The Grand Traverse Band of Ottawa and Chippewa Indians has taken its fight with federal gaming regulators to court, filing a lawsuit that could determine the future of its Crystal Shores Casino in Benzie County, Michigan.
Filed June 9 in federal court in Washington, the case challenges a regulatory policy known as the “one-bite rule.” Tribal leaders argue the policy improperly blocks gaming on land that otherwise qualifies under the Indian Gaming Regulatory Act’s restored lands exception.
The tribe argues that the Benzie Parcel site, where Crystal Shores Casino opened in January 2025, satisfies federal requirements because it was placed into trust after federal recognition was restored and holds longstanding historical and cultural importance to the Band.
Federal regulators reached a different conclusion. According to the complaint, officials determined that the tribe’s “existing gaming facilities precludes a finding” that the Benzie Parcel qualifies under the restored lands exception. Regulators later rejected an amendment to the tribe’s gaming ordinance and issued a Notice of Violation directing the casino to stop operations.
The tribe alleges the requirement “finds no support in the text or purpose of the Indian Gaming Regulatory Act (IGRA)” and is “wholly inconsistent with the NIGC’s and Department of the Interior’s past interpretation of IGRA.”
Tribal casino disputes continue across the country amid Michigan lawsuit
Court battles over casino approvals are unfolding in several states as tribes, regulators and competing interests continue to contest how gaming laws should be applied.
In Michigan, the Grand Traverse Band says Crystal Shores employs roughly 40 people and provides stable jobs and health benefits in a region where year-round employment can be limited. The complaint states the casino “exemplifies IGRA’s goals of ‘promoting tribal economic development, self-sufficiency, and strong tribal governments.’”
The lawsuit also points to earlier litigation involving Turtle Creek Casino, where courts and agencies recognized the tribe as a restored tribe. According to the filing, the existence of other gaming facilities did not affect those earlier determinations.
Similar legal fights are underway in California. In March, a federal judge paused litigation involving the Koi Nation casino proposal in Northern California while related appeals move forward. Earlier this week, the Picayune Rancheria of the Chukchansi Indians sued to block the North Fork Rancheria of Mono Indians from advancing a planned resort casino in Madera County. Another lawsuit filed by the Yocha Dehe Wintun Nation challenges Vallejo approvals connected to a temporary casino project backed by the Scotts Valley Band of Pomo Indians.
Back in Michigan, federal regulators warned that continued operation of Crystal Shores could trigger civil penalties reaching $65,655 per violation per day.
The tribe is asking the court to strike down the one-bite rule, overturn the Notice of Violation and ordinance disapproval, and prevent future enforcement actions tied to the challenged policy. Local officials have largely supported the casino. Benzie County Sheriff Kyle J. Rosa stated: “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.”
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