Michigan’s Gun Lake tribe is opposed to the state’s decision to launch online lottery operations and has opted to withhold $7 million in annual revenue payments derived from its Gun Lake Casino, which is managed by the Station Casinos group.
The tribe says that withholding revenue payments is justified as online lottery violates its 2007 gambling agreement.
The Michigan state lottery ticket sales and scratchcards became available online at the end of 2014 with the hopes that the move would increase sales to nearly half a million dollars within the first eight years.
The tribe says that online lottery operations were discussed during negotiations in 2007 and it was agreed that such activity would violate the agreement in the tribe’s marketing area.
The state governor and tribal representatives held a meeting in an attempt to come to a resolution and although it was “productive”, it remains unresolved.