In Oklahoma, the showdown between Governor Kevin Stitt and the Cherokee, Chickasaw and Choctaw nations has ended up in federal court. The tribes are demanding a final determination on the status of their gaming compacts with the state. They contend that the 15-year agreements approved by voters in 2004 automatically renewed on January 1. Stitt has said they expired on that day and must be renegotiated, presumably at a higher rate to generate more revenue for the state.
In a letter to Stitt, Cherokee Nation Chief Chuck Hoskin, Chickasaw Nation Governor Bill Anoatubby and Choctaw Nation Chief Gary Batton wrote, “For some time, we have tried to establish meaningful intergovernmental engagement regarding our gaming compacts, but you have continued to reject our compacts’ plain terms. Recently, you have gone further, stating allegations against us and threats to our operations.”
Tribal casinos remain open throughout the state, but Stitt claims gambling at those casinos is illegal. The compacts as approved in 2004 require the tribes to pay the state 4 percent to 10 percent in gaming revenues in exchange for the exclusive right to operate casinos. In fiscal 2018, those fees produced nearly $139 million for the state on about $2.3 billion in revenue from games covered under the compacts.
In December, most of Oklahoma’s 39 federally recognized tribes rejected Stitt’s offer to extend the compacts while negotiations continued, though Stitt said the Kialegee Tribal Town and the United Keetoowah Band of Cherokee Indians agreed to an eight-month extension.
“The state of Oklahoma offered an extension, with no strings attached, to all tribes that operate casinos in the state, and my door continues to be open for more tribes to join who are worried about impending uncertainty,” Stitt said. He added he is disappointed the majority of the state’s tribes rejected his offers for arbitration or a temporary extension.
The standoff also recently led to the resignation of Oklahoma Secretary of Native American Affairs Lisa Billy. In her resignation letter, Billy wrote that Stitt is “committed to an unnecessary conflict” with the state’s tribal governments and “remained intent on breaking faith with them. You have dismissed advice and facts that show the peril of your chosen approach and have remained intent on breaking faith with the tribes. Your actions have shown that my continuing in service on your cabinet is unnecessary to you and impossible for me.”
Tribal officials indicated they could be open to renegotiating the compact’s tax rates, but not until Stitt acknowledges that the compacts renewed on January 1, which to date he has not done.
Earlier, Stitt warned of “tremendous uncertainty” for the state’s tribes and their casino vendors and patrons if the compacts expire. He said he doesn’t want vendors operating illegally. However, his office would not specify any consequences for vendors. Baylee Lakey, a Stitt spokeswoman, said, “If everyone will come to the table, we can resolve the uncertainty. The governor’s door is open.”
In response, tribal officials said they would protect business leaders against “any unlawful attack” by the state. The officials wrote, “We regard your threats to our vendors, who are not parties to the compacts, as inappropriate. As you know, the state has no legal authority to determine the legality of, or otherwise regulate, gaming on Indian land, including the acts of vendors in support of the tribal governmental gaming. Of course, tribes are the primary regulators of those vendors.”
Oklahoma Indian Gaming Association Chairman Matthew Morgan said, “I think the point of him coming out with the type of statement was to try to put some doubt in some of these folks’ minds. I think it’s unfortunate that it’s come to that. We’ll do everything we can to ensure they’re not harmed in our ongoing discussions with Governor Stitt.”
Last week, Stitt hired an out-of-state law firm to advise him on his path forward. Seattle-based Perkins Coie will be brought in to suggest ways to renegotiate the compacts.
Meanwhile, elected officials have remained conspicuously silent throughout the dispute. Stephen Greetham, senior counsel for the Chickasaw Nation, said, “We notice lawmakers’ silence too. We also notice the silence coming out of (Attorney General Mike Hunter’s) office. He’s the chief legal officer for the state of Oklahoma, and I don’t see him providing kind of a full-throated endorsement of the analysis Governor Stitt provides of our renewal clause. So everyone’s kind of quiet on this within state government. It’s almost as if everyone’s waiting to see kind of how things shape up before they take a position.”
Stitt says support from lawmakers has been “pretty good.” He stated, “They’re privately telling me that they support me. But you’ve got to realize that the other thing that’s frustrating that Oklahomans need to understand is when certain industries, the casino industry, pours money into campaigns, it complicates it and the lobbying and that’s what you’re trying to see happen to advocate for their positions.
“Again, Oklahomans hate that stuff. They hate the fact that a big industry can control public perceptions. That’s what drives them so crazy about me being an independent, outside governor, I come from the private sector, and I’m going to go back to the private sector.”
Stitt’s office later clarified he was referring to the tribes’ multimillion-dollar public relations advertising campaign, not political contributions.
That said, Stitt’s campaign received $17,600 in donations from Indian tribes in the 2017-2018 election cycle, according to the nonpartisan National Institute on Money in Politics. That was the sixth-largest donation among the $766,000 directed to candidates. Morgan noted, “Stitt did not have a problem in the past coming and seeking donations from tribes when he was running for governor. That, to me, seems disingenuous.”
House Minority Leader Emily Virgin said she believes Stitt is getting bad advice on the compacts. She said the language is clear that they automatically renew. “I think as legislative leaders we need to be concerned about this because of our state budget,” she said, noting the state receives about $150 million-plus in annual exclusivity fees.
House Speaker Charles McCall added, “I think there is a win-win opportunity for all parties involved in these compacts. I would encourage and have encouraged the governor to get in there and negotiate with the tribes. Let’s get that win-win for the state of Oklahoma. I think there’s still time to do that.”
More than 130 casinos operate in Oklahoma, from gas station annexes to resort-style casinos, including the Winstar World Casino on the state’s Red River border with Texas, said to be the largest in the world. The casinos have an economic impact of $9.8 billion and support nearly 76,000 jobs, according to an American Gaming Association analysis.
