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Tribal Casino In Michigan Stops Revenue-Sharing Payments Because Of Online Lottery Launch

The Gun Lake Tribe Says I-Lotto Violates Compact

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Gun Lake CasinoA Native American tribe with a casino in Michigan has stopped paying the state its cut because the state elected to offer lottery games on the Internet.

The tribe believes the state violated their revenue-sharing compact by launching online lottery products last summer. The compact was negotiated back in 2007.

The Gun Lake Tribe stopped making payments in June. The Michigan Economic Development Corporation receives roughly $60 million annually from the state’s tribal casinos. The Gun Lake Casino contributes roughly $13.3 million to the state annually.

According to crainsdetroit.com, other tribes may follow suit and stop their respective payments. Michigan has 12 tribes that have gambling facilities.

So far in 2015, online lottery sales have yielded $15.9 million for the state.

Americans spent more than $70 billion on the lottery in 2014, which makes it the most popular form of gambling in the country. More and more states are considering offering games on the Internet, with the most recent being North Carolina, according to a report from the Winston-Salem Journal. Florida is also considering bringing the games to the Internet one day.

State lotteries basically were given permission by the federal government to pursue online lottery services and products when the Department of Justice re-interpreted the Wire Act in December 2011. That move also resulted in three states launching online poker.