Mich. Senate Republicans Appear to Concede Gun Lake Compact Fight

From the GR Press:

LANSING — Legislative opponents of a Wayland Township casino may be ready to fold their cards after last week’s federal appeals court ruling in favor of the Gun Lake tribe.

Republicans who control the state Senate will meet this week to discuss whether to continue their block on a gaming compact between the state and the tribe.

“At some point, you need to take a look at what the reality is,” said Matt Marsden, a spokesman for Senate Majority Leader Mike Bishop.

“We can oppose it and wax on about the ills of gaming,” Marsden said Monday. “But the fact of the matter is, it’s not a gaming issue at this point, it’s a regulatory matter.”

The future of the Wayland Township casino seemed assured last week after a U.S. Court of Appeals ruling that upheld the U.S. Department of Interior’s right to take land into trust for the tribe. The land is to become the home for a large casino employing up to 1,800 workers.

Although opponents have vowed further appeals, the ruling shifted the debate to Lansing and a gaming compact negotiated by Gov. Jennifer Granholm and approved by the Democratic-led House last summer.

Bishop believes it’s time for Senate Republicans to revisit the compact in light of the court ruling, Marsden said. “He’s leaving it up to the caucus,” he said.

The gaming compact will regulate how the casino will operate and how much of its income will be shared with state and local governments.

The compact is important to the tribe because it will allow it to operate a “Class III” Las Vegas-style casino, which require a compact and allow card games and slot machines. Without a compact, federal regulations limit the tribe to a less-lucrative “Class II” casino, which would feature slot machine-like games.

The state benefits because the compact calls for the tribe to pay 8 percent of the take from electronic games such as slot machines to the state for its first $150 million in gross revenue.

The share scales up to 10 percent if the gross exceeds $150 million, and to 12 percent if the gross is more than $300 million.

The tribe also agreed to pay up to 2 percent to local governments for law enforcement and other costs associated with the casino.

In exchange, the tribe receives the exclusive right to operate its casino within a nine-county region surrounding it.

“This is the best compact that’s ever been negotiated. The terms cannot get any better for the state,” said tribal spokesman James Nye.

Although Bishop has kept the compact off the Senate floor in deference to its West Michigan contingent, Nye said he believes there are enough votes to approve the compact in the Senate.

State Sen. Mark Jansen, R-Gaines Township, said Monday he won’t give up the fight. “We’ll continue to encourage Mike Bishop to hold off as long as we possibly can,” he said.

“I think this is just a bad economic decision for the area and region,” he said.

State Sen. Bill Hardiman, R-Kentwood, said he wants to keep the compact vote off the Senate floor and gambling out of West Michigan.