The Cheyenne and Arapaho Tribes have stopped making lease payments to Tom Fox, owner of a two-acre parking lot next to the tribe’s Lucky Star Casino in Clinton, Oklahoma. As a result, Fox barricaded the property. In 2012, the tribe signed a deal to lease the parking lot for ,000 per month plus one percent of its gross gaming revenues. That came to lease payment of ,000 a month. In a settlement reached in April, the National Indian Gaming Commission said the payment was about 10 times the actual fair market value for leasing the lot. NIGC Chairman Jonodev Chaudhuri ruled the parking lot contract was a “clear violation” of federal aboriginal gaming laws designed to protect gaming as a way for Indian tribes to generate income.
Fox said, “I know the lease payments sound like they are excessive, but the fact is, $50,000 a month compared to what they the Cheyenne and Arapahos were making is trivial.” He stated the $1.2 million he allegedly earned during the 18-monthl lease period was legitimate. In fact, he said, older patrons preferred that parking lot so he actually helped the Lucky Star make more money. Fox was forced to resign from his job with the Otoe-Missouria tribe in order to keep his gaming license.
Furthermore, Cheyenne and Arapaho tribal officials did not know that Fox had purchased the land with a down-payment of $150,000 from Brian Foster, the former director of the tribal gaming commission. Foster left an email trail spelling out the scam plus long term plans “that would “keep the National Indian Gaming Commission out of the picture.” Foster was fired after the tribe found out about his involvement. Still, he claimed, “I never made a penny off that land.” Foster stated he only provided the money to keep the land from being purchased by another party that might not have been as willing to lease the plot to the Cheyenne and Arapaho.
Cheyenne and Arapaho Governor Eddie Hamilton said the tribe cooperated fully with the NIGC investigation. He added he was looking forward to holding accountable “those people” who had “squandered away our tribal resources for their own personal gain. My administration is dedicated to continuing these efforts. In doing so, we hope to strengthen our tribes and provide a better future for our tribal members.”
