Date of Publication: June 10, 2026, 06:48h.
Last Updated: June 10, 2026, 06:48h.
- Michigan Tribe Fights Federal “One-Bite Rule” That Could Shut Down Casino
- Legal Action Aims to Overturn Regulation Affecting Restored Tribal Gaming
- This Case Could Transform Gaming Rights for Restored Tribes Across the Nation
The Grand Traverse Band of Ottawa and Chippewa Indians has initiated legal action against the National Indian Gaming Commission (NIGC) to safeguard its Crystal Shores Casino in Benzie County, Michigan. This lawsuit may have broad implications for tribal casinos beyond Michigan’s borders.
The NIGC, part of the Department of the Interior, asserts that the casino, which opened its doors in January 2025, is operating illegally due to a regulatory stipulation known as the “one-bite rule.”
This rule generally prohibits a restored tribe from establishing a gaming facility on certain restored lands if it is concurrently managing casinos in other locations. The Grand Traverse Band contends that this regulation is invalid since Congress did not impose such a restriction in the Indian Gaming Regulatory Act (IGRA) or any other federal law.
The tribe asserts that the text of IGRA and congressional intent do not limit restored tribes to a single gaming venture. They argue that the Interior Department introduced this restriction many years after the enactment of IGRA.
Third Attempt at Restoration
According to the complaint, the Grand Traverse Band was unjustly stripped of its federal recognition and a significant amount of land during the 19th century. It regained that recognition in 1980 and has had various parcels designated as trust lands by the federal government.
With the operation of Leelanau Sands Casino and Turtle Creek Casino in Northern Michigan, the Crystal Shores Casino has created around 40 job opportunities and serves as a vital economic initiative for the tribe and its local community.
In July 2025, NIGC concluded that the property in Benzie County was ineligible for gaming due to the tribe managing two other casinos.
Following this, the commission rejected the tribe’s amendment proposal to its gaming ordinance and subsequently issued a Notice of Violation in January 2026, mandating the cessation of gaming activities on the property.
NIGC also warned the tribe that it could face civil penalties amounting to $65,655 per day if operations persist at the casino.
Legal Landscape
IGRA typically forbids gaming on lands taken into trust after 1988 but does permit a “restored lands” exception for tribes that have regained federal recognition. The tribe maintains that it qualifies under this exception and asserts that the Benzie County parcel was part of its land restoration process.
However, under the one-bite rule, a restored tribe must demonstrate that the land was included in its first trust-land acquisition post-restoration or was acquired within 25 years after restoration and that the tribe is not operating casinos on other lands.
The one-bite rule is invalid for multiple reasons,” claim the tribe’s lawyers in the lawsuit. “It contradicts the text and intent of IGRA’s restored lands exception, along with IGRA’s broader statutory objectives, and the Indian canon of construction.”
They further argue that the stipulation requiring “the tribe is not gaming on other lands” lacks any basis in the text of the restored lands exception.
Historically, when the tribe opened its Turtle Creek Casino in 1996, courts and federal regulators recognized the establishment under the restored lands exception, despite the tribe already operating another gaming facility.
The Grand Traverse Band is seeking a court ruling to declare the one-bite rule invalid, annul the NIGC’s Notice of Violation, and disapprove of the gaming ordinance, preventing any further regulatory measures against Crystal Shores Casino.