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Judge OKs Tribe’s Casino Deal in Detroit

A federal judge Friday approved a $79 million settlement of an Indian tribe’s nearly 7-year-old lawsuit against operators of two of the city’s three casinos.

The decision clears the way for a higher court to lift its court order blocking the casinos from expanding at new, permanent locations. In exchange, the casinos will pay $39.5 million each to the Lac Vieux Desert Band of Lake Superior Chippewa Indians, which operates its own casino in the Upper Peninsula village of Watersmeet.

A separate out-of-court deal with two former casino investors will bring the tribe an additional $15 million, for a total of $94 million. There are 430 tribe members; lawyers’ fees have not yet been estimated.

"This is certainly good news, not only for the tribe but for the city as well," said tribe lawyer Conley Schulte. "It’s been a very long road."

Friday’s ruling leaves unsettled the tribe’s effort to overturn the franchise of Detroit’s third casino, the MGM Grand Detroit Casino. The tribe is seeking a chance to bid for the franchise now held by MGM.

The casinos and the tribe have been locked in a legal battle that began a year after voters approved casino gambling in the city.

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