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Michigan’s Native American tribes have benefited economically from autonomous casinos for a significant period of time.
What occurs when the casinos shut down?
Michigan has been grappling with unimaginable realities for weeks, resulting in profound suffering and widespread repercussions.
Michigan’s 12 federally recognized tribes have undeniably experienced a significant economic impact. The closure of all their casinos has been particularly profound, and experts predict that the COVID-19 pandemic will continue to affect daily life for the foreseeable future.
Bridge Magazine, a non-profit news organization in Michigan, has published a report on Monday that sheds light on 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, and now, as April comes to an end, not a single legal bet has been placed in a Michigan casino.
Michiganders are expected to 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 take place until then, at the earliest.
Although some tribal casinos have chosen to follow similar reopening timelines, they are not obligated to adhere to the order.
Tribal budgets, services hit hard
While the tribes are not obligated to reveal internal budget specifics, there is a deep sense of anguish present.
Tribal governments receive financial support from casinos, which has a significant influence on public entities 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 contributes up to 60% of the tribe’s budget.
- According to Frank Cloutier, the spokesperson for the Saginaw Chippewa Indian Tribe, gaming revenue constitutes 75% of the tribe’s budget.
- Approximately 50% of the funds supporting tribal governments are generated by gaming revenue, as estimated by Frank Ettawageshik, the executive director of the United Tribes of Michigan.
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. The report reveals that these casinos provided over $30 million to local governments and a staggering $54 million to the state.
Bay Mills Township’s budget was nearly half funded by revenue sharing payments from Bay Mills Indian Community, as stated by Bridge.
Several ancillary businesses heavily rely on the casinos, making them not only the largest direct employers for remote rural Michigan communities, but also crucial contributors to the local economy.
Stimulus funding hard to come by
The federal government provides various channels for tribes to obtain relief.
Implementation and distribution of the $8 billion earmarked for tribes in the CARES stimulus package last month has been delayed due to a dispute regarding the inclusion of Alaska Native Corporations.
In addition, the package encompassed a Paycheck Protection Program aimed at assisting small businesses. Nevertheless, the Small Business Administration incorporated a funding provision that specifically excluded casino operators.
Last week, the National Indian Gaming Association announced that the SBA had sided with casinos, declaring their eligibility for forgivable loans.
