Mashantucket crisis affects tribal gaming sector

Monday, September 21, 2009  

Tribes that seek financing for casino projects could be adversely affected by the financial crisis facing the Mashantucket Pequot Tribal Nation of Connecticut.

At least three tribes have missed interest payments on their casino debt. The Pequots haven't but the chairman's promise to distribute tribal per capita payments before fulfilling other obligations has raised eyebrows in the financing world.

“A decision by the tribe not to service its debt in a timely manner or honor its financial contracts -- particularly if it has the capacity to service its debt -- could cause lenders to retrench from this segment.” Moody's Investors Service said on August 31, The New London Day reported.

Kent Richey, a securities attorney who works on tribal deals, said the economy already has financiers worried. The response from the Pequot chairman “sent shock waves through the financial community,” Richey told the paper.

Get the Story:
Pequots' problems rock gaming world (The New London Day 9/20
Casinos go separate financing directions (The New London Day 9/21)