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Michigan Bills Put Slot Revenues at Stake

MICHIGAN – As reported by the Grand Rapids Press: "Bills allowing video-gambling at horse racing tracks could cost Michigan more than $13 million a year because tribal casinos may no longer need to share slot-machine revenues with the state.

"But supporters of the so-called racinos believe any loss would be offset by a far greater windfall at the seven race tracks in the state, including Great Lakes Downs in Muskegon.

"Still, there is widespread disagreement over how much racinos would funnel to the state -- ranging from just more than $5 million to more than $400 million.

"…Meanwhile, the Gun Lake Band of Pottawatomi Indians is watching the bill closely because it could complicate its proposal for a casino near Wayland, about 25 miles south of Grand Rapids.

"…Three tribes now pay the state 8 percent of their net take from slot machines to the state's Strategic Fund for economic development. Three other tribes planning casinos in Michigan have similar agreements.

"Here is where racinos complicate the picture: All of those tribes' revenue-sharing agreements are tied to exclusivity clauses only in force if nontribal casino-style gaming -- such as a racino -- is not allowed to expand.

"…Final figures for 2003 are not available from the Michigan Gaming Control Board, but tribal casinos paid the state $6.5 million between October 2002 and March 2003.

"But racino supporters believe the state will make far more off racinos…"

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