New Tribal Official Will ‘Pump the Brakes’ on $177M Border Casino

A casino and entertainment complex that backers have promoted as a regional gaming destination on the Minnesota-North Dakota border could face delays after the Tribe planning the facility had a major leadership change.

The White Earth Nation of Ojibwe voted in a new secretary treasurer last week, and the winner says he remains far from sold on the $177 million plan. Jacob McArthur, who secured 62% of the vote, told The Forum of Fargo-Moorhead he intends to slow the project down until the band’s enrolled members receive answers to questions he says leaders never put before them.

McArthur explained, “I’ll say I’m against it, if only because I simply don’t have the information to make a decision one way or the other.” The secretary treasurer holds the No. 2 spot in the tribe’s government, only behind Chairman Michael Fairbanks. He attributes part of his strong support base in the recent election to unease among members about how the casino project came about.

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A Border Casino Play Aimed at North Dakota

The geography of the Moorhead site makes it particularly appealing to developers. The proposed complex would sit in Minnesota, but only a few minutes from Fargo, North Dakota’s biggest city. The Red River separates the two areas, and the proposed location sits close to the metro area where approximately a quarter of a million people live.

This matters, as North Dakota restricts casino gaming to tribal reservations, and no major casinos operate inside the Fargo metro area. North Dakotans who want a full-scale gaming floor generally need to drive about an hour south toward South Dakota to Dakota Magic. The White Earth Band’s Shooting Star casino in Mahnomen is about 90 minutes away.

A resort just across the river in Moorhead would become the closest major casino to a largely untapped North Dakota customer base. Economic and social impact reports have already estimated that the development would create around 700 full-time and part-time jobs. The annual economic impact for Minnesota’s Clay County is approximated at $175 million.

The Tribe purchased 296 acres last year, close to the junction of Interstate 94 and Highway 336 in Moorhead, for more than $3.9 million.

White Earth would need federal officials to place the land in trust and grant the federal status required for legal gaming on the site. This means securing sign-off from the U.S. Department of the Interior, a process that can sometimes take years. The Tribe held public meetings and met with Moorhead and Clay County officials to discuss its preliminary plans and get feedback from locals.

A Casino Skeptic Now Among White Earth Decision-Makers

McArthur’s main worry centers on what a new casino on the border might do to the band’s existing returns. White Earth already runs a large casino in Mahnomen on the reservation and a smaller off-reservation property in Bagley. The tribe’s own impact study acknowledged that a Moorhead casino would take from these two venues, while also projecting that overall tribal revenue would rise.

Talking about the proposal, McArthur remarked that the “revenue projections are tremendous.” The matter of impact on the existing casinos causes him concern. He wants to know whether this would lead to job losses and, if so, what tribal leaders would do to cushion the blow. He also questioned if 700 new positions in Moorhead would actually lead to more work for tribal citizens, saying that the 700 jobs will be “meaningless to me if the majority aren’t going to my people.”

McArthur was disappointed that enrolled members learned of the land purchase and casino plan only at roughly the same time as the wider Fargo-Moorhead public, which led to some resentment. He acknowledged that the leadership has the authority to make such decisions, but said a $177 million commitment represents a big undertaking for the tribe and that the whole thing felt rushed.

Pulling the Brakes on a Border Casino Between North Dakota and Minnesota

McArthur hasn’t sat down yet with Fairbanks to talk about his concerns, but he expects to do so after his swearing in. Until then, he intends to use the leverage of his office to try to halt the project’s momentum, saying he will try to “pump the brakes” on it. He won’t sign any financial agreement on the tribe’s behalf to proceed with the project without receiving a response to the unanswered questions.

McArthur also referred to the number of Moorhead residents who have concerns about the impact of a casino on their community. He said the Tribe would act hypocritically if it proceeded with the development over local objections, as the Tribe wouldn’t like the reverse happening.

The project now sits in a wait-and-see phase. The Tribe has bought the land, and the chairman who championed the project still holds office. However, federal officials must review the trust application, and the Tribal government’s second-in-command will try his best to pause the efforts until the picture becomes clearer.

Image credit: Myotus/Wikimedia Commons (license)

Andrew O'Malley

Editor

Andrew O’Malley has been involved in the gambling industry for more than a decade. With a background in math and finance, he brings a unique perspective to gambling journalism. He covers everything from the latest prediction market litigation to sports betting scandals and iGaming legislation for publications like Gambling Insider and Gaming America. As a gambling journalist, Andrew closely follows breaking stories while also producing in-depth analysis pieces. He frequently speaks with experts in their respective fields to provide unique and informed perspectives.