Yesterday, it became clear that Wisconsin-based Menominee tribe may face another challenge, concerning its bid to start the operation of a casino in the city of Kenosha. An official letter suggested that Gov. Scott Walker might not have the authority to order that the state should pay for any financial loss inflicted on the Potawatomi Milwaukee gambling venue by the potential new facility in the southern part of the state.
The letter in question was written by Michigan-based gaming attorney R. Lance Boldrey, who is known to be Gov. Scott Walker’s advisor on gambling matters. It was sent to the U.S. Bureau of Indian Affairs (BIA) after it was decided the state will need to guarantee that the Potawatomi will receive due payments for any loss caused by the establishment of a new casino Kenosha.
Last week, local authorities and Potawatomi sent to the BIA a proposal for an amendment on the matter. The Menominee tribe stated that they will most certainly pay for all revenue losses their casino inflicts on the Potawatomi gambling venue. Last year, the casino was reported to have generated a total of $400 million.
Yet, Mr. Boldrey suggested that the state will need to pay with local residents’ money in case Menominee does not manage to make the promised payments.
The Menominee tribe has faced numerous challenges since it announced its intention to open a casino venue in Kenosha back in the 1990s. It was not until last year when the BIA officially accepted the tribe’s application. Yet, it is only the governor who has the authority to grant them a license. It was announced that he will make his decision by mid-February.
Back in 2013, the project almost failed, since Gov. Walker stated that he would award the license only in case that all eleven Wisconsin-based tribes agreed on this.
The BIA will have to decide whether the amendment, proposed by local authorities and the Menominee, should be attached to the Potawatomi contract. It was not announced what measures would be taken, if the BIA dismissed the amendment.
According to many, the Potawatomi might institute legal proceedings against local regulators, provided that the amendment is rejected but the governor decides to give the green light to the Kenosha casino.
Menominee representatives, however, stated that the gambling venue needs to be approved even if the amendment is dismissed.
Back in June, the Potawatomi refused to pay its annual revenue share to the state. According to the governor, this had a quite negative impact on the local budget.
It was reported that the sum the Potawatomi withheld totaled $25 million. Yet, the tribe claims it should be paid almost $100 million by the state of Wisconsin for certain fees it paid back in 2004 and 2005, provided that the casino in Kenosha opens doors. The amendment, however, suggests that only future losses will be covered and no previous payments will be returned.
