Michigan and Gun Lake Casino Are in Conflict Over $7 Million Remittance
When states approve Native American tribes to operate casinos, their main motivation is usually the hope of receiving a significant portion of the revenue generated by the casino. However, to receive this money, states typically have to appease the tribes by giving them certain promised benefits. If these deals are believed to have been broken, the future of the promised revenue becomes uncertain.
This is the situation in Michigan, where the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians, or the Gun Lake Tribe as they're more commonly known, have refused to make a $7 million payment to the Michigan Economic Development Corporation (MEDC). The tribe claims that state officials have breached the 2007 agreement that stipulated these payments.
The Issues: Online Lottery Sales and Electronic Pull-Tabs
This past year, the state has permitted online lottery sales and some electronic pull-tab machines in social clubs.
The Gun Lake Tribe contends that these are forms of electronic gambling run by the lottery, which according to the 2007 agreement would mean their revenue contributions to the state should be reduced.
In a statement sent to 24 Hour News 8, the Gun Lake Tribal Council expressed that this was a topic they had previously discussed with state officials before the introduction of online lottery sales. They stated that it had become clear at that time that such sales would result in the tribe not making their payments to the state.
Online lottery sales in Michigan commenced in August 2014 and have since generated almost $16 million in revenue.
Moreover, around 40 electronic pull-tab machines have been installed in social clubs throughout the state since the beginning of the year as part of a pilot program.
A Positive Relationship May Aid a Resolution
In spite of the new lottery games emerging last year, the tribe did make a payment in December 2014. The statement from the tribe emphasized their positive working relationship with the Snyder administration and their intention to resolve the situation diplomatically for the benefit of all involved.
The state appears to be keen on preserving that positive relationship, even though they hold a different opinion on whether the new games are in violation of the compact.
Dave Murray, a spokesperson for the governor's office, stated in a response, “There are discussions about different interpretations of the compact. The Governor is aware of the tribe's decision to suspend economic incentive payments to the state under the 2007 tribal-state Class III gaming compact. Since agreeing to the compact with the tribe in 2007, the state has and will continue to fulfill its obligations under the compact and remain committed to engaging in good faith discussions with the tribe to restore its obligations.”
The Gun Lake Tribe's choice to forgo their economic incentive payments could significantly affect the MEDC, as it relies on contributions from Indian casinos in Michigan for its budget.
The agency has announced that due to the absence of the Gun Lake Tribe's June payment, which averaged $13 million per year, it would need to make cuts to its staff.
Half of the tribes operating casinos in Michigan no longer share their revenue with the state following the introduction of three commercial casinos in Detroit in 1999. [#]
Read also:
- The CDU is pushing for additional medical study positions in Homburg.
- US director Baker wins Palme d'Or at Cannes, while Iranian filmmaker Rasoulof receives Jury Prize.
- German enthusiast creates gigantic Harry Potter figure
- Lautern coach Alonso alters his lineup five times, with Ache left out.
Source:
