Michigan Will Sue Tribal Leaders

A federal judge will dismiss four counts in Michigan Attorney General Bill Schuette's 2012 lawsuit against the Sault Ste. Marie Tribe of Chippewa Indians. Schuette said the tribe's proposed $245 million casino in downtown Lansing undermines a compact provision. In exchange the tribe will allow Schuette to sue tribal officials.

The state of Michigan and the Sault Ste. Marie Tribe of Chippewa Indians appear to be attempting to settle their differences. The tribe agreed to allow the state to sue tribal leaders; in exchange federal district Judge Robert Jonker will dismiss four counts in State Attorney General Bill Schuette’s 2012 lawsuit to block the tribe’s proposed 5 million off-reservation casino adjacent to the downtown Lansing Center.

This spring the U.S. Supreme Court ruled in Michigan versus Bay Mills Indian Community that tribes are immune from lawsuits. However, the court determined that states may deny gaming licenses or file criminal charges against tribal or casino employees if a casino opens.

Schuette’s office said the state will sue individual tribal officials, not the tribe as a whole. Schuette said under a provision in its state gaming compact, before the Sault tribe can open a casino it must get revenue-sharing agreements with other Michigan tribes.

Tribal attorney John Wernet said its trust applications to the U.S. Department of the Interior for the Lansing property and another for a proposed casino in Huron Charter Township trust application are pending. Both sites were purchased through the Michigan Indian Land Claims Settlement Act, which the tribe believes mandates the Bureau of Indian Affairs to place the land in trust.

The state will submit an amended complaint and sue individual tribal officials, although that does not assure the state will be victorious.

Also in Michigan, the Gun Lake Tribe said its Gun Lake Casino in Wayland Township issued its latest six-month revenue sharing payment –a total of

$8,702,489, including $7,030,280 to the state of Michigan and $1,672,209 to the community’s revenue sharing board. That puts the total paid since the casino opened in early 2011 at more $60 million.

The revenue-sharing payments are distributed semi-annually under terms of the tribe’s agreement with the state and are based on slot machine revenues reported from April 1, 2014, to September 30. The tribe pays 8-12 percent of net win from slots to the state and 2 percent locally.

Tribal Chairman D. K. Sprague said, “Once again we hit an important milestone in surpassing $60 million in revenue sharing contributions to the state and local governments. We know these funds have improved the quality of life in our community and helped to create jobs statewide through our contributions to the Michigan Economic Development Corporation.”