A new deal announced on Monday is just the latest move among American gaming tribes showing how many of these groups are expanding outside their traditional native lands.
The San Manuel Band of Mission Indians, who own the Yaamava’ casino in Highland, California, announced Monday the group was taking a 40% stake in the Waldorf Astoria Monarch Beach Resort in Dana Point, located in Orange County, California.
The move comes as San Manuel and other tribes look to increase their footprint in gaming and other business enterprises. In 2021, the tribe purchased the Palms casino in Las Vegas for $650 million. The property had been shuttered since 2020, but has now reopened. The Monarch becomes the latest addition to the San Manuel portfolio.
“Investing in a luxury destination resort such as Waldorf Astoria Monarch Beach represents another milestone for our tribe, enabling us to continue executing our long-term diversification strategy,” San Manuel chairwoman Lynn Valbuena said. “The stunning coastal setting, along with its exceptional guest service and amenities, are features that our Yaamava’ and Palms guests will enjoy. We are excited to partner with Ohana Real Estate Investors and impressed with Hilton and Waldorf Astoria’s strategic repositioning of the property over recent years.”
Details on the San Manuel Deal
The Waldorf Astoria Monarch features a 400-room hotel, a six-acre private beach club, three swimming pools, and an 18-hole golf course. The entire property sits on 162 acres along the Pacific Coast Highway overlooking the ocean.
The resort opened in 2021 and has changed ownership several times. Now the San Manuel are partnering with Ohana Real Estate Investors, which paid $497 million for the property in 2020.
The companies didn’t announce if there could possibly be a gaming element added to the property, but that seems unlikely. Financial terms weren’t available, but the agreement includes the option for the tribe to increase its ownership stake in the future.
“We are proud to join forces with San Manuel to advance the growth of this wonderful asset,” Ohana Founder and CEO G. Christopher Smith said. “San Manuel and Ohana share a common vision for Waldorf Astoria Monarch Beach’s future, one where we will continue to elevate its world-class offerings while providing an unparalleled experience to our discerning guests.”
Tribes Growing as Gaming Entities
The San Manuel-Ohana deal is just the latest in the trend toward tribes becoming leaders in the gaming, entertainment, and hospitality industries. The Seminoles of Florida casinos serve as one of the best examples in this regard.
The tribe already owns Hard Rock International and is now bringing that brand to the Vegas Strip. In 2022, the group purchased the Mirage and started running the property’s operations in December.
The Seminoles are now planning an overhaul of the property including the construction of a guitar-shaped, similar to the one at the Hard Rock property in Hollywood, Florida. The group also recently announced the construction of a new casino in Ottawa, Canada, in partnership with Rideau Carleton Raceway. After a pandemic-induced delay, construction on that property is set to get started soon.
Other tribes are making similar moves beyond their traditional lands. The Mohegans, which operate the Mohegan Sun casino in Connecticut, have also branched out considerably including in Las Vegas. The tribe’s gaming entity manages casino operations at the Mohegan Sun Virgin Casino, formerly the Hard Rock Casino.
The group also runs the operations at other commercial properties as well including Mohegan Sun Pocono in Pennsylvania, Fallsview Casino and Casino Niagara in Canada, Resorts Casino Hotel in Atlantic City, and ilani Casino in Washington.
Alabama’s Poarch Creek Band has also expanded well beyond its lands. In April 2022, the group acquired Sands Bethlehem in Pennsylvania, now known as Wind Creek Bethlehem. The tribe owns three casinos and a greyhound track in Alabama as well as a greyhound track in Florida and casinos in Aruba and Curacao. The Poarch Creek also financed and manage operations of the Washoe Tribe’s Wa She Shu Casino, which opened in 2016 in Gardnerville, Nevada.
In June 2022, the Cherokee Nation purchased operations for Gold Strike Tunica from MGM Resorts for $450 million. The Eastern Band of Cherokee Indians have also acquired the operations of Caesars Southern Indiana.
Native American Tribal groups continue to serve as leaders and play a major role in the growing U.S. gaming industry. Tribal casinos saw a 10% increase in revenues in 2022 and these other moves may add to that more in the coming years. Michigan online casinos and retail casinos have a number of casino enterprises run by the Indian community, including but not limited to Play Eagle and Gun Lake.
“Tribal government gaming operations generated an additional $5.3 billion in gross revenue from ancillary/gaming-related enterprises, including hotels, restaurants, entertainment, and related operations,” the Indian Gaming Association reported last week. “As a result, Indian gaming accounted for a total of $48.4 billion in direct gross revenues in 2022.”
