Grand Traverse Band Sues Federal Regulator Over Rule Threatening Michigan Casino

The Grand Traverse Band of Ottawa and Chippewa Indians has filed a lawsuit against the National Indian Gaming Commission (NIGC) challenging a federal policy that could force the closure of one of its Michigan casinos. The tribe argues the so-called "one-bite rule" unfairly restricts gaming on restored tribal lands and seeks to have the regulation overturned.

The policy at issue limits tribes to a single casino on lands regained after federal recognition was restored. For the Grand Traverse Band, which operates multiple gaming facilities in northern Michigan, the rule could require the shuttering of a casino built on such restored territory. The tribe contends the NIGC’s interpretation exceeds its authority under the Indian Gaming Regulatory Act.

Legal experts say the case could set a precedent for other restored tribes across the United States. Many tribes that had their recognition terminated in the mid-20th century and later regained federal status face similar restrictions on economic development. A favorable ruling for the Grand Traverse Band could open the door for expanded gaming on restored lands elsewhere.

The lawsuit was filed in federal court, though no hearing date has been set. The NIGC has not publicly commented on the litigation. The Grand Traverse Band’s existing casinos employ hundreds of people and generate significant revenue for the tribe’s community programs.