Public Relations
Michigan tribes accused not paying 'fair share'


The Detroit Free Press is running a "special report" on Indian gaming that accuses Michigan tribes of not paying their "fair share" to the state and of operating their casinos without enough oversight.

Under the tribal-state compact, tribes agreed to share 2 percent of slot machine profits with local communities and another 8 percent to the state. The state received $216 million from tribes until 1998.

That was the year the state opened gaming to other tribes. Under the compact, the tribes were no longer obliged to share 8 percent with the state. As a result, the paper says the state has "lost out" on more than $300 million.

In 2004, the state authorized a new lottery game that some tribes said was a violation of the compact. A lawsuit is pending.

With regard to regulation, the paper says the Michigan Gaming Control Board receives $27 million to regulate the casinos in Detroit but only $275,000 to oversee 17 tribal casinos. State officials say they are doing more to regulate Indian gaming and are conducting more audits of tribal casinos.

In one case, the state's audit said the Hannahville Indian Community wasn't paying enough to the local community. The state filed a lawsuit and won but the tribe has appealed.

In another case, the state's audit said the Keweenaw Bay Indian Community was using its local community money to pay off property tax bills for tribal members. The tribe has since won a court case stating the taxes were illegal.

Get the Story:
SPECIAL REPORT | TRIBAL GAMING: State is losing a casino jackpot (The Detroit Free Press 5/7)
SPECIAL REPORT | TRIBAL GAMING: Casinos' neighbors: Give us our fair share (The Detroit Free Press 5/8)
Underling says state resists call for action (The Detroit Free Press 5/8)
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