Oklahoma Gov. Kevin Stitt recently asked the state Horse Racing Commission to pass a resolution that would ensure the Model Tribal Gaming Compact, set to expire on December 31, 2034, would not be automatically renewed.
Stitt does not want a repeat of the commission’s decision to automatically renew the gaming compact in 2019.
The draft resolution presented by Stitt to commissioners stated, “Be it resolved that the commission does hereby express its intent to take all steps necessary to ensure compacts entered pursuant to the Model Gaming Compact, which are set to expire December 31, 2034, not be automatically renewed.”
The board oversees racing and casino contracts at the state’s three horse racing tracks.Commissioners took no action on the resolution at a recent meeting.
According to NonDoc, Chairman Keith Sanders said, “In 2019, the commission followed the law exactly as it was written to the letter. We issued gaming licenses to the three tracks. In doing so, the compacts were renewed. We knew exactly what we were doing, and did the right thing. The governor wants to change that.”
Stitt’s Communications Director Abegail Cave explained, “From what I understand, this is a non-binding resolution that would not have any impacts until 2034. This is not an attempt to disrupt gaming or the gaming compact, just an effort to ensure the future governor has an opportunity to negotiate percentages, should they need that flexibility in the future.”
Sanders said two of Stitt’s attorneys met with him and Commissioners Bennett Anderson and Kurt Murray on February 20 to review the resolution. The resolution, Sanders said, would require the governor’s approval for the commission to license gaming at racetracks for 2034.
“This would prevent the automatic renewal of the Model Tribal Gaming Compact. That is not part of the law now, and having questions about what we should do with this request, we referred this to the Oklahoma Attorney General’s Office for advice and counsel, and there will be no more action on that until we get a response from them.”
Per NonDoc, Anderson said he told Stitt’s attorneys, “So what you’re really doing is in the 2034 license discussion when it comes up for renewal, you’re wanting the commission to put a Post-it note inside it that says, ‘Oh by the way, we need to go to the governor for permission.’ They go, ‘Yeah, that’s a good way to put it. It’s a Post-it note.’”
Anderson noted, “We don’t have that authority, do we? I can’t imagine that something like that has been granted to us and we’re not aware of it.”
Sanders stated he’s not against Stitt’s request. However, he noted, “there just has to be a way to do it. If you go back and read, there’s no way we could not do what we did in 2019, and theoretically no way in 2034, unless something changes, unless the attorney general tells us that resolution has the power of law and is binding on them. I don’t know.”
In 2019, ultimately a federal judge ruled the gaming compact did automatically renew. It allows dozens of Native American tribes to conduct Class III casino gaming under state rules according to the federal Indian Gaming Regulatory Act.
Sanders said Stitt in 2019 also had asked commissioners not to approve the “occupation gaming license” renewal applications for the Chickasaw Nation’s casino operations at Remington Park in Oklahoma City and the Cherokee Nation’s casino operations at Will Rogers Downs in Claremore.
The request also included Fair Meadows Race Track in Tulsa which does not offer casino gaming, but falls under provisions requiring tribal casinos within a certain radius to share gaming revenue to support horseracing purses statewide.
Not renewing the gaming licenses for the two racetracks and the gaming-recipient license for Fair Meadows through the compacts could have far-reaching effects, according to industry consultant Joe Lucas, a former Horse Racing Commissioner and former vice president of the Thoroughbred Racing Association.
Lucas said although Fair Meadows is a smaller track with fewer racing days, under the State-Tribal Gaming Act it receives at least $2 million in annual revenue for race purses from a Cherokee Nation casino, a Muscogee Nation casino and two Osage Nation casinos in exchange for not offering Class III gaming machines.
More millions of dollars are divided between thoroughbred and quarter-horse racing at Will Rogers Downs and Remington Park. According to NonDoc, Lucas cautioned, “If those compacts do not renew on that date, then there is no such thing as a Participating Tribal Fund. That money, if it’s not available, will close Will Rogers Downs and Fair Meadows.”
Lucas noted funding the racetracks was one of the keys to authorizing Class III tribal gaming in Oklahoma two decades ago. “People that are not involved in this business don’t understand that those two race tracks could go away. They say, ‘Okay, they’re little tracks, they’re not as good, so what? Well, the ‘So what?’ is the breeding industry in this state, which is a significant economic engine for Oklahoma.
“If there’s only Remington Park to be raced at, that’s not enough races to sustain that breeding industry in Oklahoma. There has to be more races or people ain’t going to be breeding here. But that’s a big component of this thing.”
Regarding Stitt’s resolution, Lucas said, “I personally don’t think that this resolution is even, I don’t want to call it legal or illegal, but I don’t think this commission has the authority to make that determination and that it would be able to hold up if contested, and I’m guessing that someone would file an injunction that night.”
Sanders noted Stitt could ask the legislature to change the Horse Racing Act and State-Tribal Gaming Act in Title 3A to change compact renewal law. Per NonDoc, he said, “We’ll have a new governor, at least one, in the next 10 years. We’ll have numerous sessions of the legislature in that period of time. It would appear to me that it’s up to the legislative branch and the executive branch to make laws and for them to negotiate in good faith with the tribes about the compacts. It’s not our business. Our business is to follow the law.”
Tribal nations have played a role in thwarting Stitt’s efforts regarding compact renewals and intend to keep up the pressure. Cherokee Nation Principal Chief Chuck Hoskin Jr. said, “The Oklahoma Horse Racing Commission remains a strong ally for the citizens of Oklahoma as well as good faith partners for tribal governments, including the Cherokee Nation. We support the OHRC’s commitment to uphold the law and our long-term compact with the state of Oklahoma. We remain confident in the OHRC and its leadership. Together, we will continue to build an industry that helps build Oklahoma’s economy and strengthens tribal-state relations and benefits all 4 million Oklahomans.”
Oklahoma Indian Gaming Association Chairman Matthew Morgan noted NonDoc,
“This November will mark the 20th anniversary of the state offering through the vote of the people the Class III gaming compacts to tribal governments, which have been an overwhelming success for all parties, including the tribes, the state, higher education and the horseracing industry.
“Frankly, the actions of the governor’s office on gaming matters continue to be troubling and not in line with letter or spirit of the State-Tribal Gaming Act and our compacts. As we continue to monitor the situation, our OIGA members remain committed to meet their legal obligations under the law, work in good faith with our partners and work to make our state a successful place to live, work and visit.”
