Why Did Menominee Casino Close?

The Menominee tribe of Wisconsin opened its $170 million dollar Menominee casino in September of 2008. The casino was built on trust land, which is held in trust by the federal government for the benefit of Native American tribes.

The Menominee expected the casino to bring in much-needed revenue to the economically-depressed reservation, which has an unemployment rate of over 60%.

However, the Menominee casino never turned out to be the economic boon that the tribe had hoped for. In its first year of operation, the casino lost $6 million.

And things only got worse from there. The casino continued to hemorrhage money, losing a total of $40 million over its five years in operation.

In 2013, facing mounting financial losses, the Menominee tribe decided to close the casino. The closure left over 200 tribal members without jobs and dealt a serious blow to the local economy.

So why did the Menominee casino fail? There are a number of factors that likely contributed to its demise.

First, the global economic recession that began in 2008 likely played a role. The recession caused many people to cut back on their discretionary spending, including gambling.

This likely had a negative impact on casinos across the country, not just those owned by Native American tribes.

Second, the Menominee casino was located in a remote area of Wisconsin, about two hours from Milwaukee and three hours from Green Bay. This made it less convenient for potential customers, who were more likely to visit casinos that were closer to home.

Third, the competition in the Wisconsin gaming market is fierce. There are over two dozen casinos in Wisconsin, many of which are located near major population centers like Milwaukee and Green Bay.

The Menominee casino simply couldn’t compete with these larger and more established casinos.

Fourth, and perhaps most importantly, many members of the Menominee tribe opposed the casino from the beginning. They argued that gambling is a form of exploitation that preyed on tribal members who were struggling with poverty and addiction.

These opponents likely deterred potential customers from visiting the casino.

The closure of the Menominee casino was a tragedy for the tribe and its members. But it’s also a cautionary tale about the challenges of operating a successful casino on Native American land.