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Tribe will buy Indiana casino Closing on $280 million purchase expected in June
Council members were bothered that the resolution proposed for passage did not specifically state where the $120 million would come from, instead listing five different funds that would be used “in coordination or combination.” Chelsea Saunooke was perhaps the most outspoken member in that regard — she said she would have liked to see the allocation amounts broken down and was reticent about draining the Debt Service Sinking Fund as suggested. Saunooke said that off-air conversations ultimately made her feel comfortable with voting yes. “I had some questions about different scenarios for the investment accounts, and there were three scenarios that we didn’t go over on air, but those scenarios plus another loan setup really helped me,” she said in a followup interview. “We’re not going to dive too far into our revenue streams, particularly our investment streams. That’s what helped change my mind about it.”
BY HOLLY KAYS STAFF WRITER ribal Council decided by a razor-thin margin last week to pursue a $280 million deal to purchase the gaming operation at Caesars Southern Indiana Casino, which would mark the tribe’s first foray into the commercial gaming industry. During the same meeting, Council voted to set up a new LLC to oversee the venture. The vote, held Dec. 17, came following months of internal discussions and hours of public and semi-public meetings, including a three-hour special session Dec. 15 and a fivehour discussion Dec. 17 that was held via Microsoft Teams and open only to tribal members. Following the discussion, Council came into open session for a vote. While the vote and discussion were both broadcast on Cherokee cable, neither streamed online as is typical for Tribal Council meetings.
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THE PLAN Ceasars Southern Indiana Casino is home to 1,200 slot machines, as well as sports betting, poker and table games. Laurencio Ronquillo photo
December 23-29, 2020
THE VOTE The Smoky Mountain News did not have access to any of the discussions or votes that took place Dec. 17, but three different council members interviewed afterward said the resolutions passed with identical 49-44 votes. Tribal Council votes use a weighted scale based on the population of each township as of the last tribal census. All three council members reported that Chairman Adam Wachacha, Snowbird Representative Bucky Brown, Birdtown Representative Boyd Owle, Big Cove Representative Perry Shell, Painttown Representative Tommye Saunooke and Wolfetown Representative Chelsea Saunooke voted in favor of the measure. Opposed were Wolfetown Representative Bo Crowe,
Birdtown Representative Albert Rose, Big Cove Representative Richard French, Yellowhill Representative Tom Wahnetah and Painttown Representative Dike Sneed. Vice Chairman David Wolfe and his seven votes were absent due to quarantine restrictions. The Smoky Mountain News has requested official voting records but had not received them as of press time. The resolutions require Principal Chief Richard Sneed’s signature to become effective, but that will not likely be a hurdle as Sneed has been a vocal proponent of the move. A purchasing agreement will be signed later this month with closing expected toward the end of June.
According to a Facebook post from The Cherokee One Feather, the resolution to purchase the casino operation states that the tribe will contribute up to $120 million in cash and secure up to $160 million in financing. The resolution does not specify the source of funding for the down payment, the newspaper reported, simply stating that “the tribe will identify the most advantageous funding mechanism to make the equity contribution.” The tribe’s plan is to pay back the loan in five years at 5 percent interest, though it would be the newly created LLC, not the tribal government, that would be responsible for servicing the debt. During the Dec. 15 meeting, some Tribal
The Southern Indiana Casino, located just across the river from Louisville, Kentucky, is up for sale as the result of a July merger between Eldorado Resorts and Caesars Entertainment — the same company that owns Harrah’s, the tribe’s casino management company. The merger created the nation’s largest casino and entertainment company, and in some states the union put them afoul of market share laws, meaning that the company had to sell off some of its operations in those jurisdictions. The casino in Elizabeth, Indiana, is one of those properties. Sneed said that 20 other firms put in bids to buy it. The tribe currently has a signed letter of intent with Caesars. Under the agreement approved last week, the tribe would purchase the casino’s business operations, not the real estate it’s on — the annual lease pay-
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