After more than two decades of delays, construction is expected to begin later this year on the North Fork Rancheria of Mono Indians’ North Fork Mono Casino & Resort in Madera, California.
The National Indian Gaming Commission recently approved a 7-year management agreement between the tribe and Station Casinos, the operating arm of Red Rock Resorts.
North Fork will be located on a 305-acre site located 30 miles north of Fresno. The tribe claimed a historical connection to the land when it applied for federal trust status in the early 2000s. The Department of the Interior (DOI) approved the application in 2011; former Governor Jerry Brown negotiated a compact with the tribe in 2013; and the DOI approved the land for casino gambling in 2016.
However, competing tribes and anti-gambling interests filed lawsuits to prevent the proposed casino. In November, Red Rock Resorts Chief Financial Officer Stephen Cootey said only one lawsuit was pending in the California courts but it wouldn’t prevent the casino from moving forward. He said Red Rock was continuing design work and securing potential lending partners.
In a statement, former Tribal Chairperson Maryann McGovran said, “No tribal gaming project in the history of our nation has received as much attention and scrutiny as North Fork. The delays have been dubious and cost our tribe and community dearly.”
In a research note, Jefferies Gaming Analyst David Katz recently told investors the 100,000-square-foot development will cost $300 million to $400 million and will offer more than 2,000 slot machines, 40 tables and several dining outlets. Katz said according to a Red Rock Resorts filing with the Securities and Exchange Commission, Station Casinos will earn a 4 percent development fee and a 30 percent management fee based on the casino’s net income. “These contracts have been a specific strategic differentiation for Red Rock and can be highly lucrative and accretive,” he said.
Station Casinos built and operated the United Auburn Indian Community’s Thunder Valley Resort near Sacramento and the Federated Indians of Graton Rancheria’s Graton Resort Casino near Santa Rosa.
Both casinos were turned over to the tribes when Red Rock’s 7-year management agreements expired. CBRE Equity Research Analyst John DeCree wrote in a research note, “Red Rock is no stranger to these projects, with significant success in recent endeavors. During the company’s final full year operating the Graton property in 2020, Red Rock took in almost $82 million in management fees.”
Station Casinos also built and operated the Gun Lake Casino near Grand Rapids, Michigan, before turning it over to the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians.
In California, considered the nation’s largest tribal gaming market, 73 of California’s 109 tribes operate 76 casinos, including five venues in the Fresno area. Altogether the state’s tribal casinos generate total annual revenue of $9 billion.
