OKLAHOMA CITY — Gov. Kevin Stitt has asked a federal court to prevent the state’s American Indian tribes from operating Class III gaming in Oklahoma, saying it is illegal. Some of the tribes sued Stitt last month, asking a federal court in Oklahoma City to declare that their 15-year-old gaming compacts automatically renewed on Jan. 1. They continue to operate Class III gaming as usual, despite Stitt’s insistence that the compacts expired Jan. 1.
Stitt is seeking new compacts with higher exclusivity fees from tribes, which pay between 4% and 10% to operate Class III gaming in the state. Class III gaming includes some slot machines, roulette and craps.
Stitt’s response to the lawsuit was filed Wednesday.
“Continuing to conduct class III electronic gaming in the absence of valid Gaming Compacts with Oklahoma has resulted, is resulting, and will continue to result, in unjust enrichment to the Tribes,” according to the 41-page response. “Unjust enrichment will continue unless and until a new gaming compact is entered into by and between the Tribes and Oklahoma.”
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Oklahoma received nearly $150 million last year in exclusivity fees paid by the tribes.
“Without an injunction, Oklahoma, as a State of the United States of America, will suffer irreparable harm because its sovereignty is not being recognized by the Tribes, who continue to unlawfully conduct class III gaming in the absence of valid and existing gaming compacts,” according to Stitt’s response.
Stitt is asking the court to declare that the compacts did not automatically renew and that continuing to operate the games violates federal and state law.
He is seeking an injunction to prevent the tribes from continuing to operate the games.
“We are glad Gov. Stitt has not sought to delay the proceedings,” said Stephen Greetham, Chickasaw Nation senior counsel.
“We are reviewing the pleading his lawyers filed on his behalf and look forward to learning what legal basis he will claim to justify the uncertainty he has endeavored to create. Going forward, we look forward to working with the court and obtaining a final resolution.”
The tribe is one of three that brought the suit. The Muscogee (Creek) Nation appears ready to join the suit filed Dec. 31 by the Chickasaw, Choctaw and Cherokee tribes.
Stitt’s response was filed by the firms Lytle, Soule & Felty and Ryan Whaley, both of Oklahoma City.
For days, Stitt’s office has maintained that he was being represented by the Seattle-based firm of Perkins Coie. He announced earlier this month that the Seattle firm would address the lawsuit.
His office on Wednesday said the firm “will no longer be consulting the state in negotiating a model gaming compact as of Friday.”
Perkins Coie worked for the Democratic National Committee and for Hillary Clinton during the 2016 election cycle, according to news reports.
The firm also hired the research firm Fusion GPS, which paid former British spy Christopher Steele to look into connections between then-candidate Donald Trump and Russia, according to news reports.
The DNC and Clinton were not aware that the firm had been hired by Stitt, according to news reports.
Gallery: What you need to know about tribal gaming in Oklahoma.
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
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Barbara Hoberock
405-528-2465
@tulsaworld.com
Twitter: @bhoberock
Barbara Hoberock
Tulsa World Capitol Bureau Staff Writer
