SEARCH NEWS:

 

Michigan tribe files for injunction

The St. Ignace casino which completed construction last summer has been unable to operate its casino as intended and has been forced to house their slots and table games in a separate structure connected to the main venue.

Last September, the NIGC officially ruled the new casino was not constructed on lands eligible for gaming.

The tribe continues to contest that ruling and filed a lawsuit on November 8, 2006.

A recent opinion released by Magistrate Judge Timothy Greeley, is favorable to the tribe, and offers a recommendation to order a preliminary injunction, which will allow the casino to operate while litigation continues.

If the injunction is granted, the casino could begin moving slots from the temporary "sprung" structure to the new gaming floor of the main venue.

The casino could then begin operating as designed as early as mid-to-late August.

The new casino features a state-of-the-art ventilation system with a gaming floor that gives patrons close access to amenities such as the restaurant, bar, lounge, gift shop, and hotel. 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.

Tribal Chairperson Aaron Payment testified that the tribe has suffered a loss of income as a result of the tribe's inability to open its new casino.

According to Payment, the reduced income has had a negative effect on the tribe, the local community, and the state.

Affidavits filed by the tribe further proved that the public interest would be best served by allowing the tribe to open its new casino because that is in the best interest of social services, public safety, and educational programs that benefit the tribe.

In addition, the tribe maintains that the local economy would benefit by allowing the new casino to open.

Casino employees and patrons would also benefit from a healthier and safer environment if gambling is allowed to occur in the main venue.

Judge Greeley supported the tribe's claims by stating, "The public interest factor supports the (tribe's) request for an injunction."

The factor of irreparable injury is the single most important factor to be considered in ruling on a motion for preliminary injunction.

The judge determined that the tribe has presented evidence establishing that it has suffered a loss of revenue as a result of its inability to open the new casino.

Because a decrease in casino revenue can have a significant impact on the governmental services available to tribal members, the tribe's irreparable injury component of the case was further justified and acknowledged by the judge.

The Kewadin Shores Casino, which sits on two tracts of land, needs those lands to qualify as reservation land or trust land contiguous to a reservation, for the property to be eligible for gaming.

For gaming to be authorized on the 2000 parcel where a majority of the casino now sits, the adjacent 1983 parcel must be considered a reservation.

The judge stated the NIGC failed to provide a "reasoned explanation for its decision" regarding why the tribe's land was not considered reservation land.

Greeley further stated, "The defendants (NIGC) were far from timely in their responses to the tribe's request to resolve the legal issues presented in this case."

According to the judge, "During oral argument, the undersigned repeatedly attempted to have counsel for the defendants (NIGC) identify what factors are utilized in determining whether a parcel of land is reservation land.

"Counsel was unable to clarify this for the court."

"I conclude the defendants (NIGC) have failed to provide a reasoned explanation for its conclusion that the 1983 parcel is not reservation land."

"The defendants' (NIGC) decision on the reservation component of plaintiff's (tribe's) claim is far from consistent and uniform," added Greeley.

In a letter dated February 14, 2006 from the NIGC, the commission indicated that some factors could support a finding that the 1983 parcel is a de facto reservation.

The 1983 parcel provides tribal housing, health services, educational services, and social services, and for all practical purposes is identical from a use-perspective to the reservation in Sault Ste. Marie.

Several other powerful statements were written by Judge Greeley, which concluded with an outright recommendation in the tribe's favor.

"Having carefully considered the arguments of the parties, as well as, the affidavits submitted by the plaintiff, it is my recommendation that the court conclude that the (tribe) has established that it will suffer irreparable injury should it not be permitted to open its new casino," said Judge Greeley.

"The balancing of equities in the present case clearly supports issuance of the injunctive relief requested."

"It is further recommended that an order should (be) issued permitting the Tribe to operate its new casino on the 2000 parcel pending resolution of this case."

An official court decision on the preliminary injunction is pending and should be announced within 10 to 20 days.

It should be noted, the tribe is still pursuing a legislative solution to resolve the reservation/casino land dispute.

House Bill H.R. 2120, sponsored by Congressman Bart Stupak (D-Menominee), just cleared the House Resources Committee and is scheduled for Senate review in mid-August.

House Bill H.R. 2120 essentially requests Congress to resolve the issue by honoring the tribe's original request to declare the 1983 parcel as reservation land, which will ultimately pave the way for permanent gaming at the Kewadin Shores Casino and clear up any concerns from the NIGC.

< Gaming News