Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

3/29/2012 (2 years ago)

Catholic Online (www.catholic.org)

Formerly affluent Pequot tribe now broke, struggling to pay $2 billion in debts

Times once ran high for the Pequot tribe in Connecticut. Establishing the Foxwoods Casino on their tiny patch of reservation, tribesmen prospered, many earning an annual income of $100,000. This came to a halt after the casino racked up $2 billion in debt, and many tribal members on "the payroll" now find them destitute and broke.

The Pequots then won federal recognition and opened a bingo hall in the 1980s before hitting the jackpot with the start of casino gambling at the Foxwoods in 1992.

The Pequots then won federal recognition and opened a bingo hall in the 1980s before hitting the jackpot with the start of casino gambling at the Foxwoods in 1992.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

3/29/2012 (2 years ago)

Published in Business & Economics

Keywords: Pequot tribe, gambling casino, debt, recession


LOS ANGELES, CA (Catholic Online) - The Pequot tribe is a typical success story. In the 1970s, there was only one tribe member living on the reservation. The Pequots then won federal recognition and opened a bingo hall in the 1980s before hitting the jackpot with the start of casino gambling at the Foxwoods in 1992. People who then traced their bloodlines to Pequots counted in a 1900 census were allowed to join the tribe. The tribe now has roughly 900 members.

For more than 20 years, the Mashantucket Pequots lived like royalty. Luxury cars abounded on their tiny, gated reservation of colonial and ranch-style homes in the woods of southeastern Connecticut.

This has effectively come to an end as the Foxwoods casino, now struggling with debt exceeding $2 billion, has ceased payment to tribal members. This has left the tribe devastated, as many who lived without jobs now struggle to find ways to generate income.

In addition, FBI agents have been visiting the reservation and asking about tribal finances. "Our stress levels are very high up here," tribal elder Loretta Libby says. "I just don't know what's going to happen."

While the Pequot tribe still clings to the success of the Foxwoods Casino, tribal leaders have discouraged members from talking with outsiders. A reporter who made a recent visit was stopped by five tribal police officers and escorted off the reservation. The police handed out notices later that day instructing people not to speak with reporters.

There are talks at the Foxwoods to refinance its debt. After years of unparalleled success drawing gamblers from across New England and New York, the casino began struggling with increased competition and slackening demand.

Foxwoods completed a major, costly expansion with the 30-story MGM Grand hotel and casino at the height of the recession in 2008. The resort has four hotels, more than 6,300 slot machines and 360 tables with 15 different types of games in six casinos.

The regular member payments ended in 2010, but the tribe offered smaller, transitional aid to members until March.

The tribe has offered financial counseling and placing more members with jobs, including some at the casino. Sixty-year-old tribal member Roslyn Charles says the tribe still makes other aid available, including help with utility bills. She says that while jobs are available, she said many do not want to work.

"This is a family. There's no friction. You've got to do what you've got to do," Charles says who works at a library. "The economy is hitting everybody. It's not just us."

.

---


Pope Francis calls for your 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2014
Respect for Women:
That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.



Comments


More Business & Economics

Is the 'Mark of the Beast' the future of money? Watch

Image of Theoretically, a unique identifier is attached to your digital wallet, could transmits payment for the groceries directly to the store.

By Catholic Online (NEWS CONSORTIUM)

Some futuristic thinkers say that in the next 20 years or so, when people go to the market, they will pick up the items they need and leave - without the benefit of paying a cashier. Sensors will identify a consumer by a mark, their way of walking or facial ... continue reading


Credit card wars: Wal-Mart sues Visa over transaction 'conspiracy' Watch

Image of Wal-Mart objects to the requirement that retailers who want to accept any payments via Visa honor all issuers' Visa-branded cards.

By Catholic Online (NEWS CONSORTIUM)

In an ongoing war over credit cards in the modern retail environment, Wal-Mart Stores Inc. is suing Visa Inc. for allegedly conspiring with banks to fix transaction fees. It's just the latest in a long, ongoing legal fight between retailers and card issuers. ... continue reading


In spite of tax revenue all-time highs - government still running in the deficit Watch

Image of Congress passed and President Obama signed

By Catholic Online (NEWS CONSORTIUM)

According to the Monthly Treasury Statement for February, inflation-adjusted federal tax revenues hit a record $1,104,947,000,000 in the first five months of fiscal 2014. It would stand to reason that the government would have partially dug itself out of its ... continue reading


'Regulated' Bitcoin exchanges planned in New York Watch

Image of Singapore has imposed a tax on Bitcoin trading and using it to pay for services, after classifying it as goods, rather than a currency.

By Catholic Online (NEWS CONSORTIUM)

In a sign that the digital form of exchange in popularity - and by extension, legitimacy, New York's financial regulator has called on firms to submit proposals to set up "regulated" exchanges for currency such as the Bitcoin. LOS ANGELES, CA (Catholic Online) ... continue reading


One, fell swoop: Italy's biggest bank to cut 8,500 jobs Watch

Image of The company is to create an internal

By Catholic Online (NEWS CONSORTIUM)

"I believe the group has turned the page," Italy's largest bank, UniCredit's chief executive, Federico Ghizzoni said. "We could have staggered the losses over several years. We decided to take them all in one year." It wasn't good news for many - Unicredit has ... continue reading


$30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion Watch

Image of The bank is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.

By Catholic Online (NEWS CONSORTIUM)

Everyone at some point seems to 'rob Peter to pay Paul' - especially international governments. During the European debt crisis, many nations borrowed money to keep their governments solvent. As a result, global debt increased by $30 trillion from the original ... continue reading


Wowza! Restaurant starts charging diners for Obamacare Watch

Image of Obamacare sounds nice, but somebody has to pay. At least Gator's Dockside is up front about it.

By Catholic Online (NEWS CONSORTIUM)

Going out to dinner? You'd better be prepared to pay a little bit extra thanks to Obamacare. A chain of Florida restaurants is tacking a surcharge onto diner's bills to help keep expenses at bay and workers on the payroll. LOS ANGELES, CA (Catholic Online) - A small ... continue reading


Time banking - where time is BETTER than MONEY Watch

Image of In a time bank, time is the money.

By Catholic Online (NEWS CONSORTIUM)

Alternative currencies such as Bitcoin and BerkShares are gaining popularity as people look for ways to escape what they see as a rigged and flawed system of monetary exchange in government currencies. However, the idea of banking time as opposed to money is also ... continue reading


Google tops Exxon as world's second-most valuable company - for a day Watch

Image of The one day-surge demonstrated the growing role of technology in the economy.

By Catholic Online (NEWS CONSORTIUM)

It was quite a day on Wall Street. Google, the world's largest online advertiser through its dominant search engine, had a higher market capitalization before falling back at the close in New York to a value of $395.4 billion compared to Exxon's $395.7 billion. ... continue reading


Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing! Watch

Image of Bill Gates thinks the world will be more prosperous with absolute poverty for nations eliminated by 2035, mostly as a result of advances in medicine and technology.

By Catholic Online (NEWS CONSORTIUM)

Bill Gates has said that he does not expect to see anymore "poor countries" left in the world by 2035. In his third ,claiming that the world of today was better off than at any time in history and that in 20 years, it will be even more so. LOS ANGELES, CA (Catholic ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Isaiah 52:13--53:12
13 Look, my servant will prosper, will grow great, ... Read More

Psalm, Psalms 31:2, 6, 12-13, 15-16, 17, 25
2 turn your ear to me, make haste. Be for me a ... Read More

Gospel, John 18:1--19:42
1 After he had said all this, Jesus left with his ... Read More

Reading 2, Hebrews 4:14-16; 5:7-9
14 Since in Jesus, the Son of God, we have the ... Read More

Saint of the Day

Saint of the Day for April 18th, 2014 Image

St. Apollonius the Apologist
April 18: Martyr whose Apologia, or defense of the faith, is considered ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter