In the latest chapter of the ongoing compact battle between Oklahoma Governor Kevin Stitt and 30 casino-owning Native American tribes, Stitt asked a federal judge to order the state’s tribal casinos to stop offering most electronic and table games.
The governor was responding to a lawsuit filed by some of the state’s most powerful Native American tribes: the Chickasaw, Cherokee, Choctaw and most recently, the Muscogee (Creek) Nation, which unanimously approved a $500,000 supplemental appropriation for expenses related to the tribes’ lawsuit against Stitt.
The Citizen Potawatomi Nation has also asked Timothy D. DeGiusti, chief judge of the U.S. District Court of the Western District of Oklahoma, to allow it to join the lawsuit. Tribal Chairman John Barett said, “To say that the tribes aren’t paying their fair share is a misrepresentation of all that we do for Oklahoma. We contribute 100 percent of our tribal revenue to Oklahomans through infrastructure, education, economic development and more. We are committed to remaining a strong partner with the State of Oklahoma. We do that through our tribal enterprises, which create an economic impact of more than $530 million, and through programs and initiatives that provide healthcare, address infrastructure needs and fund education.”
The governor claims state gambling compacts expired January 1; he wants to negotiate the compacts to give the state more revenue. Tribes contend the compacts automatically renewed at the same terms. They argue Stitt is illegally interfering with their sovereignty and their lawsuit seeks to clarify the situation. Recently, House Speaker Charles McCall stated he agreed with the tribes that the state’s tribal gaming compacts automatically renewed January 1. “In my opinion, the compact has renewed for another 15 years,” McCall said.
In his response to the tribes’ lawsuit, Stitt said, “Continuing to conduct Class III electronic gaming in the absence of valid gaming compacts with Oklahoma has resulted, is resulting and will continue to result in unjust enrichment to the tribes. Unjust enrichment will continue unless and until a new gaming compact is entered into by and between the tribes and Oklahoma. Without an injunction, Oklahoma, as a state of the United States of America, will suffer irreparable harm because its sovereignty is not being recognized by the tribes, who continue to unlawfully conduct Class III gaming in the absence of valid and existing gaming compacts.”
Besides asking the judge to declare that the tribes’ operation of Class III electronic games are illegal, Stitt’s attorneys requested that a trust be established so the state can continue to receive its share of revenue from tribal casino operations while the dispute is in litigation.
Stitt also said he will not hire a Seattle law firm to represent him, as earlier announced, but instead will hire two Oklahoma City-based firms to handle the case.
Chickasaw Nation Senior Counsel Stephen Greetham said, “We are glad Governor Stitt has not sought to delay the proceedings. We are reviewing the pleading the governor’s lawyers filed on his behalf and look forward to learning what legal basis he will claim to justify the uncertainty he has endeavored to create. Going forward, we look forward to working with the court and obtaining a final resolution.”
Oklahoma voters approved the tribal gambling compact in 2004. It requires tribes to pay the state exclusivity fees of 4 percent to 10 percent of gaming revenue in exchange for the exclusive right to operate casinos in Oklahoma. Those fees produced about $139 million for the state fiscal 2018, on $2.3 billion in Class III games, including slot machines, roulette and craps. Most of those funds go toward education.
The tribes have said they are willing to negotiate increased gaming revenue rates if Stitt agrees the compacts automatically renewed. Stitt has discussed the possibility of allowing sports betting in exchange for higher rates. He also said he has talked with commercial operators about coming into the state. Any of those actions would require legislative approval.
House Minority Leader Emily Virgin said, “I agree with the speaker. I think the compacts do automatically renew. I think that has been clear since day one. The governor has picked this fight for some unknown reason, and it is hurting the entire state.”
