Gun Lake Casino increases revenue-sharing payments to $8.6M
The Gun Lake Tribe makes fourth payment to state and local governments.
The Gun Lake Tribe in Wayland Township announced its fourth revenue sharing payments to the state and local governments today, with the State of Michigan getting $7,002,443 while the local revenue sharing board received $1,679,512.
The payments are based on electronic gambling machine revenues and are made every six months, with the current payment covering the period from April 1 to Sept. 30.
“This is the largest payment so far,” said James Nye, a spokesperson for the tribe. “The second highest payment came in June 2012 at $8,076,629 for the total state and local.”
The revenue sharing payments were established under the terms of the state’s compact allowing the tribe to open the casino.
“Since the Gun Lake Casino opened under two years ago, the tribe has shared over $27 million with the state, local governments, schools and many others. That does not include donations made by our charitable giving program,” said D.K. Sprague, chairman of the Gun Lake Tribe. “This is another example of the tribe living up to its word; promises made, promises kept.”
The local revenue share is based on 2 percent of net win from electronic gaming devices, while the state payment is calculated on a sliding scale between 8 and 12 percent. A portion of the current state payment was calculated at 10 percent of net win.
The state revenue sharing payments are dependent on the continued preservation of exclusive gaming rights within the Gun Lake Tribe’s competitive market area, defined by the compact agreement with the state as including Grand Rapids, Kalamazoo, and Lansing, as well as the entire counties of Kent, Kalamazoo and Ingham, among others.
The gaming compact requires mandatory funding to local municipalities for costs incurred due to the operation of the casino; public safety services; and replacement of tax revenue that would have been paid by a non-Native American business.
Gun Lake Casino opened in February 2011 and now employs more than 800 people.