DOI sets new timelines for legal case over tribal land

Big project: An artist’s impression of The First Light Resort & Casino in Massachusetts.

Dispute is over US casino resort to be managed by Genting Malaysia

PETALING JAYA: The legal wrangle over Genting Malaysia Bhd’s proposed resort and casino sited on tribal land in the US is expected to be a prolonged one as the US Department of Interior (DOI) has set new timelines for document submission and counter arguments with regards land rights.

In a Bursa filing yesterday, Genting said the DOI set a timeline of Aug 31 2017 for the tribe and the plaintiffs to submit materials for further analysis.

It has also set another deadline – Oct 31, 2017 – for the parties involved to reply to the opposing submissions.

The tribal land will remain in trust unless a court order comes to take it out of trust.

Genting Malaysia, although a conglomerate with interests in plantations, resorts and theme parks, is best known for its casinos.

Its involvement with Mashpee Wampanoag tribe in Massachusetts came about as it is keen to play the role of resort manager for the mixed integrated development that comprises a few hotels, a retail shopping centre, entertainment venues, a theme park and of course, a casino.

The tribe is responsible for the construction of the project which will have a 900-room resort casino, known as First Light Resort & Casino.

The casino’s website said the project will help to generate employment for about 4,000.

As at June 30, 2017, Genting has invested a total of US$347.4 million (about RM1.49 bil) in interest-bearing promissory notes, including accrued interest, the Bursa filing said yesterday.

The group subscribed to the promissory notes issued by the Mashpee Wampanoag tribe to finance the pre-development expenses of the integrated gaming resort in Taunton, Massachusetts.

Genting said in the Bursa filing that it will work with the tribe to review “all options available” for its investment in the promissory notes.

It will also “assess its recoverability and impact” to the Group’s consolidated earnings and net assets for the financial year ending Dec 31, 2017, the filing said.

The recoverability of the promissory notes is dependent on the resolution of this on-going legal tussle. The dispute among the opposing groups, between the natives and a group of Taunton residents – where the resort casino was to be located, arose over how the land should be legally categorised.

This is important as the town’s residents, who are opposing the project, are questioning the tribe’s rights to the land.

Given that the legal wrangle remains pending and further rulings are expected to be made, construction of the integrated gaming resort has been put on hold pending further court developments and/or actions by the DOI or other relevant governmental authorities, the statement said.