The Wall Street Journal on Dec. 9, at C1, printed an article entitle “Taking a Hit at Indian Casino.” The essence of the article is that tribal sovereignty has made it more difficult for a few tribal casinos that had to restructure their affairs because they were at risk of defaulting on bonds.
That’s an interesting take on the issue. Tribal governments are only allowed to offer gaming because they are sovereign and separate governments from the United States and the states. It is only logical that their sovereign status would impact everything they do, including defaulting on loans.
Orange country California must have faced similar issues when it sought bankruptcy protection on the bonds it has issues a decade ago.