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| NIGC Opinion | March 2011 |
On May 1, 2003, now-convicted felon Ivy Ong entered into an agreement with the Shinnecock Indians (Long Island, NY) to develop, construct, manage and operate gaming facilities for the tribe. Mr. Ong and his affiliates were to be the exclusive manager responsible for hiring key employees; developing policies, procedures and internal controls; marketing and budgeting.
Ong transferred his exclusive rights under the Shinnecock agreement to Detroit-based Gateway Casino Resorts (Michael Malik & Marian Ilitch) on March 19, 2004. It has been reported that Gateway paid $25 million to assume the agreement. Collateral agreements are reported to include, but are not limited to, the March 2004 Assignment to Gateway, naming Gateway manager of the facility; a March 2004 “Addendum” contemplating the acquisition and development of additional gaming sites; and a March 2004 consulting agreement which has Gateway developing internal controls and security and accounting systems for the casino.
On March 16, 2011, National Indian Gaming Commission (NIGC) counsel issued an opinion to Donna Collins Smith, Chairwoman of the Shinnecock Gaming Authority, advising that the Shinnecock/Gateway Agreement and associated agreements be submitted to the NIGC Chairwoman for approval under the Indian Gaming Regulatory Act (IGRA). Counsel explained that such management contracts not approved by the Chairwoman are considered void.
If there has been a response from the Shinnecock or if the Shinnecock Gaming Authority has submitted the Agreement for approval, TVT is unaware of such.
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