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.

Fruitport Casino Plans Push Forward

The work by federal, tribal and local officials completed this year will play a large role in whether a proposed American Indian casino becomes a reality at the site that includes the former Great Lakes Downs racetrack.

An impact study, covering everything from environmental issues to infrastructure, is expected to be conducted in May, said Fruitport Township Supervisor Brian Werschem. Once completed, the impact study will be up for a six-month review period. The impact study is necessary before the land -- 40 to 60 acres, according to Werschem -- can be taken into trust by the U.S. Department of Interior for gambling activities.

The land that is taken in trust may be used for the casino portion of the proposed development by the Little River Band of Ottawa Indians. The remainder of the 233 acres that the tribe recently acquired can be used for other parts of the overall development, including hotels, restaurants, stores and entertainment venues that are often built near casinos. That land not in trust would remain on property tax rolls.

For the complete story, please see Eric Gaertner, Plans moving forward on proposed Fruitport Township casino, Muskegon Chronicle via Mlive.com, February 11, 2009.

Wayland Casino Clears Final Hurdle, Sturgis Casino to Follow?

The Gun Lake Tribe has now cleared the final hurdle to construct their own casino at the Wayland exit along US-131 in Allegan County.

Late Wednesday morning on a voice vote, the Michigan Senate approved the compact.

Tribal spokesman James Nye says the house approved the resolution in 2007 after the governor signed it.

"Now the work begins, but the work that we've wanted to begin for many years," Nye said.

The state will get 8% of the profits from slot machines for the first 150-million, 10% for the next 150-million and 12% for everything after that. Nye says 2% will be shared with local governments.

"Right now the tribe pays Wayland Township $30,000 a year in property taxes. Under the 2% revenue sharing, the number is projected to go up at least $3 million during the first full year of operation," Nye said.

The Gun Lake tribe will be permitted, with the compact, to run regular slots and a full array of Las Vegas style table games.

A groundbreaking date has not been set, but could come soon.

For the complete story, please see Gun Lake Way Cleared for Casino; Stugis Casino Future Unclear, WKZO News, February 12, 2009.

Millions Disappear in Failed Casino Plan

Anthony Defeo was a charismatic businessman and a developer with a vision, offering investors an opportunity for the chance of a lifetime.

But that dream deal quickly soured for financers who say the $600-million project presented by the entrepreneur proved too good to be true.

Defeo, who claimed riches from other financial undertakings, convinced them he had the inside track on a casino project with the federal government and an American Indian tribe. The project, he boasted, had received the personal stamp of approval from none other than then-President George W. Bush.

He showed them paperwork, eased their fears with thorough answers and gingerly maintained relationships -- until he got at least $2 million from investors, according to more than 20 lawsuits in Macomb County Circuit Court.

Now, with his plans for the development of a casino and entertainment hub in St. Clair County at a standstill, investors don't know where Defeo -- or their money -- has gone.

For the complete story, please see Christy Arboscello, Millions vanish with developer Anthony Defeo, Detroit Free Press, February 9, 2009.

Gaming Future Looks Bleak for 2009

Financial researchers don't believe the gaming industry will see a revival in 2009.

This week, Moody's Investors Service downgraded MGM Mirage's $7.8 billion debt. Caustic stock forecaster Jim Cramer told his CNBC television audience to avoid investing with the gaming sector.

Now, Fitch Ratings has smacked the industry in a blistering report. The investors service said the nation's casinos, coming off the worst year the industry ever suffered, won't see any meaningful recovery until 2010.

Fitch analysts said gaming had its worst declines in the last four months of 2008. The operating trends are likely to remain weak throughout 2009.

"The global economy is experiencing a severe recession," Fitch analyst Michael Paladino wrote. "Fitch is forecasting the steepest gross domestic product decline in the major advanced economies since World War II."

The economy's effect on the casino industry surprised many investors. Fitch estimated gaming revenues from commercial casinos and racinos declined 3.5 percent in 2008. The figure would have been worse if not for slot-machine expansion in Pennsylvania and New York.

Fitch believes consumer spending will continue to decrease. There will be fewer dollars left behind in slot machine hoppers and in gambling table drop boxes.

"Gaming spend per visit has been affected more than visitation levels," Paladino said.

For the complete story, please see Howard Stutz, INSIDE GAMING: Expecting '09 recovery for gaming? Don't, Las Vegas Review-Journal, February 8, 2009.

Grand Rapids Area Casino Pushes Forward

The U.S. Supreme Court has declined to hear an anti-Indian casino group’s appeal challenging the Interior Department’s decision to take land into trust for the Gun Lake Tribe’s proposed casino.

The high court’s action Jan. 21 effectively ends Michigan Gambling Opposition’s 10-year run of legal actions and public relations efforts to delay and stop Gun Lake’s plans to open a $200 million casino on 147 acres of trust land in Wayland County.

“We are very happy with the Supreme Court’s decision to reject MichGO’s appeal,” Gun Lake Chairman D.K. Sprague said. “It is, however, bittersweet. It’s been too long. One of the drawbacks to all the delay is we’ve lost a lot of tribal members. They’re walking on and they won’t be here to see the fruits of their labor. And that just saddens my heart that they aren’t here today to celebrate with us.” The Gun Lake Tribe’s formal name is the Match-e-be-nash-she-wish Band of Pottawatomi Indians.

The tribe will now do its “housekeeping” – getting all the paperwork prepared for the interior to finalize the land into trust – and then move forward with plans for the Gun Lake Casino, Sprague said.

For the complete story, please see Gale Courey Toensing, Supreme Court denies anti-casino group’s appeal, Indian Country Today, February 3, 2008.

Greektown Casino Will Not Close Despite Loan Problems

A turnaround expert working with Greektown Casino said the casino could keep operating even if additional loans needed to pay for the hotel are not approved by the U.S. Bankruptcy Court.

Charles Moore, senior managing director of Birmingham-based CM&D, said the casino needs $46 million in additional loans to finish its 400-room hotel, which is to open Feb. 12. The hotel is crucial to the casino's future, but if the loans are not approved, the casino would find a way to restructure and keep operating, he said.

"No one is going to let the casino close," Moore said.

Moore testified Tuesday afternoon before U.S. Bankruptcy Judge Walter Shapero on behalf of Greektown's owners. Testimony is to resume at 9:30 a.m. today.

Moore added, however, that an incomplete hotel would be very detrimental to the casino's future, causing confusion among consumers and scaring away potential purchasers of the business, which filed for bankruptcy protection last May.

Without the loans, Greektown officials say their general contractor may walk off the job, leaving the hotel incomplete.

For the complete story, please see Mary Francis Masson Expert: Greektown casino will not close, Detroit Free Press, February 4, 2008.

It's Good to be Back

After a little time off from this blog, it's good to be back!

Sorry, we've been a little inconsistent lately with our blog posts, and haven't posted nearly as often as we usually do. With the holidays well behind us, that shouldn't be a problem any longer, and everything should be back to normal.

Look for more bingo articles and other bingo supplies information in the upcoming days.

Thanks for reading.