U.S. District Judge Colleen Kollar-Kotelly recently upheld the National Indian Gaming Commission’s 2011 ruling that ended the 1994 agreement between the city of Duluth, Minnesota and the Fond du Lac Band of Lake Superior Chippewa. The city had been receiving million a year from the tribe’s Fond-du-Luth Casino, which it used for street maintenance, before the tribe stopped payments in 2009.
City Attorney Gunnar Johnson said, “It feels like the city of Duluth has not gotten a fair shake.” The casino continues to operate in downtown Duluth and continues to benefit from city services. They pay nothing for being in downtown Duluth.”
Fond du Lac Chairwoman Karen Diver stated, “There has been rhetoric coming out of the city that the National Indian Gaming Commission was making political decisions and exceeded its regulatory authority. Clearly, this says they acted appropriately in issuing the notice of violation and have the ability to make these decisions in full.”
The NIGC ruling declared city-band agreements violated the Indian Gaming Regulatory Act because the band should have “sole propriety interest” in the casino. The U.S. Department of Interior subsequently canceled a lease agreement that provided the city with 19 percent of electronic gaming revenue. In response, the city sued—and just lost–in federal court.
Johnson said the city is considering an appeal.
Meanwhile, the city expects the 8th U.S. Circuit Court of Appeals to rule soon on another matter: its lawsuit seeking more than $13 million plus interest in back payments from the casino. Previously a federal judge awarded the payments to the city, but the band appealed.
In December, a judge dismissed a lawsuit by the city to halt the band’s efforts to expand its downtown reservation by placing the former Carter Hotel property into trust.
