Michigan: Revenue declines, Municipal costs increase, Welfare payments at casinos

Four Winds Casino sees slots revenue decline $25 million
By LOU MUMFORD Tribune Staff Writer

Story Created: Oct 3, 2010 at 1:07 AM EDT

NEW BUFFALO — Is the bloom off the rose of the Four Winds Casino?

Although that’s open to conjecture, figures filed recently with the Michigan Gaming Control Board have revealed that the three-year-old gaming facility, for the first time, has seen a drop in net slot-machine revenue.

For the 12-month reporting period of Aug. 1, 2009, to July 31, 2010, figures filed with the state by the Dowagiac-based Pokagon Band of Potawatomi Indians, the casino’s owner, revealed that the 2 percent payment of slot-machine revenue that will be turned over to local governmental units amounted to $5,727,151. That’s nearly $500,000 less than the roughly $6.22 million that was distributed by the casino’s Local Revenue Control Board during the casino’s second year of operation.

Multiplying the 2 percent payment by 50 shows that the casino took in $286,357,550 in net slot-machine revenue during its third year. The figure for the previous year was $311,432,600, showing a decline of just more than $25 million.

In its first year, the casino generated $309,246,850 in net slot machine revenue. It opened in August 2007.

The figures don’t include revenue generated by table games, which is not subject to tribal payments made to state and local governments. Generally, however, money collected from table games provide casinos with about 10 percent of total revenue.

The tribe’s gaming compact with the state calls for a 6 percent share of net slot-machine revenue to be paid to the Michigan Economic Development Corporation. However, David Hicks, the audit manager for tribal casinos overseen by the state Gaming Control Board, said an amendment to the compact approved two years ago allows that figure to be reduced somewhat. It still wasn’t clear Friday how much that payment would be, he said.

“If it (slot-machine revenue) goes down (from the previous year), it can be reduced by a certain percentage,” he said.

As for why slot-machine revenue has declined, Hicks said it likely was tied to the opening of the Nottawaseppi Huron Band of Potawatomi Indians’ $300 million FireKeepers Casino in Battle Creek. Berrien County Coordinator Bill Wolf also mentioned the impact of FireKeepers on Friday when he was informed of the 2 percent payment that will be distributed to local governments.

The country’s continuing economic problems and remodeling carried out at the nearby Blue Chip Casino in Michigan City also may have been factors, he said.

“I’m very pleased the (Four Winds) numbers are staying up in the face of all the competition this last year,” he said.
Paige Risser, the Pokagon Band’s communications director, said the tribe would have no comment on the revenue figures. That’s been the tribe’s stance since the casino opened.

Further broken down, the figures show the tribe averaged about $23.86 million a month in slot-machine revenue during its third year, compared to $25.95 million a month during its second year and $25.77 million in its first year. The average daily slot-machine take for the just completed year was a little less than $800,000.

The Pokagon Band earlier this year announced plans to open a satellite casino on Interstate 94, just outside the east Berrien County line. The tribe’s gaming compact with the state limits that facility, however, to 1,000 slot machines.



Berrien County wants to Four Winds Casino to pay 911 costs
By TOM MOOR, Tribune Staff Writer

Story Created: Aug 11, 2010 at 3:42 PM EDT

NEW BUFFALO — Should Berrien County be reimbursed for 911 dispatches to Four Winds Casino and areas surrounding it?

The Pokagon-New Buffalo area local revenue sharing board will get the final say as it ponders the request over the next few weeks.

Berrien County Administrator Bill Wolf on Tuesday asked the board to distribute $101,376 to cover the county's 911 dispatch service cost in that area. A similar request for about $112,000 was denied last year.

"I believe they are legitimate," said Wolf, who added resubmitting the request was not out of disrespect to the board.

...Wolf said he came to the number based on an increase in calls the county has responded to since the casino was built in 2007. Since then, he said, there have been more than 3,000 additional calls to that area. The amount of money being asked for is the number of additional calls multiplied by an average of $32 per call.

Wolf said the local revenue sharing board is "very fair and considerate in distribution," but added: "I can't escape the fact. It should be presented as a cost."

The county also is asking for $39,231 for a Health Department cost impact and $9,959 for judicial and jail costs, all relating to Four Winds Casino. The judicial and jail costs are associated with people being arrested at the casino, and the costs the county pays as they go through the legal system. The Health Department costs will pay for various services, including maternal and infant support for families and employees of the casino, substance abuse treatment services for clients and addressing public health and communicable diseases for employees of Four Winds Casino.

The board also will review a request to reimburse about $555,000 to New Buffalo Township to pay Berrien County for providing police service to the township.

Bill would ban welfare benefits from casino ATMs
By Jason Overholt

Story Created: Sep 21, 2010 at 7:45 PM EDT


LANSING, Mich. (AP) — Legislation aimed at preventing Michigan welfare recipients from withdrawing taxpayer money from ATM machines while at casinos has passed the Senate.

The bill passed unanimously Tuesday and advances to the House.

Michigan uses a debit or "bridge" card to deliver food and cash benefits to public assistance recipients. Many automatic teller machines accept the card to withdraw cash benefits.

Republican Sen. Bill Hardiman of Kentwood wants the state to block access at casinos. He says most people would agree that gambling with taxpayer dollars "isn't an appropriate use."

Hardiman says the state has determined about $87,000 in assistance funding was withdrawn at Detroit's MotorCity Casino within a recent one-year period.

Couple gets jail for leaving baby in casino garage

ROSEVILLE, Calif. (AP) — A Northern California couple who left their newborn daughter in a casino parking garage while they went gambling are heading to jail.

A Placer County Superior Court judge sentenced Thuan Huy Nguyen and Panfila Phu Phan on Wednesday to 60 days. He also ordered them to attend a mandatory parenting class as part of a four-year probation sentence that could result in their regaining custody of the baby.

The couple were arrested in April after a security guard at Thunder Valley Casino found their 7-week-old infant alone in a car. Investigators determined the baby had been there for about 2½ hours.

The Rancho Cordova residents, both 27, pleaded no contest to felony child abuse charges in June.

Defense lawyer Anthony Palik says they know they made a poor decision.