Two tribes—the United Keetowah Band of Cherokee Indians and the Kialegee Tribal Town—recently signed new 15-year compacts for Class II and Class III gaming with Governor Kevin Stitt and the state of Oklahoma. If approved by the U.S. Department of the Interior and entered into the Federal Register, the compacts will grant the tribes the right to build and operate an off-reservation gaming facility near Oklahoma City and within a mile of a major highway.
Currently neither tribe currently operates a casino. The UKB’s Keetoowah Cherokee Casino in Tahlequah closed in 2013.
If Interior doesn’t approve or deny the UKB and KTT compacts within 45 days, they’ll be automatically approved and take effect upon being published in the Federal Register.
In April, Stitt signed gaming compacts with the Comanche Nation and Otoe-Missouria Tribe. The Interior Department approved those compacts in early June. These earlier compacts allow sports betting, which is not included in the UKB or KTT agreements.
“One year after beginning gaming compact negotiations, the state has entered into its fourth compact that makes way for Oklahoma tribes to innovate and compete in a new, dynamic gaming market and strengthens state-tribal relationships,” Stitt said.
The UKB’s exclusivity fee for future Class III gaming revenue will range from 12 percent to 15 percent, compared to the 13 percent to be paid by the Otoe-Missouria Tribe and Comanche Nation’s prospective new casinos. The exclusivity fee for the KTT will be 12 percent for the first two years, then a sliding scale will apply. In addition, both the UKB and KTT would pay an 18 percent exclusivity fee on revenue from non-house-banked table and card games, such as blackjack, poker or roulette.
“By negotiating with each individual Oklahoma tribe, the state is seeking to level the playing field for all tribes,” Stitt said, “and working to ensure that no one is held back by its size or resources from competing and pursuing economic growth for its citizens.”
UKB Chief Joe Bunch said, “It is both an honor and privilege to be announcing the signing of this economic venture between the great state of Oklahoma and the United Keetoowah Band of Cherokee Indians. We thank Governor Kevin Stitt and his administration for this monumental day and for their leadership efforts in this compact.” UKB can build its new casino in Logan County; the Otoe-Missouria Tribe also can open a casino in Logan County pending federal approval of its land-trust application.
The KTT can build a casino in Oklahoma County east of Choctaw Road. Stitt said, “The Kialegee Tribal Town is pursuing a sound business plan for its first gaming location in Oklahoma with their compact commitment to partner with another tribe on this venture.”
Meanwhile, the legal battle continues regarding Stitt’s authority to sign tribal gaming compacts. On June 4, the state legislature sued Stitt, seeking a determination from the state supreme court on the matter. The court recently heard arguments. Oklahoma Indian Gaming Association Chairman Matthew Morgan said, “Like many others, we listened carefully to the July 1 oral arguments before the Oklahoma Supreme Court, and we agree with Oklahoma’s legislative leadership and Attorney General Mike Hunter that Governor Kevin Stitt unilaterally entering into new gaming agreements with tribal nations violates state law. For the past year, Governor Stitt’s actions have caused unnecessary strife, costly litigation and have wasted the state’s resources.”
Morgan said he believes Stitt is trying to make offers beyond his authority “in terms of crafting gaming compacts outside of the model compact process authorized by state law.” Additionally, Morgan said he’s concerned the tribes are attempting to move outside their jurisdictional boundaries.
Tribal casino operators also sued Stitt over their existing compacts. Stitt claims the compacts expired on January 1, 2020 but tribes argue the compacts automatically renewed.
The OIGA suspended the Otoe-Missouria and Comanche Nation as members until the end of the year and changed its bylaws accordingly.
