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Four Winds Casino Slot Machine Figures Show Small Decline

Posted on October 4th, 2010

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As in any other casino, the Four Winds Casino has been dubbed by onlookers and supporters as a standing hope for the state and its residents – everything from employment opportunities to additional tax revenue for the area’s projects and programs. Thus, when a bit of sad news comes and is linked to the gambling facility, it may be cause for panic for some sectors. The news itself however, is not indicative of a decline for Four Winds Casino. The figures recently released by the Michigan Gaming Control Board may still be subject to speculation, but they show that Four Winds, for probably the first time since its opening three years ago, has experienced a decrease in the net revenue of its slot machines.

The owners of the casino, the Pokagon Band of Potawatomi Indians, a tribe based in Dowagiac filed the figures with the state for the reporting period spanning 12 months, from Aug. 1, 2009 to July 31, 2010. The report revealed that their 2 percent payment of revenue in slot machines that will be allocated to local governmental units total to $5,727,151, which is almost $500,000 less than what the casino distributed during its second year of operation, which amounted to almost $6.22 million. By multiplying the payment of 2 percent by 50, this would show that the casino, during its third year, got a total of $286,357,550 in net revenue for its slot machines. If the same formula were to be applied to last year’s figures, the result would be a total of $311,432,600. The difference between the two figures would show a decline of more or less $25 million—a very significant amount.

During its first year of operation, Four Winds, which opened in August of 2007, raked in a modest $309,246,850 in net revenue in slot machines. Thus, the figures for 2009-2010 would be the lowest in the casino’s short history, so far. The figures do not include income generated from table games, as table games revenue is not subject to allocation of the casino for local and state governments; meaning all income from them goes straight to the casino. Speculators may argue though that the figures for table games will not really matter too much, because they only contribute more or less 10 percent of the total revenue of the casino.

Before the casino opened, the tribe made a gaming compact with the state which requires them to funnel 6 percent of their revenue from slot machines to the Michigan Economic Development Corporation. Upon being asked why then, is the figure down to 2 percent, the tribal casinos’ audit manager, David Hicks, who is being supervised by the Gaming Control Board of Michigan, said that two years ago, an amendment was introduced to the compact, allowing the allocation to go down from 6 percent to 2 percent. Moreover, he added that exact figures for the payment are not really definite yet. He was quoted in saying, “If it (revenue from slot machines) goes down (from the previous year), it can be reduced by a certain percentage.”

Hicks also gave his opinion on why revenue from the machines experienced a dip. According to him, the launch of the FireKeepers Casino, owned by the Nottawaseppi Huron Band of Potawatomi Indians and located in Battle Creek may be a reason. Bill Wolf, Berrien County Coordinator, also alluded to the impact of the $300 million gambling facility when information reached him of the 2 percent figures that Four Winds will be distributing to local governments. Moreover, Wolf mentioned other factors that may contribute to the dip of the slot machine income, including the continuing economic difficulties of everyone and the remodeling being done to the Blue Chip Casino in neighboring Michigan City. He adds, “I’m very pleased the (Four Winds) numbers are staying up in the face of all the competition this last year.”

The communications director of the Pokagon Band, Paige Risser, declined to give any comment on the figures, which has been the usual stand of the casino ever since it opened. The Pokagon Band has made an announcement earlier in the year that it will be opening another casino which will be smaller, as per accordance to the gaming compact.