Anyone who walks into a Hard Rock casino in Florida can immediately see, and hear, that business is good. So good, in fact, that the Seminole tribe has begun negotiations with developer Cordish Corporation for a contract buy out, just two years after the 10-year deal was struck. No one at the time could have predicted the enormous success of the Hard Rock hotel casinos in Hollywood and Tampa, and under the contract Cordish could be expected to make around $120 million each year.

As seems usual practice in the US, lawsuits are already being lost and won through the courts. The IRS has twice ruled that tax-free bonds used to finance the venues should be liable for tax, and the tribe continues to challenge the rulings. Then there is Donald Trump. According to a lawsuit filed in Broward County, the Hard Rock deal was his idea stolen by Cordish, and he wants reparation in the form of all their profits plus management of the properties. An ongoing National Indian Gaming Commission audit may also cause some problems for the tribe – have all casino profits benefited the welfare of its members, as required by law, or have luxury cars and other non-essentials been enjoyed by some?

Yesterday the Seminole tribe announced that it would sell $730 million in new bonds to pay off the original $415 million bond issue, consolidate debt and pay for projects. Analysts predict that a further bond offering would finance a buy-out of Cordish, as gaming revenues place the tribe in a strong position. Even with the possible legal proceedings the tribe faces on several fronts, the bonds will get a good rating. Hard Rock heaven will see to that. (E-10.14.05)

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