Gambling Dispute Causes Wisconsin Tribe Leader To Withhold Nearly $1 Million

Well, that just got awkward. The tribe leader of the Wisconsin Stockbridge-Munsee who intends to withhold $923,000 in payments from government officials, is scheduled to deliver the yearly State of the Tribes address to the same audience of officials in less than 7 days and SportsBettingWisconsin.com is here to cover it for you.

The Fight Over Casinos

The dispute began with the state’s approval of a $33 million expansion project for Ho-Chunk Gaming in Wittenberg. The Stockbridge-Munsee are arguing that in the past, the Menominee tribe had applied for an expansion but were denied due to their perceived impact. With the new Ho-Chunk gaming facility set to open only 17 miles from the North Star Mohican Casino and Resort in Bowler, the tribe is questioning why the same impact considerations are not currently under review.

The Stockbridge-Munsee tribe also believes that the expansion violates several stipulations set forth in the Ho-Chunk’s 2003 compact agreement. For one, the casino in question was only permitted to be open as an “ancillary facility” that could not yield more than 50% of the total revenue for Ho-Chunk gaming. Another discrepancy lies in if the lands being used for the expansion are federally permitted to be used for gambling purposes.

What Are State-Tribal Compacts?

For a quick rundown of what a state-tribal compact is, you can look to the Indian Gaming Regulatory Act (IGRA). The IGRA is a federal law that protects the right of federally-recognized Indian tribes to establish tribal gaming facilities on their sovereign lands. While tribal gaming is largely regulated by the National Indian Gaming Commission and the federal government, tribes also have to negotiate agreements with the state in which they reside if they are offering Class III gaming. These tribal-state gaming compacts help to layout economic and administrative duties while also defining the authoritative roles at the tribal, state, and federal levels.

Walker Admin Claims No Foul

The WI Department of Administration has maintained that the Ho-Chunk are in compliance with their compact, and have made it clear that the expansion is legal and fair. Steve Michels, spokesman for the Walker administration, stated that, “Simply put, the Stockbridge is getting the deal it agreed to with the state in 2003. Likewise, the Ho-Chunk is getting the deal it agreed to with the state in 2003 as well. The state expects the Stockbridge to adhere to the terms of their compact.”

The Stockbridge-Munsee have not been sitting quietly, and have even commissioned their own research team. In a study released in January, it was cited that the tribe could potentially suffer a $22 million loss in gambling revenue from the Ho-Chunk expansion. This translates to 37% of the tribes’ total income. In a statement to the press, Stockbridge-Munsee President Shannon Holsey stated that, “We have tried to resolve these issues directly; now we are being forced to pursue all legal remedies available to protect our 1,200 tribal members… and the local organizations who rely on our support.”

State of The Tribes Address

On April 4th, President Shannon Holsey is set to address the Legislature and it is unclear how her threat of withholding compact payment will effect the event. Governor Scott Walker’s Administration has been adamant that there is no additional need for further review, however, the continued legal and fiscal pressure applied by the Stockbridge-Munsee may eventually lead to a compromise.

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