A ruling by the nation’s highest court could potentially cost the Mashpee Wampanoag billions in casino revenues, but also millions from investors that it has already spent. The U.S. Supreme Court decided Tuesday that tribes recognized after 1934 cannot have land taken into trust for them by the Department of the Interior, a ruling that cripples the Mashpee tribe’s plans, at least temporarily, to build a casino in Middleboro.

Before the Wampanoag were recognized in 2007, they signed a development agreement with South African casino moguls Sol Kerzner and Len Wolman. That agreement provides for Kerzner and Wolman to have exclusive rights to develop the casino in exchange for an undisclosed piece of the profits. The developers also agreed to loan the tribe funding to obtain federal recognition and pursue the casino project. That agreement indicates the tribe would have to pay back those loans, reaching into the millions, once a casino is financed. Last year alone, the tribe used nearly $4 million in funds borrowed from investors to pay for lawyers and consultants working on their casino bid. The money was also used to pay the salaries of the tribe’s top officials. If a casino never opens or the contract is voided, the tribe would be responsible for paying back that money, the agreement indicates. Click here to read the rest of the article on SouthCoastToday.com. (Cape Cod Times, February 26, 2009)

And in related news… The chairman of a congressional committee that oversees American Indian issues said Wednesday he will call a hearing on the repercussions of a U.S. Supreme Court ruling that could derail the Mashpee Wampanoag’s quest to build a casino. A hearing before the House panel could be the first step toward a congressional reaction to Tuesday’s decision by the high court, which found the U.S. Department of Interior doesn’t have the authority to take land into federal trust for American Indian tribes recognized after 1934. Click here for the complete story on SouthCoastToday.com. (Cape Cod Times, February 26, 2009)