Governor, Tribes at Odds Over Renegotiating Gaming Compacts

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OKLAHOMA CITY – Republican governor Kevin Stitt’s call to renegotiate gaming compacts between the state’s federally recognized Indian tribes and the state hasn’t gone over well.

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OKLAHOMA CITY – Republican gov- ernor Kevin Stitt’s call to renegotiate gaming compacts between the state’s federally recognized Indian tribes and the state hasn’t gone over well.

In fact, one expert said, it was about as popular as a skunk at a nudist colony. Outlined in an editorial published in the Tulsa World on July 8, Stitt said itwas imperative that state officials andtribal leaders ‘come to terms on new compacts prior to the end of the year.’

 

REVIEWING, NEGOTIATING

The easiest thing to do is simply renew the existing compacts “as is,” rather than do the hard work of closely reviewing and negotiatingnew compacts that reflect the state ofaffairs today,” the governor wrote. “I believe, however, that voters elected me to look at everything in state gov- ernment with a fresh eye and, where necessary, make the difficult deci- sions that are in the best interest of all 4 million Oklahomans.”

In his editorial Stitt wrote that Oklahoma’s exclusivity fees were the lowest in the nation and that today, most state-tribal compacts have fees of 20 to 25 percent. “In fact, in November 2018 voters in our neighboring state of Arkansas approved four new casinos in the state, two of which will be bid on by tribes from Okla- homa, according to media reports.

In Arkansas, the fee will start at 13% and max out at 20%,” the governor wrote. Stitt’s editorial was published around the same time the Citizen Potawatomi Nation and other tribal nations individual letters – dated July 5, three days ear- lier than the governor’s editorial – which hinted that if new compacts were not agreed to before the end of 2019, tribal gaming operations would be operating unlawfully. Stitt is a member of the Cherokee tribe.

“It is imperative that we reach an agreement and obtain the approval of the Department of Interior prior to the end of 2019 so that Cit- izen Potawatomi Nation may continue to lawfully conduct certain class III games in Oklahoma after that date,” the governor wrote.

Tribal leaders quickly pushed back. Shortly after the gover- nor’s call for renegotiation, the Cheyenne and Arapaho Tribes issued a media state- ment that said the tribes were open to the governor’s request to negotiate new compacts but added “we do not feel that taking away from our tribal members’ services is the best option for the tribes. Any negotiations that involve raising the fees would be detrimental to the tribes and does not protect the interest of our tribal govern- ment.”

The statement said the Cheyenne and Arapaho tribesshouldered the financial riskand built all of the infrastruc- ture and facilities to build casino gambling in Oklahoma “while the state has been for- tunate to reap the rewards without any investment or risk on its part.”

 

INTERTRIBAL COUNCIL

In addition to the Cheyenne and Arapaho, the Intertribal Council of the Five Civilized Tribes issued a resolution which “expressed their dis- appointment in the action by Governor Stitt to take a mat- ter of such great importance to the media before engaging in respectful and purposeful conversations given the com- plexity of the compacts and the law.”

In a joint statement – signed by all five leaders of the tribes – tribal officials said they considered the state a trustworthy partner through the years.

“Working together we have made strides in building a better, stronger and more prosperous Oklahoma for the benefit of the hundreds of thousands of members of our tribes who live and work here as well as all residents of this great State,” the statement said.

“We can trace the start- ing point of our constructive partnership to the care- fully crafted and balanced approach represented in the current compact negotiated in a respectful manner between the State of Oklahoma and the sovereign Tribes residing in Oklahoma. This compact represents a continuing and mutually ben-eficial partnership,” the state- ment went on to say.

 

TRIBES QUESTION STITT’S SINCERITY

But Stitt’s action, the tribes said, puts into question his sincerity to work with them in a cooperative manner moving ahead.

“We are resolute in our position, and it is our hope Governor Stitt and his advisors will not attempt any bad faith interference on the com- pact which could set back the progress we have achieved by working together,” the statement said.

 

TRIBES ECONOMIC IMPACT TO STATE

At the same time the tribes released their statement, a new study was released which pegged the tribes’ eco- nomic impact to the state at almost $13 billion. According to the study, tribes paid $4.6billion in wages and benefitsand created 91,177 jobs.

Tribal gaming, the study said, has generated $1.3 bil- lion in exclusivity fees for education since 2006 and the tribes paid $198 million in exclusivity fees and for edu- cational support in 2017.

Cheyenne and Arapaho officials said their tribe, alone, has paid the state about $50 million in exclu- sivity fees. That investment, the tribe said, far outweighs the investment that may or could be offered through the governor’s plan.

“As the language of the compact implies, if no new negotiations are agreed upon between the tribes and the state, the current compact shall automatically renew for successive additional 15-year terms. The language of the law should prevail.”