Gaming compacts OK'd with two more tribes
Oklahoma Gov. Kevin Stitt announced Thursday that he signed new gaming compacts with the Kialegee Tribal Town and Keetoowah Band of Cherokee Indians — once again touching off a furor among the state's Indian gaming tribes.
Stitt described the compacts as promoting economic development, but the chairman of the Oklahoma Indian Gaming Association immediately challenged their legality.
“The new agreements signed between Gov. Stitt and the United Keetoowah Band of Cherokee Indians in Oklahoma and Kialegee Tribal Town are neither legal nor helpful,” said Matthew Morgan, chairman of the Oklahoma Indian Gaming Association.
Morgan noted that the legality of compacts the governor previously signed with two other tribes is being challenged before the Oklahoma Supreme Court by legislative leaders and Oklahoma's attorney general.
“We agree with Oklahoma's legislative leadership and Attorney General Mike Hunter that Gov. Kevin Stitt unilaterally entering into new gaming agreements with tribal nations violates state law,” Morgan said. “For the past year, Gov. Stitt's actions have caused unnecessary strife, costly litigation and have wasted the state's resources.”
The Kialegee Tribal Town is based in Wetumka. The United Keetoowah Band is based in Tahlequah and has about 14,300 members. Leaders of the United Keetoowah Band and much larger Cherokee Nation have frequently clashed over the years.
In the compact with the Kialegee Tribal Town, the governor gave his approval for the tribe to construct a casino in eastern Oklahoma County on land east of Choctaw
Road and within a mile of a state or federal highway or turnpike.
Another federally recognized tribe would be brought in to jointly manage or operate the facility, the agreement states.
The Kialegee Tribal Town would be required to pay the state a 12% exclusivity fee the first two years on net revenue from gaming machines and a graduated rate of 13% to 15% every year thereafter through Dec. 31, 2035. The tribe would be required to pay the state a revenue sharing rate of 18% on nonhouse-banked card and table games.
The governor's agreement with the United Keetoowah Band would authorize that tribe to construct and operate a casino in Logan County within a mile of a state or federal highway or turnpike.
The United Keetoowah Band would be required to pay the state a graduated exclusivity fee rate of 12% to 15% on adjusted net revenue from gambling machines based on the amount of revenue collected. The tribe also would be required to pay the state a revenue sharing rate of 18% of the adjusted net win from nonhouse-banked card and table games.
The compacts the governor signed with the Kialegee Tribal Town and United Keetoowah Band differ significantly from compacts the governor signed earlier with the Comanche Nation and Otoe-Missouria Tribe.
They don't appear to specifically authorize sports betting or house-banked table and card games, provisions in the earlier compacts which proved controversial and prompted court challenges. However, both new compacts contain a “most favored nation” clause that essentially says the state is willing to amend the compacts to include any covered games or privileges it has agreed to offer other tribes.
Morgan said even if sports betting and house-banked card and table games aren't allowed, he still believes the compacts are illegal.
“( I) still think Stitt is attempting to offer items that are outside his authority in terms of crafting gaming compacts outside of the model compact process authorized by state law and attempting to potentially bind future governors in supporting fee to trust applications that aren't ripe and may never be ripe,” Morgan said. “Additionally, the tribes are attempting to move outside their jurisdictional boundaries which not only disrupts intertribal relations but strain tribal-state relations.”
Fee to trust applications are part of the federal process tribes must go through to have lands outside their jurisdictional boundaries put into trust before they can build casinos on them. The U.S. Department of the Interior also must approve all tribal gaming compacts before they can become effective.
Although hurdles remain, Stitt praised the compacts Thursday.
“By negotiating with each individual Oklahoma tribe, the state is seeking to level the playing field for all tribes and working to ensure that no one is held back by its size or resources from competing and pursuing economic growth for its citizens,” Stitt said after signing the compact with the Kialegee Tribal Town.
Stitt said that tribe is “pursuing a sound business plan for its first gaming location in Oklahoma with their compact commitment to partner with another tribe on this venture.”
The governor said the agreement with the United Keetoowah Band “delivers clarity and certainty for each sovereign party.”UKB Chief Joe Bunch described the signing of the compact as “a grand day for Keetoowahs and Native American tribes all over the country.”