Lac Courte Oreilles Band near bankruptcy with casino debts

Wednesday, August 22, 2012  

The Lac Courte Oreilles Band of Lake Superior Ojibwe in Wisconsin is near bankruptcy as gaming revenues have fallen dramatically amid rising debts.

The tribe only received $2 million from its casino in 2011. In the face of a $33 million casino bond and other debts, that's not enough to make ends meet, tribal leaders said in a letter to the membership.

"As the US economy has slowed, and with limited reinvestment in our casino properties, we have had less gaming patrons and minimal casino revenue was forthcoming during June and July of this year to support our operations," the August 13 letter stated.

The tribe plans to use its $8.29 million trust fund settlement, plus a $1 million dollar grant from the Shakopee Mdewakanton Sioux Community of Minnesota, to address financial issues and plan for recovery. Refinancing of the $33 million casino bond is one of the highest priorities.

"The tribe is near bankruptcy and to do nothing is not an option," the letter stated.

In total, the tribe owes $50 million to various creditors.

Get the Story:
LCO Tribe warns members they may be nearing bankruptcy (The Sawyer County Record 8/22)
LCO Dealing with Debt (WDIO 8/21)