January 14, 2013
The contract dispute between the Fond du Lac Band of Lake Superior Chippewa and the city of Duluth has finally been decided by the federal court of appeals. The court has ruled in favor of the Fond du Lac Band and their casino.
Originally, both the tribe and the city worked together on an agreement to build the Fond du Luth casino. In 1994, there was a new agreement made. 19% of the revenues earned from the slot machines would be paid to the city. Yearly this earned the city around $6 million. This money was used by the city to improve roads.
In 2009, the tribe stopped paying the city. The tribe stated that it was illegal for the city to collect the money from the casino. The tribe argued that the agreement went against the federal law. That tribes have the right to have sole proprietary interest of their casino operations.
The city then sued the tribe for the money they felt was owed to them.
The first ruling from the lower court was in favor of the tribe. The city appealed to the federal appeal court. The tribe was again ruled in favor of. Duluth plans on appealing the ruling again.
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