LANSING (WKZO-AM) — Sixty-five employees at the Michigan Economic Development Corporation have been given layoff notices because of a dispute between the Gun Lake Casino and the State of Michigan over online gambling.
That’s around 20 percent of the agency’s staff.
The tribe says the state’s decision to take the lottery and other games online violates their compact with the state. They opted to hold onto their June payment.
The governor’s office is negotiating, trying to get the tribe to change their minds.
It has happened before. Native American casinos cut off their payments to the state when Detroit casinos opened years ago for the same reason.
The Gun Lake Tribe says it’s no longer obligated to pay the percentage of the slot machine revenue they agreed to pay for exclusive rights to their part of the state. That comes to around $14 million annually.
Since that money was used to fund the MEDC, it will reduce the agency’s staff from 307 to 242 on Oct. 1. CEO Steve Arwood said they will train their remaining staff to cover as much of the work as they can.
– John McNeill
