Helping hand or handful Mohegan say their take small, Kenosha casino would help needy tribe

The Connecticut-based Mohegan tribe's take from the proposed Kenosha casino would amount to little, according to a Mohegan executive.

The wildly successful Mohegan tribe's role in Wisconsin grew from a desire to help some less fortunate American-Indian tribes -- in this case, the Menominee, said Charles Bunnell, chief of staff for the Mohegan gambling operation.

"There is economic benefit to the Mohegan tribe, as well as obviously to the Menominee tribe," if the $808 million mega casino, hotel and entertainment complex planned for Kenosha wins the necessary approvals and is built, Bunnell said.

Though he stressed altruistic motives, the Mohegan's role in the Kenosha project has sparked concern verging on outrage by the Forest County Potawatomi tribe, which fears a big financial drain at its Milwaukee casino.

"The Mohegan are a billion-dollar business . . . and their decisions are based on the economics," Potawatomi spokesman Ken Walsh said. The generosity motive is little more than a "nice PR pitch," he said.

Bunnell characterized the Mohegan stake in the Kenosha deal as trivial. According to its casino management agreement, the Mohegan would get 13.4% of net revenues from the casino for seven years.

Using the Menominee's projected annual take of $482 million once the Kenosha gambling hall is up and running, that would yield as much as $65 million a year for the Mohegan, though the actual figure likely would be somewhat less.

That's money that would be drained from the Milwaukee area and serve to only enrich an already wealthy tribe, Walsh said.

The Mohegan have stayed mostly behind the scenes, in a war of words waged by Potawatomi and Menominee officials over the past two years.

But Bunnell called the Potawatomi opposition "a bit hypocritical" and said the Menominee were seeking only the same thing the Potawatomi received -- federal and state approval for an off-reservation casino.

Federal approval is seldom granted, but Bunnell said the Potawatomi success in Wisconsin encouraged the Mohegan to partner with the Menominee on the Kenosha plan.

It remains under review by the U.S. Bureau of Indian Affairs, and Bunnell said he's hoping for a positive recommendation before the end of the year. The project needs that and the approval of the Wisconsin governor.

Neither Democratic Gov. Jim Doyle nor his Republican challenger, U.S. Rep. Mark Green, has tipped his hand on the issue. Both have said, however, there must be local support for a casino. Kenoshans favored the casino by a strong majority in a 2004 referendum.

Although the Mohegan hope for a speedy decision on the Kenosha casino, "unfortunately, there are forces at work to slow the project down, by competitors," Bunnell said. By that he meant the Potawatomi, who have lobbied hard against the plan.

Financial empire grows

The Mohegan tribe's road to wealth began in 1994, when it won federal recognition, following a path set by the neighboring Mashantucket Pequot. The two tribes operate the biggest casinos in the United States, with the Mohegan expected to overtake the Pequot this year in revenue from its twin Mohegan Sun casinos in Uncasville, Conn.

In the 2005 fiscal year, the Mohegan casinos produced about $1.2 billion, with its hotels, convention center and other casino-related businesses adding another $211 million. Last year, the tribe paid Connecticut $217 million, or 25% of slot machine revenue. The payment rate was set to resolve a state lawsuit objecting to federal recognition of the tribe.

The Mohegan casinos' revenue is growing at 3% to 6% a year, far outpacing the Pequot's 1% annual growth rate, said Clyde Barrow, a University of Massachusetts Dartmouth professor and author of a detailed report on the Connecticut casinos.

He attributed the healthy Mohegan growth to savvy marketing and use of casino floor space, with almost constant tweaking in the variety and location of games.

Put another way, the Mohegan's $1.2 billion gambling revenue in 2005 is about equal to the output of all Wisconsin casinos last year. Revenue from the Potawatomi casino in Milwaukee alone was $304 million.

Helping finance and manage the Kenosha casino is part of a Mohegan growth strategy that includes another partnership, with the Cowlitz tribe, for a casino in southwest Washington state. The Mohegan also purchased a racetrack in Wilkes-Barre, Pa., where they are adding a casino.

A major Mohegan expansion in Connecticut also is under study, Bunnell said. A new hotel and casino expansion costing around $1 billion is expected to be announced this year, Barrow said.

Walsh, the Potawatomi spokesman, pointed to large campaign donations from the Mohegan to Doyle as an unwelcome meddling in Wisconsin politics.

Mohegan executives have given $25,000 to Doyle and $20,000 to the Wisconsin Democratic Party, all within the past 16 months. Kenosha businessman Dennis Troha, another partner in the Kenosha casino bid, and his family members also have given $237,000 to Doyle.

"I do not in any way feel like a political contribution buys approval of any project," Bunnell said.

During Doyle's first run for governor, the Potawatomi tribe donated $225,000 to the Democratic Party and to Doyle's inauguration. Potawatomi tribal members and lobbyists have given Doyle $6,653.

No donations from either tribe were made to Green, Doyle's Republican opponent for governor this fall.

Both tribes have given to Democratic and Republican candidates and party committees.