Tribal Casino Debt Deals Are on the Rise

Green commented that it “has become standard practice at this point” for tribes and lenders to negotiate to secure a declination letter from the National Indian Gaming Commission confirming that the deal is not a management agreement.

He noted that that a key area for negotiations in tribal casino deals is who gets paid first when the casino opens. “There would typically be a waterfall of payments, with lenders being paid before tribal distributions, for example,” Green said. “This is an area where there can be considerable room for negotiation.”