Lower Peninsula Up, U.P. Down In Michigan Tribal Casinos Annual Report

The revenue sharing from Michigan tribal casinos showed a slight increase in both 2018 and last year, with contributions exceeding $30 million to local governments and surpassing $54 million to the state.

Overall, the rise of $1.58 million equated to a 1.9% surge in their yearly payments, which are determined by their agreements with the state.

Nevertheless, upon closer examination of the data provided in the annual report released on Wednesday by the Michigan Gaming Control Board, contrasting narratives emerge on either side of the Mackinac Bridge.

Mixed Bag Of Numbers For Local Governments

In lieu of paying local taxes to governments affected by hosting tribal casinos, the 12 tribes that manage 23 tribal casinos throughout the state contribute 2% of their gross revenue from electronic gaming.

Local governments experienced a 2.1% increase in revenue sharing, amounting to $557,166, from the twelve casinos operated by the seven tribes located in the Lower Peninsula. Conversely, the eleven casinos operated by the five tribes in the Upper Peninsula resulted in a 6.2% decrease in revenue sharing, totaling $243,123 less for local governments.

The Sault Ste. Marie Tribe of Chippewa Indians, operating five Kewadin Casinos in the U.P., experienced the largest decrease in revenue sharing. Their disbursements saw a decline of 14.3%, with $230,378 less distributed compared to the 2018 report.

The Little River Band of Ottawa Indians, who run Odawa Casinos in Petoskey and Mackinaw City in the Lower Peninsula, experienced an 11.1% rise in revenue sharing, amounting to $110,180 more than the previous year.

Out of the tribes operating casinos in Michigan, six experienced an increase in their revenue sharing payments, while six observed a decline in such payments compared to 2018.

Saginaw Chippewa Indian Tribe Tops Michigan Tribal Casinos List Again

The Saginaw Chippewa Indian Tribe, the owner of Soaring Eagle Casino & Resort in Mount Pleasant and Saganing Eagles Landing Casino & Hotel in Standish, once again made the largest local contribution. Their payment of 2% amounted to a total of $6.1 million.

After holding lower positions for several years, the Saginaw Chippewa tribe has claimed the top spot for the second consecutive year.

Since 2013, the Pokagon Band of Potawatomi Indians had been the leading revenue generator until 2018. This tribe manages three Four Winds Casinos located in southwest Michigan, as well as one in South Bend, Indiana.

In 2018, the Pokagon tribe ranked third in terms of contributions, with a total of $5.7 million. However, they were surpassed by the Nottawaseppi Huron Band of the Potawatomi, who generated $5.9 million in contributions through their operation of FireKeepers Casino in Battle Creek.

Local units of government have received over $527 million in revenue sharing from casino operations by Native American tribes since 1994.

Overall Growth For State, But One Payment Missing

In the past 25 years, payments exceeding $869 million have been made to the Michigan Strategic Fund or Michigan Economic Development Corporation.

In 2019, the total amount of money received from the six tribes that made payments to the state increased by 2.4%, reaching $54 million. However, the Little Traverse Bay Bands of Odawa Indians decided to withhold their payments for the second consecutive year, similar to their actions in 2018.

Playinmichigan reached out to the tribe regarding the reason behind their decision to withhold payments, but they did not respond to the request for comment. The tribe had previously paid $1.1 million as part of their 2% revenue share agreement with local governments.

In August, after a four-year legal battle between the tribe and the state over reservation boundaries and autonomy matters, a federal judge made a ruling unfavorable to the tribe.

The October issue of the tribe’s newspaper, Odawa Trails, prominently announces that the tribe intends to appeal the case.

The notice stated that in accordance with our constitution, we will persist in carrying out this task with a positive and collaborative attitude to safeguard and uphold our lands, resources, and treaty rights. Additionally, it mentioned that the tribal council unanimously voted 9-0 in favor of filing an appeal.

Sports Betting Could Help Negate COVID-19 Losses

The 2020 report will undergo significant changes within a year’s time.

Due to the COVID-19 pandemic, all 23 casinos have voluntarily closed, resulting in the absence of any bets being placed in April.

With no clear indication of when gaming will resume or how the state’s economy will be affected, all 23 tribal casinos have been closed since mid or late March.

On the bright side, this year could bring the introduction of sports betting at numerous tribal casinos.

In March, the legalization of sports betting in Michigan kicked off at the three casinos located in Detroit. Additionally, tribal casinos are currently exploring the possibility of establishing their own retail sportsbooks.

Furthermore, numerous entities have collaborated with online gaming, mobile sportsbooks, and online poker operators in order to enhance their own profits once these games become accessible, presumably by early 2021.