Oklahoma’s gaming tribes on Thursday declined Gov. Kevin Stitt’s proposed compact extension, saying their agreement with the state automatically renews.
“We stand united today against the proposed extension by Gov. Stitt as utterly unnecessary, given the automatic renewal,” said Oklahoma Indian Gaming Association Chairman Matthew Morgan.
The action came after leaders of 32 of the state’s 35 gaming tribes met at the River Spirit Casino and Resort in Tulsa to discuss the governor’s request to extend the compact and negotiations to Aug. 31.
Morgan said Stitt should put an end to his self-created crisis, accept automatic renewal and come to the table with a reasonable proposal that would provide value for the tribes and the state.
Tribes are united in a desire to avoid a protracted, multiyear legal battle, he said.
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Stitt and tribal leaders are at an impasse on renewal of the gaming compacts, which last fiscal year generated nearly $150 million for the state.
Stitt believes the compacts expire Jan. 1 and that Class III gaming will be illegal without another agreement. The governor is seeking higher fees from the tribes in exchange for additional exclusivity in the gaming industry, which could include sports betting.
Tribes pay the state between 4% and 10% to operate Class III gaming, which includes slot machines, roulette and craps. Tribes do not pay fees on Class II gaming, which is electronic bingo.
Tribes believe the compacts automatically renew, and they plan to continue operating normally on Jan. 1.
Stitt said the extension was offered to protect the parties’ legal positions and to provide legal certainty about casinos’ operations as Jan. 1 approaches.
“I am disappointed that the tribes turned our offer down and refused our requests to negotiate new compact terms that better address the parties’ changing needs,” the governor said in a prepared statement. “I will continue to work to protect the State’s interests, and I hope that those running the casino industry will negotiate with the State in good faith as these compacts demand.”
The Governor’s Office reiterated that the state’s offer would have extended the compacts but make no further amendments to Part 15B, the contested portion of the compacts dealing with renewals and negotiations.
The compact has benefited both the tribes and the state, said Cherokee Nation Chief Chuck Hoskin Jr., producing more than $1.5 billion in exclusivity fees to the state since 2006.
Morgan said he questioned Stitt’s authority under law to offer an extension.
The governor has questioned the tribes’ unity on the compact issue, but tribal leaders repeatedly said they are united.
Morgan said tribes are disheartened “that Gov. Stitt’s dispute has damaged the spirit of cooperation and collaboration forged over the past 15 years between the tribes and the state of Oklahoma.”
“We stand united today against those who break promises,” the OIGA chairman said.
Muscogee (Creek) Nation Principal Chief James Floyd said the River Spirit Casino and Resort was preparing for its busiest night of the year, New Year’s Eve.
“We will host thousands of people here, not only from the state of Oklahoma but other states,” Floyd said. “We know the tourism industry is a key economic generator, and we, the tribes standing here with me today, are the top producers of tourism revenue in the state of Oklahoma.”
The tribes have taken risks and made significant investments in hospitality assets, Floyd said.
Sac and Fox Nation Chief Justin Wood, a former Republican lawmaker from Shawnee, said the tribes are facing veiled threats from Stitt.
Wood said he hoped Stitt would apologize for how he approached the issue.
Tribal gaming 101: What you need to know
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
Barbara Hoberock
Capitol Bureau Writer
I have covered the Oklahoma Legislature since 1994. I cover politics, appellate courts, state agencies and the governor. I have worked for the Tulsa World since 1990. Phone: 405-528-2465
