| Regulators question practices at tribal casinos tied to Minnesota firm |
The National Indian Gaming Commission (NIGC) has expressed concern over two tribal casinos in Oklahoma, which are managed by a Minnesota company.
The NIGC, the federal agency that enforces the Indian Gaming Regulatory Act and oversees gaming operations of all Native American tribes, stated it believes the Oklahoma tribes are not properly allocating casino revenues.
Bloomington-based Southwest Casino and Hotel Corp. manages the Lucky Star Casinos for the Cheyenne and Arapaho Tribes of Oklahoma. Southwest said the NIGC's concerns do not involve its management of the casinos or its relationship with the tribes.
Instead, the concerns relate to the tribes' use of net gaming revenue after it has been distributed by Southwest to the tribes. If the NIGC brings enforcement action against the casinos, potential penalties could range from fines to shutting down the casinos.
Southwest said the closure of the Lucky Star Casinos would eliminate its primary source of operating revenue. The company has spoken with NIGC officials and does not believe the concerns will result in closures.
Southwest said it will assist the NIGC and the tribes in resolving the matter.
The company's stock (OTC BB:SWCC.OB) was up 30 cents, or 25 percent to $1.50 in trading on the over-the-counter bulletin board Thursday afternoon.
Source: BizJournals
Friday, 31 December 2004
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