Gun Lake Casino makes USD 6.9M payout to local units, state government

The payments were calculated from cash collected by the casino's slot machines and electronic gaming devices between April 1 and Sept. 30, according to a Dec. 7 announcement by tribal officials.

According to a 2007 tribal-state compact, the tribe agreed to pay local governments 2 percent of revenue of the money collected at slot machines. The local payments will be distributed by a 6-member revenue sharing board.

Payments are divided among Wayland Township, Allegan County, the Allegan Area Educational Service Agency, the City of Wayland, Dorr Township, Hopkins Township, Leighton Township, Martin Township, Wayland Union Schools and Yankee Springs Township.

The payments to the state represent only about half of the 8 percent to 12 percent the tribe had agreed to pay the state in a 2007 compact that gave the tribe a gaming monopoly in a nine-county area that includes Grand Rapids, Lansing and Kalamazoo.

The tribe began withholding payments to the state last year after claiming Michigan Lottery's creation of statewide online ticket sales and lottery terminals in social clubs violated the 2007 compact.

The state and tribe announced a partial settlement of the dispute in July. The agreement split the disputed $21.7 million between the state, the tribe and GLMI, an economic development group, and a tribal scholarship fund, formed in the partial settlement announced in July.

GLMI, which is getting $1.2 million in the latest distribution, is in the process of building a $4.4 million fuel and convenience store across the street from the Gun Lake Casino.

The Gun Lake compact is unique because it is the last one agreed to by the state. Eleven other tribes that operate casinos since the 1990s do not have language in which the state has promised not to compete with them.

"This revenue sharing distribution is the result of government-to-government cooperation for the benefit of all Michiganders," said Scott Sprague, chairman of the Gun Lake Tribe in a statement.

"The state revenue sharing payments help to fund economic development projects beyond West Michigan, while the local revenue sharing payments is important for municipal services and public education."

Located halfway between Grand Rapids and Kalamazoo, the Gun Lake Casino opened in February, 2011 and employs more than 800. Since opening, the tribe said it has shared $86.6 million with state and local governments.

Earlier this year, the casino announced it will nearly double its size as part of a $76 million expansion. When complete in the summer of 2017, the new portion will have added add 73,000 square feet of space to the existing 83,000-square-foot at the casino.

The expansion, which will add 100 new employees, also will add 450 slot machines to the 1,600 machines already in place while bringing the total number of table games to 42. A new high-limit gaming room will offer high stakes gambling for high rollers.

The enlarged casino also will include a new buffet restaurant and a new "Stage 131" entertainment lounge that will offer enough seating to attract regional entertainers.