Indiana Tribe’s Political Contributions Raise Questions

Donations of $10,000 from the Pokagon Band of Potawatomi Indians to Indiana Governor Eric Holcomb's (l.) re-election campaign in September, October and November are legal. But the contributions have raised questions as the tribe negotiates a new Class III compact and recently announced a major expansion at its South Bend facility.

Indiana Tribe’s Political Contributions Raise Questions

In Indiana, the Pokagon Band of Potawatomi Indians which hopes to open the state’s 14th full-fledged casino, donated $10,000 a month to the re-election campaign of Republican Governor Eric Holcomb in September, October and November. State law bars owners and officers of state-regulated casinos from donating to candidates for state or local office, even those who own just 1 percent of the company. This level-6 felony is punishable by up to two and a half years in prison and a fine of up to $10,000.

However, the donation is legal since it came from the Michigan-based tribe, which owns 166 acres of federal trust-held land in South Bend, including the 175,000-square-foot Four Winds Casino. The tribe is negotiating a gaming compact with Indiana that could allow it to replace its 1,800 Class II machines at South Bend with actual slot machines, table games and sports wagering. If a gaming compact is enacted, Four Winds South Bend will be in a position to compete with Northwest Indiana’s five commercial casinos, while being the only casino in Indiana that can legally donate to political candidates.

Holcomb for Indiana Campaign Manager Kyle Hupfer said the tribe’s donations to the governor complied with state law. “With each campaign donation we receive, we work to comply with all campaign finance requirements, which we’ve done with this contribution. This includes being transparent and reporting the contribution within seven days of its receipt,” he said.

The tribe’s donations to Holcomb made him the largest recipient of its political donations, according to state campaign finance records. The Pokagons also gave $5,000 to the campaign committee of Lieutenant Governor Suzanne Crouch. Those funds probably were transferred to Holcomb’s account on June 24 when Crouch gave him a record-breaking $1 million donation.

The Pokagons have donated to legislators’ campaigns as well. Altogether, the tribe has donated $95,000 to Indiana political candidates, with $57,000 going to Republican candidates or campaign committees and $38,000 to Democrats, according to state records.

Casino Association of Indiana President Matt Bell said, “The Pokagons are exercising their lawful rights to contribute to Indiana political campaigns, and we respect their right to do so.”

Sara Tait, executive director of the Indiana Gaming Commission, has been designated by Holcomb to lead the state’s compact negotiations with the Pokagons. “If a compact is reached, it will undergo a public legislative process pursuant to state law, and if the parties are able to reach that point we will be in a position to address the compact at that time,” Tait said. The state legislature also must ratify any gaming compact before it’s submitted to the U.S. Interior Department’s Bureau of Indian Affairs for final approval.

Currently Four Winds offers Class II games like bingo and electronic forms of bingo. Despite the casino’s limited gambling options, the tribe is planning to expand the facility to include a 23-story hotel tower with 317 rooms, a convention center, meeting space, a ballroom, lounge, bar and grill, a spa and an outdoor roof-top swimming pool.

Chairman Matthew Wesaw said, “We’ve been very pleased with the response from the community and the performance of Four Winds South Bend since it opened in January 2018. The expansion will bring to life a variety of exciting features and amenities we envisioned during our original planning process.” He noted the expansion would create 400 construction and 100 permanent jobs.

In addition to the Indiana property, the tribe operates three casinos in Michigan under the Four Winds name. The flagship facility is located in New Buffalo, a few miles from the Indiana border and 32 miles from South Bend.