Oklahoma Casino Considered ‘Unlicensed’ Gaming

Muscogee (Creek) Nation officials warned the Red Creek Holdings group they could face legal action if they include a casino in their Broken Arrow, Oklahoma restaurant (l.), opening in August on tribal land owned by a Muscogee (Creek) member. The Red Creek group has been pricing slot machines and other gaming equipment.

In Broken Arrow, Oklahoma, Red Creek Holdings LLC principal Luis Figueredo said plans are proceeding for the Embers Grille restaurant to open in August on land owned by Steve Bruner, a member of the Muscogee (Creek) Nation. But besides opening the restaurant, Figueredo said the location also may feature Class II gaming at the Red Creek Casino. In fact, Red Creek officials recently inquired about purchasing or leasing slot machines and cash counting and surveillance equipment.

As a result, Muscogee (Creek) officials issued a statement warning of possible legal consequences of “unlicensed” gaming at the site. Tribal officials said the property is within their jurisdiction and must follow federal and tribal laws and regulations regarding gaming. “These actions indicate that the conduct of gaming at the facility is much closer to being an impending reality than a mere possibility. The Nation considers any violation of its law and/or regulation to be a matter of serious concern, and is especially concerned about violations related to unlicensed gaming operations. Failure to adhere to the applicable law and regulations would result in further action by the Nation,” according to the statement.

Figueredo explained, “Making an inquiry as to gaming when you say we’re going to look at it, it’s not illegal. That’s all they’ve done, and certainly making an inquiry is not breaking any law.” He said it’s just common sense for a company considering transitioning to gaming to seek information on gaming equipment costs. “Nothing has changed with respect to the Red Creek casino. We said we’d consider it. We’ve not taken any step right now to open a casino, other than conduct due diligence, and that has shaken up everyone,” Figueredo said. Recently the Red Creek group posted job openings online for the Red Creek Casino.

The Kialegee Tribal Town, one of several autonomous groups that make up the Muscogee (Creek) Nation, said it would provide gaming oversight for the Red Creek facility. The tribal town sent a 120-day notice letter of intent to the National Indian Gaming Council to issue a gaming license for the facility. Figueredo said he doesn’t know if the tribe has heard back from the commission.

The Kialegee Tribal Town sent a similar notice to the NIGC in 2011 when it attempted to issue a facility license for the Red Clay casino, located near the Red Creek facility. That effort was halted in 2012 due to residents’ protests and a legal injunction. The tribal town successfully appealed the injunction but abandoned the project.