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Harrahs Owes Millions to Cherokees

4 January 2005
The federal Indian Gaming Commission released an advisory opinion, which stated that almost $45 million currently in the possession of Harrah's Cherokee Casino is actually owed to the tribe and its members. Half of the money is to be given to the tribal government itself and the other half should be paid to the 13,000 members of the Cherokee Indians' Eastern Band. It is not yet known when the money can be expected to change hands. The Tribal Council of the Eastern Band Cherokees is meeting to discuss potential response options in the wake of the Commission's statement.

Aside from the sum owed to them, tribe members already earn a cut of the casino's profits, which totaled approximately $7,000 per member last year. Starting in 1997, the tribe began managing operations for the casino, with approval from state and federal authorities as part of an effort to encourage economic progress on the reservations. Currently, the casino features video slots, poker and blackjack, and also includes a new hotel, which is in the processes of having an additional tower built. The tribe is also vying for the authorities' approval to open a live poker room.

Although the Tribal Casino Gaming Enterprise manages long-term operations, daily activities come under the auspices of Harrah's Casino in Las Vegas. The enterprise board created two cash reserves, a measure which according the gaming commission went beyond its scope of authority. One of these reserves was designated for debt management, although records demonstrate that these funds were not used solely for debt cushioning. The gaming commission declared that this money should be distributed.
OCN Staff
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