New wrinkle: Potawatomi sue over Kenosha casino reimbursement language

MADISON (WITI/AP) —The Forest County Potawatomi have filed a lawsuit challenging the federal government's rejection of compact language that would have left the state on the hook for reimbursing the tribe if the rival Menominee Tribe gets a casino in Kenosha.

Arbitrators in November came up with an amendment to the Potawatomi's gambling compact with the state that formally established the state would be responsible for reimbursing the tribe for Kenosha-related losses and laid out a process for calculating payments. The Bureau of Indian Affairs nixed that amendment earlier this month.

The Potawatomi filed suit in Washington, D.C., on Thursday, January 22nd. The tribe alleges that the Bureau of Indian Affairs exceeded its authority in rejecting the compact amendment.

This, as Governor Scott Walker says the decision on the Kenosha casino project is quote, "imminent." His comments come ahead of a February 19th deadline for a decision. Governor Walker holds all the cards on a potential new casino in Kenosha, and he says he's getting ready to lay them on the table.

"It'll be imminent, pretty quick here," Walker said.

The proposed $800 million Hard Rock Casino and Hotel would bring thousands of jobs to Kenosha, but the Governor remains concerned about potential consequences for taxpayers.

"It's pretty clear without major changes in the compacts that Jim Doyle approved about a decade ago, there's a huge risk to the state that we could lose $100 million or more just over the next few years, let alone the hundreds of millions or potentially more beyond that in the future. It's a huge concern," Walker said.

The Governor's comments come as the Potawatomi Tribe filed that lawsuit against the federal government. The tribe says the Federal Bereau of Indian Affairs overstepped its authority when it threw out a plan that would have put state taxpayers on the hook for potential losses at the tribe's Milwaukee casino.

Potawatomi's 2005 compact with the state says if any governor approves a new casino within 30 to 50 miles of Potawatomi, a substitute amendment must be agreed to.

Potawatomi's lawyer said in a statement:

The Menominee Tribe issued this statement:

Governor Walker signed a new compact with the Menominee Tribe this week. It has been sent to the Bureau of Indian Affairs for approval. The Menominee Tribe says it "ensures Wisconsin's taxpayers are not on the hook for Potawatomi's profits."

But as of Thursday morning, the Governor was not convinced.

"I don't think there's anything they can or will do in the future to make it any easier to protect the state's taxpayers. That's really what it boils down to," Walker said.

The Menominee Tribe on Thursday responded to Governor Walker's comments. The tribe says it and Hard Rock will post a bond to ensure that taxpayers are protected from making payments to the Potawatomi.



Features of the proposed Kenosha casino include:

CLICK HERE to read more about the proposed Kenosha casino project.