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Fond du Lac Band prevails yet again in long-running casino feud

Wednesday, July 29, 2015


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The Fond du Lac Band of Lake Superior Chippewa Indians does not owe any more gaming revenues to the city of Duluth, Minnesota, a federal judge ruled on Tuesday.

The tribe shared $75 million from the Fond-du-Luth Casino with the city up until 2009. The National Indian Gaming Commission struck down the arrangement in 2011 after determining that it violated the Indian Gaming Regulatory Act.

The city wasn't happy with the tribe's decision to stop making payments. and went to court to seek additional money for the years 2009 through 2011. Judge Susan Richard Nelson initially agreed that the funds were owed.

The 8th Circuit Court of Appeals reversed. A unanimous decision from May concluded that IGRA requires tribes to be the "primary beneficiaries" of their casinos and Nelson has embraced that finding.


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Nelson wrote that "directing millions of dollars away from the band is directly contrary to the IGRA’s goals of promoting tribal economic development, tribal self-sufficiency, and strong tribal government."

About $13 million, a figure that included interest, was in dispute before Nelson made her ruling. The fight, however, is not over.

The city is still suing the NIGC for ending the revenue-sharing agreement. A judge in Washington, D.C., sided with the agency but the city has taken the case to the D.C. Circuit Court of Appeals.

Turtle Talk has posted the decision from the Minnesota federal court case, City of Duluth v. Fond du Lac Band of Lake Superior Chippewa.

Get the Story:
Band prevails in Fond-du-Luth revenue dispute (The Duluth News Tribune 7/29)
District Judge: Fond du Lac Band doesn't have to pay withheld casino rent (NNCNOW.Now 7/28)

D.C. Federal Court Decision:
Duluth v. National Indian Gaming Commission (March 31, 2015)

8th Circuit Decision:
Duluth v. Fond Du Lac Band of Lake Superior Chippewa (May 8, 2015)

Prior 8th Circuit Decision:
City of Duluth v. Fond Du Lac Band (January 14, 2013) Related Stories:
City tries to lower litigation costs in Fond du Lac Band casino case (06/05)
City submits appeal in gaming dispute with Fond du Lac Band (6/2)
Mayoral candidate embraces Fond du Lac Band urban casino (05/19)
Fond du Lac Band prevails again in long-running casino case (05/08)
Fond du Lac Band spars with city over services for urban casino (04/15)
Fond du Lac Band faces more court battles with city over casino (04/02)
City loses yet another ruling in Fond du Lac Band casino dispute (4/1)
Fond du Lac Band plans to spend $5.5M on casino renovations (3/23)
Fond du Lac Band to spend $3M on more modern look at casino (02/23)
Fond du Lac Band wins ruling affecting land adjacent to casino (12/24)
8th Circuit hears arguments in Fond du Lac Band casino suit (11/13)