Litigation | NIGC

Fond du Lac Band ordered to pay $10.3M in casino lease fees

Wednesday, October 9, 2013

A federal judge ordered the Fond du Lac Band of Lake Superior Chippewa Indians to pay an estimated $10.3 million in casino lease fees to the city of Duluth, Minnesota.

The tribe shared 19 percent of gross revenues from the Fond-du-Luth Casino with the city for 25 years. The tribe stopped payments in 2009 and the National Indian Gaming Commission issued a notice of violation to the tribe in 2011, saying that the revenue-sharing arrangement violated the Indian Gaming Regulatory Act.

The city sued the tribe for stopping the payments but the 8th Circuit Court of Appeals ruled that the agreement was illegal. On remand, however, Judge Susan Nelson in Minnesota said the tribe still owed money from 2009 through 2011.

Since 1994, the tribe has paid about $75 million to the city. The tribe won't be required to make future payments under the 8th Circuit's decision.

However, the city is also suing the NIGC over the agreement. That case is pending in the federal court in Washington, D.C., which falls under the D.C Circuit.

Turtle Talk has posted documents from the Minnesota case, Duluth v. Fond du Lac Band.

Get the Story:
Judge: Fond du Lac Band must pay Duluth $10.3M (The Duluth News Tribune 10/9)
Court orders Fond du Lac band to pay Duluth $10.4M in unpaid rent (Norhtland's News Center 10/8)
Fed. Judge Rules Fond du Lac Must Pay City of Duluth (WDIO 10/8)
District Court Ruling Favors City In Continuing Casino Case (KDAL 10/8)