Red Hawk Casino does better but still struggles
Lakes Entertainment Inc. of Minneapolis said company revenue grew during the first quarter, thanks mainly to an $800,000 improvement in management fees from Red Hawk.
Red Hawk "again showed improvements in both top- and bottom-line financial results," said Lakes Chief Executive Lyle Berman in a conference call with investment analysts.
Lakes' management fees are based on casino performance; the company receives up to 30 percent of Red Hawk's profits.
Despite the improved results, Red Hawk is having problems paying its bills. Berman said Lakes is talking with the casino's owner, the Shingle Springs Band of Miwok Indians, about restructuring a $66 million debt the tribe owes the company...