Indiana Casinos May Get Tax Breaks to Compete with Michigan

A bill originally intended to give Michigan City's Blue Chip Casino a financial leg up in its fight against the nearby Four Winds Casino in New Buffalo, Mich., was expanded by the state House of Representatives Tuesday to include all Indiana casinos.


House Bill 1729 was designed by Rep. Scott Pelath, D-Michigan City, to allow Blue Chip to subtract costs due to promotional gambling coupons from its overall tax burden to the state.

FOr the complete story, please see John Byrneon, All casinos could be in line for tax breaks, Post-Tribune, February 24, 2009.

Will Smoking Ban Eventually Enter Tribal Games?

Following is an excerpt from an interesting article on the growing pressure in some areas to make tribal casinos smoke free.

Antismoking advocates are confident that casinos will be free of smoke one day. They're just not sure when.

In Connecticut, where Indian tribes own Foxwoods Resort Casino and Mohegan Sun, it's likely to take years.

That's because while there's considerable agreement that secondhand smoke is dangerous, the tribes regard any attempt by the state to regulate or outright ban smoking at the casinos as a threat to their sovereignty.

Although, some advocates say, that stance is a smokescreen in itself.

”We call it the 'shield of sovereignty.' It's really about the money. It's always about the money,” said Stephanie Steinberg, chairwoman of Smoke-Free Gaming, a group that pushed for smoke-free casinos in Colorado, where a ban on smoking at the more than 40 commercial casinos in the state took effect Jan. 1, 2008.

For the complete story, please see Brian Hallenbeck, Casino Smoking: It's About Money, TheDay.com, February 22, 2009.

Casino Industry Having to Adjust to Recession

This casino article was written at the beginning of the month and is an interesting take on the casino (and bingo) industry.

"If gambling is entertainment, where does it fall in the pecking order of consumer priorities? Is it before or after a new flat-screen TV? In tough times, where do cash-strapped managers — or, these days, CFOs — target their marketing? What if the decision comes down to a few dozen of the latest slots versus a refurbished buffet?

As casino executives wade through what looks to be a sustained and ravaging recession, most are faced with an environment they have never lived through. High-end Las Vegas Strip properties are nervously dealing with mounting vacancy rates and slashed room rates. Once-a-week customers at smaller, locals-based gaming halls are becoming once-a-month visitors. The rivers of cash flowing through tribal casinos across the United States have slowed to stream levels.

From card rooms to small slots houses to megaresorts, from California to Connecticut, the gaming industry, once thought to be “recession-proof,” is showing itself to be what it has long sought to be — on an even playing field with the rest of the American economy."

For the complete story, please see Thomas J. Walsh, Back to Basics, IGWB, February 2, 2009

Legal Thoughts on Lake Band Casino Development

Yesterday's interesting statement by a lawyer for the Burt Lake Band suggesting that all the Band would need to commence gaming is simple legislation from the State Legislature deserves a spot of commentary. I guess their lawyer is reading this provision of the Michigan Constitution, added by state referendum in 2004, for support:

The legislature may authorize lotteries and permit the sale of lottery tickets in the manner provided by law. No law enacted after January 1, 2004, that authorizes any form of gambling shall be effective, nor after January 1, 2004, shall any new state lottery games utilizing table games or player operated mechanical or electronic devices be established, without the approval of a majority of electors voting in a statewide general election and a majority of electors voting in the township or city where gambling will take place. This section shall not apply to gambling in up to three casinos in the City of Detroit or to Indian tribal gaming. [Mich. Const. sec. 41, emphasis added]

Since Burt Lake Band is not a federally recognized tribe, they would not be subject the requirements of the Indian Gaming Regulatory Act, nor would the Department of Interior take land into trust for the Band under 25 U.S.C. 465. So the lawyer’s statement (”A bill will have to be introduced, passed by a simple majority in the House and Senate, has to be signed by Gov. Granholm, and we can rock and roll from there”) that the Band isn’t subject to all these difficult regulatory hurdles is correct, perhaps, but only if the Band would be considered eligible for “Indian tribal gaming” under Section 41.

Leaving aside for the moment the very real political problem the Band would face getting the Michigan Legislature to pass a special statute for them, I think there might be a significant legal problem facing the Band. Literally read, Section 41 applies to all Indian tribes. Burt Lake Band is an Indian tribe, as are the 12 federally recognized tribes. And so are the other non-federally recognized tribes as the Mackinaw Band, the Black River and Swan Creek Band, and Grand River Band. However, I strongly suspect the intent of the provision was to protect the federally recognized tribes of Michigan.

In short, I doubt the “Indian tribal gaming” language was intended to include tribes like the Burt Lake Band. It is my understanding (I was living in Grand Forks, N.D. when the voters adopted this referendum) that the key sponsors of the language were the federally recognized tribes. If there is any legislative history on this Section, I’d like to see it. Moreover, the State of Michigan has cut deals with all 12 federally recognized tribes to conduct gaming under the Indian Gaming Regulatory Act, so it makes additional sense to limit the “Indian tribal gaming” language.

For the complete blog post, please see Commentary on Possible Burt Lake Band Casino Development, Turtle Talk, February 17, 2009.

Smoking Ban Reintroduced by House Democrats

Yesterday, Rep. Joan Bauer, (D-Lansing) introduced HB-4341 and it would ban smoking in the workplace. Previously, smoking ban bills HB-4099 and HB-4100 were introduced by Rep. Paul Scott a Republican. His bills would not likely be taken up by the House majority democrats.

However, with a democratic member introducing HB-4341, we feel that the bill will likely see action. At this time, it is our understanding that are no exemptions for bingo halls or casinos in this proposed legislation.

No hearing date has been set at this time, but we will keep you posted.

House Bill 4341

One Casino Thriving, Despite Recession

Three times a week for the past five years Mario Brown has made the trek from Everett to Kitsap to try his luck at the area’s tribal casinos.

Even the national economy’s continuing downward spiral — the steady rise in unemployment, major corporations closing doors and significant industry declines in nearly every business sector — Brown’s not sweating laying down the dough for frivolous fun.

He still makes his tri-weekly excursions. However, his gambling style has seen a cutback.

He always used to bet the maximum $3 while playing his favorite slots, now his bets cap at 30 cents per whirl of the lucky 7’s. He used to drop $1,000 a night. Now he only allots $100 to $200 for an evening on the gaming floor.

“I’m spending less,” Brown said, playing slots at The Point Casino Feb. 4. “I don’t really feel safe in this economy, whereas before I didn’t have to worry about having a cushion, so now it’s scary. I spend less at each trip rather than not coming.”

He knows of others who are getting nervous and not coming as much, or not at all.

For the complete story, please see Tara Lemm, Suquamish Casino thriving — and hiring — despite recession, North Kitsap Herald, February 13, 2009.

More on the Proposed Casino in Sturgis

A proposed $150 million commercial development that includes casino gaming cleared an initial hurdle Wednesday when the Sturgis City Commission voted unanimously to explore the plan.


Backed by Vanguard Entertainment, of Bloomfield Hills, and the Burt Lake Band of Ottawa and Chippewa Indians, of Emmet County, the proposed development is projected to create 1,000 construction jobs, 2,000 permanent jobs and draw customers heavily because of its close proximity to the Indiana Toll Road.

The proposed development, on a 200-acre site at the southeast corner of M-66 and Bogen Road in unincorporated Sturgis Township, would include a casino, 400-room hotel, truck stop and restaurant/retail space. Vanguard's Weaver said the casino would open with about 2,000 slot machines and eventually have more than 3,000

For the complete story, please see Jef Rietsma Casino developers get largely warm reception in Sturgis, Kalamazoo News via Mlive, February 12, 2009.