Sault Tribe casino dream – US Supreme Court Delivers Blow to Sault Tribe's Detroit Casino Dream

• The Supreme Court declined to hear the Sault Tribe’s appeal over a denied casino land trust
• The tribe hoped to build a casino near Detroit, far from its Upper Peninsula base
• A prior court ruling required the tribe to pay $88M in damages to casino investors

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Sault Tribe casino dream at Lotus Asia. The Sault Ste. Marie Tribe of Chippewa Indians' ambition to build an off-reservation casino near Detroit has been significantly hampered by

The Sault Tribe, currently the largest Native American group in Michigan, already manages five casinos in the remote Upper Peninsula, all branded as Kewadin. However, their sights have been set on the more economically prosperous southern region of the state.

Despite the Upper Peninsula consisting of nearly 30{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746} of Michigan’s land area, it only accommodates about 3{6993caa5fb1aab1de46f5b43a835411dda8badf3aa9c6b754938f587e1f52746} of the state’s population, lacking any significant economic urban centres.

Double Whammy

The tribe sought approval from the US Interior Department’s Bureau of Indian Affairs (BIA) to designate land for two casinos under the Michigan Indian Land Claims Settlement Act (MILSCA), including one near the airport and another proposed venue in Lansing. Unfortunately, the BIA denied both applications, stating that the locations were too far to “enhance” the tribe’s reservation, a critical stipulation of MILSCA.

The Sault Tribe filed a lawsuit against the Interior Department in August 2018, claiming that the denial was both arbitrary and capricious, contravening the BIA’s responsibilities under MILSCA. Initially, a lower court favoured the tribe, but this decision was overturned in 2022 by the DC Court of Appeals, and the Supreme Court’s recent refusal to hear the case seals that appellate ruling.

The tribe contended that the BIA’s interpretation of MILSCA effectively prevents tribal members from obtaining land in areas suitable for viable economic development.

$88 Million Judgment

In January 2023, a court ordered the Sault Tribe to compensate investors involved in the two failed casino projects, resulting in an $88 million damage award.

The investors sued the tribe in April 2020, alleging breach of contract and fraudulent misrepresentation, stating that false assurances were made regarding their prospects of securing approval for the projects.

After an appeal from the tribe, a settlement was reached, with the tribe agreeing to pay around $25 million to resolve the issue.

Summary

In summary, the US Supreme Court’s decision to not hear the Sault Tribe’s appeal marks a significant setback in their efforts to expand gaming operations into a desired urban area. The denial to add land into trust highlights ongoing regulatory challenges faced by Native American casinos in their quests for economic development and growth. With the tribunal’s ruling, the tribe is also saddled with substantial financial obligations to investors left in the lurch by the abandoned projects. This situation reflects broader complexities in tribal gaming legislation and the challenges faced by tribes in navigating the legal landscape surrounding casino development across state lines.