Tuesday, the Gun Lake Tribe announced details of its spring revenue sharing payments. The State of Michigan received $4,419,006 and the local revenue sharing board received $2,209,503. GLIMI, an economic development entity, received $1,325,702. The figures are calculated from electronic gaming revenues reported from October 1, 2019 to March 31, 2020. The spring revenue sharing distribution is especially critical during the financial crisis due to the COVID-19 pandemic.
“This is the most important revenue sharing distribution we have ever made because it comes at a time when all units of government are dealing with terrible financial impacts due to the global pandemic,” said Bob Peters, Chairman of the Gun Lake Tribe. “The next revenue sharing distribution will suffer a dramatic loss due to the casino closure, followed by limited operations upon reopening.”
The Gun Lake Casino will reopen to the public on June 8, 2020. The Casino closed on March 16, and when it reopens there will be limited slot machines and table games to adhere to social distancing and other safety plans. Non-gaming amenities such as the Harvest Buffet will remain closed until further notice. The loss of revenue has negatively impacted the Tribe, its employees, and many local municipalities.
The Tribe recently commissioned an economic impact study that revealed the tribal government, Gun Lake Casino and other subsidiaries contributed $1.5 billion to Michigan’s economy in the first seven years of gaming operations. In total, the Tribe employs nearly 1,300 individuals within the government, gaming and investment operations. The Tribe’s annual direct payroll is over $48 million. Another $36 million is spent by the Tribe annually on goods and services that are purchased from Michigan-based companies.
The Tribe’s state revenue sharing payments are dependent on the continued preservation of exclusive gaming rights within its competitive market area, as defined by the tribal-state gaming compact, which also includes statewide expansion of certain lottery games. The market area includes the cities of Grand Rapids, Kalamazoo, and Lansing, as well as the entire counties of Kent, Kalamazoo and Ingham, among others.
The Local Revenue Sharing Board receives and administers the semi-annual payments. The gaming compact prescribes mandatory funding to local municipalities for: costs incurred due to the operation of the casino; public safety services; and replacement of tax revenue. The Board established by-laws to govern the distribution process. The local payments are made under terms of the gaming compact independent of gaming exclusivity.
Gun Lake Casino opened in February 2011 and now employs over 1,100 team members. The Gun Lake Tribe has now shared $144,291,552 with state and local governments over nineteen (19) distributions.
