• By: Allen Brown

Why the Little River Band’s New Casino Could Be a Gamble That Doesn’t Pay Off

The Little River Casino and Resort is one of Michigan’s most exciting entertainment venues, making the charming town of Manistee a tourist destination. Owned and operated by the Little River Band of Ottawa Indians, the casino is estimated to pull in about $75 million in revenue annually. The casino has been around for over two decades, having opened its doors in the summer of 1999, and has doubled in size since then. 

Naturally, this means the casino has opened up numerous job opportunities and greatly contributed to the economic growth of Manistee over the years. As such, the Little River Band set out on a mission to expand its reach and its positive impact through another casino project. Aiming to develop this new project in Fruitport Town in Muskegon County, the group hoped to have a similar result. However, it is now 14 years later and the development has still not come to fruition. Why is this? 

The Long Road to Approval 

After 14 years of ongoing effort on the part of the Little River Band, the group spent over $30 million to have this project come to fruition. Outside of planning and investing, a crucial part of the development was the federal approval process which required the go-ahead from the US Department of Interior. This includes an amendment to the state’s gaming compact and an entrustment of the land to entertainment and gaming purposes. 

Either way, physical casino platforms are under immense pressure as it is, because of several iGaming operators as highlighted by CasinoBeats, which offer unique offerings and impressive convenience, along with great bonuses and a side selection of games. This situation could make the road ahead a bit bumpy for land-based operators.

By 2020, the Department of Interior had granted the Little River Band federal approval, after a decade of effort on the group’s part. Of course, this was seen as a major victory for the group, rekindling their momentum to see this project through. In turn, this sparked much excitement in the gaming and entertainment sector, with many anticipating the progression of the new casino after so long. 

However, a damper was put on this when a key piece of the puzzle kept eluding the group in the form of Governor Whitmer’s signature. Without this local consent under the IGRA (Indian Gaming Regulatory Act), the project, once again, has been halted. 

Whitmer’s Hesitation and the Political Landscape

Governor Whitmer’s hesitation to sign may be a confusing development for many, but the reason for the lack of signature is simple. It would seem the governor is attempting to avoid a turf battle, having voiced his concern with the location of the proposed casino. As it stands, the new project is planned to be constructed near the Grand River Bands of Ottawa Indians. And with this group currently seeking federal recognition as a tribe, Whitmer fears they may also want to construct a casino in this area.

Of course, while this is understandable, it could mean the end of more than a decade’s worth of effort made by the Little River Band. From the governor’s perspective, approving one project for a tribe, while another’s status is being decided might result in drastic consequences. Despite the Grand River Band not being federally recognized by the Bureau of Indian Affairs, it does not change the historical ties the group has to Michigan.

However, the Little River Band, historically was a Native Sovereign Nation that descends from the Grand River Band, acting as a political successor. These complex ties further complicate the situation and add that much more pressure on the governor when it comes to making a decision. If the Little River Band are descendants of the Grand River Band, can it be considered unethical for the Governor to approve one group’s project? Of course, the answer is not clear, and there are many other factors to take into consideration. 

The Grand River Factor: An Unrecognized Challenger

In order for a group to gain federal recognition by the state as a tribe, they need to meet the requirements laid out. And it would seem the Grand River Band had failed to provide the relevant proof to secure federal recognition, with them now attempting to gain approval. 

As it stands, east of the Mississippi River, the group remains one of the final treaty tribes yet to gain federal recognition. Despite being at the forefront of the American settlement and holding long-standing, historical ties to the land, the group has still not met the seven federal requirements.

While there is no definitive answer as to where the Grand River Band will end up in their journey for approval, it does raise some valid questions. For one, if the Little River Band were to receive approval for its casino project, how would this acknowledgment affect the Grand River Band? 

Taking their historical connection into account, would this create direct competition between the two groups? Or, would there be room for an agreement to be formed considering the Grand River Band has also voiced their desire for such an endeavor? Could an alliance possibly be formed between the two groups, making for a combined effort?

Local Voices and Economic Implications

When looking at the impact the proposed Muskegon casino would have on the surrounding communities, it is safe to assume it to be a positive one. For one, residents in Manistee are privy to a large number of job opportunities opening up which could bring down the unemployment rate in the state. 

Furthermore, the opening of this casino would mean an even larger tax revenue brought in for the state, making it the second steady stream provided by the Little River Band. There is also the expectation of increased tourism, with foreigners already flocking to Manistee for the Little River Casino.

In terms of resident reception to this proposed casino, there does not seem to be much objection. The Little River Casino is a point of pride for residents, it only makes sense for them to anticipate the opening of a second casino. Of course, this does raise the question of traffic influx to the town, and how that would impact the social dynamics within Manistee. On the other hand, if the casino fails to come to fruition, not only does the Little River Band lose a large sum of money, but it impacts the community negatively as well.

Whereas there previously may have been job opportunities, whether it be working at the casino or helping to construct it, that now falls away. And with Little River Casino greatly contributing to the economic sector, it would be a great loss for the state should the second project fail to materialize. 

Other Regulatory Hurdles 

Outside of the challenges already faced by the Little River Band, there are still other regulatory hurdles that might come their way. As it stands, it seems the group’s patience is wearing thin and their motivations for the project are drying up. Following a series of bumps in the road thus far, another issue might see the project be discarded altogether. 

For example, specific requirements need to be met for gubernatorial concurrence for off-reservation casinos, and other federal and state regulations that can slow the project down. There is also the process of dealing with environmental reviews and handling local zoning, which could further elongate the process. 

Conclusion

Ultimately, the fate of the Little River Band’s proposed second casino remains unclear, with the group steadily losing hope for it to become a reality. Despite this, the group has made considerable efforts and has met each challenge head-on, whether it be regulatory or inter-tribal dynamics. Only time will tell whether the group’s project will be realized, but it does bring into question the process of tribal economic development. 

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