Michigan tribes poised to break billion-dollar barrier

8.22.07

State flush with new casinos

Expansion in Indian gambling comes as Detroit operations ready permanent facilities

Joel J. Smith / The Detroit News

The state's Indian gaming industry is poised for considerable growth with the opening of the $400 million Four Winds Casino Resort in New Buffalo and two more casinos moving toward reality in southwest Michigan.

Gaming experts predict the three casinos -- the others are near Grand Rapids and Battle Creek -- will increase Indian gaming revenue by about 60 percent a year, injecting new life into an otherwise flat industry by drawing new customers from southwest Michigan and bordering states. Revenue from the state's other 17 Indian casinos has hovered around $900 million for several years.

"If there is any new Indian casino growth in Michigan, it will come from southwestern Michigan," said Larry Rosenthal, a Washington, D.C.-based casino consultant for the Pokagon Band of Potawatomi Indians, which owns Four Winds Casino Resort in New Buffalo.



The expansion in Indian gambling comes as Detroit's three gaming operations prepare to open permanent casinos and hotel and entertainment complexes -- a $1.3 billion investment. Two of them -- MGM Grand Detroit and MotorCity -- will open within the next three months.

While the Detroit casinos also foresee revenue growth, gaming experts contend its three casinos will draw a different clientele than the Indian facilities. Their growth will come from business travelers and conventioneers who don't mind spending big money for luxury rooms and other amenities at their 400-room hotels and entertainment venues.

"None of the tribal casinos suffered when we had that last go around with the Detroit casinos opening in 1999-2000," said Tom Shields, a consultant who represents tribes on casino issues. "And Detroit won't suffer with the three new Indian casinos opening either. I expect these new Indian casinos to do $600 million in annual business. These casinos will offer the opportunity to draw gamblers from outside the state."

That kind of revenue would mean an additional $60 million in state tax money each year and $12 million in local taxes.

Casinos needed near border

While the state might seem saturated with Indian casinos, some regions, including southwest Michigan, have been void of gaming operations.

Michigan could easily handle 25 percent growth in the number of new casinos depending on where they are located, said Jacob L. Miklojcik, a Lansing-based gambling consultant.

"By adding new Indian casinos in Michigan, you would not grow the overall North American market," he said.

However, he said Michigan could draw more out-of-state gamblers with casinos near its borders. It also would help retain Michigan gamblers who frequent other states.

"It would keep those gambling dollars in the state," he said.

Four Winds latest to open

The Four Winds Casino Resort is the first Indian gaming facility to open in Michigan in about a decade.

Four Winds Casino has 165 rooms in a lodge-style hotel, six restaurants, and 130,000 square feet of gaming space. The casino boasts 3,000 slot machines, 100 table games and a poker room that can seat 158 players.

Off Interstate 94, just north of the Indiana border, the resort looks to draw gamblers from surrounding communities as well as Indiana and Illinois.

"Our market generally is the 50- to 100-mile driving radius," said Matt Harkness, general manager of Four Winds. "That's pretty standard for a casino. It's an untapped market for the kind of product we're offering."

Plans for the new casino were in the works for years. It was stalled by legal challenges financed by competitors -- some from Indiana -- who feared the new gaming facility would dig deep into their client base. A U.S. Court of Appeals eventually ruled in the tribe's favor, and the resort opened Aug. 2.

Firekeepers next to be built

The Nottawaseppi Huron Band of Potawatomi Indians overcame the same legal challenges to move ahead with their plans for Firekeepers Casino, which will open off I-94 near Battle Creek.

The tribe will break ground on a $60 million casino in September, with plans to open in late spring 2008. The casino will include a 130,000-square-foot gaming floor. A hotel is expected to be added at a later date.

The casino will employ 2,000 workers and expects nearly 3 million annual visitors, drawing gamblers from Lansing, Jackson, Ohio and Fort Wayne, Ind.

"It's a wonderful thing," said Linda Coss, 47, who lives across from the site in Emmett Township.

"Michigan's economy is so horrible now. Battle Creek is one of the worst in the horrible lot. We really need the employment. It's a win-win for the area."

Court decision awaited

Before moving ahead with plans for Gun Lake Casino off U.S. 131 south of Grand Rapids, the Match-E-Be-Nash-She-Wish Band of Potawatomi Indians has to overcome a federal court challenge.

The tribe faces the same legal issues as the others did and is awaiting a decision from the U.S. Court of Appeals. The tribe -- and gaming experts -- expect the court to rule in its favor.

Plans call for Gun Lake Casino in Wayland Township to have 2,500 slot machines and 80 gaming tables. Its market will include Grand Rapids, Holland and Kalamazoo.

"We will be ready to go in a relatively short period of time once the court rules on the case," said James Nye, a tribe spokesman.

"This has been a long time coming."

You can reach Joel J. Smith at (313) 222-2556 or jsmith@detnews.com .

Gun Lake casino foes vow to block compact

8.09.07

By Nate Reens
The Grand Rapids Press

WAYLAND TOWNSHIP -- Opponents of an Allegan County casino knew months ago that the battle to block a gaming agreement centered in the state Senate.

It remains to be seen if leaders of 23 Is Enough and the Michigan Gambling Opposition have enough votes to stop a compact with the Gun Lake Band of Pottawatomi Indians.

John Helmholdt and Todd Boorsma, who head the casino rival groups, think they do.

State Sen. Wayne Kuipers, R-Holland, isn't so sure.

"If it's going to happen, it's going to happen without my support," Kuipers said Wednesday. "But, when it comes down to it, the votes are likely there to pass it."

The state House on Wednesday approved a compact that could generate $3 million annually for local governments and an estimated $15 million for the state from the proposed casino along U.S. 131.

West Michigan's contingent voted against the deal, but were overwhelmed by a 63-41 tally.

Tribal leaders call it the most generous revenue-sharing agreement in the state's history and say it sets a new level of regulation, upping a gambling age requirement to 21 and dictating how money is prioritized to cover public safety costs.

Without a state agreement, but with federal approval, the tribe could decide against revenue-sharing.

The band plans to build a $200 million facility with 2,500 slot machines and 80 gaming tables. It could add as many as 1,800 jobs with pay averaging $40,000 per year, supporters say.

"At the end of the day, the Legislature will look at this from a common-sense approach," tribal spokesman James Nye said. "This (compact approval) is the only way to mandate the level of control.

"If opponents don't want gaming to go unfettered, they should support the compact."

However, Boorsma feels gambling is being shoved down the throats of county residents. He said all state legislators in the area oppose the casino, and the will of the majority is being ignored.

Boorsma maintains gambling is not an economic development tool and will only spur social losses from addiction and crime.

"People in Allegan County don't want it," he said. This has to stop somewhere, and I hope the dead end lies in the integrity of the Senate."

Nye counters the lack of popularity by saying local governments, including Wayland Township, support the casino. A tribe-sponsored poll also shows support for casino gambling, he said.

Boorsma and Helmholdt said any compact negotiation should wait until after a federal court has rendered a final ruling on whether the land where the casino is to be built can be put in trust.

A federal appeals court could hear oral arguments this fall, but Nye said similar claims raised by opponents against other tribes have lost at every turn.

Helmholdt said House members who pledged to vote against the casino "caved under the pressure of the bright lights and empty promises."

He said 22 of 38 senators plan to fight the compact.

"We believe we have the votes, but we know it's going to stay an uphill battle and a challenge to keep them," Helmholdt said.

-- Press Booth News Service reporter Peter Luke contributed to this story.

Michigan House approves casino compact with Gun Lake tribe

8.08.07

By TIM MARTIN
Associated Press Writer

LANSING, Mich. (AP) - A deal that would give the state a slice of the revenue from a planned American Indian casino in southwestern Michigan was approved Wednesday by the state House.

The resolution, passed 63-41 in the Democrat-led House, approves a compact negotiated by Gov. Jennifer Granholm and the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians, also known as the Gun Lake tribe.

The resolution also must be approved by the Republican-led Senate.

The tribe plans to build a casino in Allegan County's Wayland Township, about 20 miles south of Grand Rapids. It would employ about 1,800 people and have about 2,500 electronic gambling machines and 80 gaming tables.

The casino has been in the works for several years.

"The compact is the only way the state is going to secure important regulatory agreements," negotiated in the pact, said James Nye, a Lansing-based spokesman for the Gun Lake tribe.

The tribe and Granholm signed the compact earlier this year.

Under the compact, the state would receive 8 percent of the casino's take from slot machines for the first $150 million. The state would get 10 percent or more of the revenue from slot revenue above that amount. Tribal officials calculate the state would get about $15 million from the casino in its first full year of operation, while local governments would get another $3 million.

The Gun Lake compact would require gamblers to be 21 or older. Compacts with other tribes that operate Michigan casinos set the age limit at 18.

States often seek compacts with tribes to gain some regulatory authority and generate revenue for the state treasury. Without a compact, states risk missing out on revenue from casinos that the federal government would allow to open anyway.

In return, compacts offer tribes a measure of territorial protection from state-authorized gambling competition and may expedite the process of opening new casinos. In some cases, compacts also foster cooperation between tribes and surrounding local and state governments.

"The question is, do we want to have a say in this casino, or do we want to have no control and no say and no revenue," said Rep. Barbara Farrah, a Democrat from Southgate and sponsor of the resolution that passed the House.

An Allegan County lawmaker spoke in opposition to the casino.

"The majority of the people in my district don't want this," said Rep. Fulton Sheen, a Republican from Plainwell.

There are 18 tribal casinos in Michigan and three Detroit casinos. At least two other tribal casinos are in the planning stages.

Several of the tribal casinos no longer have compacts attached to them. Some were suspended when the state allowed non-tribal casinos to open in Detroit in the late 1990s. Some other tribes stopped making payments to the state in 2003 because of a dispute over the Lottery starting a game called Club Keno. The tribes said that game violated their compacts with the state.

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On the Net:

Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians (Gun Lake tribe): http://www.mbpi.org

Michigan Gambling Opposition: http://www.michgo.com

Indianz.com: Michigan State Rep. Brian Calley urges support for Gun Lake Compact

as posted 8.6.07 at Indianz.com:

Opinion: Support compact for Gun Lake Tribe

"Federal law dictates that Indian tribes have the right to operate gaming as a means of economic development in states where such gaming is allowed for any purpose, by any person, organization or entity. The Gun Lake Band is undisputedly a federally recognized tribe and the state of Michigan has undisputedly authorized Class III gaming by both tribal and non-tribal entities.

Class III gaming basically allows for a full-blown casino. The State of Michigan has entered into Class III gaming compacts with 11 of 12 federally recognized tribes (the Gun Lake Band being the 12th). The state has also authorized non-tribal Class III gaming operations (Detroit casinos) under the Michigan Gaming Control and Revenue Act.

So that part is pretty clear. If a state allows anyone to have gaming operations, then it must allow federally recognized tribes to do the same. Now what about the recent Michigan Constitutional Amendment that requires both local and statewide voter approval for new Class III gaming operations? Our Michigan Constitution has no bearing on federally recognized tribes as they are technically sovereign nations. So our constitution would require a vote for a new non-tribal operation, but that is where it ends.

Here are my options as I see them. I could reject a compact and challenge the right of the US Department of Interior to force one. If the State loses that challenge (and I have every reason to believe we would), we end up with an unregulated, untaxed full service casino. If the state somehow wins, we end up with a "bingo slot" casino that is totally unregulated and untaxed. In other words, no compact equals a no win situation for Michigan.

Or - I could support a strict compact that regulates the gaming, guarantees that those under 18 could not purchase tobacco products and prohibits those under 21 from gambling.

Further, the compact requires that taxes (technically called revenue sharing) be paid to both the local and state government."

Get the Story:
Michigan State Rep. Brian Calley: The truth about legislative authority (The Lansing State Journal 8/5)

Another casino set to wow Michigan gamblers

7.31.07

New Buffalo facility swings open to public Thursday

By HEATHER NEWMAN
FREE PRESS STAFF WRITER

A gigantic new casino is poised to appear on the southwest corner of the state, attracting day-trippers and resorters from Detroit, Indiana and Chicago.

It has more gaming space than Detroit’s current casinos, a woodsy, luxury lodge-like ambience, and will have a permanent hotel up and running before any of Detroit’s gambling houses.

It’s the Four Winds Casino Resort, opening Wednesday for media tours and at noon Thursday to the public just off Exit 1 of I-94 near New Buffalo, and it’s one of three new casino locations expected to open in Michigan cities in the next year or two.

"Absolutely beautiful. First class," said 50-year-old construction worker Bernie Marshall of Mill Creek, Ind., as he scraped and cleaned windows on the outside of the hotel recently. "I’ve been in a lot of casinos, and this one is the top I’ve seen."

The impact on Detroit’s casinos will be hard to measure. All three claim some outstate, Indiana and Illinois traffic as part of their audience; due to competitive reasons, they’re unwilling to say exactly how much. But those day-trippers may find that passing up Four Winds’ gorgeous stone and heavy-wood buildings — tucked into a mostly natural, 675-acre wooded estate, a scant mile or two from the big lake — may be enough to get them exiting the expressway early.

"It’s going to be spectacular," project director Matt Harkness said. Four Winds, which is owned by the Pokagon Band of Potawatomi Indians and run by Lakes Entertainment Inc., will include 130,000 square feet of gaming space, 3,000 slot machines, 110 table games including poker, six restaurants and a 165-room suite hotel.

That makes it bigger (for gambling, anyway) than anything in the state other than the Soaring Eagle Casino in Mt. Pleasant — and it’s a lot more convenient for some folks to get to.

Three other, smaller projects are expected to pass the last legislative and legal hurdles to open in the next year or two: one by the Gun Lake Band of Pottawatomi in Wayland Township south of Grand Rapids; the Firekeepers Casino near Battle Creek, run by the Nottawaseppi Huron Band of Potawatomi; and a satellite operation of the Soaring Eagle Casino in Standish.

Area business owners and convention officials are cautiously optimistic about the tourists the Four Winds project may bring from Chicago, Indiana and elsewhere in Michigan. (Complete Story)

Gun Lake Tribe takes land in trust first; state must negotiate a compact or else

Saturday, March 03, 2007

Editorial: Allegan casino; time to deal

When it comes to a proposed casino in Allegan County, the old country song applies: You've got to know when to hold 'em. And know when to fold 'em.

For Michigan, the time to fold will be when land is taken into trust by the federal government for the Gun Lake Tribe. That could happen very soon, depending on court action.

Once the land is in trust, a casino is all but inevitable, and lawmakers and the governor will be forced to deal with the tribe to garner revenue and exercise oversight at the planned Wayland Township complex.

For local governments, the revenue would offset expenses the casino would bring. The state, where budget decisions involve grim choices between competing evils, can't afford to forego funds.

Refusing to negotiate a compact, the contract between the tribe and the state, would be a considerable gamble, likely a losing one for Michigan. The U.S. Department of the Interior, the agency responsible for overseeing tribal gaming, has consistently sided with tribes, in at least one case allowing a casino without a compact.

When it comes to stopping American Indian casinos, there are few if any effective legal gambits. Federal law favors tribes. Much has been said in the Legislature against casinos. But the final solution to regaining some state control of American Indian gambling lies with Congress. Washington lawmakers should reopen the 1988 Indian Gaming Regulatory Act, which granted considerable latitude to tribes to site casinos with little or no state input.

In the meantime, a Gun Lake casino is almost assuredly headed our way. Late last month, a U.S. District judge in Washington, D.C., dismissed a Grand Rapids-area group's suit against the Interior Department. Michigan Gambling Opposition [MichGO] plans to continue the fight. The history of such appeals offers scant comfort to anti-casino forces. Gov. Jennifer Granholm is willing to negotiate a compact once land is taken into trust. That's the responsible, pragmatic position. Two years ago, Wyoming's Northern Arapaho Tribe received permission from the Interior Department to operate a Class III casino -- which includes blackjack, slot machines and roulette -- with no compact and no cut of the proceeds. Michigan should not be caught in a similar spot.

A compact would give the state the power to inspect the casino to make sure it's compliant with the terms of the deal. Past agreements have required tribes to pay 8 percent of slot machine proceeds to the state and 2 percent to local governments.

The governor should not approve a compact without securing support from the Legislature. Many West Michigan lawmakers have opposed expanded gambling in Michigan, in part because of its social consequences. So has this paper. But now new alternatives may have to be considered and with legal appeals coming up short, we face a different reality, perhaps a Hobson's choice: take what we can through a compact, or risk getting nothing at all. Those aren't odds we should be willing to play.