In Light of Recent Casino considerations

June 26, 2008
By

I bring you the “way back machine”

Voters were hit from both sides a few years ago, encouraging them to limit expansion of gambling in the state except by extreme voter majority only. The Tribal casinos, and the “moral” right found themselves to be strange bedfellows in a plan to keep gambling on the reservations only. Below from the Detroit free press in 2004:

Nov. 3–Backed by an infusion of a $20-million ad campaign, Proposal 1, the ballot initiative to limit casino expansion, passed easily.

The controversial proposal, opposed in a vigorous campaign featuring Democratic Gov. Jennifer Granholm and top GOP officials, calls for voters to approve any new form of legalized gambling in Michigan, including video lottery and slot machines.

The only exempt establishments would be casinos operated by the Indian tribes and the three Detroit casinos — MGM Grand Detroit, MotorCity and Greektown.

The very people who wish to build the casinos in SE Michigan today, were in 2004 spending a lot of money to make sure the lottery didn’t expand, and competition from real free market casino operators would be quelled. 20 MILLION. That is 20 followed by 6 zeros, and even a coma somewhere in there.

The debate recently reignited by a vote in the US house whether certain Michigan tribes could do a land swap reaffirming reservation land which the tribes have claimed since the 1900s. OF COURSE THEY WANTED TO SWAP! The economic benefit of new casinos to tribal coffers is enormous. Especially when they can plant them in “economically strapped” areas. (those areas which have more poor folks than not) Not necessarily a BAD thing, yet did I mention yet that they spent 20 MILLION DOLLARS to make sure they had no competition?

Follow the history of Tribal casinos, and you will see an incredible effort expended to both quell competition from major Casino players (the Vegas guys) and local OTHER tribes as well. In this case, it was that “tool” of the Detroit casino owners Conyers who fought against em. A few years ago, if I recall correctly, the Sault tribe was using EXTORTION against the Little Traverse tribe? A short excerpt of an article at that time (1999) :

Oct. 11 — DETROIT — A former chairman of the Little Traverse Bay Band of Odawa accuses the Sault St. Marie Band of Chippewa of extortion in a recently filed lawsuit.

In a written declaration to federal district court, Frank Ettawageshik said Sault St. Marie Chairman Bernard Bouschor threatened to stop the opening of the Little Traverse Bay Band‘s Victories Casino unless the Sault band received 10 percent of the revenues.

Ettawageshik said the Sault band blocked state legislative approval of a gaming compact for the small band Little Traverse, the Little River Band of Ottawa Indians and the Pokagon Band of Potawatomi Indians the same thing. Each band awaited approval of a compact by the state Legislature. and added that Bouschor told the

“This is a continuation of many years of self-interested, monopolistic actions by the Sault government against both Little Traverse and other Michigan tribes,” said Little Traverse band Chairman Gerald V. Chingwa. “For them to claim economic hardship — when their existing five casinos do in excess of $100 million a year and with a major interest in a new Detroit casino and their current efforts to open an operation in Gaylord — is so two faced that it defies public comment.”

“The Sault Ste. Marie Tribe has used greedy, dishonorable and ruthless tactics to prevent our tribe from developing and operating even a modest single facility,” Chingwa said in a letter to the National Indian Gaming Association.

OH, And I might mention the same tribes involved then are the ones seeking to expand in other areas in the recent news. Yup.. Money, politics, Michigan. Somethings will never change.

3 Responses to In Light of Recent Casino considerations

  1. Sparky on June 27, 2008 at 8:10 pm

    You are a little confused. The Tribe (Saginaw Chippewa and the casino (MGM) were the ones spending $20 million to pass proposal one 4 years ago. They were also the same ones opposing the land settlement claim that would have allowed the Bay Mills Tribe to build a casino in Port Huron.

  2. jgillman on June 27, 2008 at 11:10 pm

    I stand corrected. err partially.. from a September 2004 PRN report, BEFORE the final total reported financials:

    “The Indian tribes and Las Vegas-backed casino bosses are buying an election at a level that’s unprecedented in Michigan history,” said Kelly Rossman-McKinney, spokesperson for NO CasiNO MoNOpoly — Vote NO on Proposal 1. “The Indian tribes and Detroit’s casinos stand to make billions if Proposal 1 passes and it is clear from their campaign finance report that there is no limit to how much they are willing to spend to do it.”

    According to campaign finance reports filed today with the Michigan Secretary of State, proponents of Proposal 1 have raised nearly $7.8 million, including: $3.2 million from MGM Grand; $3 million from the Saginaw Band of Chippewa Indians; and, $1 million from the Little River Band of Ottawa Indians. In all, the operators of Michigan’s casinos have provided more than 92 percent of the financial backing supporting Proposal 1. “

    Sometime perhaps I paint with a broad brush.. though they ALL participated. The key issue of the day was racinos and lottery expansion if I recall correctly.

    Thank you for your input.

  3. jgillman on June 28, 2008 at 4:07 pm

    ALSO you bring up a good point, and I would like to take the opportunity to express my admiration for the Bay Mills tribe for holding off on “pay-offs” to the tribal members and appropriately putting money into infrastructure, and the community college there.

    Having been employed by another tribe for over 10 years total, I have had the ability to see much of what goes on when general disbursements are made, and when real thought out policies have the best results.

    Much of this discussion I will have to leave for another entry however.

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