Michigan Indian tribes negotiating new gaming compact with state

Negotiations are under way to renew, and perhaps change, the terms of the compact that has been in effect since 1993, with the potential for the reinstatement of revenues for the state from the gambling halls.

“Everything is on the table,” said Dave Murray, a spokesman for Gov. Rick Snyder. “We’ve worked hard to build a good working relationship with the tribes, and we’re optimistic the discussions will be productive.”

Under the original compact, the casinos were required to provide 2% of the revenues from their slot machines to their local communities, and those payments continue to be made every year. Another chunk of their profits went to the Michigan Economic Development Corp.

However, when the three casinos in Detroit opened up and the tribes no longer had an exclusive right to operate casinos in Michigan, they were allowed to stop making the payments to the state, and they did.

During the seven years that those first six casinos were required to contribute to the MEDC, the revenues to the state ranged from us$436,765 to a high of us$46.7 million. Those payments stopped in 2000.

Six additional tribes have negotiated compacts with the state since that initial flurry of Indian gaming. Their compacts, which include ongoing payments to both local governments and the MEDC, aren’t due to expire for more than a decade.

Sean Reed, a lawyer for the Saginaw Chippewa Tribe in Mt. Pleasant, acknowledged that negotiations are ongoing, but he didn’t want to comment on the nature of the talks. “They’re confidential negotiations at this point,” he said. But Murray said that revenue sharing for both the local communities and the state are part of the talks.

For the local communities — which have received us$335.3 million in revenues from the casinos since 1993 — the funding has been a lifeline.
“They’ve been a very good neighbor,” said Ron Popp, supervisor of Whitewater Township, where the Grand Traverse Band of Ottawa and Chippewa operate the Turtle Creek Casino. “They are a very important part of our community.”

The township doesn’t receive the full 2%, however: It’s split through an annual grant process among several counties and other communities. But Whitewater has been able to expand its fire-prevention programs, improve domestic water supplies and install a potable water system for Mill Creek Elementary School with the money from the gaming revenues.

“Everyone wants a piece of the pie,” Popp said. “One must bear in mind that every time you put your hand up you, might not get selected.”
Just because the compact expires Nov. 30 doesn’t translate into a shuttering of the casinos if a deal isn’t reached by the deadline. The original compact says that the current compact will stay in place until a new one is worked out. “No one wants to shut down any of the casinos,” Murray said.

Since the tribes stopped paying the state, the other tribal casinos have picked up the slack, paying $8.6 million to $60.9 million a year to the MEDC. Those funds have been used for tourism and business marketing, talent enhancement programs, corporate research and all economic development programs that aren’t paid for with state general fund dollars.