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St. Regis Mohawks sue Harrah's CAsino to the tune of 3 Billion Dollars

23 July 2007
Dating from 2001, the suit was filed in the U.S. Northern District and alleges that Park Place Entertainment, later bought by Harrah’s, duped the Mohawks bolting from the Raceway to pursue a casino at Kutsher's. The case has been recently re-filed after being moved from court to court in the Mohawk tribal court. The plaintiffs are asking the Federal court to uphold the decision of the judge in the tribal court, awarding 1.8 billion dollars, with interest at 9% a year since 2001.

After the trial, the Catskill Litigation trust, representing shareholders of the company that became Empire Resorts, will split the judgment with the Mohawk tribe fifty-fifty. That kind of money could be a good consolation prize, even if Monticello Gaming & Raceway never gains federal approval. Dennis Vacco, former New York State attorney general, reviewed the Mohawk’s case, and found that there was real and valid evidence that Park Place committed fraud and manipulated tribal leaders.

Harrah's, which is being bought out by a group led by the Texas wheeler-dealer David Bonderman, has told their shareholders that the suit has been settled — but is also making some moves of its own. The casino giant is lobbying the Interior Department for a letter saying that tribal court is not a valid court. The case has also brought changes at Empire Resorts, now partners again with the Mohawks in trying to bring Sullivan County's first casino. Joseph Bernstein, a major shareholder, recently resigned from the board, believing he had a conflict of interest. He is a named plaintiff and a co-trustee in the trust.

Bernstein said yesterday that Harrah's has emerged as the main threat to a Mohawk casino, and is making waves with Interior Secretary Dirk Kempthorne, who must still OK the casino. Not only because the company is facing a $3 billion judgment, but also because it owns several casinos in Atlantic City and doesn't want a casino built 90 minutes from Manhattan.

OCN Staff
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