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Native American Gaming News, February 2007

Article Author
CEM Staff
Publish Date
February 1, 2007
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CEM Staff

Alaska
American Indian Alaska Native Tourism Association (AIANTA) Board of Directors President Camille Ferguson announced the new regional representatives from tribal nations throughout the United States and Canada who will serve on the Board of Directors during 2007. The new representatives were elected by the AIANTA membership at the American Indian Alaska Native Tourism Conference at Quinault Resort in September of 2006 at Ocean Shores, Washington, an event hosted by the Quinault Nation. The annual national tourism conference draws attendance from tribes, federal and state governmental agencies, the private sector, and international tour operators. The next National American Indian Tourism Conference will be held Sept. 16-20 at Cherokee, N. C., hosted by the Eastern Band of Cherokee. For additional  information on the conference scheduled for 2007 or to learn more about AIANTA, go to the AIANTA website at www.aianta.org or contact Camille Ferguson at cferguson[at]sitkatribe.org. 

California
Nearing the end of the last hour of the August 2006 legislative session, California Gov. Arnold Schwarzenegger outlined new tribal compact deals with some of California’s most prominent casino-owning Native American Indian Tribes, including the Agua Caliente, Morongo, Sycuan, San Manuel, and Yurok Tribes. But, a recent federal appellate court ruling may have foiled the agreement. The court’s ruling takes away the power of the National Indian Gaming Commission to regulate more than 50 casinos in the state that operate slot machines. Some of these tribal casinos have already refused to permit NIGC commissioners on their land or property. Four of the casinos that made the deal with Gov. Schwarzenegger currently operate casinos, and the new compacts would prove to be the largest expansion in California gaming since state residents first voted to allow Indian Gaming. The suggested compacts were not approved by the legislature, but are expected to resurface during this year’s sessions, unless Schwarzenegger renegotiates the deals. If approved, the compacts would allow more than 17,000 new slots to enter in the California Indian Gaming industry. Although the tribes don’t plan on renegotiation, if the legislature doesn’t approve the compacts they may have to reconsider.  

Florida

The management of Hard Rock Cafe International (USA), Inc. colluded with the Seminole Tribe of Florida to rig the bidding so that the tribe would be the successful bidder for the restaurant and hotel/casino chain, according to a lawsuit filed by the Cordish Company and its affiliate Power Plant Entertainment, LLC. Power Plant Entertainment, LLC was the developer of the Seminole Tribe’s two highly successful Seminole Hard Rock Hotels and Casinos that opened in 2004, and was pivotal in securing the license of the Hard Rock brand for those Florida facilities. London-based Rank Group announced Dec. 7, 2006, that the tribe had purchased the International Hard Rock brand for $965 million (490 million pounds Sterling). Rank shares have fallen more than 12 percent since the announcement, and analysts have criticized the company for selling the Hard Rock chain too cheaply.

The lawsuit charges that Hard Rock USA President and CEO Hamish Dodds and others began conspiring with the tribe months before Rank announced it would seek bids for Hard Rock in exchange for the tribe agreeing to keep Hard Rock USA’s management in place if it was the successful bidder. The suit also names as defendant Seminole Hard Rock Entertainment, Inc., a Florida corporation established by the tribe for the purpose of waiving sovereign immunity, operating hotels, cafes, and casinos throughout the U.S. and internationally, and accepting the assets of the purchase of Hard Rock.

The allegations made by the Cordish Company and Power Plant Entertainment, LLC against Hard Rock International and its President and CEO, Hamish Dodds, in the recently filed lawsuit have absolutely no merit, according to reports from Hard Rock. The auction process to sell the Hard Rock businesses was conducted in an open and fair manner. Hard Rock and its management intend to defend the lawsuit vigorously and pursue appropriate legal remedies against the Cordish Company and Power Plant Entertainment based on the meritless allegations made. With 124 high-energy Hard Rock Cafes, seven Hotel & Casinos and one standalone Casino in 45 countries, Hard Rock International is one of the world’s most globally-recognized brands. Hard Rock International, Inc. is owned by the Rank Group Plc (RNK.L). For more information on Hard Rock, visit www.hardrock.com.