Supreme Court Declines to Hear Sault Tribe’s Casino Appeal
The U.S. Supreme Court April 28 declined to hear an appeal from Michigan’s Sault Ste. Marie Tribe of Chippewa Indians in its case against the Department of Interior after the DOI refused to take a 71-acre parcel near Detroit into trust, according to Tribal Business News.
The tribe, which operates casinos in the state’s Upper Peninsula, sought to expand beyond its reservation in efforts to maintain economic viability. In its petition to the Supreme Court, the tribe said its ability to do so would be “forever impaired” without the new land, per TBN. The D.C. Circuit Court of Appeals ruled last year that the DOI was correct in its determination.
“The mere acquisition of additional land, without any demonstration that the acquisition improves the quality or value of existing tribal lands, does not constitute an ‘enhancement of tribal lands,’” the appeals court wrote.
VICI to Underwrite Tribal Casino Project
Gaming-focused real estate investment trust VICI Properties has entered into a $510 million financing agreement to underwrite a northern California casino project that will be operated by Station Casinos and owned by the North Fork Mono Rancheria. The two-tranche loan will mature by 2031.
VICI and another lender will supply the first tranche of $340 million and VICI will carry the second $385 million tranche by itself. Tribal projects are likely to be a new growth avenue for gaming REITs, now that they have devised arrangements that allow for tribes to maintain sole ownership, a requirement for all tribal gaming operations.
“This transaction represents Vici’s second loan investment on tribal land and [Station Casinos’] first partnership with a REIT,” CEO Edward Pitoniak said in a statement. “We value both of these partnerships and take pride in our ability to build deep relationships with dynamic growth-minded operators that will help to contribute to our long-term growth goals and objectives.”
Mohegan Continues Post-Inspire Recovery
The Mohegan Tribal Gaming Authority and a subsidiary, MS Digital Entertainment Holdings, have closed a $1.2 billion refinancing package. According to an April 24 news release, the entities have entered into a “new, upsized” $250 million revolving credit facility, exchanged $226 million of 2027 unsecured notes for 2031 secured notes, and agreed to extend a portion of 2027 unsecured notes to 2029.
Separately, the Mohegan Tribe acquired $100 million of 2027 unsecured notes and extended the maturity to 2032.
The package came together roughly 60 days after prohibitive debt caused Mohegan to lose control of Inspire South Korea, its debut entry in the competitive Asian gaming market. The integrated resort had been open less than a year when lender Bain Capital exercised an acceleration clause allowing it to seize control of the $1.6 billion property.
Without looming debt obligations, Mohegan is now free to “reduce leverage, improve borrowing costs and create greater strategic flexibility,” said Chief Financial Officer Ari Glazer.
The U.S. tribal operator now has “extended maturity runway and financial flexibility,” added tribal Chairman James Gessner. He said refinancing “strengthens our alignment with investors as we redeploy capital back into the company.”
Catawbas Issue New Statement Amid Claims of Internal Strife
In recent weeks, there have been several back-and-forths in the media from current and former leaders of the Catawba Nation regarding a proposed South Carolina casino. The tribe is South Carolina’s only federally recognized tribe but does not operate gaming there—instead, the group partnered with developer Wallace Cheves to open the Two Kings casino in neighboring North Carolina.
After the relationship between the tribe and Cheves deteriorated, he this year proposed his own casino in Santee, which did not materialize. However, the issue sparked a rift, as current Catawba Chief Brian Harris is vehemently opposed while two other former tribal leaders, Jason Harris and Dwayne Rogers, are supportive of the project and accuse current leadership of letting their disdain for Cheves get in the way of business opportunities. In turn the tribe released the following statement, per Queen City News:
“This project is not sanctioned by our current tribal leadership and undermines our sovereignty. The proposal sidelines the Tribe entirely, while offering long-term benefits to private developers at the expense of our people. Leadership means protecting our people’s future, not trading it for personal gain. We urge state leaders and the public to stand with us in honoring tribal sovereignty and rejecting attempts to exploit our identity for profit.”
