Wisconsin Tribe Will Withhold Revenue Sharing Payment

The Stockbridge-Munsee Band of Mohicans said it will not make its June 30 payment of $923,000 if it does not resolve a dispute with Wisconsin Governor Scott Walker (l.) over allowing the Ho-Chunk Nation's $33 million casino expansion in Wittenberg. The Stockbridge-Munsee operate a smaller casino 17 miles away.

The Stockbridge-Munsee Band of Mohicans recently informed Wisconsin Governor Scott Walker it plans to withhold a casino revenue sharing payment of 3,000 due June 30. Tribal President Shannon Holsey said the tribe is protesting the Ho-Chunk Nation’s million casino expansion in Wittenberg, which it claims will have a devastating impact on the Stockbridge-Munsee’s smaller North Star Mohican Casino and Resort in Bowler, 17 miles away.

“We are being forced to pursue all legal remedies available to protect our 1,200 tribal members, hundreds of employees and the various local organizations who rely on our support. While we must protect our sovereign right to self-determination, we have always enjoyed a productive relationship with the state of Wisconsin and we hope that Governor Walker will heed our requests for fair compact enforcement so that this matter can be resolved without expensive and protracted litigation,” Holsey said. Stockbridge-Munsee attorney Dennis Puzz said the tribe can sue if a resolution is not reached with the state within 30 days of delivering the letter.

Holsey stated a study released in January showed the tribe could lose $22 million, or 37 percent, of its annual gambling revenue because of the larger Ho-Chunk facility. The expansion there, which started last fall, will increase the number of slot machines from more than 500 to nearly 800 and add a high-limit area, an 86-room hotel and 84-seat restaurant and bar.

Holsey pointed out if the Wittenberg Casino expansion is completed, the Ho-Chunk Nation will operate half of the state’s 10 largest casinos. The Stockbridge-Munsee tribe only operates one casino, which accounts for 96 percent of the tribe’s earned revenue. “As our only gaming facility, the North Star Mohican Casino Resort is the economic lifeblood for our tribe and hundreds of Shawano County families. Nearly 500 letters from concerned tribal members, employees, Shawano County residents and other tribal nations have been sent to the governor and his administration requesting gaming compacts be fairly enforced and the unlawful Wittenberg expansion be stopped, with no response,” Holsey said.

The Stockbridge-Munsee tribe claims the Ho-Chunk expansion violates both federal law and that tribe’s state gambling compact. The Stockbridge-Munsee Tribe’s gaming compact with the state, signed in 1992, was amended in 2003. It required the tribe to provide a higher percentage of revenue sharing in exchange for protection from tribes operating games under Section 20 Exception to the Indian Gaming Regulatory Act. Tribal officials said the Ho-Chunk casino expansion is not allowed under a 2003 amendment to its compact, allowing the Ho-Chunk to open the casino as an “ancillary facility.” Puzz added the Ho-Chunk casino is operating on land that is not eligible to be used for gambling under federal law.

In response, the Ho-Chunk Nation said federal law requires tribal casinos to be built on land that has been in trust before October 1988; Ho-Chunk officials said the Wittenberg Casino land has been in trust since 1963. Furthermore, the Ho-Chunk said the Stockbridge-Munsee tribe is mistaken that the Wittenberg casino cannot earn more than 50 percent of its current revenue through gaming. Ho-Chunk spokesman Collin Price said the Ho-Chunk and Stockbridge-Munsee tribes compete for customers like any other businesses. “We don’t apologize for trying to be entertainment leader and trying to have a facility that’s top notch,” Price said.

Last September the Wisconsin Department of Administration also agreed the Ho-Chunk expansion does not violate its state gambling compact. Walker administration spokesman Steve Michels said, “Simply put, the Stockbridge is getting the deal it agreed to with the state in 2003. Likewise, the Ho-Chunk is getting the deal it agreed to with the state in 2003 as well. The state expects the Stockbridge to adhere to the terms of their compact.”

Puzz said the Stockbridge-Munsee will not make the payment because it believes the state is acting arbitrarily in how it enforces its compacts with tribes. “This is only one part of our strategy and one part of an effort to communicate to the state that this is of grave concern to the Stockbridge and other tribes,” Puzz said. He added the tribe may take the issue to mediation, arbitration or a federal judge if it can’t be resolved soon.

Besides Wittenberg, the Ho-Chunk tribe also operates casinos in Black River Falls, Madison and Wisconsin Dells.