The state of Wisconsin and the Ho-Chunk Nation have resolved a lengthy court battle over tribal gaming payments.

Anne Thundercloud with the Ho-Chunk Nation says a deal reached in federal arbitration will end the dispute, resulting in the Ho-Chunk paying the state about $60 million in retroactive payments. The Nation will also pay between 5 and 5.5 percent of net winnings, beginning in 2009. The term of the new compact will be 25 years.

The compact with the state had been disputed since a 2004 Supreme Court decision, which struck down the state's previous agreement with the Ho-Chunk.

Linda Barth with the Department of Administration says the deal will result in the state receiving about $12 million less than anticipated under the 2003 compact. However, she says the previous agreement was based on the tribe's planned Dejope casino, which did not happen. She says that's resulted in lower revenues and created the need for a different agreement.

AUDIO: Andrew Beckett reports (MP3 1:05)

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