Engler declines to sign casino compact

Sarah Freeman

Tuesday, Dec. 31, 2002 | 10:09 a.m.

DETROIT -- Gov. John Engler said it "would be best for the state" to let the Match-e-be-nash-she-wish Band of Pottawatomi Indians operate a casino in Allegan County, but declined Monday to sign a compact allowing the tribe to do so.

Instead, he encouraged Gov.-elect Jennifer Granholm to sign the compact once she takes office.

Granholm, who is to be sworn in Wednesday, has not taken a stand on either side of the issue, spokeswoman Mary Dettloff said.

"She is interested in reviewing the compact with everyone involved," Dettloff said Monday evening. "She wants time to review the details, get to know the players and be really familiar with the issue."

Engler cited speculation about his interest in the compact, and the fact that three of his personal friends have a stake in the proposed casino, as reasons for not signing the compact himself.

"Neither I nor anyone in my Administration ... has any financial interest whatsoever in the tribe's casino venture," Engler wrote in a six-page letter sent Monday to Senate Majority Leader Dan DeGrow and House Speaker Rick Johnson.

"Regrettably, some have seized upon this situation involving the compact as an opportunity to try to sully my reputation," he continued. "I will not allow them to succeed."

The state House and Senate earlier this month passed resolutions encouraging Engler to sign the compact, which will require that 8 percent of the casino's revenues go to the state school aid fund.

Supporters pointed out that the tribe, known as the Gun Lake Band, was the only one of 12 recognized Indian tribes in Michigan not granted a gaming compact. In his letter, Engler also pointed out that a majority of the state's voters have approved full-scale casinos in Detroit.

Opponents have said the state does not need another tribal casino. If the Gun Lake tribe opened theirs, Michigan would have a total of 20.

The Gun Lake Band was recognized as a sovereign Indian nation by the federal government in 2000. It is still waiting for the federal government to put the land for the casino in a trust.

Once that happens, Engler said a new casino is "inevitable."

"Under federal law, the decision as to whether a tribe will be able to conduct gaming is made when the tribe receives federal recognition," he said.

Engler said the Gun Lake Band has at least four options for opening a casino without making a compact with Michigan, all of which would result in the state receiving no revenue from the operation.

The scenarios include compacts imposed by a federal court or the U.S. Secretary of the Interior.

The tribe could choose to begin Class III gaming, which covers slot machines, without a compact. It could then sue the federal government to block the compact requirement, which its law firm has successfully done in two other states, according to Engler.

In what Engler called "the worst-case scenario for the Gun Lake Tribe," it also could open a Class II facility, which is limited to bingo and certain card games and does not require a compact.

Messages left Monday evening for tribal chairman D.K. Sprague and attorney Conly Schulte were not immediately returned.

The current compact would allow the Gun Lake Band to run Class III gaming. Schulte has said the tribe also plans to have bingo and pull tab games and video versions of those games.

A casino in Allegan County's Wayland Township would offer more than 4,300 jobs, Sprague has said. The tribe expects 2.9 million customers a year would visit the casino and spend about $31.2 million in the area.