Copyright © 2001 NLThomas
All Rights Reserved

August 9, 1996 issue

MAHNOMEN, MINNESOTA

None of the more than $12 million in WELSA money that went into building the Shooting Star Casino has been repaid to White Earth. White Earth officials learned Wednesday.

Meanwhile, accountants told them, the management company Gaming World International, has been making considerable money in the enterprise. The firm gets five percent more of the net profita than allowed by contract; the casino is paying the salaries of Gaming World employees; and Gaming Wold neither pays the cost of training casino employees nor has it trained in a trio of tribal members to assume casino mangement, as directed by the contract.

Reaction ranged from shocked silence to anger at Wednesday's meeting of the Gaming Commission at the casino, as commissioners and attorneys absorbed the news., "This is really disheartening," said RTC Chairman Eugene "Bugger" McArthur. The Gaming commission is made up of RTC members.

Under the five-year contract between White Earth and Gaming World, $5.5 million of the WELSA money should have been paid back to White Earth by the time Gaming World's contract is up in March of 1997. While none of the money has been returned to the band, Gaming World has receive $9.2 million over the past four years.

Two pots of White Earth Land Settlement Act money was used by the previous council to build the casino: $5.5 million slated for tribal economic development and $6.4 million slated for heirs. The heirs couldn't be found and their share reverted to the band. With interest drawn from investment, the two pots total $12.086 million. Subsequent loans to finance the hotel and gaming equipment brought the total tribal investment to $27 million. Gaming World invested $100,000, which the company recouped almost immediately, accountants said.

The RTC and officials of Gaming World were slated to meet Tuesday Aug. 6, to discuss the situation.

Commisions resolved last Wednesday to:

• Ask accountants to determine what amount of money should have been paid Gaming World, had the proper 70-30 percentage split been followed, instead of the 65-35 split identified is casino financial reports as "the current interpretation of the management agreement";
• Escrow all future payments to Gaming World until the financial picture is clear; and
• Send a "breach of contract" letter to Gaming World

Within hours of after the meeting, rumors began flying that substantial layoffs would be made at the casino. However, there was no discussion of layoffs by the Gaming commission or staff, and commissioners said they're not anticipating any.

District II Representative Tony Wadena also attended the meeting, but said he came as an observer, not a participant, because he doesn't recognize the authority of the other four members to act as a tribal council.

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Bernard J. Rock, Sr.
Leech Lake Pillager Band
Spotted Eagle Warrior Society

North Central Minnesota
Native American Veterans
Outreach and Resource Center

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WE "Tribal Gov't" Takes Over Casino

MAHNOMEN, MINN.

According to the Associated Press, officials of the White Earth Band of Chippewa said Monday they have taken control of the band's Shooting Star Casino.

Officials and security staff on Monday escorted out officials of Gaming World International, the Pennsylvania-based company that has managed the casino for the past four and a half years.

White Earth Tribal Chairman Eugene "Bugger" McArthur said in a news release Monday that the change will not affect day-to-day operation at the casino.

Tribal officials accused the management company of working under a secret, illegal contract with the former tribal council.

A person who answered the telephone at Gaming World's headquarters in Ellwood City on Monday said on one was available to comment on the accusation and action.

McArthur defeated former Chairman Darrell "Chip" Wadena in a June Election. Wadena is in jail pending sentencing on federal corruption charges for plundering money from the White Earth Band.

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Bernard J. Rock, Sr.
Leech Lake Pillager Band
Spotted Eagle Warrior Society

North Central Minnesota
Native American Veterans
Outreach and Resource Center