Former Pamunkey Chief Slams Tribe’s Virginia Casino Push, Claims Billionaire Using Group

Posted on: September 8, 2020, 11:17h.

Last updated on: September 16, 2020, 08:39h.

Devin O'Connor @CasinoorgDevinO Read More

Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

UPDATE: Our original article on the Pamunkey Indian Tribe and its former chief has garnered a strong response from tribal members, the community, and other Native Americans. The Pamunkey Indian Tribe released the following statement to Casino.org:

The Tribe has not publicly (outside of the Tribe) disclosed why Mr. Kevin Brown was disciplined by Tribal Body and was forced to step down as Chief. They will continue to keep tribal matters internal to the Tribe. It’s unfortunate to see the comments devolve into hearsay, rumors and more inaccurate information.

Norfolk and the Pamunkey Tribe first started talking about a resort and casino more than two years ago. Together, we identified a suitable piece of property and began to negotiate a purchase price for the property and an intergovernmental agreement. The Tribe agreed to pay full market value (approximately $10 million) for the land. A tribal casino is exempt from state and local property taxes, however, a Tribe pursuing tribal gaming typically enters into an agreement for services from the locality — fire and rescue, police, water, sewer, etc. The City and Tribe had agreed that the Tribe would pay 4 percent of the net gaming revenue (with a minimum payment of $3 million/year) to Norfolk. This was estimated to be approximately $33 million per year. That revenue would certainly exceed expected property taxes, lodging taxes, food and beverage taxes for a project of this size.

That relationship between the Tribe and Norfolk continued once the Virginia General Assembly legalized commercial gaming. At that point, the City and Tribe agreed to convert to a commercial casino (rather than tribal casino), and follow the regulations and tax structure established by the Virginia General Assembly in 2020. It is worth noting, that the new tax structure will have the Tribe pay more than $30 million to the City, with some projections estimated at more than $40 million per year, plus an additional $50 million per year for the Commonwealth of Virginia.

Whether as a tribal casino, or now as a commercial casino, this project represents the largest private economic development project ($500 million) in the City’s history and guarantees an annual revenue stream for the city — all that with NO local or state tax breaks, public subsidies or government funding. That’s why Norfolk is so committed to the Tribe and this project. Our development partner and team have considerable experience in both gaming and financing/developing large-scale, high-end properties over the years. We hire top-tier management and intend to attract talented people to make this a world-class resort and casino.

Original Story Below:

Kevin Brown, the former chief of the Pamunkey Indian Tribe in Virginia, says the Native American group’s efforts to venture into commercial gambling are misguided.

Pamunkey Indian Tribe Norfolk casino — Kevin Brown, the ex-chief of the Pamunkey Indian Tribe, seen here in 2015, has grave warnings regarding the Native American community’s casino intentions in Norfolk. (Image: Timothy Wright/*The Washington Post*)

After serving as chief of the Virginia tribe for seven years, Brown was ousted in 2015 after questioning the Pamunkey’s decision to sign a gaming deal with an unnamed casino developer.

“I have seen firsthand the greed and evil a deal like this can bring out in people, and have changed my position regarding gaming as a viable endeavor for the tribe,” Brown said at the time in a letter to tribal members.

Five years later, the Pamunkey Indian Tribe today is partnered with gaming industry billionaire Jon Yarbrough in developing a commercial casino resort in Norfolk.

We have no experience in casinos,” Brown told Casino.org. “We never even ran a bingo game.”

Five cities in Virginia have qualified to approve of a commercial casino. That’s under legislation passed earlier this year that is designed to bring capital investment and an economic spark to struggling areas.

Norfolk is one of those towns, and the city government there has approved of the tribe and Yarbrough’s plan. A local ballot referendum will go before voters Nov. 3, and if the initiative receives a simple majority support, the Norfolk casino project will be fully authorized.

Bad Investment

The Pamunkey Indian Tribe is based in West Point, some 20 miles east of Richmond. The small Native American community, consisting of just a couple hundred members, the majority of whom live off the tribe’s 1,200-acre reservation, explored the possibility of building a tribal casino prior to Virginia legalizing commercial gambling.

Brown said the tribe explored land near the Kings Dominion theme park north of Richmond, and Colonial Downs racetrack, located just south of the Pamunkey reservation. The tribe additionally considered Norfolk.

When I was chief, we researched Norfolk, and found out that we virtually have no history or connection with that area,” Brown said. “We could never get land into [federal] trust there.”

Despite Brown’s opinion regarding the Pamunkey’s lack of historical ties to Norfolk, the City Council voted 7-1 in 2019 to sell 13.25 acres of city-owned land next to Harbor Park to the tribe for $10 million.

The Pamunkey’s planned to petition the US Department of the Interior to take the land into federal trust, which would essentially designate the land as sovereign territory, and become primed for a Class I and II tribal gaming operation (no slot machines, house-banked table games).

Ill-fated Land?

After Virginia Gov. Ralph Northam (D) signed the commercial gambling law, Norfolk leaders made the tribe its preferred gaming partner, so long as the tribe agreed to operate the resort as a commercial enterprise. It would therefore be subject to gaming, lodging, property, and sales taxes.

Brown, however, says the site adjacent to Harbor Park is “an environmental nightmare.”

Several developers passed on it,” Brown said. “No one knows what is going on. I am not opposed to gaming, I just don’t want the future generations to have to pay for our mistakes.”

“Many people on the reservation do not support the project,” he continued. “Norfolk is 90 miles from the reservation, and nobody is going to drive that distance to work there. We have no money, either. It is a ‘loan to own’ deal. The payments will be larger than the profits.”

The tribe is planning to spend $500 million to build the casino resort. It’s secured financing through its partnership with Yarbrough.

Billionaire Involvement

Yarbrough made his fortune manufacturing and selling gaming machines. He sold his company, Video Gaming Technologies, in 2014 to Aristocrat Leisure for $1.3 billion.

Forbes estimates his worth to be $2.6 billion. Brown said the billionaire is simply piggybacking on the Pamunkey Indian Tribe’s arrangement with Norfolk to further enrich his pockets.

Yarbrough is just using us for political reasons so he gets to bid without any competition,” Brown stated.

The Pamunkey Indian Tribe did not respond to inquiries by Casino.org in time for this article’s publication. We will update the story should they comment.

Last Comments ( 13 )

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Susan September 15, 2020

The "ass" in embarrassment? Anyone that use online to trash something you don't have any clue or proof about put the "I" in ignorance and the "P" in pathetic. I'm just sayin............................. and that doesn't have anything to do with being native, white, black, or another wanna be
Franklin Goldsmith September 15, 2020

Pamunkey is the Algonquin word for trifling!
Fight the power September 14, 2020

Pamuney is just a bunch of white people with 1 native ancestor. That is why they did not almost get federal recognition. For Example look at Thomas Cook is listed as an ancestor, but no record can be founded to prove he was Pamunkey. This is the ancestor of Chief George Major Cook famously testified, “I will tie a stone around my neck and jump into the James River rather than be classed as a Negro." Now why would anyone want to deal with a group that has 65 people claiming to come from a person who is not Pamunkey and would rather die than be reclasified and make laws to keep people out who marry black. Any company or city that deals with Pamunkey has zero respect for true natives and African Americans
just here to stop the bs September 14, 2020

This comment section is a complete disgrace to the Pamunkey tribe. All tribal members should be ashamed that all this dirt is getting aired out. It is bad enough the tribe we are facing backlash from the Black law, and it still being implemented. When it comes to the casino the biggest problem should be how much money will it cost to improve the shoreline (has to be done before the casino can be built), the decline in the economy in the Hampton Roads area, who really owns the casino, and the competing casino in the city of Portsmouth. We need to stop all of this online drama and bring forward real problems with this project.
Franklin Goldsmith September 14, 2020

WTH, Pamunkey is a disgrace to Indian Country. They put the "ass" in embarassment!
Franklin Goldsmith September 14, 2020

Aren't there any refuse collectors around to take out all these Pamunkey white trash commenters? This tribe is everything that is wrong with the broken federal recognition process.
Just saying September 14, 2020

Franklin- you don't know what happened. Chief and Council did not oust Kevin the tribal body did. Kevin wrote to lawyers he would blow up a deal signed by all of council unless he was paid $100,000 and then did that. He took money from the tribes bank account without authority. He then wrote to the tribe he ended the deal because he was against gaming but told other people once he was back in power gaming was back on. The tribe ousted him for lying to the tribe. Later he tried to extort the developer and wrote a letter asking for money because he was disgruntled and would f things up. He did good things when chief but at some point a line had to be drawn.
Just saying September 14, 2020

regarding the mental issues raised at two meetings - chief and council did explain they had no choice but to hold a meeting regarding JC because the law required they hold a meeting if petitioned by only 7 people and did not have power to not call the meeting just because they didn't agree. If tribal members don't like that only 7 people can force chief and council to call a meeting, change the law. For the second time, one member raised the issue, was told he wouldn't get an answer and kept raising it.Chief and council could not throw him out by law but could ask for a motion by those present. A motion was made and it sounded to me like everyone say yes and didn't hear anyone say no. So it seems the tribe sided with chief and not the person. Blame the tribe not chief and council.
WTH! September 13, 2020

This comment section is an embarrassment to all tribal members....
It’s so bad I’m almost ashamed to be Pamunkey September 12, 2020

The Real Truth Kevin did get a little greedy. Overall he was a good chief. He tried to improve the community. He remodeled the school house and rebuilt the old pottery school at the town gate. He may have made a dollar or two on it but he got the members of the reservation that weren’t working to help and payed them a dollar or two. He was a pretty fair Chief. He didn’t show any favoritism to friends or family. It didn’t matter if you agreed with him yesterday or not. I’m pretty sure that Bobby and Brad saw an opportunity to get some money under the table so they set Kevin up. I know for a fact that council has covered up stuff for Chief Gray. I like him as a person but as Chief he sucks. There is no way with what he has going on that he should be Chief. I heard about the council getting paid over the resovoir deal, I believe that was back in the 90’s. Some how it slipped out to tribal members, that is how they learned about it. I also heard that council member Warren Cook wrote grants and made a huge percentage off of them for himself and when the tribe found out they brought it to council and they made stop writing grants. Chief and council allowed a request for a members mental status to be disclosed during a tribal meeting but when members ask about the Chiefs’ they get thrown out of meetings. The Chief finally gave a response in a tribal meeting about his mental status and he stated he was under the care of a doctor. Not much detail there. Y’all can say what you want about Kevin but his heart as being Chief was in the right place. Like I said yeah he got a little greedy at the end but he did way more for the community as a while than any other Chief I can remember. I think it is sad how the tribe is so divided, brothers against brothers and everybody needs to come together in the end! NATIVE LIVES MATTER!!!!
Franklin Goldsmith September 12, 2020

Let's just say Pamunkey is fuuuuuuuuuuuuudged up! From their racist and discriminatory practices to their faux identity. Even their federal recognition is suspect. They are a disgrace to tribal nations.
Susan September 12, 2020

It should be put out there for all eyes. The tribal members who are spreading their lies are both sanctioned by the tribe for previous actions. Neither has voice or vote. The tribe has warned them before and they just don't get it. The tribal records must all be lies in their warped minds.
Franklin Goldsmith September 11, 2020

Wingapowak, You are both culpable in this unpleasant public display. The money from former times of which you both speak is of insignificance in the big picture. The Reservoir Project paying out $250,000, or any other lower amount, to the willing Mattaponi, Upper Mattaponi and Pamunkey is such a ridiculous amount of compensation for the devastation of the tribal cultural and physical landscape it made the tribes look like novices and ignoramuses. Try and buy a lake or river house anywhere and compare. Meanwhile, the tribal leadership has competed for control of the train wreck and relied on foreign investors (who have no considerable knowledge of anything from the region), which is most telling. Yes, Chief Kevin Brown made commitments to financial and legal supporters, but in considering all things, he was the Chief that led the Pamunkey to Federal Acknowledgement through the gauntlet of the Bureau's OFA. It was not a simple feat by any means, if compared to the rest of the Eastern state recognized tribes. Why did the Council oust Brown? Recommending a salary of 80K or 100K with subordinates at 30, 40, 60 and 70K is completely reasonable; to think otherwise only demonstrates the abject poverty and financial disparateness of the tribal members, and clearly without consideration of strategic planning. Under Bobby's leadership, the Pamunkey look very ripe for the picking. Keeping it real, the Council should consider Chief Kevin Brown and recognize leadership when presented. This is not a family affair, it is the Pamunkey Nation. Rely on the fact that he navigated the tribe to federal recognition.