Tribes, AG to meet about gaming
Oklahoma Attorney General Mike Hunter is scheduled to meet with leaders of Oklahoma Indian tribes on Oct. 28 in Shawnee to discuss differing interpretations of a renewal provision within the state's tribal gaming compacts.
“We're anxiously awaiting what their proposal is,” said Choctaw Nation Chief Gary Batton.
Gov. Kevin Stitt has taken the position that the tribes' 15- year gaming compacts with the state will expire Jan. 1 unless a renewal agreement is negotiated. He has stated he believes the tribes should be paying more in exclusivity fees.
The tribes have taken the stance that the gaming compacts will automatically renew on Jan. 1 unless both the state and tribes agree to different terms.
Leaders of five Oklahoma
Indian tribes met with The Oklahoman on Thursday afternoon and voiced varying degrees of optimism as to whether differences between the tribes and state can be resolved without litigation.
“My term would be `cautiously optimistic,'” Chief Batton said.
“I'm hoping it's just a simple misunderstanding,” said Greg
Chilcoat, chief of the Seminole Nation of Oklahoma, adding that he hoped the issue could be resolved through “fair and open communication” among governmental entities.
The stakes are high. Oklahoma's Indian tribes currently pay the state exclusivity fees ranging from 4% to 10% of revenues for the ability to operate certain types of casino games in the state. Last year the state received more than $139 million from those fees, most of which went to support education.
The stakes are so high that Oklahoma's attorney general has agreed to pay a Michigan law firm up to $ 250,000 to assist with negotiations.
Meanwhile, Oklahoma's gaming tribes have united to finance an extensive television and newspaper advertising campaign to inform the public about the millions of dollars they spend annually on education, roads, bridges, health care and other things that benefit Oklahomans.
Gaming revenues support
those expenditures, which are in addition to the money the tribes pay the state in exclusivity fees, tribal leaders said. They declined to say how much they have spent on the media campaign.
Batton said the Choctaw Nation has given money to 89 schools in the state, while Muscogee (Creek) Nation Chief James Floyd said his tribe has given money to at least 40 districts within its tribal area, buying things like safety, playground and sports equipment.
“The tribes have all made a considerable investment — in fact, we're talking billions of dollars — and we still have investments to make,” said Chickasaw Nation Gov. Bill Anoatubby.
Anoatubby said if the tribes were required to pay higher exclusivity fees, it would mean they would have less money to spend on schools, hospitals, roads or other things they
currently support with those revenues.
“I hope that everybody really understands that,” Chief Batton said. “This is not a revenue increase for the state. It's just a revenue shift because the same amount would be coming to the state, but we believe in local control.”
It is an absolute true fact with respect to the tribes represented here that every penny that's generated through gaming is invested back in the state of Oklahoma in some way,” said Chuck Hoskin Jr., principal chief of the Cherokee Nation. “We're not a corporation from some other state where there is some amount that it goes back to. It is all right here.”
Batton said he believes it is important for the public to understand the difference between a compact and a contract.
“A compact is more like a treaty,” Batton said. “When you do a contract it's usually a business deal, so you look at how it benefits you most by profit. In a compact, you have to look at your constituencies and
make sure its best for your constituents − us and the state of Oklahoma.”
“This is not subject to state law,” Anoatubby said. “It's an agreement between two governments and there is no restriction to the length of time that agreement can exist.”
Anoatubby said when people examine the fairness of the exclusivity fees tribes pay, they need to take into consideration that the percentage payments tribes make are based the gross gaming revenue they take in after winning payouts.
“We're not able to deduct any kind of expenses or anything that a corporation might be able to deduct to get to the bottom and pay taxes on it,” he said. “Ours comes off the top.”
Batton said tribes are strong believers in openness and transparency, but he believes the upcoming discussions between the attorney general and the tribes should be conducted in private.
“I think we just need to be behind closed doors,” he said, likening it to a husband and wife discussing a disagreement among themselves before publicly airing a grievance.
The leaders said their tribes are interested in negotiating with the state about tribes offering sports betting, but all five insisted that the issue of renewal of the existing gaming compacts must be resolved first.
“We would like to be there and at least talk about that, but there's a little bump in the road right now,” Gov. Anoatubby said.