The backers of the Mohegan Tribe's casino in Connecticut have made slightly more money than the tribe, The Boston Globe reports.
From 2001 to 2006, Sol Kerzner and Len Wolman of Trading Cove Associates made $368.9 from the Mohegan Sun Casino. The tribe made $367.5 million in the same time period.
The numbers appear to fly in the face of the Indian Gaming Regulatory Act. Not only does the law state that Indian gaming should benefit tribes, it requires tribes to maintain a "sole proprietary interest" in a casino.
Trading Cove initially signed a management contract with the tribe that was approved by the National Indian Gaming Commission. IGRA caps management fees at 30 percent of net gaming profits for five years.
When the five-year period was up, Trading Cove negotiated a new contract that is not subject to federal review or any federal limits. It runs from 2000 to 2015 and applies to all types of revenue -- not just gaming -- at Mohegan Sun.
Sol Kerzner and Len Wolman are now backing the Mashpee Wampanoag Tribe's proposed casino in Massachusetts.
Get the Story:Casino jackpot went to investors (The Boston Globe 12/16) An Opinion:
Mohegan Casino Investment Group Reaps Ridiculous Rewards (Casino Gambling Web 12/17)
