Percentage Drop Forces Pokagon Fund Changes

Under its Class III gaming compact, the annual percentage rate received by the Pokagon Fund from the Pokagon Band of Potawatomi Indians' Michigan casinos has dropped from 2 percent, or $6 million, to 0.75 percent, or $2 million. The TPF board has instituted several changes to avoid running out of grant money in June 2015.

Since 2007, the Pokagon Fund, which receives a percentage of electronic gaming revenue from the Pokagon Band of Potawatomi Indians’ Four Winds Casinos in New Buffalo, Hartford and Dowagiac, Michigan
has awarded more than $19 million in grants from an income of nearly $23 million. However, in that time period, as part of the tribe’s Class III gaming compact with the state, that percentage rate has dropped from 2 percent, or $6 million annually, to 0.75 percent, or $2 million annually. The rate will remain at 0.75 percent for the remainder of the 99-year agreement between the tribe, the city of New Buffalo and Buffalo Township.

TPF Executive Director Mary Dunbar said, “If the Pokagon Fund continues to award grants at the current rate, we would run out of discretionary income in June 2015.” Therefore, Dunbar said, the TPF board has developed new policies that will “preserve the long-term gift the Pokagons have given to us.” She noted greater emphasis will be placed on a project’s impact on the organization and the service area, the number of people that will be affected and whether the project is permanent or long-lasting and life-changing.

Roger Raider, TPF board chair and member of the Tribal Council said the tribe agreed “rightfully so” to share the casino revenues with the community in return for its support in reaching a compact with the state of Michigan. He said the local agreement has not been duplicated by any other Indian casino in the country.

A private foundation, the Pokagon Fund is a separate entity from the Local Revenue Sharing Board, which oversees payments made to state and local governments by the casino instead of taxes. Some TPF-funded projects include grants of $1 million for Chikaming Open Lands preservation; $399,000 for Friends of Harbor Country Trails for bike-path construction; and $1.1 million for River Valley School District’s fiber optics network.