An original agreement between FireKeepers and the state had been signed in 1998, but over the last 10 years or so, other tribal casinos located in the state were able to lobby for smaller payments. These tribes were able to successfully bargain after the State Lottery's introduction of Club Keno games, which tribes felt was a violation of the payment agreements.
From the Kalamazoo Gazette:
The state of Michigan will receive less money from the FireKeepers Casino near Battle Creek under an amended compact announced Monday.
State officials say that while the new deal will provide fewer dollars, it will mean a more stable source of funding because it will limit when the casino can withhold payments.
In a written statement, Gov. Jennifer Granholm said the agreement "creates a better understanding and relationship between the state and the tribe while stabilizing a revenue stream used to enhance Michigan's economic development."
Under the amended compact, the Nottawaseppi Huron Band of Potawatomi Indians will pay the state 4 percent of the casino's net win from slot machines and other electronic games in 2009 and 2010. The percentage will then fluctuate each year depending on how much money the casino makes.
The amount will never top 8 percent, the fixed percentage stipulated in the original compact signed in 1998. Net win is the amount of money wagered minus the amount paid out.
FireKeepers new payment schedule should simply bring them in line with what other tribal casinos in the state are paying. The FireKeepers Casino opened in August and the FireKeeper Bingo Hall opened September 8th of this month.
For more information on this story, please see Aaron Aupperlee, FireKeepers Casino to pay less to state, The Kalamazoo Gazette via Mlive.com, September 15, 2009.
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