Tribal Gaming November Update

• Daniel Horvat
• November 12, 2024

Tribal gaming is in full swing across USA as new casinos are being erected, new deals are being made, and the tribes are pouncing on the opportunity to join the gaming scene and make money from land-based as well as US online and mobile casinos.

Often, they have partnerships with renowned brands in the country, which helps them with the technical, promotional and operational parts of running a casino establishment. It is more rare for a tribe to do everything themselves, though it happens, especially if they have prior experience with running a casino.

This month, there were several significant developments regarding tribal gaming in US states. One is a story of success as a tribe expands its business and sees ‘more money than ever’, and the other is a story of a tribe being halted by another tribe out of spite. The third story is about a tribe that took care of its former competitors that even lost the legal battle – by partnering with them and thereby eliminating the need for any additional litigation.

Cherokee won’t have a casino in Arkansas as Choctaw win

On election night, the Choctaw Nation of Oklahoma managed to get the already issued license to Cherokee revoked.

There was supposed to be a Pope County casino, but the voters passed Issue 2 by a 56-44 margin, a measure that rescinds an existing license and requires any further expansion to also be voter-approved. The license in question was already awarded to Cherokee Nation by state regulators, but is now void.

With over $30 million in campaign contributions, this was the most expensive measure in state history as it almost tripled the previous record set by a recreational marijuana initiative from 2022. The Cherokee tribe lost $12.5 million on campaigning for a ‘No’.

If the Cherokees’ license had endured, the $300 million Legends Resort & Casino would have been constructed at a site about 75 miles outside of Little Rock.

In 2018, Arkansas voters legalized casinos in four counties – Garland, Jefferson, Crittenden and Pope. Casinos have since opened in the first three but not in Pope, which was set back by clashes between the two Indian tribes.

Gulfside Casinos Partnership originally got the license in 2020 that was eventually nullified in favour of the Cherokees. When the Cherokees secured the license, the Choctaw, who operate several casinos in Oklahoma, emerged as their biggest opponent, and have now successfully halted the Cherokee plans in Pope County.

Lincoln WarHorse Casino doubles its capacity and becomes permanent

On 4 Nov 2024, the Lincoln WarHorse Casino opened after only a brief 24-hour closure and it now has 26,000 sqft of gaming space, with more than 17,000 sqft of new gaming space added to the 9,000 sqft of the temporary casino that was constructed in 2022.

The number of slots is increased from 433 to 876 and there are now also ten blackjack tables, a WarHorse Sportsbook and simulcast horse racing seven days a week. In the future, slot machines could increase to up to 1,100 and there could be up to 30 tables with craps and roulette added.

This completes the Phase 2 of the construction. Phase 3 is underway and will include a 220-room hotel and an event and convention center.

WarHorse Gaming LLC is a division of Ho-Chunk, Inc., the company belonging to the Winnebago Tribe of Nebraska. The tribe owns and operates two more casinos, WinnaVegas and Native Star Casino.

WarHorse Casino Omaha opened in August this year, and this is its sister casino in Lincoln. A third WarHorse casino is planned in South Sioux City.

Florida Seminole tribe partners with former opponents on Jai Alai

The US Supreme Court declined to hear challenges to the Seminole tribe’s exclusive mobile gaming rights in Florida, and this paved the path for the former opponents of the tribe, West Fragler Associates and few other companies, to form a partnership regarding offering Jai Alai in the area.

Jim Allen, CEO of Seminole Gaming, said the tribe saved themselves years of additional litigation and that this deal will allow the parties to work together to promote a game that played an important role in Florida’s gaming landscape for nearly 100 years.

It’s likely that similar partnerships will follow with other companies. Allen said the tribe is open to potential deals with major gaming brands such as FanDuel and DraftKings, among others.

Acorn Ridge Casino to open in 2026; first tribe-REIT partnership ever

Acorn Ridge Casino will be a new Sacramento-area casino that will open some time in 2026. It will have 60,000 sqft of gaming space and 349 slot machines, 10 table games, a restaurant and a bar. Construction began on October 24, 2024. What’s notable about this small casino is that it’s the first partnership between an Indian tribe and a real estate investment trust, REIT.

The Ione Band of Miwok Indians has secured a sale/leaseback agreement with Gaming & Leisure Properties Inc., GLPI, for the project. The deal includes a $110 million delayed draw term loan at 11% interest, with $13.7m already drawn. At the end of a five-year loan term, the tribe will be able to convert the outstanding balance into a long-term lease ranging from 25 to 45 years.

This could potentially pave the way for similar deals with other tribes, though the GLPI CEO Peter Carlino said the value of the deal has yet to be proven.

The Acorn Ridge Casino will be the third casino in Amador County. The other two are Harrah’s Northern California Casino in Ione and Jackson Rancheria Casino in Jackson, owned by the Buena Vista Rancheria of Me-Wuk Indians and Jackson Rancheria of Me-Wuk Indians respectively. As the third casino opens, this means that three of the eleven federally recognized Miwok tribes will now have their own casino.