In North Carolina, the tribal council of the Eastern Band of Cherokee Indians unanimously approved an allocation plan for the revenue it’s expected to receive from Caesars Southern Indiana Casino, which the tribe approved purchasing for $280 million last December. The deal is expected to close this summer.
According analysis by the tribe, the venture is expected to produce $40 million annually in adjusted gross revenue, with an overall return on investment of 19 percent to 23 percent. Revenue will go to the tribe’s new EBCI Holdings LLC. Under Indiana law, only 25 percent of yearly profits can be directed back to the tribe—an estimated $3 million to $5 million.
The allocation plan, submitted by Principal Chief Richard Sneed, specifies 25 percent of gaming revenue will go to the debt service sinking fund; 25 percent to Endowment Fund No. 1; 20 percent to the Higher Education Endowment; 20 percent to the Cherokee Indian Hospital Reserve Account; and 10 percent to the Housing Fund.
Sneed said, “What we’re trying to ensure is that we have endowments and funds set up to fund the essential services of the tribe in perpetuity because as I’ve stated repeatedly, two things will continue to happen. Our population will continue to grow and the number of people pulling on these services that we have will continue to go up.”
The tribe is awaiting final license approval from the Indiana Gaming Commission. However, Sneed and tribal Attorney General Mike McConnell both said the tribe has an excellent relationship with the regulators and does not expect any issues.
