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Citing the COVID-19 pandemic, a federal judge has extended a filing deadline by two months and indefinitely postponed a hearing in a lawsuit over the status of tribal gaming compacts.
Chief U.S. District Judge Timothy DeGiusti issued the order Tuesday in the lawsuit filed by several Oklahoma tribes against the state of Oklahoma.
The judge, based in Oklahoma City federal court, had ordered on Friday that a status/scheduling conference be held April 3.
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“In light of conditions resulting from the COVID-19 pandemic, the status/scheduling conference set for April 3 is hereby stricken to be reset at a later date,” DeGiusti said in a written order.
He also extended deadline for mediation in the case from March 31 to May 31.
Three Oklahoma tribes sued Gov. Kevin Stitt in his official capacity on Dec. 31, asking for a declaration that their gaming compacts with the state automatically renewed Jan. 1.
Stitt, who is seeking higher exclusivity fee rates from the tribes, argued that the compacts expired Jan. 1 and that continued Class III gaming at the tribes’ casinos is now illegal.
Tribes pay the state between 4% and 10% in exclusivity fees to operate Class III gaming, which includes many slot machines, roulette and craps.
The lawsuit was filed on behalf of the Cherokee, Chickasaw and Choctaw nations.
Other tribes, including the Muscogee (Creek) Nation, subsequently joined the lawsuit against the state.
DeGiusti has issued a gag order on the lawsuit parties regarding mediation.
Tulsa Mayor G.T. Bynum gives an update on coronavirus in Tulsa on Tuesday, March 17.
Tribal gaming 101: What you need to know about Oklahoma tribal gaming
Tribal gaming 101: What you need to know about Oklahoma tribal gaming
What is the dispute?
In an opinion piece, Stitt said “most” tribal compacts nationwide include gaming exclusivity fees that pay states 20% to 25%, compared to the 4% to 6% that Oklahoma gets from its compacts which were agreed upon more than a decade ago.
What is a compact?
A state lacks jurisdiction over tribes. A compact is essentially an agreement between the state and a tribe where the state offers the tribe substantial exclusivity in certain areas in exchange for payments.
A compact can cover tobacco sales, fuel, gaming and other enterprises. Various entities enforce it. Penalties include a reduction in payments and liquidated damages.
How much does the state receive from tribal gaming compacts?
Since 2004, the state has received slightly more than $1.5 billion, most of which goes to education.
How much did the state receive in 2019?
Oklahoma received a little more than $148 million in tribal gaming exclusivity fees, up almost $10 million from the year before.
Related: A breakdown of the nearly $139 million that Oklahoma collected from state tribes in fiscal year 2018
What types of games are covered by the compact?
The compact covers Class III gaming, which includes slot machines, roulette and craps. The compacts do not cover Class II gaming, which includes electronic bingo. IAN MAULE/Tulsa World file
Can the compacts be expanded for other types of gaming?
Yes. The compacts currently do not cover sports betting and other forms of gambling, such as online betting. Ball-and-dice games were recently approved by lawmakers as a means to raise additional revenue.
How many tribes are involved in the gaming compacts?
Oklahoma has 38 federally-recognized tribes, of which 31 have signed gaming compacts.
How many tribal compact gaming operations exist?
The state has 130 tribal gaming operations that range in size from an annex to a gas station to resort casinos.
How do tribes use the money generated from gaming?
Tribes use the money to fund government operations and programs, the welfare of the tribe and its members, economic development, charity and local government agencies.
Tribe touts $866M impact
Curtis Killman 918-581-8471
curtis.killman
@tulsaworld.com
Twitter: @loucardfan61
Curtis Killman
Tulsa World Staff Writer
