Shingle Springs Band failing to see mininum profit at casino

Thursday, May 12, 2011  

The Shingle Springs Band of Miwok Indians of California is racking up more debt at the Red Hawk Casino.

The tribe owes $66 million to Lakes Entertainment Inc. But the casino has been doing so poorly that the tribe hasn't been making payments.

The tribe's contract with Lakes also guarantees a $500,000 minimum profit from the casino each month. But the casino isn't generating enough money so the tribe has borrowed another $1 million from Lakes to pay for government services.

In addition to the debt with Lakes, the tribe owes $450 million in construction bonds and a $77 million loan for fixtures, The Sacramento Bee reported.

Get the Story:
Red Hawk Casino operator signals bigger revenue slump (The Sacramento Bee 5/12)

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Lakes Entertainment takes a big hit on Shingle Springs casino (3/31)