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Michigan’s Native American tribes have benefited economically from autonomous casinos for a considerable period of time.
What occurs when the casinos shut down?
For weeks in Michigan, we have been facing unimaginable realities that have caused deep anguish and widespread ramifications.
Michigan’s 12 federally recognized tribes have been particularly affected by the economic consequences. The closure of all their casinos has had a significant impact, and experts predict that the COVID-19 pandemic will continue to shape daily life for the foreseeable future.
Bridge Magazine, a non-profit news organization in Michigan, has recently published a report highlighting the current challenges faced by tribes.
Michigan Tribal casinos closed
By March 22, the pandemic had forced the closure of all 23 tribal casinos in the state, resulting in April passing without any legal bets being placed in a Michigan casino.
Michiganders will remain mostly at home until May 15, as per the current executive order issued by Gov. Gretchen Whitmer. Consequently, the reopening of Detroit casinos will not occur before this date.
Despite the fact that tribal casinos are not obligated to follow the order, a few of them have chosen to implement comparable reopening schedules during this challenging period.
Tribal budgets, services hit hard
While the tribes are under no obligation to reveal their internal budgetary specifics, there is a deep sense of anguish present.
Tribal governments receive financial support from casinos, which has a significant influence on various public sectors including health departments, education, police force, natural resources management, and social services.
Bridge’s report highlighted several revenue disclosures.
- According to Chris Swartz, the president of the Keweenaw Bay Indian Community, the Ojibwa Casino in Baraga is responsible for providing up to 60% of the tribe’s budget.
- According to Frank Cloutier, the representative for the Saginaw Chippewa Indian Tribe, gaming revenue makes up 75% of the tribe’s budget.
- According to Frank Ettawageshik, the executive director of the United Tribes of Michigan, approximately 50% of the funding for tribal governments is derived from gaming revenue.
Non-tribal entities hurting from closures too
In 2019, Michigan tribal casinos made significant contributions to local governments and the state through revenue sharing, as stated in the annual report by the state’s gaming board. These casinos allocated over $30 million to local governments and more than $54 million to the state.
Bridge reports that Bay Mills Township’s budget was almost half-funded by revenue sharing payments received from the Bay Mills Indian Community.
Several ancillary businesses heavily rely on the casinos, which not only serve as significant employers for remote rural Michigan communities but are also among the largest in terms of direct employment.
Stimulus funding hard to come by
The federal government provides avenues for tribes to obtain relief.
The distribution and implementation of the CARES stimulus package, which allocated $8 billion for tribes, has been delayed due to a dispute regarding the inclusion of Alaska Native Corporations.
In addition to the Paycheck Protection Program for small businesses, the package included a provision by the Small Business Administration that specifically excluded casino operators from receiving funding.
Last week, the National Indian Gaming Association announced that the SBA had ruled in favor of casinos, deeming them eligible for the forgivable loans.
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