Amid lack of state approval

Michigan: Little River Band of Ottawa Indians' $180M casino project in Muskegon reportedly halted

2025-01-07
Reading time 1:36 min

The proposed $180 million casino resort in Muskegon County by the Little River Band of Ottawa Indians may be reportedly reaching a dead end, according to Ogema Larry Romanelli. The proposed Muskegon casino would have been the Little River Band's second gaming facility, complementing their existing Little River Casino Resort in Manistee. 

The issue centers on the intersection of tribal sovereignty, federal recognition processes, and state approvals for off-reservation gaming, according to local media reports.

The tribe has invested about 14 years and $30 million into developing the casino, which was planned for a 60-acre site in Fruitport Township near the intersection of I-96 and U.S. 31, the former location of the Great Lakes Downs racetrack.

In December 2020, the U.S. Department of the Interior granted federal approval for the project by taking the land into trust for gaming purposes. Despite federal approval, the Indian Gaming Regulatory Act requires the consent of the state's governor for off-reservation casinos. Romanelli indicated that without Gov. Gretchen Whitmer's approval, the project cannot move forward.

In June 2022, Whitmer declined to approve the Little River Band's casino project. The governor's hesitation appears to be linked to another tribe's pursuit of federal recognition — the Grand River Bands of Ottawa Indians — whose claim overlaps with the land intended for the casino.

The Grand River Bands are recognized by the state of Michigan but not by the U.S. Department of the InteriorIn a letter to the Department of the Interior, Whitmer requested an extension of her deadline to decide on the casino application, hoping to wait until the federal government's decision on the Grand River Bands' recognition. The extension was denied.

"Despite the strength of its proposal, however, I am unable to concur in the Little River Band’s two-part determination because of the remaining uncertainty created by the Grand River Bands’ pending acknowledgment petition," Whitmer stated in a letter.

In March 2023, the U.S. Bureau of Indian Affairs issued a proposed finding denying federal recognition to the Grand River Bands.  

The Great Lakes Downs racetrack opened in 1999 and closed in 2007. The Little River Band of Ottawa Indians purchased the property in 2008 with plans to build the casino. The planned Lakeshore Casino and Resort would have included 1,700 slot machines and 35 table games. Muskegon is one of the Little River Band's service areas.

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