Four Winds South Bend opening will shake up the gambling industry in Michiana

As a sovereign tribe, the Pokagon Band of Potawatomi Indians newest venture is not subject to Indiana wagering taxes or state corporate income taxes. For the state’s 13 existing commercial casinos, graduated tax rates between 15 percent and 40 percent of annual revenues are collected by the Indiana Gaming Commission in taxes. Four Winds South Bend will pay only 2 percent of its annual revenue to the city of South Bend, via a sharing agreement, and additional agreements to fund local organizations and projects.

That advantage could see the tribal casino outpace its commercial competitors in annual profit.

For Blue Chip Casino in Michigan City, a 33-mile drive from Four Winds South Bend, the new competition could draw some of its customers away, as was the case when Four Winds opened its New Buffalo, Mich., casino in 2007. Blue Chip took an initial $50 million revenue hit that first year and has since dropped from $267 million in 2007 to $159 million in 2017.

But with features and amenities that distinguish it from Four Winds South Bend, including a hotel, spa and table games, Blue Chip claims the added competition is welcome.

“Competition is nothing new to us,” said David Strow, a spokeperson for Boyd Gaming, the parent company of Blue Chip. “We have seen several new casino properties open in this region over the last 10 years, and Blue Chip has continued to compete successfully each time over that time-frame.”

The opening of Four Winds South Bend also means the tribe will essentially draw customers away from two of its three Michigan casinos in New Buffalo, and Dowagiac. Four Winds also operates a casino farther north in Hartford, Mich.

Four Winds chief operating officer Frank Freedman said that migration of customers from its other facilities will occur, but he expects it will result in a net gain.

“You basically do feasibility studies, and understand what that migration might be,” Freedman said. “The net effect is plus, plus, plus. So some of our guests that currently frequent New Buffalo that live here, it will be natural to start coming here.”

That migration will mean changes in staffing needs at the different facilities. But with staff that can work at any of the Four Winds locations, and an already fluctuating seasonal market, Freedman expects the shifts won’t cause any issues for the company.

Four Winds also expects its new location to fit a different clientele. With no hotel or table games, Freedman said he thinks the casino will serve more players who stop in for just a few hours or even a day. And Four Winds New Buffalo will serve those looking for an experience that includes a night at a hotel, table games and occasional concerts.