Litigation | NIGC

NIGC issues NOV on 1994 Fond du Lac Band gaming agreement

Wednesday, July 13, 2011

Better late than never -- the National Indian Gaming Commission has issued a notice of violation to the Fond du Lac Band of Lake Superior Chippewa Indians for a gaming agreement that was signed in 1994.

The NIGC approved the agreement, during the Clinton administration. It requires the tribe to share 19 percent of slot machine revenues from the Fond-du-Luth Casino with the city of Duluth, Minnesota.

But the Obama administration has taken a different view. In the notice, NIGC Chairwoman Tracie Stevens says the deal violates the Indian Gaming Regulatory Act.

“The parties share in the profits, with the city assuming no risk, providing no services commensurate with the payments received and the city retains control over the gaming operation,” Stevens wrote in the NOV, The Duluth News Tribune reported.

The tribe has shared over $80 million with the city since 1994. But the tribe stopped payments in 2009, saying the deal was illegal.

“The band is vindicated today,” Fond du Lac Chairwoman Karen Diver said at a press conference, the Tribune reported.

The city sued the tribe in federal court to uphold the agreement. Judge Ann Montgomery originally sided with the city but the NIGC's new position could affect the litigation.

Get the Story:
City’s contract with casino called illegal (The Duluth News Tribune 7/13)
Contract Violations Put Contract Talks On Hold Between Duluth and Fond du Lac Band ((Northland's NewsCenter 7/12)
Arbitration Between Duluth, FDL Band On Hold (WDIO 7/12)