call the casino Margaritaville, as required by the 40-year licensing agreement that BCV signed Margaritaville in 2011.
The licensing agreement requires licensing payments of $5 million annually to Margaritaville. When BCV signed that agreement it thought it would be able to get out of it if it sold the property as long as it made a lump sum payment of $10 million. Margaritaville disputes that interpretation.
An arbitration panel has sided with Margaritaville, which has thrown the sale to the Poarch tribe into question. When the tribe made the purchase, it was conditioned on being “free and clear of any Margaritaville-related licensing obligations.”
The tribe has declined to comment on the proceedings.
In Mississippi, Wind Creek Hospitality, the casino division of the Poarch Band of Creek Indians, recently purchased additional land to develop a casino in D’Iberville. The company also announced it has a preliminary drawing for the casino and now the company has acquired more land and has a preliminary design for the development and currently is conducting market research and focus groups, said Wind Creek Chief Executive Officer Jay Dorris. He added architectural drawings could be ready in six months.
Wind Creek Hospitality bought the Royal D’Iberville land west of Interstate 110 in March 2016, and since then has expanded into Back Bay, giving them 34 acres and two legal casino sites in Back Bay.
Dorris said Wind Creek wants to have a plan for a casino “that’s going to offer something to the market that will help us grow the market and reflect the quality of Wind Creek Hospitality.”
Wind Creek Chief Financial Officer Arthur Mothershed added, “We think it’s a great site. We just want to make sure that whatever we do, we get it right.” The plans must meet the Mississippi Gaming Commission’s requirements for a minimum of 300 hotel rooms, at least a 40,000 square foot casino floor, restaurants and a unique amenity that will attract visitors to South Mississippi.
Like the state’s other 12 coastal casinos, Wind Creek D’Iberville would offer Class III slot machines and pay 12 percent tax on revenue to the state, municipality and school district.
Wind Creek operates three casinos in Alabama, has a majority ownership in greyhound tracks in Mobile, Alabama and in Pensacola, Florida and operates a casino in Nevada with the Washoe Tribe. Last year Wind Creek also announced it would purchase Margaritaville in Bossier City, Louisiana.
