The state of Indiana and the Pokagon Band of Potawatomi Indians are close to finalizing a gaming compact, according to Indiana Gaming Commission Executive Director Sara Tait. The tribe operates the Four Winds Casino in South Bend. “Negotiations are in a very late stage but there is not currently an executed compact,” Tait said. A gaming compact would allow the tribe to offer Class III gaming, including slots and table games, plus an on-site sportsbook and online sports betting.
The Pokagon Band initiated compact negotiations in August 2019. Governor Eric Holcomb appointed Tait to represent the state in the negotiations. Once the governor and tribe agree on the terms, the compact must be approved by the legislature, which convenes on January 4 for a 4-month session, and ultimately ratified by the U.S. Department of the Interior.
The tribe already has been paying 2 percent of revenue to the city of South Bend, or a minimum of $1 million annually. Half goes to the city’s redevelopment commission and half to its general fund. Non-tribal casinos in Indiana pay a graduated tax from 15 percent to 40 percent in comparison.
Tait said federal law does not allow the state to directly tax a tribal casino. However, a gaming compact permits revenue sharing under specific circumstances resulting in “quantifiable economic benefits” to the tribe, such as no in-county competition from a state-licensed casino.
The Pokagon Band is the only federally recognized Native American tribe in Indiana; its gaming compact would be the first in the state. The tribe operates three additional casinos in southwestern Michigan.
