In Oklahoma, the Inter-Tribal Council of the Five Civilized Tribes, including the Cherokee, Chickasaw, Choctaw, Muscogee (Creek) and Seminole nations, representing 750,000 Native Americans across the country, approved a resolution denouncing Governor Kevin Stitt’s plan to renegotiate Class III gaming compacts to give the state more casino revenue.
In a recent editorial published in the Tulsa World, Stitt said the existing compacts should be reevaluated since the gambling industry has changed since the compacts were agreed to in 2004.
Tribal leaders expressed their “collective intent to reject the state’s attempt to unlawfully and unilaterally terminate the compact.” The ITC resolution reads: “We have considered the state of Oklahoma a trustworthy partner through the years. We can trace the starting point of our constructive partnership to the carefully crafted and balanced approach represented in the current compact negotiated in a respectful manner between the state of Oklahoma and the sovereign tribes residing in Oklahoma. This compact represents a continuing and mutually beneficial partnership.
“The recent action of Governor Stitt puts into question his sincerity to work with us in a cooperative manner moving ahead. We are resolute in our position, and it is our hope Governor Stitt and his advisors will not attempt any bad faith interference on the compact which could set back the progress we have achieved by working together.”
The resolution was signed by Bill John Baker, principal chief, Cherokee Nation; Bill Anoatubby, governor, Chickasaw Nation; Gary Batton, chief, Choctaw Nation; James R. Floyd, principal chief, Muscogee (Creek) Nation’ and Greg P. Chilcoat, chief, Seminole Nation.
Responding to the ITC, Stitt reiterated several points he made in his editorial. He said, “Oklahoma is comprised of 39 federally recognized tribes and roughly 4 million people, and I was elected to give a fresh eye to all agreements, laws and actions by state government and to make the hard decisions that consider every individual who calls this great state home.
“Dating back to the campaign, I was transparent and clear that, as governor, I would seek a fair-market deal regarding the state’s tribal gaming compacts that expire on January 1, 2020. This 15-year-old compact established some of the lowest gaming fees in the nation, and the tribes have been fantastic, successful business leaders in our state, turning their gaming industry in Oklahoma into the third largest in the nation today.”
Currently 31 tribal nations operate 131 gaming facilities in Oklahoma. They include more than 20 casinos with 72,850 electronic games, 5,300 bingo seats and other games. Their hotels/resorts offer a total of more than 5,000 rooms and 500,000 square feet of meeting, function and entertainment space. Other amenities include 200 restaurants and bars, nine golf courses, five spas, seven RV parks with nearly 375 sites, more than 50 gas and convenience stores plus destination and convenience retail, bowling centers, laser tag and a movie complex. The tribal gaming industry employs more than 55,000 Oklahomans
In his editorial, Stitt noted the current compact provides tribes “exclusive rights” to conduct gaming in Oklahoma in exchange for an “exclusivity fee” of 4-6 percent of revenue. He said this was meant to “incentive this industry from its infancy.” However, he said, “Today, Oklahoma’s fees are the lowest in the nation. Today, most state-tribal compacts around the country provide for exclusivity fees to the state of 20 percent to 25 percent.”
Exclusivity fees generated nearly $139 million for the state last year on roughly $2.3 billion in revenue. Tribes have paid more than $1.5 billion in exclusivity fees to the state in the last 15 years, primarily for public education. But tribal leaders said those fees don’t include the millions of dollars tribes invest in health care, education and infrastructure that benefits all Oklahomans.
Chickasaw Nation citizen Matthew L. Morgan, director of the Oklahoma Indian Gaming Association, stated, “Given the success of the gaming partnership between tribal governments and the state of Oklahoma, I would say that the exclusivity fees are indicative of being well calibrated to the Oklahoma gaming market.” He added the governor believes the compacts must be renegotiated before they can be renewed, but the tribes claim the compacts renew automatically if both sides can’t reach an agreement. “For the governor and his staff to take that stance and posture from the beginning, I think that was very surprising to a lot of tribal leaders,” Morgan said.
Quapaw Nation Chairman John Berrey said, “What I don’t understand, in any of his op-ed, there’s no recognition of the true value of the tribes. Native American tribes are one of the largest employers in the state. We provide benefits for our employees. We’re probably the most philanthropic group in the state.”
Osage Principal Chief Geoffrey Standing Bear stated tribes invest heavily in casinos and accompanying hotels and resorts because profits pay for tribal government services. “So, when we tax on these enterprises, we’re taxing our people. We’re taxing on their health. We’re taxing their education. We’re taxing their future. We will protect these casinos. Okay? And if we have to go back to the days before the compact, the days before agreement, we will,” Standing Bear said.
