Editorial: Improve Gun Lake Tribe's compact

Monday, March 19, 2007  

"A newly inked agreement between Gov. Jennifer Granholm and the Gun Lake band of Pottawatomi Indians could yield a jackpot for Michigan.

But one unnecessary provision threatens to put the state out of the game. Lawmakers need to change that part of the agreement -- which would cut off revenue from a proposed Gun Lake casino if other casinos open in surrounding counties -- before they approve it.

Such provisions, known as "exclusivity" agreements, have already cost the state hundreds of millions from other American Indian tribes. Michigan should have learned its lesson when it comes to these payment-killing clauses.

Indeed, exclusivity agreements have now cut off casino payments from all but one tribe. The opening of the three non-Indian Detroit casinos and new Michigan Lottery games triggered compact clauses assuring the Indians exclusive rights to operate casinos in the state. Based on optimistic assumptions about slot proceeds, Michigan has missed out on more than $300 million as a result.

There's no sense adding Gun Lake to our losses. Lawmakers, who will have final say on a compact, should protect the state's interests, and Grand Rapids', by insisting that the Gun Lake compact exclude "exclusivity.""

Get the Story:
Editorial: A better casino deal (The Grand Rapids Press 3/18)