It seems Native Americans are taking their successful casino experience beyond their reservations.
Two weeks after the Seminoles of Florida acquired the Hard Rock Cafe from Rank Group plc for $965 million, the
Mashantucket Pequot Tribal Nation of Connecticut, who operate the Foxwoods Casino, have won a slot machine license to open a casino in Philadelphia. Considering the Pequot's success in wooing New Yorkers away from Atlantic City, N.J., they should have no trouble convincing Philadelphians to stay home rather than driving an hour to gamble.
The Pequot win means the tribe will follow neighboring Connecticut tribe the Mohegans into Pennsylvania. In 2004, the Mohegans Tribal Gaming Authority bought horse track Pocono Downs in Wilkes-Barre, Penn., from Penn National Gaming Inc. for $175 million, and the next year secured a license to open a casino there.
Expansion beyond their respective reservations was natural considering the success the three tribes have had with their casinos. Plus, all three tribes are well suited to expand because they have succeeded in competitive markets.
- Clearly the Mohegans and Pequot compete with each other, but they also compete with Atlantic City casinos for patrons from New York City. In addition, tribes in Massachusetts are reportedly closer to winning the right to open casinos on Cape Cod, which would add a new rival vying for patrons from Boston and Providence.
- Even the Seminoles, which are far from Atlantic City or Las Vegas, have competitors for the gaming consumer. Throughout South Florida, operators of so-called "booze cruises" offer gaming by taking the boats into international waters, where U.S. gambling laws do not apply. To a lesser extent, the Seminoles also compete with gaming in the Bahamas, which is a short flight from Fort Lauderdale, home of the Seminoles Hard Rock casino.
If successful in their early endeavors beyond their reservations, don't be surprised to see these tribes acquiring smaller gaming companies. —Matthew Wurtzel
See story from The Boston Globe
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