Wednesday, March 27, 2013

Native U.S. Tribes Seek Federal Bailouts to Offset Casino Losses

The Mashantucket Pequot Tribal Nation, which owns the Foxwoods Resort Casino in southeastern Connecticut, is among federally recognized tribes that, although considered “sovereign nations,” are seeking increased revenues through grants from the U.S. government. According to the Associated Press, the once billion-dollar Pequot casino empire has, in the past, distributed stipends of more than $100,000 annually to adult tribe members. Now, however, the Pequots join other gaming tribes, including nearby rival casino Mohegan Sun, in the pursuit of more federal aid. The pattern is getting the attention of those who opposed the law that allowed Indian tribes to develop casinos, since the law was promoted as one that would assist tribes in becoming financially self-reliant...The Pequots have since ended member stipends, but have kept other benefits in place. Federal grants to the tribe, awarded through the Interior Department, increased from $1 million in 2008 to $2.7 million in 2011. Federal monies granted though Health and Human Services, rose from $1.7 million in 2008 to $1.9 million in 2012. In January, Steven Thomas, the Pequots’ treasurer, and his brother Michael Thomas, a former tribal chairman, were indicted following an FBI investigation. The two men are accused of stealing a combined $800,000 in tribal money and federal grants...more

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