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The Nottawaseppi tribe paid $9.7 million for 2010, the most recent data available. The Gun Lake Tribe’s Gun Lake Casino paid $8.3 million from February to September 2011.
James Nye, an advocate for the tribes, said the arrangements were reached with the understanding no new casinos would open in an area that already has one.
The state can’t levy taxes on tribal governments, he said, the same way governments can’t tax other government entities. The revenue-sharing agreement was reached as a compromise, with the market exclusivity clause offered to the tribes as something of value in return.
Gov. Rick Snyder does not support expanded off-reservation tribal gaming.
“The Governor is not interested in protracted court and legal battles and costs,” spokeswoman Sara Wurfel said in an email.
The revenue sharing is used to fund development projects both in the Lansing region and across the state, Wurfel said.
Could be big loss
Since Michigan is recovering from a dire economic situation, she said, the loss of those dollars “could be significant.”
Snyder has focused more on creating jobs through an overhaul of the state’s business climate, she said, including making tax changes and convincing companies that Michigan is a good place to do business. Casinos, particularly those off of Indian reservations, have not been part of that plan, Wurfel said.
Nye stopped short of saying the tribes would stop making state payments, adding that it will depend on what happens with the Lansing proposal. Legal challenges are likely as the city and Sault tribe navigate complex Indian law to seek federal approval to hold land in trust.
“It raises the bar that much higher for them to make the case that this is a positive proposal for the state of Michigan,” Nye said.
“Are they willing to offset the $22 million the state would lose if the exclusivity provision of each compact is violated?”
Wernet, who said he helped negotiate the compacts that contain those provisions while working as an attorney for the state, said the tribe wants the boost in revenue to provide for its 40,000 members.
Casino proceeds would add to those generated in its five casinos in the Upper Peninsula. The tribe offers its members education, health and elder care, recreation, cultural and community services.
