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In the previous year, Michigan tribal casinos saw a slight increase in their contributions to local governments, surpassing $30 million. Similarly, their revenue sharing with the state also experienced a slight rise, exceeding $54 million.
Overall, the $1.58 million increase amounted to a 1.9% surge in their yearly payments, which are determined by their agreements with the state.
However, upon closer examination of the figures presented in the annual report released on Wednesday by the Michigan Gaming Control Board, contrasting narratives emerge on either side of the Mackinac Bridge.
Mixed Bag Of Numbers For Local Governments
In lieu of paying local taxes to governments impacted by hosting tribal casinos, the 12 tribes that operate 23 tribal casinos across the state generously contribute 2% of their gross revenue from electronic gaming.
Local governments saw an increase of $557,166 in revenue sharing from the seven Lower Peninsula tribes, who run 12 casinos. Conversely, the five Upper Peninsula tribes, operating 11 casinos, experienced a decrease of $243,123 in revenue sharing to local governments, representing a 6.2% decline.
The Sault Ste. Marie Tribe of Chippewa Indians, responsible for managing five Kewadin Casinos in the U.P., experienced the largest decline in revenue sharing. Their disbursements dropped by 14.3%, resulting in $230,378 less being distributed compared to the previous year’s report.
The Little River Band of Ottawa Indians, who manage Odawa Casinos in Petoskey and Mackinaw City in the Lower Peninsula, experienced a rise in revenue sharing. They witnessed a notable 11.1% increase, amounting to an additional $110,180 compared to the previous year.
Out of the tribes operating casinos in Michigan, six experienced an increase in their revenue sharing payments, while the remaining six observed a decline in these outputs compared to 2018.
Saginaw Chippewa Indian Tribe Tops Michigan Tribal Casinos List Again
Once again, the Saginaw Chippewa Indian Tribe, the operator of Soaring Eagle Casino & Resort in Mount Pleasant and Saganing Eagles Landing Casino & Hotel in Standish, was the highest local contributor, as their 2% payment amounted to $6.1 million.
After spending several years in lower ranks, the Saginaw Chippewa tribe secured the top spot on the list for the second consecutive year.
From 2013 until 2018, the Pokagon Band of Potawatomi Indians consistently held the top position in revenue. This tribe manages three Four Winds Casinos located in southwest Michigan, as well as one in South Bend, Indiana.
In 2018, the Pokagon tribe secured the third spot with their contributions amounting to $5.7 million. However, they were slightly behind the Nottawaseppi Huron Band of the Potawatomi, who operates FireKeepers Casino in Battle Creek, as they contributed $5.9 million.
Since 1994, local units of government have received over $527 million in revenue sharing from casino operations by Native American tribes.
Overall Growth For State, But One Payment Missing
Over the course of 25 years, payments exceeding $869 million have been made to the Michigan Strategic Fund and Michigan Economic Development Corporation.
In 2019, the total payment received from six tribes amounted to $54 million, showing a 2.4% growth compared to previous payments. However, the Little Traverse Bay Bands of Odawa Indians did not contribute to these payments, similar to their actions in 2018.
Playinmichigan reached out to the tribe regarding their decision to withhold payments, as they had previously paid $1.1 million as part of their 2% revenue share with local governments. However, the tribe did not respond to the request for comment.
In August, the tribe lost a four-year lawsuit against the state regarding reservation boundaries and autonomy issues after a federal judge’s ruling.
The October issue of Odawa Trails, the newspaper of the tribe, prominently declares that the tribe intends to file an appeal for the case.
The notice stated that in accordance with our constitution’s pledge, we will persist in carrying out this task with a positive and collaborative mindset, aiming to safeguard and conserve our lands, resources, and treaty rights. Additionally, it mentioned that the tribal council unanimously voted 9-0 to proceed with the appeal.
Sports Betting Could Help Negate COVID-19 Losses
The 2020 report will undergo significant changes within a year.
Due to the COVID-19 pandemic, all 23 casinos have voluntarily closed, and it is highly improbable that any bets will be placed in April.
In mid or late March, all 23 tribal casinos were temporarily shut down, leaving uncertainty regarding the resumption of gaming and the future state of the economy.
This year, a potential positive aspect could be the introduction of sports betting in numerous tribal casinos.
In March, sports betting was officially legalized in Michigan, commencing operations at Detroit’s three casinos. Additionally, tribal casinos are currently exploring the possibility of establishing their own physical sportsbooks.
Moreover, numerous entities have formed alliances with online gaming, mobile sportsbooks, and online poker operators to augment their own profits upon the launch of these games, expectedly in early 2021.
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