Commentary: Now Is the Time for Michigan Tribes to Renew Their Gaming Compacts

The success — shocking and aweing (surely to the MichGO plaintiffs — :)) — of the Gun Lake Band in getting their Class III gaming compact through the Michigan Senate (controlled by Republicans) and House (controlled by Dems, and a few years back had previously approved the compact) should be a serious sign to the rest of the Michigan tribes — NOW is the time to renew or renegotiate gaming compacts.

Here are the facts:

  1. Michigan, and the rest of the US, is in a serious, serious economic downturn.
  2. The State of Michigan, losing tax revenue each and every day, and suffering through year after year of declining governmental revenues.
  3. Michigan tribes, also, are suffering through declining revenue. It turns out that gaming may be recession-proof, but it surely isn’t depression-proof. Now is the time to prove to the State’s negotiators that tribes will be hurt — perhaps even killed — by increased revenue sharing.
  4. Gov. Granholm isn’t going to be the State’s governor forever. The next governor may be someone far less likely to (a) negotiate an Indian gaming compact with reasonable terms, or (b) negotiate a gaming compact at all.
  5. Tribes like Burt Lake will be knocking at the State’s door offering something more than 10 percent, all the way up to the Detroit casino’s 36 percent (did I get that percentage right?).

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Michigan Economic Development Corporation & Indian Gaming Revenue Sharing

From Crain’s Detroit Business:

Fight over casino funds limits kitty for MEDC

LANSING — A southwest Michigan American Indian tribe is withholding casino revenue destined for state economic-development operations, posing the latest twist in funding uncertainty for the Michigan Economic Development Corp.

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