Michigan Legislature approves compacts for tribal casinos

Friday, Dec. 11, 1998 | 9:34 a.m.

Engler-negotiated compacts finally passed the state House 48-47 on Thursday, followed by a 21-17 vote in the Senate early Friday.

Engler's strategy to get legislative ratification of the compacts has included frequent meetings with House Republicans who cast 'no' votes on Tuesday and Wednesday. Few of them changed their votes, but some agreed to not vote at all by Thursday.

Engler spokesman John Truscott said his boss succeeded by persuading members that voting for the compacts was the only way to slow down, if not stop, the expansion of gambling in Michigan.

"He realized it wasn't an easy decision for people to make," Truscott said. "It is controversial for people who are fundamentally opposed to gambling, and the expansion of gambling ... which is the same position as the governor's."

But those who voted against the compacts said the governor's lobbying was more effective than his logic.

"It's hard to beat a $31 billion PAC (political action committee)," said Rep. Kirk Profit, D-Ypsilanti, referring to the state budget controlled largely by Engler. "It shows the level of intensity they have for this thing. Wouldn't it be nice if this same level of intensity was applied to mental health, education, taxes?"

Rep. Andrew Raczkowski, R-Farmington Hills, who will be House Majority Floor Leader next session, was absent from the floor while voting occurred. He had said he opposed the expansion of casino gaming but didn't want the state to end up in court. He ended up not casting a vote.

Engler has argued that without the compacts, the tribes would get approval from the federal government, leaving the state with no control over the number of casinos per reservation and without a portion of revenues.

The new casinos would be located in New Buffalo, Mackinaw City, Battle Creek and Manistee.

On each day of negotiations, Engler increased his promises to sway House votes in favor of the compacts. He pledged not to negotiate further compacts if these four are accepted, and he said he would lobby Congress to gain changes in the Indian Gaming Regulatory Act.

The 1988 federal law requires tribes and states to negotiate gaming compacts with approval from the governor and Legislature. Short of that, tribes can pursue approval from the federal government with none of the rules that the state may want to impose.

Unlike the seven Indian gaming compacts approved in 1993 - allowing 14 casinos to open in Michigan - the four new compacts will limit the tribes to one casino per reservation.

The compacts allow the state 8 percent of slot machine revenues; 2 percent of that cut goes to local governmental units.

Some House members were disturbed by the amount of lobbying outside and inside the chamber. Some Republicans said they received calls on their private, unlisted House telephone numbers from Marian Ilitch, urging a vote in favor of the compacts.

Ms. Ilitch and several others have an interest in one Detroit casino and in the planned Indian-run casino in Manistee. She could not be reached for comment Thursday.

Rep. Penny Crissman, R-Rochester, voted no on Wednesday and earlier Thursday, changed to a 'not voting,' which is neutral. She said she received a call from Ms. Ilitch on Wednesday that angered her so much she planned to vote against the compacts.

"She was appealing to my sense of humanity, saying how these other tribes have been helped," Crissman said. "I told her I'm just tired of the expansion of Indian gaming."

Crissman was hopeful that because the compacts prohibit casinos from opening within 150 miles of Detroit, none could open in Oakland County.

The tribes seeking the compacts are the Pokagon Band of Potawatomi Indians, the Little Traverse Bay Bands of Odawa Indians, the Little River Band of Ottawa Indians and the Huron Band of Potawatomi Indians.

Tribal officials estimated the four new compacts would mean $215 million in construction and support 2,500 construction jobs. Once operational, they also would create 3,400 new jobs and bring in $400 million in new revenues.

Mike Malik, a developer with a management agreement with the Little River Band of Ottawa Indians, said it will give the four communities a chance to prosper.

"I think it's a great opportunity for them and their communities," he said. "That's the great thing about tribes - they put the money back into the communities they come from."