The deals appear to be representative of the oft adhered to maxim "if you can't beat 'em, join 'em." A recent earnings announcement by Caesars blames the company's $84-million fourth quarter loss on $127 million in write-downs caused by "increased competition from Native American casinos." A spokesman for Caesars was unavailable for comment.
Caesars preliminary agreement with the Big Sandy Band of Western Mono Indians is a recently signed a MoU outlining the terms of the development and management agreements that will govern the construction and operation of the casino project. The final agreements are expected to be completed and signed in the next three months. The casino would be the third to directly serve the Fresno metropolitan area, which has a population of approximately 1.2 million. It would be one mile away from the existing Table Mountain Casino, which is currently planning an expansion, and 15 miles from the Big Sandy Band's Mono Wind Casino in Auberry, CA.
Early plans for the Big Sandy project call for the development of more than 215 acres 10 miles northeast of Fresno in the San Joaquin Valley in Central California. Included in the acreage is a 40-acre parcel of tribal land where the gaming portion of the facility, a 75,000-sf casino, will be located. Elsewhere on the parcel, initial plans include 250 to 300 hotel rooms plus retail shops and meeting and entertainment facilities.
The management agreement between Caesars Entertainment and the Tribe requires the approval of the National Indian Gaming Commission. In addition, the Tribe would have to amend its existing compact with the State of California, or negotiate a new compact for the new casino project. The project also is dependent on other regulatory approvals and contingencies.
One known obstacle will be Fresno County Supervisor Bob Waterston, whose district includes the land for the casino. The Mono tribe "called me a week ago and told me about this," Waterston said in published reports. "I was totally shocked because this is just huge. I told them a week ago, 'Have you guys talked to Table Mountain? What are you going to do about water? What are you going to do about sewer?' They haven't talked to me about roads," he added. "Caesars is going to have a huge problem with me over this."
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