Litigation | NIGC

City still seeking cut of revenue from Fond du Lac Band casino

Monday, April 15, 2013

Despite losing a lawsuit, the city of Duluth, Minnesota, is still seeking a cut of gaming revenues from the Fond du Lac Band of Lake Superior Chippewa Indians but the tribe says that's a no-go.

The 8th Circuit Court of Appeals ruled in January that a revenue sharing agreement between the tribe and the city was illegal. The tribe has offered to pay the city for services provided at the Fond-du-Luth Casino, Chairwoman Karen Diver said.

“The way the rules have been construed, any payment would need to resemble a justifiable fee for services,” Diver told The Duluth News Tribune.

City officials, however, continue to believe revenue sharing is an option. They say tribes across the nation have entered into agreements with local governments.

“That should indicate there is a path to a compromise that could include revenue-sharing," Mayor Don Ness told the paper.

The city is suing the National Indian Gaming Commission in hopes of reinstating the revenue sharing agreement.

Get the Story:
As Duluth's deal falls, nationwide, tribal casinos share 12% (The Duluth News Tribune 4/14)