Judge Gordon Quist in the Western District Court of Michigan recently signed an agreement regarding the gaming compact between the Hannahville Potawatomi Indian Community and the state, which will run until November 30, 2042. Under the agreement, the tribe may continue gaming operations at its Island Resort & Casino in the Upper Peninsula under its original 1993 gaming compact, but will increase revenue-sharing payments made to the state by 3 percent overall.
The new arrangement requires the tribe to pay 1 percent of its annual net win, up to $50 million, to Travel Michigan for regional travel marketing. Another 1 percent, up to $50 million, will be paid to an escrow account to make bond payments for building new public schools in the Bark River-Harris School District. Also, the tribe will make payments to the Michigan Strategic Fund of 1 percent n up to $50 million, 5 percent from $50-$75 million and 7 percent over $75 million.
Additionally, another 2 percent of annual net win will go to any state government units located “in the immediate vicinity” of the tribe’s casino.
The new agreement also stipulates the Hannahville Tribe would pay 8 percent of its annual net win to the Michigan Strategic Fund if state law is changed to allow Class III games or internet gambling and the tribe’s gambling compact is thereby amended.
Since 2012, the state of Michigan and the Hannahville Potawatomi Indian Community have been in talks regarding the original compact, which expired in
The original compact expired November 2013; the tribe and state began negotiations in 2012. Unable to reach agreement, despite good faith negotiations from both sides, on March 13 Attorney General Bill Schuette filed a complaint against the tribe for continuing to operate gaming beyond the date stated in the 1993 compact. The situation was resolved on March 14, and the new agreement was signed on March 15.
