E-mail this article to a friend | Printer friendly format | Submit A Comment

- Special to the Madera Tribune

Chukchansi Gold Resort and Casino is owned by the Picayune Rancheria of the Chukch-ansi Indians, which has terminated the management agreement it had with Cascade Enter-tainment.

Photo by: Wendy Alexander

---------

Cascade accused of violating terms of operating agreement

---------

The Chukchansi Economic Development Authority of the Picayune Rancheria of the Chukchansi Indians terminated its management agreement with Cascade Entertainment, LLC, on July 26, according to information from the tribal authority.

The dismissal followed disputes between the authority and Cascade over the development and management of the Chukchansi Gold Resort and Casino in Coarsegold.

The authority also announced that the Tribal Gaming Commission has revoked the gaming license of Cascade following an investigation into charges that Cascade had misappropriated casino funds and provided false and misleading financial information to the tribe regarding casino operations.

According to Joyce Burel, chairwoman of the tribe and the authority, the management agreement with Cascade was terminated "because Cascade had a history of violating the terms of the agreements that it had entered into with the tribe and the authority, and misused the Casino's operating funds in violation of the management agreement."

Burel also said the results of the investigation by the Tribal Gaming Commission have been turned over to the National Indian Gaming Commission and the California Gambling Control Commission.

Information from the authority claims that by ending its relationship with Cascade, "the Casino has put behind it a major source of the problems stretching back to Cascade's mismanagement of the design, development, funding, construction and staffing of the Casino."

Burel said that as a result of Cascade's mismanagement, there were cost overruns of more than $13 million.

The authority, while not contractually liable, in May paid subcontractors who had worked on construction of the casino-hotel, and is seeking reimbursement for those payments from Cascade.

Virginia Perkins, general manager of the Casino since its opening in June 2003, said the casino continues to operate with 1,800 slot machines, 46 table games and seven restaurants.

Perkins said the casino continues to be operated with over 1,200 employees, and the departure of Cascade's staff of two individuals has not had a material impact on its operations.

"The casino provides employment and other significant economic benefits to Madera County as it has since inception. The Casino will do business as usual with its vendors and the tribe continues to make payments to its lenders in accordance with financing agreements," said a news release from the tribe.