Mashpee Wampanoag Has A Lot Of Casino Checks It Can’t Cash

Aside from a pile of unsettled bills, the Mashpee Wampanoag Tribe has made little progress in their endeavor to construct a billion-dollar tribal casino in Taunton, Massachusetts.

According to the Taunton Gazette’s report, the debt crisis has recently escalated to a critical point.

According to the article, a robocall was sent to tribal members over the weekend, informing them about the tribe’s increasing debt and the subsequent reduction of certain social services for youth and elders. The call also encouraged tribal members to participate in a meeting scheduled for Sunday, November 12th, to discuss the debt issue.

The press was denied entry, and no information has been revealed about the lengthy meeting.

Aren’t casinos supposed to make money?

The stalled First Light Casino lies at the heart of the Tribe’s debt problems.

After receiving approval in 2013, the First Light Casino project came to an abrupt halt, resulting in a prolonged and eventful saga.

Construction efforts were brought to a halt by a successful lawsuit filed by residents of Taunton. However, the tribe’s legal appeals and inquiries to the Department of the Interior (DOI) for intervention remain unresolved.

Let’s take a glimpse into the ongoing story of the First Light Casino:

• In September 2015, the Department of the Interior (DOI) granted trust status for the tribe’s land, thereby approving the establishment of the First Light Casino.
• The construction came to a halt after a lawsuit was filed by a group of Taunton residents, who ultimately emerged victorious in their legal battle.
• After appealing the ruling, the tribe eventually abandoned the case.
• Simultaneously, the tribe urged the DOI to reevaluate their land in trust application on alternative grounds.
• The expected date for the DOI decision was June 19; however, the decision was postponed until June 27.
• On June 26, the tribe withdrew its request, anticipating an unfavorable decision.
• The tribe’s decision to withdraw its request was swiftly rejected by the DOI, which promptly reopened the case.
• The deadline for all submissions was November 13th, and the decision by the DOI will be made within the upcoming days, weeks, or months.

Who is funding the First Light project

With inadequate funds to independently finance a billion-dollar casino, the tribe is partnering with gaming giant Genting Malaysia to secure the necessary funding for the project.

Should the casino become a reality, Genting will oversee the property and be entitled to 40 percent of the net revenue.

As reported by the Taunton Gazette:

According to the quarterly report of the developer in June 2017, Genting Malaysia has provided an investment of around $347 million in interest-bearing promissory notes issued by the tribe. This investment is intended to fund the construction of the project, which has faced significant delays.

According to the report, by October 2014, the Tribe had already taken a loan of over $90 million from Genting at an interest rate of 16.5 percent. The current outstanding debt, as stated in the paper, amounts to $425 million.

What’s next for the Mashpee tribe?

During an interview with Jim Braude from WGBH News, Cedric Cromwell, the Chairman of Mashpee, mentioned that the tribe has duly submitted the necessary applications to the Department of the Interior. Currently, they are in a phase of awaiting a decision.

Braude inquired with Cromwell during the interview about the reason behind the tribe’s decision to not apply for the commercial gaming license that Massachusetts has not yet granted.

In order to avoid oversaturation of the market, the state made the decision to put its third commercial casino license on hold when the Mashpee Tribe received initial approval to proceed with the construction of their tribal casino. The future of the third commercial license is dependent on the status of the tribal casino.

Cromwell stated that the revenue share between commercial operators and the state is notably distinct. Currently, the tribe is willing to patiently await the decision of the Interior Department. Nevertheless, when asked about the potential of applying for a commercial license prior to the decision, Cromwell expressed openness to considering all possibilities.

If the commercial casino license is chosen, the Mashpee Tribe becomes unnecessary as Genting can directly apply for the license and assume complete ownership of the casino.

The complete interview is available for viewing here.