In 1996, the Little Traverse Bay Bands of Odawa were seeking federal approval to open a casino in Petoskey, Michigan. The Sault Tribe of Chippewa Indians, who operated five casinos in the area, lobbied against the possibility of an Ottawa casino in the area. Later that same year, they changed their stance, offering to help the Ottawa tribe gain approval - provided they received ten percent of the casino's revenue, estimated at $7 million. The Ottawa tribe did not agree to this deal, accusing the Sault Chippewas of extortion.

Three years later, the Little Traverse Bay Band opened Victories Casino in close proximity to a Sault Chippewa casino. One month later, the Sault Chippewas filed suit, hoping to shutdown the newly opened casino. The allegation - the land the casino was on had yet to be granted reservation status. The judge supported this argument and ordered the closure of the casino until the land officially became part of the tribe's reservation. The Sault and Bay Mills tribes, unrelentingly filed a second lawsuit to prevent the federal authorities from declaring the land as part of the Little Traverse Bay Bands' reservation.

On December 14, 2000, the Little Traverse Bay Bands' Victories Casino was allowed to reopen. Shortly thereafter, the Sault Chippewas dropped all charges against the Ottawa tribe.

The Casinos in the area are an important source of revenue for the tribes.