The federal Bureau of Indian Affairs rejected a proposed amendment to the Forest County Potawatomi Tribe’s 2005 gaming compact with the state of Wisconsin. The amendment, negotiated by arbitrators last November, would have formally held the state responsible for reimbursing the tribe for any losses at its lucrative Milwaukee casino if the Menominee Nation is allowed to opens a casino in Kenosha, less than 50 miles away. Combined with its compact with the Ho-Chunk Nation, Wisconsin could have been required to pay the tribes 0 million a year in compensation for the Menominee’s proposed 0 million off-reservation Kenosha casino.
Wisconsin Governor Scott Walker will have the final word on the issue. He has until February 19 to announce whether he will or will not approve the Kenosha casino. Walker’s administration spokesman on the casino, Cullen Werwie, said, “The rejection of this compact amendment should not be interpreted as a step toward Governor Walker rejecting or approving the proposed Kenosha casino. As we review BIA’s decision, we will continue to gather information about the overall economic and financial impact of the proposed Kenosha casino. Moving forward, we will continue to have discussions and negotiations with interested parties.”
In a letter to Walker, Assistant Secretary for Indian Affairs Kevin Washburn, wrote, “The Potawatomi were granted a tremendous benefit in 1990 when this department and the governor authorized the Potawatomi to open an off-reservation casino in Milwaukee, and they have now had the benefit of having the only Indian gaming operation in that area for 25 years. But the Potawatomi were not promised an absolute monopoly in perpetuity.”
Washburn continued, “In the face of potential competition, the Potawatomi have attempted to shift to the Menominee the significant financial burden of preserving all of the Potawatomi monopoly profits. We note that the Potawatomi’s proposed compact amendment goes further than simply obtaining financial guarantees from the state. It seeks to impose a substantial financial burden on the Menominee community, which has among the highest unemployment rates, the highest poverty, and the lowest health indicators of any community in Wisconsin. This office expressed the hope that the 8,700 members of the Menominee Tribe, one of the poorest communities in Wisconsin, would be able to follow in the very successful path of the Potawatomi.”
Gary Besaw, chairman of the Menominee Kenosha Gaming Authority, said, “It helped calm my nerves that I could actually see in writing the denial. That had to happen for us. Remember, the governor said he wanted the decision from the BIA before taking the next steps. That decision is in, and he said he would talk with any interested party. We’re aggressively looking at any type of a solution that gives a win-win-win.”
Besaw added, “We understand the Potawatomi and their wanting to keep this monopoly. However, monopolies have gone the way of the horse and buggy. The free enterprise system and competition are great for the consumer. Quite frankly, the revenue and the tourists will go either to Illinois or Wisconsin. We would rather it go to the Hard Rock in Kenosha, and that means it goes to Wisconsin. We know the Potawatomi will do well. We don’t agree with them doing this ‘the-sky-is-falling Chicken Little thing.’ In the end, the synergy will make southeast Wisconsin a dynamic region.”
Cullen Werwie, a spokesman for the Department of Administration, said the BIA’s rejection of the “compact amendment should not be interpreted as a step toward Governor Walker rejecting or approving the proposed Kenosha casino. As we review BIA’s decision, we will continue to gather information about the overall economic and financial impact of the proposed Kenosha casino. Moving forward, we will continue to have discussions and negotiations with interested parties.”
Forest County Potawatomi Attorney General Jeff Crawford said, “The Potawatomi will be filing a lawsuit in federal court in the coming days and are confident this compact amendment will eventually become legally binding. BIA’s unlawful rejection only adds to the risk that this massive expansion of gaming could cost the State of Wisconsin hundreds of millions of dollars over multiple years. “
Crawford added, “The Potawatomi remain confident that Governor Walker will not find it in the best interest of Wisconsin to approve a project that could simultaneously cost the state hundreds of millions of dollars over multiple years and send hundreds of millions of dollars to Florida.”
The Kenosha casino at the former Dairyland Greyhound Park site would be run by Hard Rock International, owned by the Florida-based Seminole tribe. The project would include a 100,000-square-foot gaming floor with 3,100 slot machines, 75 table games, a 5,000-seat entertainment venue, 50,000 square feet of retail space, restaurants and a 400-room hotel.
Besaw said the Potawatomi lawsuit will fail because the federal courts have never reversed a BIA decision.
