Stop Predatory Gambling

A money making scheme based on getting people into debt defaults on its own debt

by spgadmin

Foxwoods Resort Casino in Connecticut, one of the world’s largest, has failed to make a full payment on its debt, leading to a default and another credit-rating downgrade to D, Moody’s lowest grade.

According to the AP wire story, the Mashantucket Pequot Tribal Nation, which owns Foxwoods, said it has paid $14.2 million of the $21.25 million semi-annual interest payment that was due Monday on $500 million in debt notes. The tribe said it does not anticipate paying the balance within a 30-day period, resulting in a default.

The tribe, which has been seeking to restructure billions of dollars in debt, said its efforts are “separate and distinct” from operations at Foxwoods and will not affect customers, employees, suppliers or business partners.

Foxwoods, which has more than 7,000 slot and video poker machines and made more than $700 million in profits last year, is the most high-profile example of a tribe defaulting on its debt, said Megan Neuburger, director at Fitch Ratings.

She said investors have long wondered what would happen if a tribe, which has national sovereignty, defaulted on its debt.

What would Foxwoods do if an out-of-control gambler had defaulted on their debt? They would place liens on any property and liquidate all the person’s assets. And after the gambler had been “played to extinction” –  until all their money is gone and they have no financial value left to the casino- Foxwoods would put the gambler on their self-exclusion list.

Predatory gambling – the most predatory institution still standing in America.