23 is Enough; Stopping Casino Expansion in Michigan
GRAND RAPIDS, Mich., March 21 /PRNewswire/ — Rusty Merchant, spokesman for 23 is Enough, a statewide organization fighting casino expansion, and state Senator Mark Jansen, Chair of the Senate Appropriations Subcommittee on Economic Development both made statements today in regards to Governor Granholm’s announcement of a settlement between the state and two Native American Tribes over casino payments to the state.
In a surprise move today, Governor Granholm announced that a settlement had been reached between the Little River Band of Ottawa Indians and the Little Traverse Bay Bands of Odawa Indians in a long-standing lawsuit over payments the two tribes had withheld from the state since Club Keno was expanded in 2004. The tribes had argued the expansion of Club Keno by the Lottery had violated the compact between the state and the tribes. In anticipation of the lawsuit, the tribes suspended the 8 percent payments they had been making to the state and put the money into escrow. The account at date of the settlement was $52 million.
The State prevailed in the first round in the courts and the tribes had appealed the ruling of the lower court. This settlement was reached before the appeal was heard by the courts. It reinstates the payments to the state at a lower rate than the original compact, 6 percent instead of 8 percent, and it only allows for the state to collect half of the money in escrow, reducing the state’s share of its expected revenue by $26 million.
Senator Jansen’s statement:
“On behalf of the citizens of Michigan I have been asking for details of this lawsuit for over a year. The details of today’s press release only add more questions.”
Rusty Merchant’s statement:
“The State won the lawsuit and was in a strong position to negotiate a settlement that would have brought all the money in escrow to the state. Instead, the Governor’s office snatched defeat from the jaws of victory and settled for reduced payment on an ongoing basis and splitting the escrow money with the tribe. While they may claim $26 million is more than the state had before, the Governor left $26 million dollars on the table after she had won the first round of the lawsuit. This makes no sense!
The Governor recently negotiated a compact with another tribe for a new casino and bragged at how much better it was than previous compacts and then, less than six months later, negotiates with other tribes for less money when she was in a position to leverage a better deal. This scattered Native American gaming policy by the administration is confusing at best. We believe the Legislature should take a closer look at what exactly happened in these negotiations and why after winning lawsuits, the administration surrenders its negotiating power. The Legislature should also halt any approval of new compacts until a comprehensive policy is developed.
We also know that this sets a dangerous new precedent as the tribe that controls the recently opened New Buffalo casino has suspended its payment to the state for various reasons. The actions of the administration prove that this is an excellent strategy by casino proponents to reduce their negotiated payments with the state of Michigan. Sue the state and they will give in.”
23 is Enough
CONTACT: Rusty Merchant of 23 is Enough, +1-616-633-5526