The two Indian casinos in Connecticut, Foxwoods Resort Casino and the Mohegan Sun, are playing hardball to recover gambling debts, at least from the evidence compiled in neighboring Rhode Island.
This is raising some red flags in New England since both casino operators are in the running to add to the gaming holdings in neighboring Massachusetts.
According to WPRI, in the last ten years Foxwoods, through “Mashantucket Pequot Gaming Enterprises,” has taken out 30 liens on homes in Rhode Island, while the Mohegan Sun has resorted to this tactic once. More than half of the debts are for less than $1,000, with two liens for $100 and $200.
The Mohegan Sun placed a lien on a property in Rhode Island to recover a debt of about $21,000.
Occasionally players will lose all the money they brought to the table and approach the casino for a “marker,” i.e. a loan from the casino. Usually casinos require that the player give them a check in return for the money. Some of those who obtain credit this way are gambling addicts and often alcoholics.
According to one such player, “Basically they set you up for failure: you get the money from them, you lose it back to them and then you still owe them the money.” He claims that when he wasn’t able to pay “exorbitant” payments of $500 a month, that he discovered a lien had been placed on his house.
Such liens can prevent a property from being sold or refinanced, but so far none of the properties Foxwoods has put liens on has led to a foreclosure. Most of the debts were eventually paid back.
Foxwoods is in the running to obtain a license to build a casino in Fall River, Massachusetts and the Mohegan Sun is one of two contenders for the Boston metro license in the Bay State.
However, the debt collection tactics both have resorted to in Rhode Island would have to be specifically authorized by Bay State lawmakers.
