LAWSUITS NEWS & LEGAL INFORMATION
Gambling Revenue
Traverse, MI: (Mar-21-08) The Little Traverse Bay Bands of Odawa Indians in Petoskey and the Little River Band of Ottawa Indians in Manistee, brought charges against the state of Michigan, alleging that it violated its 1998 compacts with the two tribes when the Michigan Lottery Bureau launched Club Keno in October 2003. The tribes claimed that it was a commercial casino game that violated a provision in their compacts that only permitted Indian tribes and non-Indian casinos in Detroit to operate such games. As a result of the violation, records show that the tribes withheld payment of the 8% of their electronic gambling revenue stipulated in the compacts. That move prompted the state to file suit in federal court in 2005. The state alleged that Club Keno was an extension of the lottery's Keno game that existed when the gaming compacts were established.
The three-year-old lawsuit reached a resolution recently, which will result in a reduction in Michigan's cut of tribal gambling money. Under the terms of the settlement agreement, electronic gambling revenues paid to the state will be slashed from to 8% to 6%. The deal will also make other changes to 10-year-old state gambling compacts with the two tribes. Additionally, the deal splits approximately $52 million in electronic gambling revenue from the tribes that had been held in escrow since the dispute began almost five years ago. That included more than $33 million paid in by the Little River Band and over $19 million from the Little Traverse Bay Bands. The state stands to receive around $26 million, to be used for economic development efforts through the Michigan Strategic Fund. [TRAVERSE CITY RECORD-EAGLE: STATE, TRIBES SETTLE DISPUTE OVER KENO]
Published on Mar-24-08
The three-year-old lawsuit reached a resolution recently, which will result in a reduction in Michigan's cut of tribal gambling money. Under the terms of the settlement agreement, electronic gambling revenues paid to the state will be slashed from to 8% to 6%. The deal will also make other changes to 10-year-old state gambling compacts with the two tribes. Additionally, the deal splits approximately $52 million in electronic gambling revenue from the tribes that had been held in escrow since the dispute began almost five years ago. That included more than $33 million paid in by the Little River Band and over $19 million from the Little Traverse Bay Bands. The state stands to receive around $26 million, to be used for economic development efforts through the Michigan Strategic Fund. [
Legal Help
If you have a similar problem and would like to be contacted by a lawyer at no cost or obligation, please click the link below.Published on Mar-24-08
