Business Deals | Litigation

Narragansett Tribe wins litigation filed by former gaming partner

Thursday, January 22, 2015

The Twin River Casino, a non-Indian facility, in Rhode Island. Photo from Facebook

The Narragansett Tribe won't have to repay a former partner in a failed casino bid in Rhode Island, a judge determined on Tuesday.

Capital Gaming International loaned the tribe about $10 million. The money was to be paid back “after the opening of any gaming, casino or similar facility, project or enterprise" in which the tribe is the "owner, controller, sponsor or is otherwise involved, directly or indirectly," according to the agreement.

The company claimed the provision kicked in when the tribe started receiving a small portion of revenues from Twin River Casino, a non-Indian facility. But Judge Melanie Wilk Thunberg ruled that wasn't the case because the tribe wasn't involved in the project in any way and didn't even agree to a share of the revenues.

"In no way, in this court’s conclusion, is the enactment and resultant receipt of revenue by the tribe tantamount to the tribe’s 'involvement,' 'directly or indirectly,' in a casino project," Thunberg wrote in her decision.

The tribe has been repeatedly rebuffed in its efforts to engage in gaming on and off its lands. At the same time, voters and lawmakers have authorized non-Indian facilities like Twin River, which the tribe is challenging in court.

Get the Story:
Narragansett tribe wins round in dispute with financial backer (The Providence Journal 1/22)
Analyst: Hotel at Twin River would ‘soften the blow’ of Mass. competition (The Providence Journal 1/21)

Rhode Island Superior Court Decision:
CGI-NIT, LLC v. Narragansett Indian Tribe (January 20, 2015)