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Native American tribes are sovereign nations. As such, neither the State of Michigan nor the MGCB has regulatory authority over tribal casinos. They are regulated by the National Indian Gaming Commission and/or the government of the appropriate tribal community.

Tribal-State Gaming Compacts (written agreements between the tribal communities and the State) signed by the Governor give the MGCB staff oversight responsibility for the state's Native American casinos. This responsibility, originally assigned to the Michigan Department of Agriculture's Office of Racing Commissioner, was effectively transferred to the MGCB staff in June 1997 (the five-member Board has no involvement with tribal casinos).

Oversight responsibility by MGCB staff is limited to:

• Inspecting tribal facilities and documents to assure compliance with Tribal-State Gaming Compacts and related agreements.
• Examining casinos' electronic games of chance (slot machines, video poker, etc.) to assure that devices are operating in accordance with terms of Compacts.
• Conducting financial audits to assure that tribes are paying to the State 8% of Net Win derived from electronic games of chance, and 2% to local municipalities, in accordance with August 1993 Consent Judgement.

  Note - "Net Win" (sometimes referred to as "Adjusted Gross Receipts") is a casino's gross receipts, less winnings paid to wagerers.

1993 Compacts (seven tribes) - Under a Consent Judgment, the seven tribes who signed Tribal-State Gaming Compacts in August 1993 are required to pay 8% of their electronic video gaming and slot machine profits to the State, and 2% to local municipalities (the 8% payments to the State are deposited into the Michigan Strategic Fund, administered by the Michigan Economic Development Corporation, formerly known as the Michigan Jobs Commission). The Consent Judgment established a provision that the seven tribes would pay the State and local taxes as long as they possessed the "exclusive right" to conduct Class III gaming in the State. The seven tribes ceased paying the 8% fee to the State when the MGCB issued a Detroit Casino License (the 2% will continue to be paid to local municipalities, regardless of the issuance of a Detroit Casino License).

Note - In June 1999, Governor Engler and four tribes (Bay Mills Indian Community, Grand Traverse Band of Ottawa & Chippewa Indians, Hannahville Indian Community, and Sault Ste. Marie Band of Chippewa Indians) agreed to cease the 8% payments to the State prior to the MGCB issuing a Detroit Casino License... last day of payments was June 30, 1999.

Note - On July 28, 1999, the MGCB issued the first commercial Casino License ever issued in the state (to MGM Grand Detroit, LLC).

Additionally, each of the seven Federally-recognized tribes currently conducting casino gaming pays the MGCB $25,000 annually to offset the costs for oversight services.

1998 Compacts (four tribes) - In December 1998, the Michigan Senate and House of Representatives approved four additional Compacts signed by Gov. Engler:

• Little River Band of Ottawa Indians
• Little Traverse Bay Band of Odawa Indians
• Nottawaseppi Huron Band of Potawatomi Indians
• Pokagon Band of Potawatomi Indians

As with the seven tribes who signed Tribal-State Gaming Compacts in August 1993, these four tribes have agreed to allow the State to perform certain oversight duties (as described above). However, unlike the seven 1993 Tribal-State Gaming Compacts, the 1998 Compacts require each of the four tribes to pay:

• $50,000 annually to the State for oversight services - This amount may be adjusted annually according to changes in the Consumer Price Index
• 8% of their electronic video gaming and slot machine profits to the Michigan Strategic Fund, administered by the Michigan Economic Development Corporation (formerly known as the Michigan Jobs Commission) - Regardless of the issuance of a Detroit casino license by the MGCB
• 2% to local municipalities

Additionally, the 1998 Compacts limit the four tribes to one casino per tribe.

Minimum Age - Each tribe may establish its own minimum gambling age (but not less than 18 years of age). All commercial casinos in Detroit have a minimum gambling age of 21, as required by Michigan law. The Michigan Bureau of State Lottery and Office of Racing Commissioner (horse racing) have a minimum age of 18.