In Oklahoma, Chief U.S. District Judge Timothy DeGiusti extended the deadline for mediation between the state’s tribes and Governor Kevin Stitt over gaming compacts. The date was changed from March 31 to May 31 and an April 3 status hearing was postponed indefinitely.
The mediator is former U.S. District Judge Layn R. Phillips. The tribes claim the compacts automatically renewed on January 1, and the governor argues the 15-year compacts expired on that date. Prior to the shutdown of the state’s casinos due to coronavirus, Stitt said tribal casinos were operating illegally.
Stitt also wants tribes to pay a higher exclusivity fee. Under the compact, the tribes pay the state 4 percent to 10 percent of revenue to exclusively offer Class III gaming.
In their lawsuit, tribes have requested a legal interpretation about whether the compacts renewed or expired. Court filings state, “This compact shall have a term which will expire on January 1, 2020, and at that time, if organization licensees or others are authorized to conduct electronic gaming in any form other than parimutuel wagering on live horseracing pursuant to any governmental action of the state or court order following the effective date of this compact, the compact shall automatically renew for successive additional 15-year terms.”
Meanwhile, Steven K. Mullins, an attorney from an outside law firm representing Stitt, sent a letter to tribes that are not plaintiffs in the federal lawsuit. It urged the tribes to “stand together” with the state and sign a proposed gaming compact that would impose a 5 percent flat fee on all Class III games and also allow tribes to offer sports wagering, taxed at 2 percent of the amount wagered.
Mullins wrote, “With this letter, including the enclosed new compact, the state hopes to set aside our differences by sending a message to all Oklahomans, native and non-native, that we are committed to a strong and prosperous future. By committing to resolve our differences with this new compact, you provide certainty to your tribal gaming enterprise, allowing for a swifter recovery when the commercial interruption caused by the pandemic is over.”
Oklahoma Indian Gaming Association Chairman Matthew L. Morgan responded, “We are disappointed in the action taken by Governor Stitt through one of his attorneys to take advantage of tribes as they focus on protecting their tribal citizens and non-tribal citizens during this pandemic. This letter is yet another unsuccessful attempt to divide the tribes. The letter confirms the real intent of Governor Stitt is to destroy the tribal interest outlined in the existing compacts. The tribal leaders who received the letter reject the proposal as disrespectful and disingenuous.”
Morgan continued, “Perhaps more than anything, we are dismayed Governor Stitt would exploit the current pandemic for these purposes. Consistent with the advice of public health professionals, the tribal governments have suspended gaming operations to help blunt the spread of COVID-19. Nothing is more important to the tribes than working together to fight this deadly virus. Public health is our main focus at this time.”
Stitt’s Communications Director Baylee Lakey said, “Since day one, the governor has been committed to negotiating with every tribe in Oklahoma, no matter a tribe’s size or location, to achieve a win-win for the future of tribal gaming in our state. The state has been aggressively communicating with every tribe in Oklahoma to advance a common-sense solution on Model Gaming Compacts. We cannot comment on the details of compact negotiations while engaged in court-ordered mediation, which is still ongoing.”
