The 23 tribal casinos operated by Michigan’s 12 federally recognized tribes all closed by March 22 due to the Covid-19 pandemic. As sovereign land, tribal territory is not subject to Governor Gretchen Whitmer’s stay-home order, but so far the tribes have followed her decision to close nonessential businesses, including casinos, which recently was extended to May 15.
Tribal leaders across the state said they are tracking daily infection rates and considering when may be the right time to reopen casinos. Frank Cloutier, tribal spokesman and former chief of the Saginaw Chippewa Indian Tribe, owner of the Soaring Eagle Casino and Resort in Mount Pleasant, said the casino could reopen sooner than Whitmer would prefer. “I hope and pray she is completely aware of the negative impact on tribal communities. There could possibly be a point where we have no other alternative,” Cloutier said.
He noted gaming revenue accounts for three-quarters of the tribe’s budget. As a result of the tribe’s casino being closed for several weeks, some government programs could be eliminated. “Most people hear about tribal gaming and they think slot machines and blackjack tables. I’m talking about education. I’m talking about lunch programs for our youth. I’m talking about elder care, I’m talking about housing infrastructure, tribal court, fire and police,” he said.
Casino host communities near also are taking a hit. Under state gaming compacts, casino-owning tribes share 2 percent of gaming revenue with local nontribal governments. In 2018, those agreements accounted for $30.1 million going to schools, fire and rescue services and other local government institutions in local communities. The loss of gaming revenue is hardest felt in the Upper Peninsula, where five of Michigan’s 12 tribes are located and operate casinos in isolated, economically limited regions.
Once source of assistance is the federal government’s $2 trillion Coronavirus Aid, Relief and Economic Security Act, or CARES Act, which set aside $8 billion for tribes. However, many Michigan tribes have said they’re having difficulty accessing the funds. Aaron Payment, chairperson for the Sault Ste. Marie Tribe of Chippewa Indians, said the tribe expects a budget gap of $20 million if the closure continues through June. If the federal funds were accessible, “it’d be a lot easier for me to be able to argue to my council that we should remain closed to keep people safe,” he said. Small Business Administration loans also have been difficult to access because the SBA will not loan to businesses that generate more than more than one-third of their revenue from gambling.
Bryan Newland, chairman of the Bay Mills Indian Community, said launching online gaming, which was legalized in December, would be a tremendous help to the tribes. Although tribes don’t need state permission to own casinos on their land, online gaming is an exception, since it allows customers to patronize a casino without being present on tribal land. The state planned to launch online gaming by early 2021 but Newland said his and other tribes, and Detroit casino operators, have urged Whitmer and the Michigan Gaming Control Board to expedite the rulemaking process and offer online gambling before then. A spokeswoman for Whitmer said she is reviewing the requests.
Meanwhile Newland said casinos will look different when they finally do reopen. “You’ll see us and a lot of casinos start to bring things back slowly. Maybe slot machines, but not table games. Maybe no hotels at first. Buffet foodservice is going to be a thing of the past,” he said.
The three non-tribal casinos in Detroit will remain closed through at least May 15, officials said. Greektown Casino-Hotel, MGM Grand Detroit and MotorCity Casino closed on March 16, along with Caesars Windsor across the Detroit River in Canada. The sportsbooks at MGM and Greektown had just opened on March 11.
