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Michigan sues tribes in Club Keno dispute
The state of Michigan is seeking millions of dollars in a lawsuit it has filed in federal court against the Little River Band of Ottawa Indians and the Little Traverse Bay Bands of Odawa Indians, according to Crain's Detroit Business. The suit, filed by Attorney General Mike Cox and the Michigan Economic Development Corp. (MEDC), asserts that the tribes violated compacts by withholding casino revenue due the state.
At least $9.5 million has gone into escrow accounts maintained by the tribes instead of to state coffers, the state alleges. The suit was filed in late June in U.S. District Court for the western district of Michigan.
The Bureau of State Lottery's keno game lies at the center of the dispute. The tribes believe the Club Keno game, played in bars and restaurants statewide, violates the tribes' gambling exclusivity under 1998 compacts and thus ends the requirement they share casino revenue with the state.
Michigan's tribal-state gaming compacts require tribes to contribute 8 percent of revenue to the state as long as no other entity operates electronic games of chance or commercial casino games, other than Detroit's three licensed casinos and tribes operating casinos under federal Indian Gaming Regulatory Act authority.
The tribes believe the lottery game, which was launched on Oct. 27, 2003, constitutes a commercial casino game. But the state said Club Keno was neither an electronic game of chance as defined under the compacts nor a commercial casino game.
In a statement, the tribes said they believe their interpretation of the revenue-sharing provisions in the compacts is "legally and factually correct."
The state wants the court to find the tribes in violation of the compacts and to award it all payments due, plus interest.
"We believe that we are correct, that the Club Keno and similar types of games do not trigger a provision that would jeopardize revenue coming to the state. But we also acknowledge the tribal leadership and their position. Certainly they have a responsibility to be accountable to their members," Liz Boyd, Michigan Gov. Jennifer Granholm's press secretary, told the magazine.
-Matt Connor
Michigan sues tribes in Club Keno dispute
The state of Michigan is seeking millions of dollars in a lawsuit it has filed in federal court against the Little River Band of Ottawa Indians and the Little Traverse Bay Bands of Odawa Indians, according to Crain's Detroit Business. The suit, filed by Attorney General Mike Cox and the Michigan Economic Development Corp. (MEDC), asserts that the tribes violated compacts by withholding casino revenue due the state.
At least $9.5 million has gone into escrow accounts maintained by the tribes instead of to state coffers, the state alleges. The suit was filed in late June in U.S. District Court for the western district of Michigan.
The Bureau of State Lottery's keno game lies at the center of the dispute. The tribes believe the Club Keno game, played in bars and restaurants statewide, violates the tribes' gambling exclusivity under 1998 compacts and thus ends the requirement they share casino revenue with the state.
Michigan's tribal-state gaming compacts require tribes to contribute 8 percent of revenue to the state as long as no other entity operates electronic games of chance or commercial casino games, other than Detroit's three licensed casinos and tribes operating casinos under federal Indian Gaming Regulatory Act authority.
The tribes believe the lottery game, which was launched on Oct. 27, 2003, constitutes a commercial casino game. But the state said Club Keno was neither an electronic game of chance as defined under the compacts nor a commercial casino game.
In a statement, the tribes said they believe their interpretation of the revenue-sharing provisions in the compacts is "legally and factually correct."
The state wants the court to find the tribes in violation of the compacts and to award it all payments due, plus interest.
"We believe that we are correct, that the Club Keno and similar types of games do not trigger a provision that would jeopardize revenue coming to the state. But we also acknowledge the tribal leadership and their position. Certainly they have a responsibility to be accountable to their members," Liz Boyd, Michigan Gov. Jennifer Granholm's press secretary, told the magazine.
-Matt Connor
