An unlicensed casino that opened suddenly in November in Vanderbilt, just north of Gaylord, appears to have closed at noon today after a federal judge ordered its operators to shut down the facility.
The Bay Mills Indian Community closed the casino after U.S. District Judge Paul L. Maloney in Kalamazoo this morning granted a preliminary injunction sought by the state and
A man who answered the phone at the Vanderbilt casino said it closed at noon. He declined to identify himself. Tribal officials and lawyers couldnt immediately be reached for comment.
John Sellek, a spokesman for Michigan Attorney General Bill Schuette, said the ruling gives an early indication that Bay Mills isnt likely to win the battle.
Were very pleased with the decision because the court has agreed the casino is operating illegally and must close immediately, Sellek said. We have no reason to believe they wouldnt follow a court order.
The tribal newspaper reported March 24 that Bay Mills has expanded the casino since it opened last year and now has 84 slot machines and 15 employees.
The Little Traverse Bay Band argued the facility was causing irreparable harm to its casino in Petoskey. The judge also ruled that the state is losing out on tax money that could be collected in Petoskey because of business being diverted to Vanderbilt.
Bay Mills opened the tiny facility on property it bought with proceeds from a land dispute, arguing that the purchase made the new property Indian lands eligible for gaming.
Maloney rejected that argument.
Such purchase is not a consolidation and enhancement of tribal landholdings, Maloney ruled. Therefore, the Vanderbilt Casino is not on Indian land. Little Traverse Bay has established irreparable harm. The evidence in the record demonstrates that the Vanderbilt Casino directly competes for gambling dollars with the Petoskey Casino and that gamblers who were previously going to the Petoskey Casino are now going to the Vanderbilt Casino.
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