Ilitch team out in full force with New York Casino gambling partner

Key members of Team Ilitch Gambling (Marian Ilitch's partner Michael J. Malik, Sr., and one of their senior Indian gaming attorneys R. Lance Boldrey of the Dykema Gossett firm) were out in full force with tribal leaders representing their New York casino development partner the Shinnecock Indian Nation at a 2009 New York Gaming Conference held in Sarasota Springs last week.

In an article published 7.01.09, "Shinnecocks still face obstacles in casino bid," Michael Wright in The Southampton Press reports:

At a gaming industry conference in Saratoga Springs last week, a host of industry veterans and members of other Native American tribes from around the state said—often with wry smiles—that they’re not holding their breath for a Shinnecock casino to open. Nonetheless, the tribe and its prospects for a casino on Long Island, or in the shadow of New York City, were a popular topic of conversation.

The tribe sent a 10-member contingent to the New York Gaming Summit, including Michael Malick [sic], co-owner of the Detroit-based casino development company [Gateway Casino Resorts] that has been funding the tribe’s legal battles over its gaming future since 2003. Also at the conference were the five salaried members of the tribe’s gaming authority, Tribal Trustee Fred Bess, former Trustee Lance Gumbs—who has been the most vocal member of the tribe in the casino effort—and at least two of the tribe’s attorneys.

In his keynote speech at the two-day conference, John D. Sabini, chairman of the New York State Racing and Wagering Board, focused on the Shinnecock casino bid, and the speculation the court settlement spawned. And in his remarks he seemed to warn the Shinnecocks that other tribal and private gaming prospects have seemed imminent in the past, and ended up languishing for decades.

The article featured these photos in a related image gallery:

Shinnecock Tribal Trustee Fred Bess (right) and Michael Malik (left) the controversial Detroit-based casino syndicator who along with Mrs. Marian Ilitch has reportedly formed the syndication, Gateway Casino Resorts, that's been bankrolling the tribe's drive for a casino since 2003.

Lance Boldrey (center) an attorney with the Michigan-based Dykema Gossett law firm and who represents various Detroit-based Indian gambling affiliates of partners Marian Ilitch and Michael Malik, chats with Shinnecock Tribal Trustee Lance Gumbs (left) and John D. Sabini, chairman of the New York State Racing and Wagering Board.

Industry experts not optimistic about Ilitch Shinnecock plans for New York Casino

6.30.09

Tribe told not to expect quick results on gaming

By Michael Wright

The East Hampton Press

A settlement of a key portion of a legal battle between the Shinnecock Indian Nation and the U.S. Bureau of Indian Affairs fed widespread media speculation that the Shinnecocks and their Detroit-based financial backers [Marian Ilitch and Michael J. Malik, Sr.] are now on a fast track to opening a gaming facility in New York City or on Long Island.

But even though a court-ordered ruling on the tribe’s federal recognition application—the key step to gaming rights—is due by December, and the tribe could get the federal go-ahead by mid-2010, many in the New York gaming industry say the hurdles Shinnecocks face are numerous, and significant.

At a gaming industry conference in Saratoga Springs last week, a host of industry veterans and even members of other Native American tribes from around the state said—often with wry smiles—that they’re not holding their breath for a Shinnecock casino to open. Nonetheless, the tribe and its prospects for a casino on Long Island, or in the shadow of New York City, were a popular topic of conversation.

The Shinnecocks’ casino bid and the speculation that the court settlement spawned were a main focus of the keynote speech given by John D. Sabini, chairman of the New York State Racing and Wagering Board at the two-day New York Gaming Summit. He said that gaming prospects have seemed imminent in the past and ended up languishing for decades.

“I don’t think it’s a slam-dunk that they even get federal recognition from the Bureau of Indian Affairs and Department of the Interior,” Mr. Sabini said of the Shinnecocks in his keynote speech. “There are no sure things in gaming. This involves a lot of moving parts at the federal level.”

In an interview, Mr. Sabini noted that earning federal recognition is just the first step in a complicated battle for the tribe to get rights to a casino operation. He nodded to the cautionary tales told by the leaders of three other Native American tribes—the Seneca, Oneida and St. Regis Mohawks—all of whom have had federal recognition for 
years, even decades, and are still fighting to get approval for casinos that they thought would be open for business years ago.

“Some newspapers said [the court settlement] would mean they have the inside track for Belmont. There’s so much between here and there,” Mr. Sabini said, of a report that the tribe had expressed interest in a gaming facility adjacent to the Nassau County horse racing venue. “[State Assembly Speaker Sheldon] Silver has been clear—he doesn’t want gaming there.”

The State Legislature has already approved gaming through the use of up to 4,500 video lottery machines, or VLTs, at the Aqueduct racetrack in Queens. State representatives of the areas surrounding Belmont Racetrack have also introduced proposals to allow gaming—a potential tax revenue bounty—in their backyard as well. But Mr. Silver, who represents Lower Manhattan in the State Assembly, has sworn he will never support gaming at the Belmont property.

In 2007, shortly after the state opened bidding on the Aqueduct gaming contract, the tribe proposed a $1.4 billion casino and hotel adjacent to the Queens racetrack. But at last week’s state gaming conference, Bill Murray, the deputy director of the New York Lottery, which will license any future gaming operations at the racetrack, said that the state is close to deciding on one of the seven official bidders for gaming there. The Shinnecocks are not on the list of bidders—though the development company Delaware North, which sponsored the gaming conference, is. Mr. Murray said the decision on the contract will be made in a matter of weeks, effectively eliminating the Shinnecocks, since the tribe will not receive federal recognition until 2010 at the earliest.

Shinnecock Indian Nation Tribal Trustee Fred Bess turned a bit of the naysayers’ own warnings back on them, though, with regard to the Aqueduct proposal.

“Things take a long time to happen,” he said when asked if Aqueduct was off the tribe’s radar because of the timeline Mr. Murray suggested. “Once we take care of our federal recognition application, we’ll see where things stand.”

This is the first part of a three-part series on the Shinnecock Indian Nation and its possible future in the gaming industry.

Ilitch not renewing existing lease on Joe Louis Arena

6.26.09

Ilitches not renewing old Joe Louis lease, negotiating for new deal

By Bill Shea

The statement today that the owners of the Detroit Red Wings aren’t renewing their expiring Joe Louis Arena master lease leaves it unclear if they will pursue a new hockey arena or renovate their 30-year-old city-owned home.

The owners say they now plan to negotiate a new lease for Joe Louis, which could be a long-term commitment and what insiders say would be a $150 million renovation job, or it could be a shorter deal that buys them time to arrange financing for a new venue that could cost $300 million to $400 million.

Olympia Entertainment, which manages Joe Louis and Cobo Arena under a single lease and is owned by team owners Mike and Marian Ilitch, was required to notify the city by Tuesday of their intentions with the contract, which expires on July 1, 2010. Otherwise, it automatically renewed for 20 years.

The statement from Olympia today says the lease isn’t being renewed to allow the city to forge ahead with an expansion of Cobo Center, which is managed by the city but includes the Ilitch-run Cobo Arena.

The city needed Ilitch-owned Olympia Entertainment to renegotiate the master lease because it includes language that gives Olympia say over any project that would significantly impact Cobo Arena.

Not renewing basically turns Cobo Arena back over to the city, paving the way for the long-debated control and expansion of Cobo Center — something needed to prevent the loss of the annual North American International Auto Show.

Olympia has been negotiating for years on the lease with the Detroit Economic Development Corp., and the statement Friday said the Ilitches will continue to pursue a new lease for just Joe Louis.

“The existing lease was crafted more than three decades ago by individuals no longer associated with either Olympia Entertainment or the city,” Ilitch Holdings Inc. President and CEO Chris Ilitch is quoted as saying in the statement. “It does not fully contemplate one: the evolution of the sports and entertainment industry; two: the current economic environment in which both the city and Olympia Entertainment are operating and; three: the infrastructure replacement and repair needs of a 30-year-old building in order to meet the competitive industry standards of today.”

The statement notes that Joe Louis Arena is the fourth-oldest venue in the National Hockey League. Teams seek new arenas because modern facilities provide deeper revenue streams than older facilities.

Ilitch spokeswoman Karen Cullen said no comment would be made on the specifics of the new lease talks.

The Ilitches bought the Red Wings from former owner Bruce Norris in 1982 for $8 million, and today it’s valued by Forbes.com at $303 million.

Wayne County Executive Robert Ficano has said he’s been approached by the Ilitches about financing a new arena, but has declined to say more.

Both Comerica Park, where the Ilitch-owned Detroit Tigers play, and Ford Field, home of the National Football League’s Detroit Lions, are owned by the Detroit-Wayne County Stadium Authority, a quasi-public board of city and county appointees, and are leased to the county and then subleased to the teams.

The authority, along with the DEGC, also partially financed both ballparks.

Any use of tax dollars to subsidize stadium construction — either in the form of a direct levy or by extension of current taxes — generates fierce criticism that it’s nothing more than welfare for rich owners and players.

Speculation is that a new hockey arena would be built on Ilitch-owned land in the Foxtown area or between Grand River and Cass south of I75.

Not renewing the master lease means the Ilitches give up a cap on property taxes at Joe Louis, which limits them to $252,000 annually. Without the cap, the taxes would be about $1 million. While the city owns Joe Louis, the lease called for the Ilitches to pay the property taxes — something that could continue under a new lease, or be changed.

The lease, first negotiated under Mayor Coleman Young after the Detroit Lions and Detroit Pistons left for the suburbs, has drawn criticism, including from the Detroit City Council, that it tilts too far in favor of the Red Wings.

Detroit gets a cut of tickets, concessions, corporate and suite sales at both venues, which would have been lost if the lease was renewed. New surcharges could be negotiated under a new lease, and at a new arena.

If the Ilitches, who have a year to work out a new lease, decide to pursue a new arena, financing options include particular-use taxes, use fees built into ticket prices, new lottery games, or the city and/or county issuing revenue bonds. Private money from the owners and from corporate investment, especially from naming rights, also will finance any new stadium.

Building a publicly owned stadium and leasing it to the team, which was done for the Tigers and Lions, is also an option — but one that carries political risks because it would require tax dollars in economically tough times.

Debt financing by the team is also iffy because banks are hesitant to loan money at the favorable rates from even a year ago, something that’s hampered stadium projects elsewhere in the country.

A new short-term lease at Joe Louis buys time for the markets to improve.

Highlights of exisiting lease Ilitch holds on Joe Louis & Cobo Arenas

6.26.09

TERM OF EXISTING JOE LOUIS LEASE

The Ilitch family’s lease for its Red Wings to play at Joe Louis Arena expires in a year, and will be replaced by a new deal. The current lease includes:

• The city provides free police and landscaping services, including snow removal, for both the Joe Louis Arena and Cobo Arena, and up to $500,000 annually for capital improvements for the hockey venue.

• The Ilitches pay property taxes on city-owned Joe Louis, but they are capped at $252,000 annually. Without the cap, the tax would be about $1 million.

• The Ilitches pay $25,000 monthly rent for Joe Louis and $12,500 for Cobo.

• Detroit collects a 10 percent ticket tax for Joe Louis events and a 7.5 percent ticket tax for Cobo events.

• The city collects a surcharge of 10 percent on concessions and 7 percent on suite sales.

• If the lease is renewed, the city immediately loses the ticket taxes and in five years loses the surcharge on concessions and suites.

• A new arena would mean the city could charge for police and snow services and collect full property taxes on the venue. The city also could lose its ticket, concession and suites surcharges. All this depends, of course, on a new lease or stadium deal, its financing and who owns the new venue.

10,000 fans a game reject Detroit Tigers after Ilitch hiked ticket prices

6.21.09

10,000 fewer Detroit Tigers fans fill seats each game
'08 heartbreak, weak economy are blamed

BY JOHN GALLAGHER
FREE PRESS BUSINESS WRITER

Boosted by their World Series appearance in 2006, the Tigers drew more than 3 million fans to Comerica Park for the first time in 2007, and topped 3.2 million fans in 2008, when expectations ran high.

But the Tigers, with a disappointing finish last year, combined with a collapsing economy, saw a plunge in ticket sales this year. The Tigers are averaging about 28,000 fans per game this year, down from 38,000 per game at this time last season...

...The Tigers have troubles beyond about 10,000 more empty seats per game this year than last. Forbes magazine, in its annual ranking of sports teams' values, put the Tigers in 21st out of 30 Major League Baseball teams, with a total value of $371 million. That estimate marked a 9% decline in value from the year before.

Moreover, the Tigers have one of the most expensive payrolls in baseball, with first baseman Miguel Cabrera signing a $153-million, 8-year.contract last year, breaking the $75-million, 5-year contract signed by outfielder Magglio Ordóñez in 2005. Combined with lower ticket sales, the team is losing money this year, Forbes estimated.

Meeting that payroll is one reason owner Mike Ilitch raised ticket prices this year.

"With the auto companies imploding and discretionary income plummeting for many fans, Ilitch's strategy looks like it has backfired," Forbes suggested earlier this year

Being privately owned by the Ilitch family empire, the Tigers do not release hard financial data. But Gilette said that absent a second-half collapse by the team (which, in fact, has failed to generate much offense lately despite its first-place standing), the Tigers should muddle through this season. (Complete Story)

Treasury Department holding would-be Harsens Island Developer's property

Discovered among the Michigan Department of Treasury's "unclaimed property" inventory:

LUCKY 7 DEVELOPMENT LLC
GROSSE POINTE WOODS, MI
Property Number: 10367064
Transferred from: FIFTH THIRD BANK

Lucky 7 Development L.L.C. was formed in 1996 by Denise Ilitch and other members of her family. In 1999, attorney William Serwer filed papers signed by Denise Ilitch transfering control of Lucky 7 Development to his client Michael J. Malik, Sr.

Malik is the longtime casino and real estate development partner of Denise Ilitch's mother Marian Ilitch. Nearly all fo their affiliates are registered at the same Foxtown address in Detroit that is the headquarters of Ilitch Holdings, Inc.

Lucky 7 Develoment/Grande Pointe Development LLC appears to have title to nine parcels on Harsens Island (former Boys Club property) that have a total 2009 equalized value of $1,224,500. Lucky 7 Development failed to pay its 2008 taxes on those parcels and appears to have delinquent tax bills totalling $9,417.57.

For two decades, Malik and various affiliates have attempted, without luck, to develop a marina and other commercial and residential properties on that Harsens Island property.

See detailed 15-page DEQ application for permits.

Malik loses Circuit Court appeal; local decision blocking his plans to develop Harsens Island Marina upheld

On 6.02.09, St. Clair County Circuit Court Judge Daniel J. Kelly, denied a Harsens Island land use appeal filed by Michael J. Malik, Sr.'s affiliates Lucky 7 Development LLC and Grand Pointe Development LLC, stating “…the decision of the Planning Commission was lawful and a proper exercise of discretion based on competent material and substantial evidence.” (See Court's Decision)

Lucky 7 Development had petitioned Clay Township for a Special Land Use variance for the Boys’ Club property where Malik wants to build a cluster housing development consisting of 348 units around a 60 acre lagoon/marina, and to cut and re-route a major roadway, North Channel Drive around his development. (See Site Map)

The Clay Township Planning Commission denied that request in February 2008 deciding that “… the proposed development was not in harmony with the existing and intended character of the general vicinity and that such a use would change the essential character of the area...”

In May 2008, Malik filed a lawsuit appealing the Planning Commission's decision.

In May 2008, Malik had petitioned the Michigan Department of Environmental Quality (DEQ) for a Marina Permit over the Harsens Island Boys Club property (File 07-74-0161-P). DEQ denied Malik's affiliates the permit on 8.19.08.

See detailed 15 page DEQ Application for Permits.

On 11.08.04, DEQ issued a Wetlands Assessment Report on the Harsens Island Boys Club property in response to a Wetlands Assessment Application made at the time by Malik and another of his affiliates MJM Enterprises & Development. (Federal lobbying disclosures reveal Malik's MJM Enterprises & Development has spent nearly $750,000 lobbying Capitol Hill on casino/gambling matters since 2003).

Malik first proposed developing a large-scale resort centered around a marina on Harsens Island property nearly two decades. A Detroit News headline dated 5.31.89 read: "RESORT PLAN DRAWS ISLANDERS' IRE HARSENS ISLANDERS VOW TO BLOCK PROPOSAL." (See other Detroit News Headlines related to Malik).

Lucky 7 Development LLC was originally established by members of Detroit's Ilitch family.

Malik and Mrs. Marian Ilitch are partners in various gambling and real estate affiliates with plans to build casino resorts in Michigan, New York and California. She owns Detroit's MotorCity Casino and along with her husband Mike Ilitch, they own the Detroit Red Wings and co-founded Little Caesars pizza stores. Mike Ilitch owns the Detroit Tigers.

For more than a decade, Malik (MJM Enterprises & Development/Blue Water Resorts) has bankrolled and spearheaded failed plans by the Bay Mills Indian Community (with a reservation on Michigan's Upper Peninsula) to build a casino resort near Harsens Island in Port Huron, MI.

Although a spokesman for the Ilitch family claims they have no financial interest in the Port Huron schemes, the Ilitch family supports Malik's plans and have contributed thousands of dollars to key Members of Congress who support Malik's plans. They have helped him lobby lawmakers in Lansing and Washington D.C.

Former aide to Rep. Kildee to advise White House on Native American affairs

7.15.09

Obama Hires Adviser on Indian Issues

President Obama made good on a campaign promise to have an American Indian adviser in the White House to counsel him on tribal issues. He appointed Kimberly Teehee as a senior policy adviser for Native American affairs. Ms. Teehee is a member of the Cherokee Nation and has worked for Representative Dale E. Kildee, Democrat of Michigan, for the last decade. She will be a member of Mr. Obama’s domestic policy council.

TVT Editors' Note: Rep. Dale Kildee has supported failed bills introduced in the House of Representatives over the last decade which were intended to approve a land settlement claim favoring the Bay Mills Indian Community and paving the way for them to build an off-reservation casino in Port Huron, MI in partnership with Detrot casino syndicator Michael J. Malik, Sr., and his syndication affiliate Blue Water Resorts. That proposal is also supported by Mike and Marian Ilitch (They own the Detroit Red Wings and co-founded Little Caesars pizza stores. He owns the Detroit Tigers. She owns Detroit's MotorCity Casino) and other members of their family. The Michigan congressional delegation has been split on the Malik/Bay Mills proposal.

Ilitch makes rare TV appearance; takes credit for whatever's good in Detroit right now

Christopher Ilitch, CEO of Ilitch Holdings, Inc. made a rare appearance on CNBC this week. The Ilitch family had hoped their Detroit Red Wings would win the 2009 Stanley Cup and Little Caesars pizza is celebrating its 50th annivesary. Ilitch appears to be Detroit's only voice of optimism these days. He's a one man band when it comes to promoting Detroit. He claims his family's business are the one thing that brings hope to Detroiters otherwise terminal economy.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Revenue rises at struggling Greektown but Ilitch-owned MotorCity Casino sees declines again

According to various news accounts, the latest revenue results released by the Michigan Gaming Control Board (MGCB), indicate the overall gaming market in Detroit saw a 4.2% decline in May; however, Greektown Casino-Hotel appears to have bucked the trend for the fourth month in a row with a stunning 7.2% year-over-year revenue increase for the month. (At the time of this post, Data had yet to be posted to the MGCB web site.)

Greektown was the only Detroit casino to see an increase, while revenues at MGM Grand Detroit and MotorCity Casino dropped 10.9% and 3.6% respectively.

It should be noted that Greektown in particular has struggled financially in recent years and in May 2008 filed for bankruptcy protection. So, bragging rights about revenue growth at Greektown in May 2009 as compared to May 2008 should be tempered. May 2008 represented perhaps the lowest point in Greektown's financial health.

Despite a major renovation at MotorCity Casino including the addition off theaters, conference and restaurant amenities, and a 400-room luxury hotel, it has generally failed to meet financial expectations since Marian Ilitch acquired control of the property from MGM Mirage in 2005. Both Moody's and Standard & Poor's have now established a steady pattern of declining credit ratings for MotorCity's financial parent during this period.

Among numerous other affiliates, Ilitch controls CCM Merger, Inc. which is the highly leveraged financial parent of Detroit Entertainment LLC (DELLC) which is the entity that does business as (dba) MotorCity Casino. In December 2008, CCM Merger broke its financial convenants and as a result, investors demanded Marian Ilitch inject $45 million cash into the enterprise.

Financial results published by MGCB

Ilitch must announce intentions for Joe Louis Arena June 30

Bill Shea at Crain's Detroit Business blogs:

... Mike and Marian Ilitch, the franchise’s owners [Detroit Red Wings] since 1982, have until June 30 to tell Detroit if they will modernize the 30-year-old, city-owned Joe Louis Arena or construct a new venue that likely would cost $300 million to $400 million.

Renovating Joe Louis reportedly could cost $180 million or more.

The lease expires July 1, 2010, but the Ilitches are contractually obligated to tell the city a year ahead of time their intentions. Doing nothing renews the lease for 20 years.

The team and city have been hush-hush about their Joe Louis talks. Scuttlebutt says the Ilitches want an extension to continue negotiations while they map out a plan for a new venue — likely on the land in the Foxtown area they’ve been buying up in recent years. (Full Post)

Is Marian Ilitch behind plans to develop Indian casino at New York's Belmont Park Race Track?

Detroit's Marian Ilitch and her casino and real estate partner Michael J. Malik, Sr., formed the casino syndicate Gateway Casino Resorts in 2003 to pursue Indian gaming ventures with the Shinnecock Indian Nation of New York. The tribe is not yet federally recognized by the U.S. Department of Interior, Bureau of Indian Affairs, but has a reservation in Southampton, NY.

Ilitch and affiliates are reportedly paying the Shinnecock's legal and lobbying bills and if the tribe wins federal recognition, Ilitch and affiliates would have the exclusive right to develop and manage any casino resort the tribe would develop and operate. According to Opensecrets.org, they have spent more than $1.6 million alone in federal lobbying activities.

Initially Ilitch and partners sought to develop a 65,000 square foot casino project in Hampton Bays part of Long Island's posh Hamptons resort area -- 4.3 miles from the tribe's offices and 85 miles from New York's Times Square. The tribe owns property known as "The Westwoods" north of Newtown Rd. and broke ground on that project in 2003. That project has subsequently met with much resistance and is stalled.

In 2007, Ilitch and her partners, made a bid that would have allowed Gateway and the Shinnecock to develop a casino resort project on the grounds of the Aqueduct Race Track in Queens, NY -- approximately 14 miles from Times Square. That casino would have been 495,000 square foot -- 7.5 times the size of the original casino proposed for the Hamptons and 4.5 times larger than Ilitch's MotorCity Casino in Detroit.

Now the Shinnecock tribe, which has had its desire for federal recognition fast-tracked thanks to funding and support from Ilitch and affiliates, is bidding to develop and operate a casino project at Belmont Park Race Track -- approximately 19 miles from New York's Times Square. Presumably Ilitch's affiliates are part of this latest Shinnecock casino scheme.

Marian Ilitch and her husband Mike Ilitch own the Detroit Red Wings NHL franchise and c0-founded Little Caesars pizza stores. He also owns the Detroit Tigers and she owns the struggling MotorCity Casino, one of three large Las Vegas-style casino properties in Detroit. Their parent company is the privately held Ilitch Holdings, Inc.

Google Map of various casino sites
as proposed by Shinnecock/Gateway

View Various Proposed Shinnecock Casino Sites in a larger map

Shinnecock Indians eye casino at Belmont Park racetrack

6.04.09

Indian tribe eyes Belmont Park for casino

By FRANK ELTMAN

NEW YORK (AP) — You can't bet on the biggest longshot at Belmont Park — not yet, anyway.

The finish line is still far off, but for a tiny Indian tribe eking out a living in the heart of one the world's richest communities, Long Island's famed racetrack could be the place where their fortunes change.

As the thoroughbred racing world turns its attention to Saturday's 141st Belmont Stakes, members of the Shinnecock Indian tribe have said in recent days they are willing to consider Belmont Park as the location for the casino they want to open.

The track is located just outside New York City, meaning millions in the metropolitan area could satisfy a gambling yen without a trip to Atlantic City or to Indian-run casinos in Connecticut, both at least 90 minutes away. But there are many hurdles to leap before the roulette wheels start spinning.

The Shinnecock, whose earlier plans for a casino in Southampton sent shudders through their wealthy neighbors in 2003, reached an agreement with the U.S. Department of Interior last week that speeds up the process for the tribe to receive formal recognition by the Bureau of Indian Affairs — necessary before any tribe can even consider opening a gambling facility. Tribal representatives were in Washington on Wednesday, where they were expected to make their case for federal recognition, which the tribe has been seeking since 1978.

"As Indian people, even though we've maintained who we are for generations, and surrounded by some of the wealthiest communities in the country, perhaps this recognition will help some of our neighbors better understand us and foster a new mutual respect," said Shinnecock trustee Randy King.

"We have long prided ourselves on the good relationship we have had with the state of New York and the local community around our reservation," Shinnecock trustee Gordell Wright said. "We fully intend to remain good neighbors as we pursue opportunities to provide jobs for our people."

Interior Department officials are reviewing ancestral records and other historical documents of the tribe before determining whether the Shinnecocks meet the recognition criteria, said BIA spokeswoman Nedra Darling. The tribe had sought to circumvent the federal approval process by seeking recognition in federal court, but a judge rejected that effort in 2007.

Even with federal recognition, the tribe would have to have other federal and state approvals. A preliminary decision on recognition is expected by Dec. 15, and final approval could come sometime next year. In addition to being able to operate a casino, the Shinnecock would be eligible for federal grants and other funding.

The Mashantucket Pequot Tribe, which runs one of two of Connecticut's lucrative casinos — Foxwoods — said it wished the Shinnecock well in its bid for federal recognition, but spokeswoman Lori A. Potter declined comment on whether it supports a possible Shinnecock casino.

"The people in the surrounding communities have indicated support," said Nassau County Executive Tom Suozzi; the track, about 70 miles from the Shinnecock reservation in Southampton, is in his county.

"This could be a home run. Belmont is the ideal location both for the operators of a casino, the residents and the local governments. If it is going to be in the region, I'd rather see it at Belmont," Suozzi added.

Tribal leaders are keeping their intentions close to the vest, saying only that they are willing to negotiate with state leaders on a location for any casino. "Anything between Suffolk (on eastern Long Island) and the Catskills could be an appropriate site," said Shinnecock trustee Fred Bess.

Added King: "We're even willing to consider locations not currently on the table."

But Belmont seems to be getting much of the attention from politicians handicapping the possibilities. State and local officials have been discussing improvements at Belmont and its surrounding community for the past several years. There has been talk of building hotels and restaurants, but few concrete proposals have come to fruition.

Suozzi, a possible contender for statewide office in 2010, said he would want to ensure school districts and local governments benefit from the income a casino would bring, and said many other questions remained before he would give his full endorsement. "We'd like to see enhancements to the local community as part of any agreement," he said.

About 500 Shinnecock tribal members now live in modest homes on a 1,200-acre reservation in Southampton. Nearby, some of the richest people in the world, including Wall Street power brokers and Hollywood celebrities, have sprawling estates worth tens of millions.

As a seaside tribe, the Shinnecocks for decades depended on fishing and whaling to support themselves. Later, the nation leased its land to local area farmers for their crops, mainly potatoes and corn.

Many of those still on the reservation work as craftspeople and artists. Others work in a variety of mainstream jobs around Long Island. They see the prospects of a casino, and the millions it could bring, as a way out of their modest circumstances.

An earlier tribal proposal to open a casino near their Southampton property ignited a stir, with some officials claiming the bucolic beauty of Long Island's east end would be adversely impacted by the influx of thousands of gamblers — not just in the summer when the Hamptons' population surges, but year-round.

A casino at Belmont, where there are major highways nearby, as well as a Long Island Rail Road station, would ease those concerns.

When the Shinnecocks broke ground in 2003 on their proposed Southampton casino, town officials raced into federal court and got an injunction to stop it. Since then, Suffolk County officials formed a task force to study the issue; County Executive Steve Levy said he is waiting for the results of that study before taking a position.

Outside the Elmont Public Library on Wednesday, residents had differing views of a Belmont casino's impact on the community.

"The biggest factor that bothers me is the excess traffic," said Giovanni Soto. "I'm not concerned with regards to crime and stuff. I've been to other casinos and it seems in general that hasn't been a problem."

Zahid Chaudry said he wanted no part of a casino. "It's just going to be a hangout for the wrong crowd," he said. "The crowd that just wants to make fast money easily. They're not working for it and that's not the type of people the hard-working people of Elmont want."

Jean Charles agreed that a casino at Belmont "is a longshot." But he said he would welcome it if it happened. "I think we're grown up enough to handle a casino. It would bring in good money."

A spokesman for a Democratic state senator in the area called the Belmont idea "an intriguing and exciting possibility." Republican state Sen. Dean Skelos's spokesman said more information is needed, but he "would be open" to an Indian-run casino at Belmont.

The Shinnecocks have also expressed interest in nearby Aqueduct racetrack, and said it is still a possibility.

New York Gov. David Paterson's administration is reviewing bids now for by several consortiums that want to run a video slot machine center at Aqueduct, about five minutes' ride from Belmont. The state was counting on about $250 million in annual revenue from 4,500 video slot machines and jobs for 1,200 people at the Queens track.

In March, the original bid winner, Buffalo-based Delaware North, said the credit collapse on Wall Street forced it to seek a restructuring of its video slots proposal because it could no longer provide the $370 million in upfront payments to the state.

Alan Meister, an economist with the Los Angeles-based Analysis Group, compiles the annual Indian Gaming Industry Report. He said so-called "racinos" have become popular at racetracks around the country in recent years; one such racino operates at Yonkers Raceway, north of New York City. He said because the Shinnecocks have yet to commit to a location or type of gambling operation, it is difficult to predict success.

"There is a potential to grow the market," Meister conceded.

Meister's report for 2007 — the latest figures available — noted that 230 tribes were operating 425 gaming facilities in 28 states, generating $26.5 billion in gaming revenue, a 5 percent increase over the previous year.

Ilitch has long-standing conflict of interest, Selig looks the other way

An article on SportsColumn.com, "MLB Ramps Up Casino Partnerships," by writer Diane M. Grassi asks:

How does MLB oversee those sponsorships between MLB teams and casino operations which allow legal sports betting on their premises?...

...In Detroit there appears to be a long-standing conflict of interest with respect to the ownership of the Detroit Tigers as well as the MotorCity Casino, purchased by Ilitch Holdings, Inc. in 2005, which purportedly owns both entities simultaneously.

Michael Ilitch and his wife, Marion Ilitch [Marian Ilitch], are listed as the Tigers’ owner and the MotorCity Casino owner, respectively. The question arose when it was revealed that Marian Ilitch is Vice Chairman of Ilitch Holdings, Inc. which also owns the Detroit Tigers. But Ilitch friend and Commissioner Bud Selig overlooked the proprietary conflict and asked his staff to stand-down...

Court Settlement fast-tracks Shinnecock recognition, casino plans

5.26.09

Shinnecock Indians Contemplate a Casino as They Close In on Federal Recognition

By DANNY HAKIM

The Shinnecock Indian Nation cleared a major hurdle toward its goal of federal recognition on Tuesday when it entered into a settlement with the Interior Department that requires a preliminary ruling on its tribal status by the end of the year.

Shinnecock leaders would like to run the first casino in downstate New York, and wrote to Gov. David A. Paterson on Tuesday, citing the settlement as an impetus to begin talks with the state on a range of issues.

After a court fight of more than 30 years, the Shinnecocks believe that federal recognition is in their grasp; they have long been recognized by the state, and a federal judge described them as a sovereign tribe in a 2005 ruling. The settlement gives the federal government until Dec. 15 to make a preliminary ruling on the Shinnecocks’ status.

The implications for New York could be considerable.

The Shinnecocks are based in Southampton, N.Y. Once federally recognized, they would immediately have the right to build a “Class II” casino on their 800-acre reservation, a designation that would mean they could have thousands of video slot machines, but no table games. Like other tribes, the Shinnecocks see a casino as a way to lift their members out of poverty, a condition highlighted by the tribe’s proximity to the extravagance of the Hamptons. (Complete Story)

TVT Note: The Shinnecock plans are being bankrolled by Gateway Casino Resorts, a casino syndication affiliate formed by Detroit's Marian Ilitch and Michael J. Malik, Sr. in 2003. They have spent $1.6 million on federal lobbying expenses alone.

Ilitch and her husband Mike Ilitch own the Detroit Red Wings and co-founded Little Caesars pizza stores. She owns Detroit's MotorCity Casino and he owns the Detroit Tigers. Their interests are closley held by the family owned Ilitch Holdings, Inc.