Mashantucket Tribe Cuts Off Payments to Members

Mashantucket Tribe Cuts Off Payments to Members

ICTMN Staff
3/3/12

The Mashantucket Pequot Tribal Nation, which owns and operates the Foxwoods Resort Casino, ended its per-capita payments to tribal members on March 2.

The tribe discontinued its distributions from casino revenues at the conclusion of 2010, when the tribe defaulted on its loans. Since then, the tribe has handed out gradually declining payments, introduced in January 2011, to roughly 450 adult tribal members to minimize the impact of the loss of income. Payments were made the first Friday of each month.

Transitional payments started at the reduced amount of $1,500 per month to help members adjust, and over time they were decreased to $500, reported the Associated Press.

In summer 2009, incentive payments ranged from $7,500 to $10,000 a month on average.

For months, the tribe has been negotiating a restructuring deal for more than $2 billion in debt. A significant portion of that debt stems from the development of the $700 million MGM Grand at Foxwoods, which opened in May 2008.

The Mashantuckets are currently offering its members financial counseling and other help.

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