The Red Cliff Chippewa are about to achieve an unenviable distinction by becoming the first tribe in the nation not to have its gambling compact with a state renewed. That could lead to the closing of Isle Vista Casino, which employs up to 150 people during the summer. It currently has 107 workers. "It will definitely hurt the community," if Isle Vista closes, casino manager Gary Defoe said.

Although federal law requires a tribe to have a compact with the state to run a casino, Red Cliff will not have to immediately close Isle Vista when its original compact ends Dec. 12. The government also requires the state and tribe to enter mediation after such a compact expires. The compact between a tribe and state usually includes agreements on payments to the state and limits on gaming operations. If Wisconsin and Red Cliff can't agree to a new compact, the tribe could sue the state in federal court.

"It would be complicated, but Red Cliff could probably continue to operate for several more months going through dispute resolution and litigation," said National Indian Gaming Commission head of congressional and media affairs Aurene Martin. Isle Vista Casino manager Defoe said tribal officials have told casino workers that the tribe is willing to talk with the state. "Basically what they tell us is that they're not going to close" the casino, he said.

Tribal officials did not respond to several telephone messages left over two days at the tribe's headquarters. The state and Red Cliff haven't met since June, when Wisconsin announced it wouldn't renew the tribe's compact. Without such a six-month warning, gaming compacts are automatically renewed for five years. "We have had requests from Red Cliff to meet, but so far I haven't scheduled anything," said Wisconsin Secretary of Administration Mark Bugher, who has headed the state's negotiations with 11 tribes on renewing their compacts to operate 17 casinos.

Wisconsin and the tribes have negotiated for over a year to extend their original seven-year compacts. The state and six tribes, including the Bad River and Lac Courte Oreilles Chippewa in northwestern Wisconsin, have reached agreements for compact extensions. In exchange for a five-year renewal, the Bad River Chippewa agreed to pay the state $230,000 annually and raise the legal age for gambling at its casino east of Ashland from 18 to 21. Gov. Tommy Thompson must decide by Friday whether he'll renew gambling agreements with the Menominee and Forest County Potawatomi tribes.

"We have the Potawatomi sitting in a room very close to me right now," Bugher said Tuesday. "We are about to reach an agreement with the Menominee. Then we have the Ho-Chunk and Lac du Flambeau talks that will come to fruition hopefully between now and Jan 3." Money has been a large issue in the compact talks, with the state holding out for more cash from the casinos. Under the old compacts, all 11 tribes paid the state a total of $350,000 a year. Under the new compacts, the total could increase to as much as $30 million a year.

The state wanted Red Cliff to accept a five-year renewal, to pay the state $95,000 a year and to prohibit people under 21 from gambling. The tribe wanted a 10-year agreement, no annual charge and to leave 18 as the legal gambling age. In June, Red Cliff Tribal Chairman George Newago said he couldn't accept the state's requirement for money when Red Cliff was suffering financially.

The Red Cliff Tribal Council declared a financial state of emergency March 23, after learning that some $1.2 million was missing or misspent. Around $600,000 went to payroll advances to 29 tribal employees. Another $530,000 was lost when two tribal ventures, a construction company and a fish processing plant, folded. In response, tribal services and programs such as health services and the fish hatchery were reduced or eliminated. Some have since been reinstated.

"The only thing that appears to be functioning over here is the casino," tribal member Walt Bressette said. "I think if that thing goes by the wayside, Red Cliff certainly will be in even more dire straits. It's one of the few operational activities that the tribe has been able to manage well." The tribe has said the casino, which contains four blackjack tables and 219 video and slot machines, earns little money.

Estimates place the combined profits for all 17 Wisconsin casinos at $280 million in 1996 on gross revenues of $680 million. But perhaps as much as 80 percent of the profits go to four tribes -- Ho-Chunk (based near Black River Falls), Oneida (near Green Bay), St. Croix (Webster) and Potawatomi (Crandon). The Red Cliff and Bad River bands are the poorest. Under the new compacts, the 11 tribes are suppose to develop a plan by February by which the tribes receiving the most gambling revenue will share it with the tribes receiving the least.

In July, the Potawatomi gave $54,000 to Red Cliff. Nationwide, 148 tribes in 24 states have compacts for Class 3 gaming, which includes high-stakes poker, blackjack, roulette and slot machines.