Long road to rejection: Walker's decision not to roll the dice on proposed Kenosha casino

MILWAUKEE (WITI) -- Governor Scott Walker has rejected the plan to build a Hard Rock Hotel & Casino in Kenosha. He says it could put tax payers on the hook for hundreds of millions of dollars. Some of his closest allies though, disagree.

With gambling there are always winners and losers -- this decision was no different.

The Potawatomi of course is celebrating today's announcement, but further south, there is a very different mood.

"I cannot put the taxpayers of this state on the hook of losing $100 million now, and possibly more in the future," said Governor Walker.

On Friday, January 23rd, Walker shares the report that guided him in making the controversial decision.

In 25 pages, Department of Administration Secretary, Mike Huebsch, explains why approving a casino is too risky.

Huebsch saying a Kenosha casino would 'cannibalize more than $100 million in gross gaming revenue' during the first stabilized year alone.

The Potawatomi could lose an estimated 22% of revenue, and the Ho-Chunk nation's casino is too risky.

The report however, is not all bad news.

Huebsch writes a new casino will result in a 'net positive economic benefit to the state of Wisconsin.'

So why the rejection?

The state says it's all due to an old agreement with the Potawatomi.

"There is more than 100 million reasons why we had to make this decision and they all fall firmly on the lap of former Governor Jim Doyle," said Walker.

The state says the Potawatomi are owed not just any losses from a new casino, but may also entitled to hundreds of millions already collected from the tribe.

"Every once in a while even someone you are a really good friend with gets it wrong, and this is a prime example," said Republican Assembly Speaker, Robin Vos.

Some of Walker's closest allies, say the decision was a mistake.

Vos says promises of repayment by the Menominee Tribe in his mind appeared to eliminate the risk.

"But I don't know how many opportunities we have to bring in thousands of jobs, guaranteed payments, millions of dollars of economic impact," said Vos.

After Friday's announcement, the Potawatomi Tribe opened its check book and gave the state $25 million they were holding pending the outcome of the Kenosha decision.

The states largest casino, still hitting the jackpot from its deal made a decade ago.