Billionaire Leon Black’s Interest In The Gaming Sector – Looks For Possession Of Foxwoods

Foxwoods Casino which is currently neck deep into debt has interested billionaire Leon Black. Black has been quietly buying up debt in the entity in an effort to gain control.

Foxwoods' owner, the Mashantucket Pequot Tribal Nation, yesterday revealed that it missed an interest payment on its $2.3 billion in debt and that it will default on its loans on Dec. 16. The casino has lately sacked hundreds of employees, and cut benefits for tribal members, including their pay.

However it will be difficult for Black to get outright ownership of the casino since it is tribally owned and is protected by the Indian Gaming Regulatory Act. In case of defaults the tribal law will apply and not the US bankruptcy law.

Black has earlier bought Harrah’s In January 2008 for $27 billion and in September Harrah’s bought 16 percent of Planet Hollywood Resorts' $860 million in debt. With Foxwoods, Black is looking for a marketing partnership between Connecticut casinos and Harrah's, under which Harrah's customers could enjoy the same benefits at Foxwoods that they get at Harrah's casinos.