Gaming Legal News: September 8, 2011 • Volume 4, Number 27


Seventh Circuit to Lac Du Flambeau: "They Can't Touch You"

Lac du Flambeau can continue its casino operations without facing any liability for its $46.6 million bond default two years ago. The bondholder still has some hope of recovery if it can persuade the courts that there was an informal or implied sovereign immunity waiver in the transaction. However, the documents pursuant to which it purchased the $50 million in bonds have been determined to be void, including the formal waiver of tribal sovereignty executed in conjunction with the transaction.

On Tuesday, the United States Court of Appeals for the 7th Circuit affirmed the lower court’s ruling made 20 months ago that the Indenture under which the $50 million bond offering was issued constituted a “management contract” under the federal Indian gaming law that never had been approved by the Chairman of the National Indian Gaming Commission (“NIGC”) and was consequently void under the federal gaming law. Worse for the bondholder, the law also dictates that all documents “collateral to” the principal agreement also are void – including all loan documents and the aforementioned waiver.

Please see full newsletter below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dickinson Wright | Attorney Advertising

Written by:


Dickinson Wright on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.