17 casinos no longer have to share profits with state

Friday, July 2, 1999 | 9:25 a.m.

The required payments, 8 percent of the take from their slot and video poker machines, ended Wednesday.

The payments amounted to $176 million that went into state economic development programs, including $55 million to pay for land and demolition for the new Comerica Park for the Detroit Tigers.

The tribes had to pay the money as part of a deal negotiated with Gov. John Engler.

It granted them exclusive rights to slot machines in exchange for the state payments.

Now that the first Detroit casino, the MGM Grand temporary casino, is expected to open this month, the tribes no longer have to pay that tax, the Detroit Free Press reported today.

But they will still give 2 percent of their machine winnings to local government.

The money went to the Michigan Economic Development Corp., which pays for infrastructure on development projects throughout the state.

The biggest chunk of Indian casino money, $95 million over five years, came from the Saginaw Chippewa tribe, which operates the Soaring Eagle casino in Mount Pleasant.

The next largest came from the Sault Ste. Marie Tribe of Chippewa Indians, which operates five casinos in the Upper Peninsula and will be a partner in the Greektown casino in Detroit.

Since the 17 Indian casinos owned by the seven tribes opened in March 1994, gamblers have left $2.2 billion in gambling machines.

The state will continue to get some Indian gaming money.

Four other tribes, recently granted federal status that allows them to have casinos, agreed to pay the state 8 percent of their machine winnings.

Their four casinos are expected to bring in $25 million.