On November 24, retired Oklahoma Criminal Court of Appeal Judge Charles Chapel, serving as an arbitrator, ruled the state’s gaming compact permitted the possibility of the 800-member Iowa Tribe of Oklahoma launching an online gambling. In his ruling, Chapel wrote, “Use of the internet is merely using technology to play covered games as a way to increase tribal revenues. It does not extend or restrict the scope of the games and does not amend the compact in any way,” nor does it violate state or federal law.
Now tribal Chairman Bobby Walkup said in a statement that the tribe on December 23 asked a U.S. District Court judge in Oklahoma City to verify Chapel’s ruling. If the judge approves the move, the 800-member tribe could become the first in the state to operate an international gambling website, to be called Pokertribe.com. The site would offer online poker, followed by slots, bingo, blackjack, baccarat and pulltabs. “The arbitrator’s decision applies to all tribes in the state of Oklahoma. Every tribe has the same opportunity as the Iowa Tribe to engage in internet gaming consistent with the arbitrator’s decision,” Walkup stated.
Governor Mary Fallin’s spokesman Michael McNutt said it’s not clear how much revenue the Iowa Tribe’s website could generate for Oklahoma. As proposed, “The rate depends on how many take part in the tribe’s overseas gaming venture,” McNutt said.
A few years ago, when the Cheyenne and Arapaho Tribes of Oklahoma unsuccessfully tried to launch a similar site, the tribes estimated the state would have received a 20 percent cut, or as much as $132 million annually by 2018 if the website attracted just 2 percent of the worldwide online gaming market. However, at the time, the U.S. Department of Interior said an online gambling website beyond the scope of the tribal-state compact and also violated the Indian Gaming Regulatory Act. The two tribes challenged that opinion in court but newly elected leadership dropped the suit in 2014.
Florida-based Universal Entertainment Group will provide the technology for the Iowa Tribe’s operation. UEG also was lined up to run the Cheyenne and Arapaho tribe’s site, also to be named Pokertribes.com. UEG received $9.4 million from the Cheyenne and Arapaho Tribes before ending the relationship. In 2011 the company reached a $4.2 million settlement with the Federal Trade Commission over a deceptive telemarketing business.
Walker, however, said his office carefully researched UEG’s previous deal with the Cheyenne and Arapaho Tribes, as well as “the present history of UEG, its principle and its entire team.” He stated this process revealed “nothing which the Iowa Tribe deemed to be an impediment to proceeding with UEG.”
UEG Manager Isaias Almira said, “If the judge agrees to the thing, it could be launched within a matter of weeks. I and our entire team have been working on this for many years.” He added Pokertribe.com would accept international customers plus U.S. players from states with legal intrastate online gambling, including New Jersey and Nevada. The website also will be available to players on some airline flights and cruise ships, Almira said.
Currently the Iowa Tribe operates two casinos, in Chandler and Perkins, plus a travel plaza with slots in Tryon in Lincoln County.
