Keetoowah, Kialegee
Despite pending litigation before the Oklahoma Supreme Court, the gaming compacts for two more tribes have been deemed approved by the Department of Interior.
On Thursday, Gov. Kevin Stitt’s office announced it was notified by the Department of Interior that the compacts for the United Keetoowah Band of Cherokee Indians and Kialegee Tribal Town were deemed approved.
The two compacts were signed on July 1. Under the terms of the Indian Gaming Regulatory Act, the compact must be approved by the Department of Interior before it can take effect. If no formal action is taken within 45 days, as has been the case with all four compacts signed by the Stitt administration, it is deemed approved, but will not take effect until it is formally published in the Federal Register.
Citing a violation of the state’s separation of powers provisions, the Oklahoma legislature’s leadership has filed a lawsuit with the Oklahoma Supreme Court challenging the two compacts. The court previously declined to consolidate the litigation with a separate, albeit similar lawsuit challenging compacts signed with the Otoe-Missouria Tribe and Comanche Nation.
The United Keetoowah Band of Cherokee Indians and the Kialegee Tribal Town each signed a 15-year agreement that would allow each tribe to open up a single property outside of its jurisdictional area.
The UKB has not operated any gaming properties since its Tahlequah casino closed in 2013. As written, its compact is limited to a single facility in Logan County and does not allow for any Class III gaming at the shuttered Keetoowah Cherokee Casino property.
Headquartered in Wetumka, the Kialegee Tribal Town’s compact is specifically for a single property in Oklahoma County east of Choctaw Road. The tribe previously tried to open a casino in Broken Arrow, but was denied a gaming license by the National Indian Gaming Commission.
Section 20 of the Indian Gaming Regulatory Act includes provisions for tribes to take land into trust outside of their jurisdictional area if certain conditions are met, including approval from state officials.
For the Kialegees, that state approval is contingent upon signing an agreement with another tribe by June 30, 2021, to jointly manage the casino. Additionally, the tribe has to submit its application to the federal government for consideration under IGRA by June 30, 2023.
The UKB must submit its land into trust application to the federal government by July 1, 2024, in order for the state to stay on board with the proposed Logan County property.
The UKB compact sets an exclusivity fee sliding scale on revenue from Class III machines, ranging from 12 to 15 percent.
For Kialegees, the exclusivity fee is set at 12 percent for the first two years their casino is open, then the sliding scale is implemented for the rest of the compact’s duration.
Additionally, both tribes would pay an 18 percent exclusivity fee on revenue from non-house banked table and card games, such as roulette, craps, poker or blackjack.
By comparison, the exclusivity fees in the model state-tribal gaming compact signed in 2004 max out at 10 percent.
“It is a great day as we prepare to partner with the State of Oklahoma in this Class III gaming compact that will be good for Logan County, the state and the United Keetoowah Band,” UKB Principal Chief Joe Bunch said.
“Our compact will help provide much needed resources to our tribe and surrounding communities as we continue to develop a robust economy and exercise our tribal sovereignty.”