News

Judge ends casino payments to city of Duluth

Photo:

Nov 22, 2011 at 10:29 am

DULUTH, Minn. (AP) - A federal judge has ruled the Fond du Lac Band of Lake Superior Chippewa no longer has to give the city of Duluth a cut of its casino profits.

But, U.S. District Court Judge Susan Nelson says the band must make pay the city money it has withheld since the dispute over casino revenue began in 2009. The Fond du Lac Band estimates it could amount to $14 million.

The band has been sending the city 19 percent of its video game profits since it opened its Duluth casino, Fond-du-Luth, in 1986.

The loss of the annual $6 million payment has city leaders concerned about infrastructure needs. Councilor Todd Fedora tells the Duluth News Tribune it could throw Duluth streets "into major jeopardy'' without the revenue.