Lac du Flambeau casino debt case could set precedent

Wednesday, January 13, 2010  

A casino debt case involving the Lac du Flambeau Band of Lake Superior Chippewa Indians of Wisconsin could have an impact throughout Indian Country.

The tribe defaulted on a $50 million bond agreement. Other tribes have used bonds to finance gaming projects.

But the Lac du Flambeau agreement might be different from others because it called for investors to take control of the casino in the event of default. That means the deal should have been approved by the National Indian Gaming Commission, a federal judge said.

Megan Neuberger, an analyst who studies tribal gaming for Fitch Ratings, told The New London Day that such provisions are not common in bond agreements in Indian Country.

Get the Story:
Judge nullifies agreement in Wisconsin tribal casino default (The New London Day 1/13)
Bank's lawsuit charging misuse of funds by Flambeau tribe thrown out (News Of The North 1/11)