OKLAHOMA CITY — Oklahoma tribes with casinos have refused the state’s offer to go into arbitration over a dispute about renewal of their gaming compacts.
The impasse continues despite a recent meeting between tribal leaders and Oklahoma Attorney General Mike Hunter.
Members of Gov. Kevin Stitt’s staff and Hunter, who is representing the state, met with tribal leaders Oct. 28 at the Grand Casino, owned by the Citizen Potawatomi Nation, just outside Shawnee.
About 200 tribal leaders and their representatives were present, representing the 31 tribes that offer gaming in the state.
Stitt believes that the multimillion-dollar tribal gaming compacts expire Jan. 1, 2020, while the tribes say the agreements renew automatically.
In a letter to Hunter, the tribes said the attorney general wanted the renewal dispute to go to arbitration.
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“The state’s argument against renewal is not supported by any facts or law and arbitration is not presently justified,” the tribes wrote in the Nov. 5 letter.
The letter says the tribes remain united in their position that the compacts will automatically renew and will continue operations as usual.
“The governor is disappointed the tribes declined the state’s proposal for arbitration in order to resolve our legal differences and that they did not present an alternative resolution towards progress,” said Baylee Lakey, Stitt’s communications director. “The governor will be providing a full update in the coming days about the current state of negotiations.”
Stitt has indicated that he is seeking to derive more income for the state from the compacts.
Tribes pay the state for the exclusive right to offer gaming in the state. The rates range from 4% to 10% of their take.
For fiscal year 2018, Oklahoma collected nearly $139 million in tribal gaming exclusivity fees, according to a report from the state’s Office of Management and Enterprise Services. That was a 3.48% increase over fiscal year 2017.
Stitt has yet to make a proposal to the tribes for altering the compacts.
“If the state intends to make a proposed revision to our agreement, we will insist that it justify any proposal with reference to a meaningful state concession of proportionate value,” the Nov. 5 letter from tribes to Hunter says.
Hunter’s office had no comment on the letter.
Hunter’s office also would not comment on what action the state could take should an agreement not be reached by Jan. 1.
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.
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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
