BIA Rules on Wisconsin’s Potawatomi Compact

The Indian Affairs division of the Interior Department last week ruled that a compact between Wisconsin Governor Scott Walker and the Forest County Potawatomi tribe is illegal. Walker must decide by February whether to approve a proposed $810 million, off-reservation casino in Kenosha, owned by the Menominee Indian Nation. Walker's decision on the casino is expected by February 19.

The Bureau of Indian Affairs has rejected a deal that would have guaranteed the state of Wisconsin would reimburse the Forest County Potawatomi for losses associated with the Menominee Indian Tribe’s proposed 0 million off-reservation Hard Rock Casino and Hotel in Kenosha. In November, arbitrators wrote an amendment to the Potawatomi’s gaming compact that formally required the state to reimburse Potawatomi tribe, which operates a lucrative casino in Milwaukee and strongly opposes the Kenosha casino.

Menominee spokesman Michael Beightol said by removing the governor’s concerns about financial risk for the state, “The path becomes even more clear for the governor to continue to negotiate” an agreement with the Menominee.

Potawatomi spokesman George Ermert said the tribe will file a lawsuit against the BIA.

Meanwhile, the Menominee Indian Nation recently dissolved a 10-year old agreement with the United Food and Commercial Workers that observers said is an attempt to improve the chances of anti-union Walker approving proposed Kenosha casino. The agreement would have allowed workers to form a union using a “card check”—simply by signing cards rather than holding elections–if the casino were approved.

The deal was dissolved under an agreement between the union, tribe and the Menominee Kenosha Gaming Authority, whose Chairman Gary Besaw said, “There was concern that this might have been an obstacle, and the obstacle has been removed. We believe this is one more potential impediment removed.”

Besaw praised the union for agreeing to dissolve the agreement and also for agreeing to not pursue card check for unionization if the casino is built. “Employees there will still have the opportunity to organize down the road should they decide to do so, but they will do so under secret ballot,” he said.

Card-check supporters said the system ensures employers do not harass workers who may want to form a union. Opponents said card check allows unions to intimidate employees into joining unions. Some casino foes had cited card check as a reason Walker should veto the proposed Kenosha casino, which would be operated by Tampa-based, Seminole Indian Tribe-owned Hard Rock International.

Walker has until February 19 to announce his decision regarding the off-reservation casino. In the meantime, several local officials voiced varying opinions on the project. Kenosha Mayor Keith Bosman said he is convinced Walker will allow the project, noting it would be “a big mistake for the governor not to approve this.” Bosman added the casino would be a huge investment in the city that would create hundreds of construction and permanent jobs.

Kenosha County Executive Jim Kreuser also said the casino would benefit Kenosha, Racine, southeast Wisconsin and “the state as a whole.” He added, “I’ve been an advocate for the casino since before the first referendum in 1998, and even more so now that Hard Rock is involved with that development. It’s not just a casino. It’s an entertainment venue and development around it.”

However, Kreuser said, “Kenosha is going to be fine with or without a casino, but I’m supportive of the casino and the Hard Rock development. We are not going to live or die by the casino. It fits into the tapestry of Kenosha County.”

Todd Battle, president of the Kenosha Area Business Alliance, agreed with Kreuser’s assessment. He stated economic development in the county has brought in more than $800 million in investment and more than 4,000 jobs over the past two years. “A casino development could add to this recent success. If the casino development is not approved, Kenosha County is still in a very strong position with respect to economic development.”

Other civic leaders said they did not think Walker would approve the casino. Kenosha Police Chief John Morrissey said after watching a recent interview with Walker, “My take was it didn’t sound very good for the casino.”

Gary Brown, interim executive director of the Shalom Center, said,

“Based on what the governor said, he said he would need consensus from all the tribes, and I guess so far he doesn’t have that. Not that there couldn’t be something in the works to change that, but I would be a little pessimistic about it actually happening.”

Guida Brown, executive director of the Hope Council, said a casino would bring jobs but also could lead to an increase in the number of problem gamblers in the community. She said it seems “Pollyanna-ish” that the casino it is going to be a popular destination, with so many options in Chicago and Milwaukee. “I think that the governor is not going to approve it, but it’s just me, guessing, “Brown said.