The Sault Ste. Marie Tribe of Chippewa Indians spent $36 million on a new casino only to find out that portions of it don't qualify for gaming, according to federal regulators.

Parts of the Kewadin Shores Casino and Hotel were built on land taken into trust after 1988. That means they aren't eligible for gaming under the Indian Gaming Regulatory Act unless the tribe seeks an exception.

But that didn't happen because tribal leaders believed the site was legal. "It wasn't until after we had the pilings and foundation in place that we realized that something wasn't right," Chairman Aaron Payment told The Detroit News.

Of the the entire casino site, only a 32-foot corner is considered "Indian land" under IGRA. NIGC isn't budging so the tribe is considering going to court.

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All bets are off at new U.P. casino (The Detroit News 9/20)