An economic impact study commissioned by the Stockbridge-Munsee Band indicated the million expansion of the Ho-Chunk casino in Wittenberg, Wisconsin could cannibalize million a year from other Native American tribes that own casinos in the state.
The largest portion, about $22 million annually, or 37 percent, would come from the Stockbridge-Munsee’s North Star Mohican Casino and Resort in Bowler, located about 17 miles from the Ho-Chunk’s Wittenberg casino, which is 15 miles closer to Wausau than the Stockbridge casino. The study also said the Oneida casino would lose $5.2 million annually), the Menominee $4.3 million, the Chippewa tribes $3.4 million and the Forest County Potawatomi $1.8 million.
Ho-Chunk’s Wittenberg expansion began in September, adding a hotel and hundreds of new slot machines and table games. The casino was built in 2008 as an “ancillary facility” allowed under a compact reached with then-Governor Jim Doyle in 2003. The Stockbridge and other tribes argue the Ho-Chunk expansion far exceeds what is permitted for what is considered a secondary casino. General Counsel Dennis Puzz said, “When you put a duplicate facility on highways 15 miles closer to your main market, that’s going to have devastating effects.”
However, Steve Michels, a spokesman for the state Division of Gaming, said, “The Ho-Chunk Nation is adding to their facility in a manner consistent under the terms of the 2003 Doyle compact amendment. We will continue to work with and engage in dialogue with all of the tribes.”
Puzz said he hoped state and federal regulators would see the study and review the Ho-Chunk expansion, since a drop in casino profits could result in service cuts among the tribes. Puzz said state and federal regulators “both have a duty here. Both have a responsibility and both have the ability to take enforcement actions.”
Meanwhile, the Stockbridge-Munsee Band has hired two attorneys who specialize in Indian casino law, possibly a prelude to a lawsuit against Ho-Chunk.
The study, conducted by Market & Feasibility Advisors of Chicago, stated casino revenue in Wisconsin has not changed in recent years, with tribal casinos taking in about $1.2 billion in net proceeds. It concluded Wisconsin is “the very definition of a saturated market.”
