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Potential casino takes big blow - Port Huron Times Herald

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Hopes for bringing a casino to the Blue Water Area might be dashed, Port Huron Mayor Pauline Repp said after a federal judge ordered Bay Mills to shut down its casino in Vanderbilt.

"If this doesn't work, then I think the chances are very slim," she said of a casino coming to the city.

Officials have said the Vanderbilt casino -- opened by the Bay Mills Indian Community

-- was a test run for opening casinos in other areas, including Port Huron. The tribe bought about 16 acres of property from Acheson Ventures for $100,000 on the same day it opened the Vanderbilt casino.

"It's an unfortunate loss for Port Huron," Repp said. "I guess I still don't understand why other communities can have casinos and Port Huron cannot."

Chief U.S. District Judge Paul Maloney issued a preliminary injunction Tuesday morning mandating the Vanderbilt casino be shut down by noon.

"The court finds that Bay Mills is operating the Vanderbilt casino illegally," according to the federal judge's order. "As a result, through the continuing operation of the Vanderbilt casino, Bay Mills invites the public to violate Michigan's prohibition on attending gambling houses, a misdemeanor. ... The public has an interest in not being enticed to violate the law."

A woman who answered the telephone at the casino about 12:30 p.m. Tuesday said it had been closed. Bay Mills officials did not return phone calls.

The state of Michigan and the Little Traverse Bay Bands of Odawa Indians filed suits against the tribe in December, claiming the Vanderbilt casino was operating illegally because it opened Nov. 3
without state or federal approval.

Bay Mills officials had contended such approval wasn't necessary because the property was bought with money from the Michigan Indian Land Claims Settlement Act, making it tribal land.

The court didn't agree with their argument.

"Make no mistake, today's ruling sends a clear message to tribes and their non-Indian developers; you cannot circumvent the federal process and get away with it," James Nye, spokesman for the tribes fighting Bay Mills, said in a statement. "Our coalition remains committed to protecting the long-term stability of Indian gaming under the law. Therefore, we will continue to advocate for sound state and federal policy decisions."

John Sellek, a spokesman for the Michigan Attorney General's Office, said while the case will continue through the court system, they are pleased with the injunction.

"We're very pleased with the decision because the court agreed that the Vanderbilt casino is being operated illegally and we support its closing today," he said.

Sellek said preliminary injunctions are handed down only if a judge feels strongly that the case will be won by the plaintiffs.

"This ruling is not just a victory for Little Traverse and the state of Michigan, it is also a victory for the Indian gaming industry," Ken Harrington, chairman of the Little Traverse Bay Bands, said in a statement. "It shows that the law will not tolerate those who violate the strict regulations that govern Indian gaming."



Source: http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHf1y_Va6nHWcrdybK3NRpvDdrFkA&url=http://www.thetimesherald.com/article/20110330/NEWS01/103300306/1002/news01/Potential-casino-takes-big-blow

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