Monthly Archives: July 2011

The Mohegans are Ballin’..the Mashpee Stallin’

This story is 9 months old but it confirms what we have been telling you.  We are in a very bad deal.  The administration has borrowed and spent upwards of $24 m ( at 15% ) from the Malaysians in a deal gone bad.  That’s almost double what the original investors spent over a 10 year period.  We have nothing to show for it.

Look at the Mohegan.  They will be done with debt to their investors in a few years. The South Africans and a host of people many from Detroit were also our investors . They gave us the same reasonable payment plan given the Mohegan, over 20 years.  Our deal was 6% of gross receipts  go to investors over 20 years. Fair enough.  That was how we would repay them for the millions invested in a 539 acre resort casino.  Think about it.  We would have honored our agreement to Middleboro, and our people would FINALLY have an opportunity to build   a foundation for a better future.  Now the Malaysians regard us as a one night stand. The administration just forgot to tell us no doubt.

Foxwoods’ Malaysian investors gamble on New York casino

By David Collins

Publication: The Day

Published 11/07/2010 12:00 AM

It’s a small world when it comes to gambling industry kingpins.

Who would have imagined, for instance, that the South Africans who helped the Mohegans get into the gambling business would have allied with the Mashpee Wampanoag Indians in nearby Massachusetts, set to compete with Mohegan Sun?

And then last year, the wealthy Malaysians who first backed the Mashantucket Pequots pushed aside the South Africans as the Wampanoag partners, ready to compete with their own stepchild, Foxwoods.

And now the Malaysians, under the name Genting New York LLC, have moved into New York City. They broke ground last month on a new casino at the Aqueduct Race Track in Queens, preparing to soon open a Resorts World Casino there with 4,525 slot machines.

Both Connecticut casinos will certainly suffer when a casino with that many slot machines opens alongside the New York City subway system.

Curiously, the new president of Genting New York is none other than Michael Speller, the last president of Foxwoods, who resigned here in June.

It is indeed a small gaming world.

It is also interesting to note that while the Mashantucket Pequots may soon lose some of their gambling business to Genting New York, they are still paying the Malaysians some 9.9 percent of gross Foxwoods income, part of the deal in which they borrowed $58 million to build the first casino here. The payments are meant to continue until 2016.

The Mohegans, on the other hand, may be through paying their original partners, the South Africans, 5 percent of gross revenues in 2014.

Genting Chairman K.T. Lim, appearing at the Aqueduct casino groundbreaking last month, called the event one of the company’s “proudest days.”

Genting paid out $380 million for the right to develop the casino in Queens, which is expected to contribute another $300 million annually in tax revenues.

Presumably it was prouder than the day the Genting-backed Foxwoods debuted, or the openings of Genting-backed casinos in Niagara Falls and in Monticello, N.Y.

Foxwoods was the first foray into the U.S. gambling market for the wealthy Lim family, which made its gambling fortune on a casino monopoly in Malaysia, a giant resort called Genting Highlands.

More recently, in addition to the New York projects, Genting has built one of only two huge casinos in Singapore, sharing a $6-billion-a-year market there.

In addition to the big casinos in Malaysia and Singapore, the company also controls large plantations and the Norwegian Cruise lines.

“It’s real important for us to make (Aqueduct) a showcase event for the company,” Speller told the Wall Street Journal, in a story that ran in late August.

Genting officials have said they eventually intend to spend $1.3 billion on the casino resort in Queens.

The initial phase, in addition to the slot machines, is scheduled to have several restaurants, a parking garage and an outdoor terrace that will connect the casino and racetrack.

There are plans to build three hotels, shops, a spa and other resort facilities.

One might presume that the New York City gambling resort, surely to become a formidable competitor to Mohegan Sun and Foxwoods, will be fully operational by the time the Malaysians finish collecting all those many millions on their smart startup investment on the Mashantucket Pequots.

It’s a small gambling world after all, and it seems that everyone here in the Northeast will soon be chasing the same player dollars.

This is the opinion of David Collins.



Even the Malaysians don’t take Mashpee seriously

This very recent article shows that the Mashpee effort is going no where as far as the investors and professionals are concerned. Genting is instead focused on killing the competition in it’s New York stronghold and that competition would be the “Great Shennacock Nation”….just recently recognized. Of course the chairman’s fondness for the New York Natives is admirable, but you can rest assured that the investors paying his salary, are working hard against his close friends, and if history offers any clue, Genting will do whatever it takes to maintain its gaming advantage and crush the Shennacock. Lovely group. We’re not trying to depress you, just keeping you informed.

Dickinson Wright PLLC Global Leaders in Law

United States: Tribal Casino And The Asian Global Giant: A Modern David vs. Goliath?

Article by Dennis J. Whittlesey

July 25, 2011

Genting is the Malaysian global gaming juggernaut that has been working on gaming projects within the United States for several years and finally appears to be on the verge of opening its first domestic casino before the end of the year. Yet, one of its top executives has just suggested that a tribal casino proposed for Long Island could wreck its plans for a major racino development at Aqueduct in New York City.

Colin Au is a senior executive of Genting New York LLC, the company that was selected to develop the Aqueduct facility which will operate under the name “Resorts World New York.” He also has been publicly identified for other company projects in the United States, including a sidetracked casino in Fall River, Massachusetts, in partnership with the Mashpee Wampanoag Tribe, after leading that tribe out of an agreement with the Town of Middleborough for a major casino resort development. But Mr. Au now is expressing serious corporate concerns that the Aqueduct project could be put out of business if the newly recognized Shinnecock Nation of New York opens a casino in Long Island’s Nassau County.

The Mashpee project seems to have been something of a diversion for Genting, since its most serious efforts to gain a foothold in the Unites States have been in the state of New York. Its latest and largest effort is the proposed development at Aqueduct which would include both the racino and a major convention center nearby under plans publicly announced by the company. Upon winning the competition for the Aqueduct contract, Genting made a $380 million upfront payment to the State for a 30-year contract period and an option for an additional 10 years. The racino component is already under construction.

Only last Monday, Genting Chief Financial Officer Christian Goode made a detailed presentation of his plans to the state Franchise Oversight Board at the State Capitol in Albany. In addition to major renovations to the existing facility, Goode unveiled plans to initially open the racino with 2,500 machines; earlier statements indicated an ultimate installation of 5,000 gaming machines producing some $380 per machine per day. That level of play would generate a drop of $1.9 million daily, or approximately $700 million annually. These estimates are based on the facility’s location, a glitzy resort-type development plan, and an affluent customer base in Long Island, Queens, and Brooklyn. The proposed convention center would only add to the total attraction.

Also addressing the Franchise Board on Monday, Mr. Au said, “Here is a place where many conventioneers can fly in for a day. Of course, this will be done with private money that is our money, not bonds.”

But Mr. Au then ominously warned the Board that Genting could be bankrupted by a Shinnecock casino on Long Island, expressing emphatic opposition to the proposed Long Island Indian casino. If such a casino is opened, he said, “It would be disastrous. We probably would have to close shop.” The implication was that the state would be the big loser in that case since the taxable revenues generated at Aqueduct would be permanently lost, as well as a commitment to pay 7 percent of revenues to the New York Racing Association and 1.5 percent to the breeding industry.

While Messrs. Goode and Au painted a rosy scenario for the state with development of a competition-free project, they then stated the bottom line to their message, which is that the State must refuse to negotiate a Tribal State Class III Gaming Compact with Shinnecock. Since such a compact is required under the federal Indian gaming law, a State refusal to enter into the agreement would foreclose the competition that Genting seems to fear.

It is a fact that a tribal casino could offer full casino games not permitted at the Aqueduct site, including blackjack, poker, and roulette – all are games that are extremely popular with the gaming public. In the face of that potential competition, Mr. Au flatly warned the Board to prevent it from becoming reality, “We are absolutely on a very different level playing field. It’s important for the Governor’s office to recognize they should enter into a compact [pursuant to the Indian Gaming Regulatory Act].”

Genting claimed to have been a great fan of Indian gaming a couple of years ago when it pried the Mashpee casino project away from that tribe’s original development partners a project that appears to be in a state of permanent paralysis. Conversely, the company currently is telling Governor Andrew Cuomo that he must block any Indian gaming in New York. There might be some consistency to Genting’s attitude about Indian gaming, but the corporate spokesmen have not yet explained it.

The content of this article is intended to provide a general guide to the subject matter.


When ya lie down with dogs, ya come up with fleas

The Genting group has it’s share of investigations in the United States in addition to  hurting Native tribes that they showered with unregulated money, then shoved off the cliff. Namely the Mashantucket Pequot. They are the poster child for the Indian Gaming Regulatory Act. Actually the law was passed because the Genting exploited the Pequot so badly, the federal government had to establish a law to protect Indian tribes from the loan sharks like them. Well it came to late for the Pequot who 23 years later were crushed by a debt they couldn’t generate the money to pay….even with their ” largest casino in the world.” Foxwoods is an empty shell now. And the Pequots are absolutely broke and in debt. No more $150,000 allotments. Nothing.
And the Mashpee Wampanoag, without land in trust? Guess who owns this tribe? Genting. We are no different than the Pequot, on the same path, unprotected looking for a commercial venture that benefits the investors….exclusively Ain’t that special?. But guess what, the officers of the tribe and all their friends still get paid hundreds of thousands of dollars to bind us to a really bad deal. Yes indeed, the landless Wampanoag are paying their government to set us back 200 years. Great. Can’t blame the White man…ya just can’t.

The Malaysians face investigtion in many places

New York State Comptroller promises more looks at NYRA’s books

Published: Wednesday, July 20, 2011


SARATOGA SPRINGS — The state comptroller intends to look, with some skepticism, at the New York Racing Association’s books to see what it’s doing to get out of the red.

“NYRA has a history of overspending,” Thomas P. DiNapoli said in a press release Wednesday. “I want to ensure that this is one tradition that doesn’t continue.”

DiNapoli’s review will examine NYRA’s response to two earlier comptroller audits, which called for significant cost reductions, including salaries and consultant fees. NYRA hasn’t posted a profit since 2000, reported a $17 million operating loss last year and projects an $11 million loss this year.

In June, state Budget Director Robert Megna asked NYRA for a long-term business plan, which NYRA said it cannot provide until after the six-week Saratoga Race Course meet that begins Friday. NYRA says it needs to see how Aqueduct’s new casino, scheduled to open in early October, actually performs before making long-term financial projections.

Megna also chairs the state Franchise Oversight Board and recently criticized a nearly 8 percent spending increase in NYRA’s $141 million budget. The budget included a more than 5 percent hike in salaries, with some executives making between $255,000 and $460,000. Megna also questioned the firm’s ability to get back in the black.

However, NYRA on Wednesday announced positive results from the recently concluded spring-summer Belmont Park meet. Attendance was up 14.4 percent over last year, total on-track handle (including money bet on simulcast races) was up 72 percent — increasing to $141 million from $82 million — and total all-sources handle (including money bet on simulcast races) was up 1.2 percent, increasing to $579 million from $572 million.

Also, NYRA Rewards telephone wagering was up 146 percent, increasing to $13 million from $5.4 million, and NYRA Rewards internet wagering was up 231 percent, increasing to $22 million from $6.5 million.

NYRA is three years into a 25-year contract with the state to operate Saratoga Race Course, Belmont Park and Aqueduct. The racetrack operator is currently operating with a

$25 million loan from Genting New York LLC, the casino’s operator. The first 2,500 gaming machines are slated to open around Oct. 1, with the rest coming on line before the end of this year.

One June 21, Megna asked NYRA to submit a plan to bring racing operations into long-term solvency. “We are working on a five-year plan which will not be final until the fall, as we need firm numbers on VLTs so we can better gauge how long it will take to pay back the $25 million loan from Genting,” NYRA spokesman Dan Silver said.

In addition, New York City Off Track Betting, which closed last Dec. 8, accounted for 18 percent of NYRA’s revenue stream.

“We’ve made some of that up, a significant amount, by our on-track business,” NYRA President Charles Hayward said. “But we need to work on, and we are working on a strategy to get back in the city and that relies on some approvals from the state and city government. So we’re moving that forward, but we can’t get that five-year plan done until we have some certainty about revenues from VLTs and some clarity about New York City OTB.”

Benefits represent one of NYRA’s largest spending increases — roughly

$4 million (27.2 percent) — from $15 million in 2010 to $19.1 million this year. “Several factors contribute to this increase, including a 36.7 percent increase in health care due to rising health care costs and a significant spike in claims correlated with WARN Act notices issued in May 2010,” NYRA’s budget said. NYRA sent out the notices last year, a requirement having to do with potential layoffs, when faced with a possible racing shutdown.

Salaries are NYRA’s singe largest expense, $59.2 million, and have gone up 5.2 percent (roughly $3 million) from last year’s $56.3 million. Of this, NYRA has had to pay an extra $1.4 million for additional pari-mutuel and television staffing to handle increased business activity when NYC OTB closed.

NYRA expects to save $500,000 by hiring 900 temporary workers during the Saratoga meet compared to 1,100 last year.

The Chairman’s legacy of deceit

The USDA loan for the Community Center, secured by the previous administration.Cromwell and Harding get the check. As usual, no one knows the status of the millions for the center.

The latest investigative report  by Wampaleaks goes to the heart of tribal concerns.  Was Cedric Cromwell and his slate duly elected? Do the Mashpee have a means of resolving the issue of legitimacy?   The answer is no to both questions. This administration never set up a tribal court  because they failed to get our land into trust.  Again they never understood that process and literally did not know how to proceed.The tribe has been helpless, as the Cromwell Administration  takes advantage of this limbo status and continues to operate in secrecy.  And the debt to the Malaysians is reportedly upwards of  $24 million.  Who knows ?

This administration is clearly abusing it’s legitimate 1700 members.

The Bureau of Indian Affairs was made aware of the  2009 February election debacle in great detail,  shortly after it occurred.  The Obama Administration was in transition then, but it’s clear that, unlike the Bush administration that refused to intervene in Indian government affairs, the BIA is looking into governmental abuse. The BIA said that as soon as Cromwell violates the  tribal constitution  they can step in.  Most recently, the Council did just that by  giving themselves the authority to sell off tribal land, what very little we have.  Clearly this will go into effect when they run out of money again.  Selling tribal land is an absolute constitutional taboo.  With the help of  Native attorney  Mark Tilden, the Council skipped the proper procedure which is to place the issue on a ballot for a tribal vote.  It’s supposed to be  difficult  to change the  constitution. And rightfully so. Not with this group.

WampaLeaks reminded us that the chairman has great difficulty with the truth as noted with his grossly exaggerated education and professional credentials.  But the claims that he ” grew up in the tribal community ” is the most insulting and egregious untruth. Traditionalist can still be heard howling on that one.  But worst of all. Cromwell has done a fabulous job of disenfranchising the Mashpee like no other chairman or sachem (self appointed or not) in its history. These are not political resume pontifications, but confirmation that he his not  an honest broker.

The tribe is actually  occupied by a foreign government.  One consolation is that further close scrutiny of Aaron Tobey, Marie Stone and that charming tribal treasurer Mark Harding will provide further proof to substantiate why we’re under siege. The movie rights will be priceless !

WampaLeaks Tells on the Man Who Calls Himself the Chairman

A new blog that does a lot of digging exposed Cedric Cromwell to the world today. It also looks inside the gaming process on Beacon Hill. It is pretty hot.Clearly, they got “sources.”
Great pictures of Sherry and Cedric back in the day though.
Have a look for yourself.

FBI Subpoenas for Wampanoag Leaders still active

Credible sources have reminded Reel Wamps that FBI subpoenas issued in the spring of 2009, for the Chairman, the Vice Chairman and the Chairman’s estranged wife, are still active. That’s troublesome.
Just the people you want out front negotiating on our behalf. It’s no wonder the tribe’s downward spiral has turned into a curse. So sad that it’s painful struggle for recognition was realized only to be destroyed in a few years by people who have never been in tribal leadership and exploit the tribe.
Let’s review the history of the tribe’s slide down the slippery slope.
• When the land in trust process was thrown out in Feb 2009, the new administration failed to act quickly and single Mashpee out and protect its status. They were clueless about the LIT process in the first place. They never gave our expert lawyers any direction for a course of action. Instead they fired them because they hated Glen Marshall. And they fired other knowledgeable professionals which began a politically vengeful strategy that hurt the Mashpee Wampanoag and reversed every one of the gains made during a 30 year process.
This allowed 27 states, in the Congress, including Massachusetts to mobilize, openly oppose us and other tribes who needed to use LIT, Indian gaming ( because it takes money from the states), and basically prevents us from building a sovereignty casino that protects the tribe from predatory investors.
• The new Administration proceeded to spend up the $800 K surplus. The $300k a month provided by the original investors stopped in April 2009 because they refused to present a spending plan or sign an agreement. They ran out of money in August 2009.
• Out of money for their salaries, they sought and found the Malaysians by around October 2009. This is the same group that drove the Pequot over the cliff.
• The new administration reneged on the investors that they owe, reneged on Middleboro and the site of a 539 acre destination resort casino. Of course Middleboro has every right to sue the tribe for violating a perfectly legal agreement.
• The Chairman proceeds to negotiate a deal with Fall River on the biotech land that is already designated for that facility. The University of Mass is the administrator of the program and the state allocated over $54 million for various infrastructure associated with the project. The chairman even put a huge deposit down ( nobody knows whether it was just $250 K or $3.4 million)and the Mayor and the city economic development group took the money happily.
• The Mayor bailed on the tribe publicly when the state made clear it was going to punish Fall River for brokering an untenable deal. The Chairman claims Fall River is still looking for a location for a casino.
• Now the Malaysians are unhappy. It is the late winter 2011. They want assurances of a meeting between the governor and the chairman or they will not continue to funnel millions to the administration at 15% interest.
• The administration is out of money in March and only gets $500 K from the Malaysians.
• The Chairman talks to the owner of the decrepit Raynham dog track in late June 2011. Of course so has every other gaming interest. The owner is making demands that all of his laid off workers be rehired along with his current workers. The broken down facility is unworthy of a state license because it is so tiny and surrounded by swamps, it can’t even be expanded. It would be a slot dump generating very little money for the state or the investors forget about tribal members. Is that all we’re worth? Who would even talk to this guy? Remember a commercial casino provides no protection or guaranteed payment to tribal members. The investors don’t even have to hire tribal members.
• Following the dog track publicity stunt, the administration gets $2m in July. The Malaysians think there is some minor movement. But that money will have to last until after September when lawmakers come back, and the Massachusetts budget problems have to be addressed by Oct. 1. The administration has had its smallest draw down ever. $2.5 m over 6 months.

And besides, a commercial casino law would not take effect for 2-4 years if the bill were passed and signed today.
Knowing that the same Malaysians who drove the Pequot into the ditch are now engineering our fate, well that’s reason enough to believe that the current administration has some really awesome get rich plan in store for us. Or…….they just want to make sure they keep getting a paycheck. What do you think ?

Indian Circus Held in Mashpee

The Cape Cod Times had a picture of a little girl on the front page with a rawhide head band on. That was the first official photo of the 2011 Mashpee Wampanoag Pow Wow. Not a single Mashpee Wampanoag could identify her. Not a single Mashpee Wampanoag could identify her…..period. Not by family resemblance, not by regalia. Any Mashpee looking at the newspaper website online photos was horrified by the photos because out of about 15 pictures only 2 could be identified as Mashpee.
The prediction came true, the city people had erased us. They allowed people to show up wearing costumes, imitating Indians. It was the ultimate insult. Again, no tribal identification to verify heritage. People all over the place were playing Indian. Worse than any other pow wow. Other tribes were praised and honored on our sacred grounds for three days….’The great Shennecock Nation’ was repeated over and over by the MC… the chagrin of the few members present. Even the children took note.
The Mashpee had stopped coming to their cherished homecoming celebration. The event they used to plan for meticulously the day after it was over, has become a cheap Indian Circus. It was reduced to people imitating Indians in “costumes” and very very few Wampanoag in attendance. The few Mashpee that showed up muttered “this is awful.” They had so few adult dancers they were dancing the kids into the ground for 3 days. “Hoka.” We won’t talk about where the prize money went and to whom. Guess who the host drum was…right the Shennecocks….they were…….downright awful.
Driving into the parking lot was frightening. A rough crowd was in charge. The warmth and hospitality of the event was replaced with chaos, clutter, tents everywhere and no security. You felt like you needed protection from the people in charge, whoever they were. There were a couple of tribal members children on the gate and they were 13 years old. Once you got inside the parking lot….that was something else altogether. Tribal members would come in and they would get the hell out ….fast….and then there were those who just did not show up. There were hundreds of the “not show uppers.”
The transition to the Indian Circus meant June did not do the Clam bake…..the first time in the history of the pow wow where there was no bake.
We should not hang our heads about what was in the newspaper. The real Mashpee did not support the Indian Circus and it was their decision. For everyone who thought that being Mashpee just came naturally….well now you know don’t you? We don’t wear costumes and stupid headdresses. A Pow Wow is one thing and an Indian Circus is something altogether different ain’t it bird?

We’re Billionaires Ain’t We? Oh You Didn’t Know?

The Mashpee Wampanoag Tribe has a constitution.  That constitution requires the Council to provide a budget to the Tribal membership.  The Council has never presented a budget to the Tribe . As a matter of fact, it has never voted on the budget at any time as a governing body. Okay whatever.

Again, more importantly, it never presented the budget to the Tribe.  Not in 2009, or 2010, or this year 2011.  It just keeps making bad deals, taking out huge loans and  failing to provide the tribe with an economic developemnt strategy that benefits anyone other than Mark Harding. Isn’t it interesting that while other businesses are failing and struggling , his is thriving.

Anyway let’s talk about the moola !

  1. Who makes $172,000 a month is salaries?
  2. Who is making nearly $1,000,000 in professional fees a year?
  3. Why does our cell phone bill  exceed $120,000 a year?
  4. Why are we paying for consultants cell phones?
  5. What is and wh0 gets ” Member Good Will” at $500,000 a year? Did you get any help? Course not.
  6. Who’s traveling on our tab at $50,000 in 90 days.  Bermuda, Saigon, Pago Pago?
  7. What is the mystery category of  $473,669 for Investor Operating expenses?
  8. What is other mystery category of $257,642 Investor Predevelopment?
  9. Why do we have $11,271 in miscellaneous ? We got  your miscellaneous….

The questions continue from a Council member who can’t get answers or audio tapes that are records of official activity. If you want to call it offical.

Now we understand why we had 5 negative audits on Housing and at least 2 negative audits overall. Mark Harding bought an auditing system that was supposed to prevent errors.  Course what do we know? We’re Billionaires ain’t we ?

We got money to burn! At %15 no less…such a deal!