Detroit Free Press
Posted: Nov. 5, 2010
New casino opening catches many off guard.www.baymillsnews.com, tribal chairman Jeff Parker announced the opening.
By JOHN WISELY
FREE PRESS STAFF WRITER
A new casino that opened quickly in northern Michigan is raising questions about state and federal authority to regulate Indian gaming. The Bay Mills Resort Casino opened Wednesday in Vanderbilt, 8 miles north of Gaylord, catching many people by surprise. The news carried extra weight when Port Huron City Manager Bruce Brown told the Times Herald newspaper that the Bay Mills Indian Community recently had purchased 16 acres along the St. Clair River, where the tribe long has sought to build a casino.
“This has not been the traditional way for approval, and they have a legal theory they are leaning on,” said Rick Kalm, executive director of the Michigan Gaming Control Board. If the theory that a casino can be opened without the normal approval process holds up, “the impact would be huge. There are so many groups vying to expand casino gaming.”
The Sault Ste. Marie Tribe of Chippewa Indians recently purchased land near Pinnacle Race Course in Huron Township in western Wayne County. Gaming facilities there or in Port Huron would compete directly for local customers with Detroit’s three casinos, which count on exclusivity to fuel their business. The Detroit casinos are an important source of revenue for the City of Detroit.
State officials plan to meet with Bay Mills tribal leaders by next week to discuss the move, attorney general spokeswoman Joy Yearout said.
Tribal officials couldn’t be reached Thursday but in a story in the tribal paper,
“This is something we’ve been working on for a long time.”
Officials from other tribes with casinos in northern Michigan were angry.
“We believe this is an illegal operation,” said Ken Harrington, chairman of the Little Traverse Bay Band of Odawa Indians, which operates a casino near Petoskey. “No approvals or applications were obtained or submitted, and this is off their reservation.”
The Vanderbilt casino opened in a former nature center attached to the TreeTops resort complex.
“We knew that something was going on,” said Vanderbilt Village President Edward Posgate. “Frankly, we were hoping it was a casino” because of economic spin-off.
Posgate said the building has 38 slot machines and offers customers free pop, coffee and hot chocolate.
Contact John Wisely: 313-222-6825 or jwisely @freepress.com
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Well you have said said a MOUTHFUL MR. KALM.
“This has not been the traditional way for approval, and they have a legal theory they are leaning on,” said Rick Kalm, executive director of the Michigan Gaming Control Board. If the theory that a casino can be opened without the normal approval process holds up, “the impact would be huge. There are so many groups vying to expand casino gaming.”
Adding,
The Sault Ste. Marie Tribe of Chippewa Indians recently purchased land near Pinnacle Race Course in Huron Township in western Wayne County. Gaming facilities there or in Port Huron would compete directly for local customers with Detroit’s three casinos ( And we wouldn’t want that now would we? ), which count on exclusivity to fuel their business.
“The Detroit casinos are an important source of revenue for the City of Detroit “.
“The Michigan Gaming Control Board shall ensure the conduct of fair and honest gaming to protect the interests of the citizens of the State of Michigan.”
INTERESTS OF THE CITIZENS OF THE STATE OF MICHIGAN??? I DON’T THINK SO.
My overall vision for gaming regulation in Michigan is quite simple, to maintain and insure the integrity of Casino Gaming and Horse Racing, and balance regulation with a business friendly approach to vendors, suppliers, tracks and casinos. As a former law enforcement officer, I am very honored to head an agency that has some of the toughest gaming regulations in the country. My goal is to strive to be the finest gaming control operation in the US, which will assure the people of the State of Michigan that the commercial casino industry and horse racing is honest and fair. I am committed to protecting this source of revenue for the State of Michigan and maintaining the highest integrity of gaming throughout this State.
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If this last part were true protecting the source of Revenue for Michigan. You would see, Delaware, Iowa, New Mexico, Indiana, Arkansas, Florida, Louisiana, have raked in the Revenue from RACINO’S. And recently the Senate has passed legislation in New York and Kentucky with the Blessing of their Governors.
Even a Report that went to Michigan’s House yet ignored in 1999 stated outright: Some industry observers believe that a limited number of gambling dollars exist in the state, and, therefore, they view these developments as “cannibalization” of horse racing.
But you along with that Detroit Casino Money that pours into Lansing don’t give a rats ass about ALL the citizens of Michigan just Casino’s sitting in Detroit. And you made the distinct point of Adding
“The Sault Ste. Marie Tribe of Chippewa Indians recently purchased land near Pinnacle Race Course in Huron Township in western Wayne County. Gaming facilities there or in Port Huron would compete directly for local customers with Detroit’s three casinos which count on exclusivity to fuel their business”.
Well Vanderbilt Village President Edward Posgate isn’t stupid. He understands all too well.
“Frankly, we were hoping it was a casino” because of economic spin-off.
And this is what Huron Township should be praying for as well. Because THEY WILL REAP THE BENEFIT if a Casino gets Built on land near Pinnacle. Ed Boike, Richard Kalm and Detroit Casino’s know they’ll take a hit. But that will be good for Huron Township.
Are you beginning to see the light yet? What do you need a BOLT OF LIGHTENING TO STRIKE YOU?
Damn, Wake Up People.
Richard Kalm needs to be FIRED. As fired as Patrick Devlin. He questioned then filed suit against Attorney General Mike Cox about Tribunal Casino’s not having to get liquor licenses and was Fired by Kalm because of it. Then Devlin filed suit against Kalm. But if Mike Cox objects to this happening? He’s more than a Hypocrite. Other tribes not happy, but were all too happy when Patrick Devlin was fired trying to enforce ALL the tribunal Casino’s in Mi. be made to obtain liquor licenses. Devlin was accused by James Hill, director of the honors program and expert on Michigan casinos IN ESSENCE OF TRYING TO ROB THESE TRIBNAL Casino’s. And the irony of all this is Kathryn Tierney, attorney for the Bay Mills Indian Community, which operates two Upper Peninsula casinos, said the tribes have been regulating their casino liquor sales themselves for years.
So the same group who opposed Patrick Devlin investigations on the Tribunal Liquor licenses is the same tribe that opens this new Casino. Now Mike Cox agreed with the tribes that Patrick Devlin inquiries were completely frivolous was suspended then fired. It’s going to be very interesting to see the outcome of this new surprise Casino now and what our dear Attorney General does.
Michigan Information & Research Service Inc. ( MIRS ) Article was a little more in-depth.
Casino Catches Officials Off Guard
Without any of the standard federal or state approvals, the Bay Mills Tribe opened a new casino today near Vanderbilt off Interstate 75 in the Northern Lower Peninsula.
The 40-slot machine facility is located in a renovated Project Nature Welcome Center. Tribal members are familiar with the Vanderbilt area as they have been hunting elk in the region since 2007, exercising off-reservation treaty rights established with the 2007 Inland Consent Decree.
“This is something we’ve been working on for a long time,” said Bay Mills Chairman Jeff PARKER.
Apparently the tribe is testing a legal theory that, if it were to hold up, could open the floodgates for establishing tribal casinos without having to worry about the red tape that usually delays such projects for years. Some observers claim it could ultimately affect the status of an off-reservation site the Sault Ste. Marie Tribe of Chippewa Indians own at Pinnacle Racetrack in Romulus.
Bay Mills and the Soo tribe were once a single tribe.
The move came as a complete surprise to state and federal officials. The tribe jumped through none of the usual legal hoops involved with the federal Indian Gaming Regulatory Act (IGRA). In fact, its plan seems to involve specifically avoiding taking the land in trust, which is a key step in the IGRA process.
It usually takes years of working through the IGRA process to obtain the necessary sign-offs from the U.S. Department of Interior and the state to establish even an on-reservation casino.
The tribe’s reservation is located in the Upper Peninsula, centered at Brimley. However the casino Bay Mills opened today was on land far from the reservation. What’s more, the tribe bought the property less than three months ago.
President Ronald REAGAN signed IGRA in 1988. Ever since, IGRA guidelines have been an open target for almost any and every legal theory an attorney could convince a tribe to try out.
The theory Bay Mills seems to be pursuing is that because it purchased the land near Vanderbilt with money it had received in exchange for giving up its aboriginal lands, the land is therefore exempt from the usual impediments IGRA placed on off-reservation gaming.
The entire issue of off-reservation gaming, as it pertains to IGRA is currently being reviewed nationally (See “Minnesota Event <http://mirsnews.com/capsule.php?gid=3437%2325188%20> Could Affect Muskegon Casino,”10/20/10).
The Bay Mills decision to test the legal theory might have been timed to coincide with the national discussion. In addition, it might also have been timed to take place prior to Governor-elect Rick SNYDER taking office.
Snyder is believed to be less amenable to gaming expansion than Gov. Jennifer <http://mirsnews.com/lob_bio.php?cid=532> GRANHOLM has been. However, the Granholm administration quickly voiced opposition to Bay Mills opening the Vanderbilt casino today.
“We were surprised and disappointed,” Granholm Legal Counsel John WERNET told MIRS today. “We knew they’d acquired the land and that they’d sent a request to Interior. But we didn’t know about this.”
“We’re talking to the Attorney General’s office to try and determine what the appropriate response should be,” Wernet continued. “We’ll also be talking to the Justice Department and the Indian Gaming Commission.
The Indian Gaming Commission is the entity charged with enforcing gaming regulations on tribal lands.
Joy YEAROUT, spokesperson for Attorney General Mike COX, told MIRS that the AG is still evaluating the situation.
“We just learned of the casino recently, and we are evaluating the Tribe’s position in consultation with the Governor’s office,” Yearout said. “Attorneys from our office plan to meet with the Tribe to discuss the matter, and after that meeting we will decide what action is necessary.”
Meanwhile, tribes that have been playing by the IGRA rules voiced their opposition to the Vanderbilt casino.
A coalition of Michigan tribes issued the following statement.
“We are strongly opposed to the illegal gaming activity announced by the Bay Mills Indian Community today in Vanderbilt,” the group said. “This attempt to conduct Indian gaming in the absence of trust land is a serious violation of the Indian Gaming Regulatory Act and long-held federal Indian gaming policy.”
“Bay Mills has also violated the state gaming compacts, most notably Section 9 which clearly requires the consent of all Michigan tribes to pursue gaming on non-reservation lands,” the statement continued. “We call on the National Indian Gaming Commission, the U.S. Department of Justice, and the Department of the Interior to work together with
Governor Jennifer Granholm and Attorney General Mike Cox to take swift and immediate action to close this illegal gaming operation, which threatens to undermine the significant public support for Indian gaming here within the State of Michigan and around the country.”
The coalition of tribes opposing the casino includes: Grand Traverse Band of Ottawa and Chippewa Indians Gun Lake Tribe of Pottawatomi Indians Little Traverse Bay Bands of Odawa Indians Nottawaseppi Huron Band of Pottawatomi Indians and the Saginaw Chippewa Indian Tribe.
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You see this is not really about the legalities of what this Tribe did by opening this Casino. And I don’t know what the outcome will be whether they are made to close or not. It is the Statement by The Michigan Gaming Control Board Executive Director Richard Kalm’s Statement of the situation that stinks. It sheds one hell of a lot of light on why everybody is so dead set against Pinnacle Race Course in Huron Township.
The Sault Ste. Marie Tribe of Chippewa Indians recently purchased land near Pinnacle Race Course in Huron Township in western Wayne County. Gaming facilities there or in Port Huron would compete directly for local customers with Detroit’s three casinos, which count on exclusivity to fuel their business. The Detroit casinos are an important source of revenue for the City of Detroit.
Who gives a Damn about what it will do to Detroit Casino’s. This should be a Dire example to Huron Township how important many consider Pinnacle to be a threat. And further desire to dig for more information to understand the ramifications to THEM. It also say’s in big bold neon lights WE ONLY CARE ABOUT DETROIT CASINO’S.
Another part of this story is even more troublesome and worrisome. ” Snyder is believed to be less amenable to gaming expansion than Gov. Jennifer “. Granholm didn’t attempt one damn thing to expand any sort of further gaming to Horse Racing Tracks. So now we end up with somebody less amenable to gaming expansion? Isn’t the guy that did nothing but talk about JOBS, JOBS, and more JOBS? Only 42,000 associated with Horse Racing. No biggy I guess.
Ed Boike has suggested a lot to the Board Charter of Huron Township, maybe it’s about time they start asking their own questions on his motives to bash and help trash this new Thoroughbred Race Track in their jurisdiction. Seems to me they have a lot more to lose if Pinnacle doesn’t succeed. About time they start inquiring, learning and really start finding out who the real crooks are.
And Richard Kalm words spoke BLASTING VOLUMES. He could care less about gaining the most Revenue for Michigan and it’s citizens. The only thing he cares about is what affects DETROIT.
And if he calls this honest and fair : as in which will assure the people of the State of Michigan that the commercial casino industry and horse racing is honest and fair.
Tomorrow I’m going to turn into a Queen, Obtain a Billion Dollars and hand it all out to every single individual I see.
This is not about the Bay Mills Indian Community and what they did or did not do legally or illegally. It is about the words that the MGCB Executive Director Spoke. LOUD AND VERY CLEAR.
Thanks to Mary Mazur on the initial story.
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