After 15 years of legal disputes, outgoing Wisconsin Republican Governor Scott Walker and the Forest County Potawatomi reached an agreement that would let tribe lower its payments to the state by up to $250 million if a new casino opened 30-50 miles from the Potawatomi’s Milwaukee operation and affected revenue. Prior to the deal, officials claimed the state’s potential exposure could reach $500 million.
The Potawatomi have claimed a nearby casino, like the Menominee Tribe’s proposed Kenosha casino, would cannibalize its revenue and customer base.
The federal Bureau of Indian Affairs now must approve the deal, recently signed by Walker and Potawatomi Chairman Ned Daniels Jr. Potawatomi Attorney General Jeff Crawford said, “We appreciate the Walker administration engaging in good-faith, government-to-government negotiations to find agreement on this proposed compact amendment.”
Wisconsin tribes pay the state millions of dollars annually, based on a percentage of net win, for the exclusive right to operate casinos. In 2014, the Potawatomi owed the state an estimated $25- $30 million.
In 2003, the Potawatomi and then-Governor Jim Doyle reached an agreement that prohibited competing tribes from establishing casinos within 50 miles of the Potawatomi’s Milwaukee operation. However, the BIA approved a 30-mile limit.
In 2014, an arbitrator ruled the state would be responsible for the Potawatomi’s losses if another tribe opened a competing casino 30-50 miles away and concluded the state could be liable for to $500 million. The BIA rejected the arbitrator’s decision, claiming it shifted costs from the Potawatomi to the Menominee. That tribe had sought a casino in Kenosha for more than 20 years, most recently in 2015 when Walker rejected its proposed $800 million casino. President Barack Obama’s administration approved the proposal.
Now, any future tribal casino proposals require the approval of President Donald Trump’s administration and incoming Governor Tony Evers, who beat Walker and will be sworn in on January 7.
