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Wisconsin Tribe Withholds Payment

WISCONSIN – As reported by the Milwaukee Journal Sentinel: "The Forest County Potawatomi tribe declared Thursday that it was withholding a $43.6 million casino payment it owes the state, with fears over potential competition for its lucrative Milwaukee casino behind the move.

"Jeff Crawford, the Potawatomi attorney general, said the tribe wants the state and the Menominee tribe to agree to cover any losses the Potawatomi casino in Milwaukee might suffer if the Menominee win approval for an off-reservation casino in Kenosha.

"The 'indemnification' proposal has been one of the hang-ups in long-running negotiations on amending the Potawatomi state-tribal compact governing its casino operations. The cash that was due the state Thursday won't be paid until that and other outstanding issues for modifying its 2003 compact deal are resolved, Crawford said.

"He declined to say whether the Potawatomi want to negotiate a lower payment for the one that's now one day overdue.

"…The Menominee plan to build an $808 million casino complex on the site of the Dairyland Greyhound Park racetrack 'would adversely impact Milwaukee,' he said.

"…Potawatomi officials maintain that if approved, a Kenosha casino would cut deeply into the take at the Potawatomi tribe's Milwaukee casino. A study commissioned by the Menominee, however, says a large untapped potential gambling market in southeastern Wisconsin could boost revenue at an expanded Potawatomi casino in Milwaukee as well as provide lucrative trade for a Kenosha casino.

"…Crawford said the Potawatomi tribe was placing the $43.6 million owed to the state in an escrow account pending completion of a revised casino deal. He blamed two lawsuits challenging tribal gambling for upsetting the casino revenue projections that were the basis for the large state payment sum…"

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