New Study: Gun Lake Tribe Contributed $1.5 Billion To Michigan Economy

Written By Kim Yuhl on December 10, 2018

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The Gun Lake Tribe has recently initiated a study in collaboration with the Innovation Group to assess its influence on the economy of Michigan.

Over the past seven years, the Gun Lake Tribe and its various businesses have made a substantial contribution of $1.5 billion to the Michigan economy, as indicated by the results.

The findings were commented upon by Bob Peters, the chairman of the Gun Lake Tribe.

Over the past seven years, we have made a significant impact on Michigan’s economy by contributing $1.5 billion. This contribution stems from the construction and operation of our gaming and government facilities, along with our non-gaming business activities. Annually, this collective economic activity sustains over 2,600 jobs and injects $228 million into the state’s economy, a fact of which we are immensely proud.

How the Tribe impacts the Michigan economy

In February 2011, the inauguration of the Gun Lake Tribe’s casino brought about an almost immediate influence on the local economy. The construction of the Gun Lake Casino and accompanying amenities had a budget totaling $236 million, resulting in the creation of 1,439 construction job opportunities and an impressive contribution of $142 million to the state’s economy.

According to a recent study, the tribe’s annual purchases of goods and services from Michigan-based companies now amount to $36 million. The study announcement further reveals that when considering indirect and induced employment, the total number of jobs created annually is 2,491, resulting in a payroll of $99 million.

The tribe has a workforce of 1,281 individuals who work across various sectors of their businesses, which encompass governmental roles, gaming services, and investment operations. Their collective efforts result in an annual payroll exceeding $48 million.

Equally impressive is the indirect impact it brings, as the tribe contributes a substantial $36 million per year to the Michigan-based businesses through their purchases of goods and services.

According to the study, when considering both indirect and induced employment in addition to direct employment, the total number of jobs created annually amounts to 2,491. This corresponds to a yearly payroll of $99 million.

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The tribe’s impact may explain its influence

The Lawful Internet Gaming Act, also known as Michigan bill H 4926, is currently awaiting approval in the state Senate. Its fate hangs in the balance, with hopes for a positive outcome in the coming weeks. However, even if the bill successfully passes, separate legislation will be necessary in 2019 to legalize sports betting.

Michigan’s tribal casinos’ lack of support is one of the reasons behind the implementation of additional legislation.

Rep. Brandt Iden attempted to garner backing for the bill from both Detroit’s commercial casinos and tribal casinos, despite their conflicting interests.

At present, the tribes lack the necessary authority to broaden their gaming offerings as stated in their compacts. Should the bill be approved by the Michigan Senate and signed into law by the governor, the tribes will be compelled to enter into new negotiations for their agreements. This potential outcome could potentially place the tribes at a significant disadvantage compared to the commercial casinos.

Therefore, the tribes desire for the commercial casinos to postpone their online gaming and sports betting activities or halt their operations altogether until the tribes can function under equal circumstances.

This has been referred to by Iden as the “poison pill” in the past.

Naturally, commercial casinos desire to provide online gaming and sports betting, regardless of any limitations imposed by state compacts or federal regulations on tribes.

It is possible that all of this becomes irrelevant, as the legislature is scheduled to adjourn on December 20th. If the bill does not pass the Senate by then, it will not survive. This implies that Michigan will have to introduce an entirely new law if they intend to commence online gaming in 2019.

The timing of the impact study was perfect, as it served as a timely reminder to Michigan legislators about the crucial role that tribal gaming and its business interests play in the state’s economy.

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