Evolution of Compact Language Regarding Ancillary Facilities

Overview

The definition of an “Ancillary Facility” has evolved (see exact language below), but in general, Wisconsin Gaming Compacts define Ancillary Facilities as:

·         The facility must be one building;

·         The non-gaming portion of the facility must be equal to or larger than the gaming portion; and

·         The majority of the facility’s revenue must come from the non-gaming portion.


Original Compact Language & Subsequent Amendments

Excerpts from the Oneida, St. Croix and Ho-Chunk Gaming Compacts (and subsequent amendments) that specifically discuss “Ancillary Facilities” are as follows:


Oneida Compact

Authorized for four Ancillary Facilities; currently operating one in Green Bay and one in Pulaski.


1998 1st Amendment

Section XV, I. of the Compact is created to read; The Nation shall limit use of electronic games of chance at its One Stop Convenience Store enterprises to no more than four (4) locations. The number of electronic games of chance permitted at these four (4) locations shall be limited to the number of electronic games of chance in operation at those four (4) locations on the date of this Amendment. The records of the Department of Administration, Division of Gaming shall be the final authority for determining the number of electronic games of chance in operation at the Nation's One Stop convenience store locations on the date of this agreement


2003 2nd Amendment

Section XV (I) is deleted in its entirety and replaced with the following: 1. The Nation shall operate its One- Stop convenience stores located at W180 Highway S4 on a site comprising approximately .5 acres, 790 County Road EE on a site comprising approximately 1.4 acres, Highway 29 and County Road U on a site comprising approximately 1.5 acres, and 2730 West Mason Street on a site comprising approximately 1.5 acres, as dual purpose facilities if the Nation conducts Class III gaming at such facilities. For purposes of this Section, "dual purpose facility" means a facility which is operated for retail or other commercial purposes in addition to Class III gaming.


St. Croix Compact

Authorized for one Ancillary Facility, which operates in Webster.


1998 1st Amendment

Section XV. I. of the Compact is created to read: The Tribe shall limit use of electronic games of chance at locations other than its current facilities in Danbury and Turtle Lake to no more than one location, which is currently the Little Turtle Hertel Express. The number of electronic games of chance permitted at this location shall be limited to the number of electronic games of chance in operation at this location on the date of this agreement. The records of the Department of Administration, Division of Gaming shall be the final authority for determining the number of electronic games of chance in operation at the Little Turtle Hertel Express location on the date of this agreement.


2003 2nd Amendment

Paragraph 3 of the June 18, 1998 amendment is deleted in its entirety, and a new Section XVI.I. is created to read: The Tribe may continue to conduct class III gaming at the Little Turtle Hertel Express, 4384 State Highway 70, Hertel, WI., 54845, but only so long as that facility is operated for commercial purposes other than gaming, and no more than 50% of the square footage of a facility on a 1 acre lot at 4384 State Highway 70, Hertel, WI., 54845, is used for gaming purposes.


Ho-Chunk Compact

Authorized for five Ancillary Facilities; currently operating one in Tomah and one in Wittenberg.


1992 Compact

"Primary Business Purpose" means the business generating more than 50 percent of the net revenue of the facility. (Emphasis added)


XV.   ELECTRONIC GAMES OF CHANCE

H.   Game locations.

1.   Definitions. In this subsection:

a.     "Gaming facility" in regard to the Jackson County location means a single facility within the location whose Primary Business Purpose is gaming and two ancillary facilities limited to 15 games each, within the location whose Primary Business Purpose is not gaming; provided, however. as to one of the ancillary facilities, the limit shall be 50 games if the ancillary facility is located on land which is accepted into trust by the United States for the benefit of the Tribe after the date on which this Compact becomes binding on the parties and which is the subject of a determination by the Secretary of the Interior and concurrence by the Governor required by section 20 of the Act.

b.     "Gaming facility" in regard to the Sauk County location means a single facility within the location whose Primary Business Purpose is gaming and one ancillary facility limited to 15 games, within the location whose Primary Business Purpose is not gaming.

c.     “Gaming facility" in regard to any other location means a single facility whose Primary Business Purpose is gaming.


2.   Locations.

Unless the State by amendment to this Compact: consents to additional locations, games authorized and operated under this section XV. shall be conducted at: gaming facilities on the Tribe's Lands at not more than four locations, which locations shall be subject to the provisions of section XXVII. of this Compact; provided that the total number of games shall not exceed 400 among two of the locations.


XVI.   BLACKJACK

B.   Game Locations and Times.

1.  Locations. Unless the State by amendment to this Compact consents to additional locations, games authorized and operated under this section XVI. shall be conducted at not more than two locations, subject to the provisions of section XXVII. of this Compact; provided that the games are conducted at only one facility, whose Primary Business Purpose is gaming at each location.


XXVII.   GAMING LOCATIONS.

A.   For purposes of this section XXVII., and sections XV., XVI. and XVII., "location" means the Tribe's Lands within a county enumerated in this section.


B.   On or before May 1, 1992. the Tribe operated gaming on the Tribe's Lands at locations in Sauk. Jackson and Wood Counties. The Tribe proposes to conduct Class III gaming pursuant to this


Compact at these locations and on Tribal Lands at additional locations. The State agrees that the Tribe may operate Class III gaming as provided in this Compact on Tribal Land in Sauk, Jackson, and Wood Counties, but only as provided in this Compact. The State has offered to include a fourth location in this Compact, subject to certain conditions which are not now acceptable to the Tribe.

This section may be amended at a later date to enumerate the fourth location.


XXX. NOTICES.

B.   The Tribe now intends to conduct the games described in sections XV. and XVI. at Jackson and Sauk Counties. The Tribe shall provide at least 30 days written notice to the State if the Tribe intends to move these games to another location as permitted in this Compact.


C.   The Tribe now intends to conduct the games subject to the two location, 400 game total limitation, described in paragraph XV.H.2, in Wood County. The Tribe shall provide at least 30 days written notice to the State if the Tribe intends to designate another location as subject to this limitation.


1998 1st Amendment


Section XV.H.2. (Electronic Games of Chance Locations) is amended by deleting the phrase "provided that the total number of games shall not exceed 400 among the two locations." (Allows Nekoosa Facility in Wood County to have more machines.)


Section XVI.B.1. (Blackjack Locations) of the Compact is amended by deleting the word "two" wherever it appears in this section and replacing it with the word "three." (Allows Blackjack at Nekoosa Facility in Wood County.)


2003 2nd Amendment.


Shawano and Monroe Counties added to XXVII Gaming Locations.


Section XVI (Blackjack) of the Compact is amended by adding the following subsection:


E. LOCATION OF GAMING FACILITIES. Except as otherwise provided for in this Compact, unless the State by amendment to this Compact consents to additional locations, the Class III games authorized under this Compact may be conducted with one Gaming Facility located in each of the following Counties: Jackson, Sauk, Wood and Dane. In addition, the Nation may conduct any of the Class III games authorized under this Compact at five Ancillary Facilities two of which are located in Jackson County and one of which is located in each of the following Counties: Sauk, Monroe, and Shawano: As used herein the term Gaming Facility means a facility whose Primary Business Purpose is gaming, and the term Ancillary Facility means a facility where fifty percent or more of the lot coverage of the trust property upon which the facility is located, is used for a Primary Business Purpose other than gaming. All Class III games authorized under this Compact are subject to the days and hours of operation set by the Nation.