The Grand Traverse Band of Ottawa and Chippewa Indians has filed a lawsuit against the National Indian Gaming Commission (NIGC) to prevent the potential closure of its Crystal Shores Casino in Benzie County, Michigan. The tribe’s legal move aims to counter the NIGC’s assertion that the casino’s operations violate federal law under the “one-bite rule.”
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NIGC’s Closure Notice Explained
The NIGC, an arm of the U.S. Department of the Interior, has cited the “one-bite rule” as grounds for the shutdown. This rule, relevant to restored tribes, typically bars the operation of new gaming facilities on certain lands if the tribe already runs other casinos. But the Grand Traverse Band contends that this rule is not supported by the Indian Gaming Regulatory Act (IGRA) or any federal statute. While IGRA mainly disallows gaming on lands acquired in trust post-1988, it includes a “restored lands” exception for tribes with reinstated federal recognition. The dispute hinges on whether the Benzie County casino meets the criteria under this exception.
Grand Traverse Band’s Legal Arguments
According to the tribe, its status as a restored tribe and the acquisition of the Benzie County property as ancestral lands should permit the casino’s operation under the restored lands exception. The tribe lost much of its land and recognition in the 19th century but regained federal acknowledgment in 1980. Several land parcels were subsequently restored to the tribe. And in their lawsuit, the tribe’s attorneys argue that the “one-bite rule” contradicts the IGRA’s intentions and objectives, as well as established legal interpretations favoring tribes (the Indian canon of construction). They further argue that the rule’s requirement—that a tribe not engage in gaming on other lands—is unsupported by the restored lands clause of IGRA.
Regulatory and Market Context
This case arises as regulators increasingly scrutinize tribal gaming operations. The NIGC’s stance reflects a broader regulatory pattern of enforcing gaming laws where interpretations may vary. Previously, when the Grand Traverse Band opened Turtle Creek Casino in 1996, they successfully demonstrated compliance with the restored lands provision, as recognized by federal regulators and the courts. Industry watchers might see parallels here—suggesting an evolving regulatory market.
What’s Next for Crystal Shores Casino?
The Grand Traverse Band seeks a judicial decree nullifying the “one-bite rule” and overturning the NIGC’s Notice of Violation. They aim to prevent further regulatory actions against Crystal Shores Casino. The timeline for court proceedings remains uncertain, but the outcome will profoundly affect the tribe’s gaming operations in Michigan. Meanwhile, Michigan’s gaming scene is also experiencing changes, as the state’s lottery recently altered its Daily Spin to Win Game, likely impacting its play mechanics.
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