The impasse continues between Oklahoma Governor Kevin Stitt and the state’s 35 federally recognized tribes that have signed compacts to operate more than 130 casinos.
Negotiations between the two sides have stalled over a disagreement about when the gambling compact expires. Stitt says the compact expires at the end of the year. Tribal leaders say it will automatically renew for another 15-year term at the current tax rate on January 1.
Stitt contends that operating Class III gaming after that date will be illegal.
He wants to renegotiate the fee tribes pay for exclusive rights to operate certain types of gambling in order for the state to receive a larger share of the tribes’ nearly $2.3 billion in annual gaming revenue. The governor said most tribal compacts include gaming exclusivity fees of 20 percent to 25 percent, which tribal leaders dispute.
Currently Oklahoma’s compact calls for exclusivity fees of 4 percent to 6 percent. The gaming revenue the state receives is divided between the Education Reform Revolving Fund, Department of Mental Health and Substance Abuse Services and the general revenue fund.
Stitt’s staff say he’s ready to take his case to Oklahomans, raising questions about the rapid expansion of tribal businesses that do not directly contribute to the state tax base. Stitt said if the tribes don’t come around, commercial gaming and sports betting could be allowed. Stitt said, “I had a phone call with a commercial casino recently, and they said they would fly in tomorrow to sign an 18 percent deal with Oklahoma. That would mean about $350 million to Oklahoma. We’re only receiving now $140 million. That’s not my desire. That’s why I’ve been trying to negotiate with the casino industry.
“Commercial operators are reading the news headlines in our papers and in industry trade publications, and they are wanting a chance to break into the third-largest casino market in the nation,” he added. “While this is something I’m not pursuing with the legislature at this time, the conversations have been enlightening about the value of the gaming industry in Oklahoma.”
In response, Oklahoma Indian Gaming Association Chairman Matt Morgan said, “Tribes and their citizens live here, work here, invest here, are part of the communities. Not gonna see that from an out-of-state, commercial, for-profit casino. Any commercial operator that is out of state isn’t living here, isn’t investing here, isn’t working together hand in hand with local communities to better Oklahoma.”
Muscogee (Creek) Nation Principal Chief James Floyd stated, “For the state to actively recruit for-profit gaming corporations to compete with Oklahoma’s tribal nations, it would require significant changes to our laws by members of the state legislature. Furthermore, removing the exclusivity agreement with our tribes also effectively removes the constraints of a nation’s boundaries on where a gaming facility may be constructed. Governor Stitt is potentially opening up all of Oklahoma for gaming on every corner of every neighborhood in any part of the state.”
Stephen Greetham, senior counsel for the Chickasaw Nation, said it’s unlikely that a private, for-profit corporation would invest in schools, health care, roads, infrastructure and education like the tribes do. He said, “The fact is our compacts renew and that our gaming will be as lawful in January 2020 as it is in December 2019. Governor Stitt’s position is not supported by law, logic or the compact’s plain language. Those are terms the state offered to us 15 years ago, and it is beyond untenable for it to arbitrarily and at the eleventh hour suddenly say it didn’t mean what it said. Oklahoma is better than that, and the state-tribal relationship deserves better than that.”
Oklahoma’s gaming industry provides 96,177 jobs that generate $4.6 billion in wages and benefits, Greetham noted.
Chickasaw Nation Governor Bill Anoatubby commented, “Tribes have invested millions of dollars in facilities and infrastructure, helping tribal gaming become an increasingly important engine for economic development across Oklahoma, and particularly in rural Oklahoma. Growth in tribal economic development has been a win-win for the state and tribes. It’s a testament to what we can accomplish when we work together.”
Recently, Anoatubby wrote a letter to U.S. Interior Department officials saying that any action that would disrupt the gaming activities of his tribe—which oversees the state’s largest gaming operations—would be an “intolerable risk” to the tribe and its citizens.
“We reserve our right to take legal action, if necessary, to protect the Chickasaw Nation’s legal and sovereign rights as well as the material interests of our citizens who rely on government programs and services supported by our gaming operation revenues,” Anoatubby wrote.
In a November 26 letter to tribal leaders, former U.S. Solicitor General Seth P. Waxman said the governor’s position is not defensible and that the compacts automatically renew.
Stitt said the impasse could wind up in federal court. “I’ll be talking to our legal counsel and seeing what we should do. Again, this is the last resort,” Stitt said. Donelle Harder, Stitt’s senior adviser and spokeswoman added, “Governor Stitt is not planning on taking legal action at this point. He truly believes and hopes there is opportunity to negotiate before the January 1 deadline.”
Even if Stitt and the tribes reach an agreement before January 1, it still would require approval from the legislature and the U.S. Department of the Interior.
The tribal coalition United for Oklahoma has produced more than two dozen videos that have been saturating the state’s broadcast stations. In addition, the coalition is running an extensive print and internet campaign, including ads in the Tulsa World and on its web site. The campaign features community leaders, from former governors to small-town mayors, praising the contributions of Oklahoma’s 38 federally recognized tribal governments.
Stitt commented, “If you’ve got to run advertisements that tell us how great you are, that’s a little disingenuous. Obviously, they’re trying to get control of public opinion because they have the sweetest deal in the country for running and operating casinos, and they don’t want anything to change. I don’t begrudge people for trying to advocate for the best position for them.”
On the other hand, Stitt recently said, “The truth is on our side. I feel so confident that Oklahomans can see right through a certain industry, the casino industry, saying, ‘These go on forever.’ That can’t be true.”
