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The Reservation Exception — How Tribal Sovereignty Became a Corporate License to Dublin

The Reservation Exception

How a law meant for tribal sovereignty became a pipeline from Michigan mailboxes to Dublin, Ireland.


The Original Promise

In 1988, the United States Congress passed the Indian Gaming Regulatory Act (IGRA). The purpose was explicit:

“To promote tribal economic development, self-sufficiency, and strong tribal governments.”

Twelve Michigan tribes negotiated Class III Gaming Compacts with the State. They built 24 casinos on tribal lands. The revenue stayed in tribal communities:

  • 2% of net win goes to local governments (~$30.6M/year)
  • Additional payments to the Michigan Strategic Fund ($15.4M/year)
  • The rest funds tribal services, housing, education, healthcare

This was the deal. Sovereign nations, on their own land, building their own economies. Gaming was the mechanism. Self-determination was the purpose.


What Actually Happened

In 2019, Michigan passed PA 149 — the Lawful Sports Betting Act. It opened online sports betting to commercial operators.

The trick: commercial operators needed a Michigan gaming license to operate. Some partnered with tribal casinos to get one.

OperatorParent CompanyHQMichigan License Partner
FanDuelFlutter Entertainment plcDublin, IrelandMotorCity Casino (Detroit)
DraftKingsDraftKings Inc. (DKNG)Boston, MABay Mills Indian Community
BetMGMMGM Resorts + EntainLas Vegas + London, UKMGM Grand Detroit
ESPN BetPenn EntertainmentWyomissing, PAGreektown Casino
CaesarsCaesars EntertainmentReno, NVGrand Traverse Band of Ottawa and Chippewa
FanaticsFanatics BettingNYCLac Vieux Desert Band of Lake Superior Chippewa
BetRiversRush Street InteractiveChicagoLittle River Band of Ottawa

Look at the license partners. Bay Mills. Grand Traverse Band. Lac Vieux Desert. Little River Band. Tribal nations are being used as licensing vehicles for multinational corporations.


Where the Money Goes

FanDuel → Flutter Entertainment → Dublin

MetricAmountSource
Lifetime Michigan handle$7,151,953,096playmichigan.com
Lifetime Michigan revenue$806,895,139Same
Hold rate11.3%Same
Taxes paid to Michigan$51,456,822Same
Revenue AFTER tax$755,438,317$806.9M - $51.5M

$755 million left Michigan and went to Flutter Entertainment plc — registered at Belfield Office Park, Beech Hill Road, Clonskeagh, Dublin 4, D04 V972, Ireland.

Flutter is listed on NYSE (FLUT) and London Stock Exchange (FLTR). It is the world’s largest online gambling company. Its brands include FanDuel, Paddy Power, Betfair, PokerStars, Sky Bet, Sisal, Snai, and tombola.

The Tax Rate: 8.4%

Michigan taxes online sports betting at 8.4% of adjusted gross receipts. For context:

StateSports Betting Tax Rate
New York51%
Pennsylvania36%
New Hampshire51%
Rhode Island51%
Michigan8.4%
Nevada6.75%
Colorado10%

Michigan has one of the lowest sports betting tax rates in the country. For every $100 FanDuel earns in Michigan, it keeps $91.60 and sends it to Dublin.


The Circle

Here is the complete circle:

MICHIGAN RESIDENTS
       |
       | place bets ($7.15 BILLION lifetime)
       v
   FANDUEL (Flutter Entertainment, Dublin)
       |
       | keeps 91.6% ($755M to Dublin)
       | pays 8.4% tax ($51.5M)
       v
   MICHIGAN GAMING CONTROL BOARD
       |
       | After MGCB costs, remaining balance goes to:
       v
   SCHOOL AID FUND
       |
       | Per-pupil funding flows to charter schools
       v
   PURPOSE CHARTER ACADEMY (Brian Banks, Superintendent)
       |
       | 72.67% extracted to Purpose Group LLC
       | 3% math proficiency
       v
   BRIAN BANKS' PRIVATE LLC
       |
       | $4.28M per year
       v
   362 CHILDREN GET 3% MATH

Michigan residents gamble. The gambling tax goes to the School Aid Fund. The School Aid Fund pays per-pupil to charter schools. Brian Banks’ charter school takes 72.67% off the top. The children get 3% math proficiency.

The gambling company sends your mailbox junk mail to get you to gamble more so more tax goes to the fund that pays a convicted felon to not educate your children.


The Dublin Pattern

This is the second Dublin extraction pipeline Kevin has documented:

CompanyParent HQMichigan ExtractionDublin Connection
Meta (Facebook, Instagram)Dublin, Ireland7 LLCs, user data, ad revenueMeta’s Two Faces
FanDuelDublin, Ireland (Flutter Entertainment)$755M in gambling revenueThis article

Both are incorporated in Dublin. Both extract from Michigan communities. Both spam Michigan residents with unsolicited contact. Both use local partners as licensing vehicles. Both send profits offshore.


The Tribal Nations

The tribes that partnered with commercial operators receive a fraction of the value:

Tribal PartnerCommercial BrandTribal Revenue ShareCommercial Revenue
Bay MillsDraftKingsCompact terms$421,964,402
Grand Traverse BandCaesarsCompact terms$63,628,936
Lac Vieux Desert BandFanaticsCompact terms$67,993,086
Little River BandBetRiversCompact terms$22,336,838

The specific revenue-sharing terms between tribal nations and commercial operators are governed by individual agreements — many not publicly disclosed. But the pattern is clear: the tribes provide the license, the corporations take the revenue.

IGRA was supposed to be about tribal self-determination. PA 149 turned it into a licensing vehicle for multinational gambling corporations.


The Junk Mail

And then they send you junk mail.

FanDuel, DraftKings, BetMGM, Caesars — they all send unsolicited physical mail, text messages, push notifications, and robocalls to people who never asked for them.

They are spending a fraction of their $1.9 billion in Michigan revenue to spam every mailbox in the state with gambling ads.

Three cease and desists are now published:


The Questions

  1. How much do the tribal nations actually receive from their partnerships with FanDuel, DraftKings, and the other commercial operators? Are the revenue-sharing terms public?

  2. Why is Michigan’s tax rate 8.4% when New York charges 51%? Who lobbied for this rate? What was the legislative history of PA 149?

  3. How much of the School Aid Fund comes from gambling taxes? What percentage of Banks’ per-pupil funding originated as a gambling bet?

  4. Who is the registered lobbyist for Flutter Entertainment in Michigan? For DraftKings? For BetMGM?

  5. Is it legal under IGRA for a tribal gaming compact to be used as a licensing vehicle for a multinational corporation headquartered in Dublin, Ireland?


Verify

SourceURL
Michigan sports betting revenueplaymichigan.com/sports-betting/revenue
MCL 432.414 (tax rate)legislature.mi.gov
MCL 432.415 (tax distribution)legislature.mi.gov
MGCB tax distribution chartmichigan.gov/mgcb
Flutter Entertainment annual reportflutter.com
IGRA (1988)25 U.S.C. §2701
Michigan Tribal Gaming Report 2025michigan.gov/mgcb
PA 149 of 2019legislature.mi.gov

IGRA was for tribal nations. PA 149 was for Dublin. The tax goes to the School Aid Fund. The School Aid Fund pays charter schools. The charter school takes 72.67%. The children get 3% math. And you get junk mail asking you to bet more.

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