October 20, 2008
LANSING - Governor Jennifer M. Granholm and the Pokagon Band of Potawatomi Indians today announced the signing of an amended gaming compact.
The amended compact resolves issues between the State of Michigan and the tribe, with the tribe agreeing to remove a provision contained in the original compact that required the tribe to make revenue sharing payments only while the tribe enjoyed exclusive rights to operate electronic games of chance. The issue arose because the tribe claimed the state's Club Keno game eliminated the tribe's gaming exclusivity. A similar dispute between the Little River Band of Ottawa Indians and the Little Traverse Bay Bands of Odawa Indians was resolved earlier this year.
The amendment will provide the state with a permanent stream of revenue for the duration of the compact, which expires in 2028. In exchange, the tribe's state revenue sharing payments to the state for its existing casino in New Buffalo have been reduced from 8 percent to 6 percent. Additionally, the tribe now has the right to develop two limited casinos in Van Buren and Cass Counties in areas where the tribe has trust lands that are eligible for gaming.
"These changes to the compact are a victory for the state, the tribe and the communities of Southwest Michigan," said Governor Granholm. "The agreement provides a steady stream of revenue to further Michigan's economic development efforts. It also provides economic development opportunities for the tribe and local communities, while establishing a more stable and cooperative relationship between the state and the tribe."
The compact amendment restructures the Local Revenue Sharing Board (LRSB) in Berrien County, expanding it from three to five members. The new LRSB will include representation from Berrien County, the City of New Buffalo, New Buffalo Township, the Pokagon Band and one representative selected by other local units of government affected by the compact.
"This agreement will provide a secure future for the tribe for generations to come," said John Miller, Chairman of the Pokagon Band of Potawatomi Indians. "The amended compact provides an excellent platform to create new opportunities, new jobs and new revenue for our state, communities, and the tribe."
The compact amendment was approved by Governor Granholm and the tribe on August 14, and received approval under federal law on September 27 by the Bureau of Indian Affairs. The Department of Interior has advised that its formal notice of approval of the amended compact will be published in the Federal Registry within days. By its terms, the amendment will take effect at the time of publication. The amendment does not require approval by the state legislature.
Other changes made by this amendment to the original 1998 compact include:
- the term of the compact is extended to 2028 from 2018 to ensure the tribe with a full 20 years of casino operations that was anticipated in the original compact;
- the satellite casinos are limited to 1,000 slot machines each, and will make revenue sharing payments of 8 percent to the state and 2 percent to local governments;
- the tribe will make payments to the state and local revenue sharing boards annually, instead of semi-annually;
- the tribe will pay additional fees to the Michigan Gaming Control Board to cover oversight costs.
As a result of this amendment, an initial annual payment of more than $15 million will be paid immediately to the state. As soon as the new LRSB is established, the tribe will also release its first annual local revenue sharing payment of more than $5 million.
Highlights and a complete copy of compact amendments can be accessed at www.pokagon.comor at www.mrgmi.com
# # #
