Casino Revenues Tumbling

When I saw that Tribes positioned for recovery, analysts say, I just had to find out what gems they had to share.

.
Like other businesses, Indian tribes are having a tough time borrowing money for expansions, said Michael Paladino, a Fitch analyst.
.
When the credit markets thaw, tribes will face hurdles other industries won't, Paladino said.
Tribes can't sell stock in their casino operations, nor can they mortgage their buildings, which sit on land held in trust by the federal government.
.

What? No collateral for BILLION DOLLAR LOANS? Does that sound like cash swaps, derivatives and predatory loans that caused the economic implosion of casino gambling investments?

.
“We are still trying to secure funding,” said Joely Proudfit, who handles media calls for the Pauma band.
.
Four tribes — .... — have indicated they will have trouble paying off casino-related debts.
.

No collateral loans and you can't even sue in court to collect. Sounds like worthy credit risks.

.
Yesterday, the Manshatucket Pequot Tribal Nation in Connecticut was reported to be on the
.
brink of default and trying to restructure $2.3 billion in debt.
.
The tribe operates Foxwoods Resort Casino, the country's largest.

... another Fitch analyst, said she didn't think the situation would affect a development deal between the Connecticut tribe and North County's Pauma.
.
Oh?

Wonder who the Pauma are?
.
The Union-Tribune reports --
.

The 176-member tribe

.
was responsive to its neighbors....”
.
Yup! Promise them anything!
.
And the Foxwoods' connection?
.
The casino will be managed by a subsidiary of the Manshatucket Pequots, a Connecticut tribe which operates Foxwoods, which bills itself as the largest casino in the world.
.

He said he was happy about the planned improvements to Route 76, the main artery through the Pauma Valley.
.
“Some of that cash has a fuse on it, it has to be spent before 2011,” he said. “Clearly the onus now moves to the county and to Caltrans to make sure that available money is spent, is well spent.”
.

This isn't adequately explained - is this federal or state funding? Sounds like US taxpayers are funding infrastructure improvements for a "Sovereign Nation" that won't pay taxes or abide by US laws.

.
Generally, Indian casinos do not publicly report their financial performance. Fitch said it relied on conversations with clients within the industry to extrapolate from publicly available information.
.
Good way to loan money!
.
No public scrutiny.
No transparency.
No collateral.
No legal options in event of defaults.
No oversight or accountability.
This sounds like the makings for the next financial scam.