State, tribes file motions on gaming compact renewal

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  • Vehicles are parked outside the Choctaw Casino Resort in Durant. The Choctaw Nation is one of nine tribes involved in a lawsuit against the state of Oklahoma over the model state-tribal gaming compact.
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OKLAHOMA CITY — In dueling motions for summary judgment filed Friday afternoon, attorneys for the state of Oklahoma and nine tribes laid out why their clients’ interpretation of the model state-tribal gaming compact is the correct one.

Filed with the Western District of Oklahoma, the motions address whether the model state-tribal gaming compact automatically renewed on Jan. 1.

Responses to the motions are due by June 12. As per an April 23 order from Judge Timothy DeGuisti, the two sides have until June 30 to complete court ordered mediation. Judge DeGuisti also previously issued an order barring Gov. Stitt and all of the involved tribes from publicly discussing the mediation process without going through the court first.

In the tribes’ joint brief, legal counsel for the Cherokee, Choctaw, Chickasaw, Muscogee (Creek), Seminole, Citizen Potawatomi and Delaware nations; Quapaw Tribe and Wichita and Affiliated Tribes maintain that the compacts’ terms for automatic renewal were all met, including the continued authorization of live betting at the state’s horse racing facilities.

“The compacts’ first term was definite and then it automatically renewed when the condition the parties agreed upon...was met, which occurred on Jan. 1, 2020. The state could have prevented that result by prohibiting organization licensees and all others from conducting any form of electronic gaming other than pari-mutuel wagering on live horse racing. It chose not to do so.”

The Wichita and Affiliated Tribes filed an additional brief, taking issue with the state’s authorization of the Oklahoma lottery and 2015 amendments to the Iowa Tribe of Oklahoma’s compact that allow for online gambling.

Seeking higher exclusivity fees from the 30-plus gaming tribes across Oklahoma, Gov. Kevin Stitt has publicly maintained that the compacts expired on New Year’s Eve and that any Class III gaming conducted after that date, such as craps and roulette, is illegal.

In the state’s motion for summary judgment, Gov. Stitt’s attorneys argue that even if the compacts did automatically renew, the tribes are in violation of their terms by refusing to negotiate new terms with him unless he acknowledged the automatic renewal language first.

The gaming compacts include language that require one side give at least 180 days’ notice should they wish to renegotiate the terms. Tribal officials have publicly maintained that they were not given notice prior to a July editorial in the Tulsa World from the governor, announcing his wish to overhaul the compacts.

“The compact simply does not permit the tribes to condition their performance...on the state’s acquiescence to their legal position that the compact has renewed.

“The tribes’ refusal to participate in good faith renegotiations of the compact constitutes a material breach thereof.”

Gov. Stitt signed new compacts in April with the Otoe-Missouria Tribe and Comanche Nation. Those agreements are still awaiting approval from the U.S. Department of Interior before taking effect. Under the terms of the Indian Gaming Regulatory Act, the federal government has 45 days to formally deny approval to the compacts, thus putting the deadline at June 8.

In 2019 alone, Oklahoma received almost $150 million in tribal gaming exclusivity fees. The figure is expected to be substantially lower in 2020 as all tribal casinos across the state closed for at least six weeks due to COVID-19. Several are still shuttered, including ones operated by the Kiowa and Apache tribes.

As of Tuesday afternoon, the Citizen Potawatomi Nation, Delaware Nation and Quapaw Tribe have all reopened their gaming facilities, albeit at reduced capacity.

The Chickasaw Nation is scheduled to reopen its casinos on Wednesday. The Muscogee (Creek) and Choctaw nations are reopening their properties on June 1, as is the Anadarko-based Wichita and Affiliated Tribes.

The Seminole Nation of Oklahoma will be reopening its casinos on June 15.

Meanwhile, although Cherokee Nation Businesses has released all the preventative measures it will have place, it has not announced a reopening date for its 10 properties across northeastern Oklahoma.