Casino Revenue Dispute

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Casino Revenue Dispute

By KBJR News 1

The Fond du Lac Band of Lake Superior Chippewa want to renegotiate casino revenue sharing with the City of Duluth.
Fon-du-Luth casino and the city are part of a unique compact that allowed the casino's creation in city limits.
But as Joel Runck explains, tribal leaders feel they're being short-changed.

Under an existing agreement between Duluth and the Fon-du-Lac tribe, the city receives part of the casino's revenue.
Last year, the band says the casino shelled-out approximately $6.4 million to the city.

Karen Diver, Fon Du Lac Reservation chairwoman, says that amounted to about one-third of the casino's profits.
As a result, Diver said she wants to re-negotiate the compact's terms with city leaders.

"We'd like to talk to the city how to make it a win-win so that we're both investing in the success of that property," Diver said.

Fon du Lac says the money-sharing agreement is out of compliance with the Indian Gaming Regulatory Act.
Under the rule, band officials say the city is not earning its share of the deal.

"We have about a $9 million payroll in the City of Duluth and for a business that's operating in Duluth, I'm not sure many businesses would tolerate that level of taxation," said Diver.

Duluth Mayor, Don Ness could not be reached for comment today.
However, in an earlier interview Ness said he wanted to keep the agreement they way it is now.

"It's our intent that the agreement will continue in its present form," said Ness. " I think it's an agreement that both parties benefit from, certainly the Fond du Lac tribe benefits from being in an urban area."

But tribal leaders say it's time for a change.

"I think that the city has benefited from it as well but I would like them to make the same commitment," said Diver.

Fon-Du-Lac says they hope to begin negotiation talks with the city early next year.

Tuesday, Sep 16 at 11:57 AM cb/duluth wrote ...

What other business in the city of Duluth pays this kind of money to the city? Does the city use this revenue for what is was intended for? No one holds a gun to your head & makes you come into the casino & gamble. If you can't handle it stay out of them..

Monday, Sep 15 at 5:54 PM G Lane wrote ...

The payments to the City are not just for ongoing cost sharing but also should be viewed as "lease" payments for allowing the re-designation of City property to reservation property. If the reservation wants to fundamentally change the provisions of the agreement, maybe the re-designation should be reversed so that the property reverts to City ownership.

Monday, Sep 15 at 1:47 PM jerry fredrickson wrote ...

If the casino doesn't like the deal they're getting they should close up. They clear more than a million dollars a month while screwing the public and preying on the weakness and addictions of innocent citizens. The public good is not served with these corrupt bloodsucking gambling casinos. We're much better off without them.

Saturday, Sep 13 at 3:54 PM jane wrote ...

The Fon-Du-Lac casino operators are just being their usual selves. Extremely crooked! The casino has over the years paid out less and less of the percentage they promise. The place is a mess, the people are very angry at the payouts, the tourists are getting lured in and taken for their money. It is extremely poorly run by people who do not know a thing about how to operate a casino, but do know how to cheat the customers. This place should be shut down or moved out of the city.

Saturday, Sep 13 at 8:35 AM Former Gambling Addict wrote ...

Casinos are profiteering on people's vices-gambling. It doesn't matter who owns them but there bad for people. The City of Duluth has opened a "can of worms", they should continue to tax them heavily to pay for the problems they cause society.

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