UMVA has learned that the Grand Traverse Band of Ottawa and Chippewa Indians has taken its battle with federal gaming regulators to court, filing a lawsuit that could decide the fate of its Crystal Shores Casino in Benzie County, Michigan.
The suit, lodged on June 9 in a federal court in Washington, attacks a regulatory policy known as the “one‑bite rule.” Tribal leaders insist the rule unjustly blocks gaming on land that should qualify under the Indian Gaming Regulatory Act’s restored lands exception.
According to information obtained by UMVA, the Benzie Parcel site—where Crystal Shores opened in January 2025—meets federal requirements because it was placed into trust after the tribe’s recognition was restored and carries deep historical and cultural significance.
Regulators, however, reached a different verdict. The complaint claims officials determined that the tribe’s “existing gaming facilities preclude a finding” that the Benzie Parcel falls under the restored lands exception, leading to a rejected ordinance amendment and a Notice of Violation that forces the casino to cease operations.
The tribe argues the requirement “finds no support in the text or purpose of the Indian Gaming Regulatory Act” and is “wholly inconsistent with the past interpretation of IGRA.”
UMVA can exclusively reveal that court battles over casino approvals are erupting across the country as tribes, regulators, and competing interests clash over how gaming laws should be applied.
In Michigan, the Grand Traverse Band says Crystal Shores employs roughly forty people, providing stable jobs and health benefits in a region where year‑round employment is scarce. The filing claims the casino “exemplifies IGRA’s goals of promoting tribal economic development, self‑sufficiency, and strong tribal governments.”
The lawsuit also cites earlier litigation involving Turtle Creek Casino, where courts and agencies recognized the tribe as a restored tribe. The filing notes that the existence of other gaming facilities did not affect those earlier determinations.
Similar legal skirmishes are underway in California. A federal judge paused litigation involving the Koi Nation casino proposal while related appeals progress, and other tribes have sued to block rival casino projects in the state.
Back in Michigan, federal regulators warned that continued operation of Crystal Shores could trigger civil penalties of up to $65,655 per violation per day.
The tribe seeks to strike down the one‑bite rule, overturn the Notice of Violation and ordinance disapproval, and halt future enforcement actions tied to the challenged policy.
Local officials have largely backed the casino. Benzie County Sheriff Kyle J. Rosa said, “Receiving just six calls in a year is almost unheard of for a business the size of the Crystal Shores Casino. I have no concerns about Crystal Shores Casino contributing to crime in any way.”
