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Kewadin Shores Casino clears hurdle

The United States District Court for the Western District of Michigan, per the Honorable R. Allan Edgar, issued a preliminary injunction restraining the National Indian Gaming Commission and the Department of the Interior from taking any action "which would interfere with and prevent the [tribe's] operation of [its] new gambling casino" in St. Ignace, Michigan.

The case arose because the tribe built a new replacement casino on tribal trust lands immediately adjacent to lands occupied by tribe's old casino.

The tribe's previous casino had operated on the adjacent land for almost 20 years and was rapidly deteriorating, and needed to be replaced.

The Kewadin Shores Casino, which completed construction last summer, has been unable to operate as intended and has been forced to house their slots and table games in a separate structure connected to the main venue.

Well after construction commenced and just prior to the tribe's grand opening in June 2006, the National Indian Gaming Commission (NIGC) issued an order preventing the tribe from operating in the new casino.

The NIGC contended that the adjacent land was not eligible for gaming under federal law.

As a result of the NIGC's action, the tribe filed a lawsuit against the Interior Department and the NIGC, contending their actions were arbitrary and inconsistent with federal law.

On May 24, 2007, the tribe moved for a preliminary injunction, claiming that it would suffer immediate and irreparable harm if the courts did not permit gaming at the new casino.

For the better part of several months, the tribe attempted to reach an interim agreement with the federal government that would have allowed the tribe to operate in the new facility while the lawsuit was pending, but to no avail.

Finally, the Tribe asked the federal court to enjoin the federal defendants from preventing the tribe from operating in the new casino, while the lawsuit makes its way through the court system.

Today, the federal court responded favorably to the tribe's request by granting the requested injunction.

Chairperson Payment said: "We have worked diligently to pursue all available remedies to the resolve the issue of our inability to operate gaming as it was intended in our new $41 million casino in St. Ignace."

"One such remedy was federal legislation, which was sponsored by our Congressman Bart Stupak," Payment said.

"This legislation has cleared the U.S. House of Representatives and is slated for approval in the Senate this fall."

"The other remedy was to file a federal lawsuit."

"Today, we received word that the federal judge has issued an injunction to allow us to immediately operate gaming at the main venue."

Kewadin Casinos COO Tony Goetz added: "Tomorrow, the board of directors are joining me and the casino team members at the Shores Casino to ready the new facility for gaming operations by Labor Day weekend."

"A special celebratory promotion with over $30,000 in cash prizes is being planned, as well, for this weekend," he said.

As soon as possible, and consistent with the court's order, the tribe plans to open the new casino gaming space.

Preparation to move slot machines and table games from the temporary structure to the main gaming floor is scheduled to happen as early as this afternoon.

Thereafter, the tribe will operate the casino on the new gaming floor while the lawsuit unfolds.

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