"Over the last three months, three tribal gaming authorities have worked out consensual debt restructurings with lenders in situations that seemed destined for protracted legal battles, bringing investor attention back to the oft-maligned sector.

Indeed, although some of the ugliest conflicts have yet to be resolved – most notably, the Lake of Torches court fight – over the past two years six of the 11 major restructuring agreements between tribal gaming authorities and bondholders tracked by LCD have come to fruition, involving more than $5 billion in debt. And while some lenders who have held onto the tribal gaming credits longer than they expected have vowed to never touch the asset class again, more investors, hungry for high-yield paper in an industry that pulled in $26.5 billion in 2010 and where the risks are now more transparent, have taken their place.

But the tribal gaming industry could become a victim of its own success. Various constituencies – even existing tribal casinos themselves – are flexing their political muscle to block new developments, while competition for new markets will be fierce as states like Massachusetts expand legalized gambling."

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Restructurings – Mohegan, Tribal gaming credits: Know when to hold ‘em … (LeveragedLoan.Com 3/14)