The Match-e-be-nash-she-wish Band of Pottawatomi Indians—the Gun Lake Tribe—and the state of Michigan have reached a partial agreement regarding revenue sharing at the Gun Lake Casino south of Grand Rapids. The casino opened in 2011, but the tribe claimed the state violated its 2007 compact when it introduced online games through the Michigan Lottery and established video lottery terminals at social clubs, violating the non-compete provision in its compact. The state disputes the claim.
The tribe paid $13.3 million in revenue sharing from October 1, 2013, through September 30, 2014. Starting in June 2015, the tribe withheld $21.7 million it would have paid the state and placed it in an escrow account. Under the new terms, the Gun Lake Tribe will resume sharing revenue with the Michigan Economic Development Corporation, and create an endowment fund to provide tribal students and other high school graduates with financial assistance. In addition, the tribe’s non-gaming investment arm, Gun Lake Investments LLC, will create an affiliate entity for other economic development initiatives. Of the escrowed funds, the state will get half, the tribe will get 35 percent and the affiliate entity will get 15 percent.
Tribal Chairperson Leah Sprague-Fodor said, “This agreement is a win for all stakeholders due to the substantial benefits provided to tribal citizens, area high school students planning to attend college and the public at large through economic development programs. This creative solution to the revenue sharing impasse recognizes the legitimate position of both respective governments, and we applaud the state for negotiating with the tribe to reach this agreement.”
MEDC Chief Executive Officer Steve Arwood stated, “We appreciate the willingness of the tribe to reach a partial solution on this issue. Dedicating a funding source for statewide economic development efforts benefits many communities that will see businesses and jobs grow because of these efforts.”
Because of the tribe’s withholding of revenue, the MEDC had a $7 million budget shortfall, laid off 65 employees and took a 27 percent cut in funding.
Tribal and state officials said they are working on a permanent amendment to the gaming compact, which will require federal approval.
