WSJ: 'Shakeout' coming for California tribes

Tuesday, September 27, 2005  

Indian gaming revenues hit a record $19 billion last year but some trouble spots are emerging as tribes battle for a share of the market, The Wall Street Journal reports.

One problem area is southern California. Home to more than a dozen casinos, several tribes have expanded their operations but the Journal says the competition has hurt the Cabazon Band of Mission Indians, the tribe that won the landmark U.S. Supreme Court decision that paved the way for Indian gaming.

In 2003, the tribe opened a $145 million expansion of its Fantasy Springs casino. But two nearby tribes also opened bigger facilities, including a $250 million expansion by the Morongo Band of Mission Indians.

The Cabazon Band has now seen a drop in its profits, the Journal said. In 2004, the tribe's take was less than $12 million, down from more than $20 million in 2003. The tribe has 35 members.

The tribe has run into other financial problems. The Internal Revenue Service is going after the tribe for the tax-exempt bonds it issued for the casino expansion. The tribe reduced its per capita payments, fell out of compliance with a $23 million bank loan and is behind on some of its bills.

Get the Story:
At Indian Casinos, Odds Grow Longer For Some Tribes (The Wall Street Journal 9/27)