Impact of Michigan’s Smoking Ban on Indian Casinos

From the AP:

DETROIT (AP) — If smoking is banned in Detroit bars, restaurants and workplaces, Betty Gilbert says it will hurt the city’s casinos.

Gilbert, who was smoking a cigarette Friday with members of her bowling team on a sidewalk near Greektown Casino downtown, should know. The 69-year-old from Cape May County, N.J. — who said she usually gambles weekly in Atlantic City — plans to cut back when that city’s smoking law goes into effect.

“If they cut out the smoking, they should also cut out the drinking,” Gilbert said.

A ban passed by the Michigan Senate on Thursday now heads to the House, which passed a narrower bill five months ago. If the new bill becomes law, smokers could pass up the trip downtown to gamble and head instead to Indian casinos, which aren’t affected, industry observers said.

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ICT Editorial on Fee to Trust Statute

From ICT:

The federal government’s recent actions involving its authority to make decisions on acquiring land in trust for tribal gaming purposes may inadvertently threaten the authority and duty of the secretary of the Interior Department to take land into trust for Indian tribes.

On April 29, the D.C. Circuit decided an innocuous case involving the secretary of Interior’s decision to take land into trust for the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians (also known as the Gun Lake Band). It was the third such opinion in recent years involving Michigan Potawatomi Indian tribes, each brought by well-funded citizens groups opposing Indian gaming. The suits were mere harassment suits, intended to delay rather than prevent the opening of the Potawatomi gaming operations. Each of the suits brought similar claims.

Of import, one claim was that Section 5 of the Indian Reorganization Act, the statute that authorizes the secretary to take land into trust for Indian tribes, was an unconstitutional delegation of congressional authority. The first two D.C. Circuit panel decisions (2006 and 2007), involving the Pokagon Band of Potawatomi Indians and the Nottawaseppi Huron Band of Potawatomi Indians, rejected the constitutional challenge to Section 5 without much discussion or dissent. In fact, since 1995, at least three other federal appellate circuits have rejected the same kind of challenge to the statute, so this is unsurprising.

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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.”

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News Coverage of MichGo v. Kempthorne Case: Cert Petition Planned

I spoke to the author of this news article yesterday. He quotes me as making yet another prediction on whether the Court will grant cert as being “zero,” but what I thought I said was that MichGo’s chances of getting a stay is close to zero. I did say that I think a plausible Section 5 challenge will have to come from a different fact pattern, such as an off-reservation fee to trust decision, assuming there will ever be any again. Or a decision involving a wealthy gaming tribe like Oneida or Mashantucket Pequot.

Of note, the reporter told me that the MichGo attorney thought that the Carcieri case was a good sign for MichGo, in part because so many states signed on to an amicus brief supporting the cert petition. He thinks those states will support MichGo’s petition, too. But I wonder. States like Michigan and California are actually banking on the revenues from new Indian gaming operations in order to help balance their budgets. I don’t think these states would sign on, or else they’d be hurting themselves.

From Indianz:

An Indian law professor says there’s “zero” chance the U.S. Supreme Court will hear a land-into-trust case involving the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians of Michigan. Matthew L.M. Fletcher, an assistant professor of law and director of the Indigenous Law & Policy Center at Michigan State University, said the court, at some point, will hear a challenge to the Indian Reorganization Act. The 1934 law authorized the land-into-trust process and opponents say it is unconstitutional. The D.C. Circuit Court of Appeals disagreed and ruled that the Bureau of Indian Affairs can acquire 147 acres for the tribe. A casino and other development are planned at the site. One judge, however, agreed that Section 5 of the IRA is unconstitutional. A group called Michigan Gambling Opposition hopes to convince the Supreme Court that the law is too broad. But Fletcher says the case is bogged down by other details to make it appeal-worthy. “I don’t think there’s any chance,” he told The Grand Rapids Press. “I really think the odds are close to zero that the Supreme Court would hear it.”

Get the Story:
Foes of Gun Lake Casino cling to slim legal hope (The Grand Rapids Press 5/2)
Gun Lake casino opponents down to last try (The Muskegon Chronicle 5/2)

D.C. Circuit Affirms Match-E-Be-Nash-She-Wish (Gun Lake) Band’s Trust Land Decision

The D.C. Circuit Court of Appeals held the Department of the Interior’s decision to place land into trust for the benefit of the Match-E-Be-Nash-She-Wish Band of Pottawatomi Indians near Bradley, Michigan did not violate the National Environmental Protection Act nor did Section 5 of the Indian Reorganization Act constitute an unconstitutional delegation of legislative authority.

michgo-v-kempthorne

gun-lake-band-brief

Other briefs are here.

Gun Lake Band Compact as Model for Future Michigan Compacts

From Mlive:

The Gun Lake Tribe’s compact may be a model for agreements to be renegotiated in the next four to five years, according to James Hill, professor at Central Michigan University.

The compact is different from earlier agreements in three major ways. The tribe agreed to share revenue on an increasing scale, beginning with eight percent and rising to 12 percent of slot machine revenues, calculated on gross revenues. As the tribe makes more, it pays the state a higher percentage.

That might be the wave of the future, Hill said.

Another difference is the size of the exclusivity zone. instead of the whole state, the Gun Lake Tribe agreed to nine counties surrounding its Wayland casino.

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Interviews with Michigan Tribal Chairs @ United Tribes of Michigan Meeting

Here are videos of interviews with Fred Cantu (Saginaw Chippewa), DK Sprague (Gun Lake Band), Frank Ettawageshik (LTBB), Matt Wesaw (Vice-Chair, Pokagon), and Aaron Payment (Sault Tribe).

Link to videos on the Saginaw Chippewa website.

Pokagon Revenue Sharing Dispute Under Negotiation

From the Michigan City News-Dispatch:

ST. JOSEPH, Mich. – Negotiations between the state and the Pokagon Band of Potawatomi Indians to resolve problems blocking the distribution of casino revenue to local governments should wrap up in 60 to 90 days, a tribal official said.

The tribe, saying it was concerned over actions taken in forming the Local Revenue Sharing Board and its bylaws, withheld in escrow the first payment from electronic gambling earnings at the Four Winds Casino in New Buffalo Township. The payment was due in December.

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Michigan Potawatomi Gaming News

From the Western Michigan Business Review (H/T Indianz):

Casinos to finance diversified economies

Thursday, December 06, 2007By Lynn Stevens

lynns@mbusinessreview.com

Both the Nottawaseppi Huron Band and the Gun Lake Tribe see the opening and continued success of the Pokagon Band of Potawatomi Indians’s Four Winds Casino as inspiration. They are sure that it’s only a matter of time until they, too, can open financial engines.

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Gun Lake Casino Oral Argument Report

From the Kalamazoo Gazette: “Both sides said they were optimistic after arguments were presented Friday before the U.S. Court of Appeals over the future of a proposed Indian casino in Wayland Township.James Nye, a spokesman for the Gun Lake Tribe of Potawatomi Indians, said the group is prepared to begin casino construction before year’s end if the three-judge panel ejects a challenge by Michigan Gambling Opposition, or MichGO.”