On March 13, 2007, the 2 Indian tribes that filed a case against the state due to the casino revenue sharing issue will not have to reveal financial details on whether the state-sponsored Club Keno Lottery has affected their gambling profits.
Hugh Brenneman Jr., a federal magistrate, has ruled that information regarding whether the Club Keno Lottery has affected the tribal gaming profits is not needed for the state's "exclusivity" agreement. The federal magistrate's decision is a let down for state officials who are fighting in the courts to enforce the profit sharing gaming compacts that they had with the Little River Band of Ottawa Indians located in Manistee and the Little Traverse Bay Bands of Odawa Indians in Harbor Springs.
Both tribes halted their yearly payments after the state launched their Club Keno game back in 2003, saying that the Club Keno game, which is held in licensed pubs in Michigan, is greatly affecting their ability to conduct their own gaming. The judge commented that the main problem lies in the issue of whether Keno is categorized as a game or not and whether or not it has a devastating effect on the financial games of the tribes.
According to the ruling of Grand Rapids Federal Magistrate Hugh Brenneman Jr. on March 8, 2007, the glaring question of whether Club Keno has a financial effect on tribal gaming is not beneficial for any of the sides. The state's gaming compact requires them to pay about 8% of their gaming profits to the state. The total amount of unpaid dues by the tribe is already $40 million since they stopped paying the Michigan Economic Development Corporation.
The tribes have set aside the money in an escrow account until the whole case is resolved. Michigan tried to see the financial records after they learned that the tribes in the state had commissioned a study on the effect of Club Keno in the tribe's games.
Michigan lawyers have also learned through the court records that the Little Traverse Bay Band, which is planning to expand their casino in Petoskey this coming summer, has also made their intention of opening a casino in Mackinaw City known to the state and has already commissioned a study to review the impact of Club Keno in their future gaming operations.
Wednesday, March 28 , 2007
John M. Thorpe
