Two tribes agree to an eight-month extension

Despite the expiration of the state gambling compact, Oklahoma’s tribal casino’s continued to operate in January as some tribes refused to extend the time to negotiate with Gov. Kevin Stitt.

Under the 15-year-old compact, the tribes had exclusive rights to gambling operations in the state. Stitt wants a fresh look at those agreements.

Stitt said two tribes, the Kialegee Tribal Town (“Tribe”) and United Keetoowah Band of Cherokee Indians, have entered into an eight-month extension with the State of Oklahoma on the Model Gaming Compact.

The Chickasaw, Choctaw, and Cherokee Nations filed a federal lawsuit in regard to the Model Gaming Compact expiring on Jan. 1, 2020.

“I appreciate the honesty and boldness of the Kialegee Tribal Town and the United Keetoowah Band of Cherokee Indians who recognize the Jan. 1, 2020 expiration in the Model Gaming Compact and have signed on to the eight-month extension generously offered by the State,” Stitt said. “These extensions will enable the parties to negotiate a compact that better accounts for the differing needs of tribes throughout the state and the state’s interests in preserving the substantial exclusivity without a cloud of legal uncertainty. The State of Oklahoma offered an extension, with no strings attached, to all tribes that operate casinos in the state, and my door continues to be open for more tribes to join who are worried about impending uncertainty.

“I am disappointed that a number of Oklahoma tribes, led by the Chickasaw, Cherokee, and Choctaw Nations, did not accept the state’s offer on Oct. 28 for a three-person arbitration panel to resolve our dispute outside of court,” Stitt said. “This was a capstone action to their numerous refusals to meet with the state and begin negotiations on the Model Gaming Compact to ensure a win-win for all parties by the end of this year. I was elected to represent all 4 million Oklahomans, and I will continue to be laser focused on an outcome that achieves a fair deal and is in the best interest of the state and its citizens.”

The gambling compacts were entered into by the State of Oklahoma and 35 tribes beginning in 2005. Between July 3 – July 8, 2019, Stitt requested that tribal leaders work with the State to renegotiate terms in the gaming compacts—”within 180 days of the expiration of this Compact or any renewal thereof,” as set forth in Part 15.B of the compacts. 

The State of Oklahoma made four official requests for tribal leaders to come together to discuss and negotiate the terms of the gaming compacts. All requests were turned down by the tribes.

The state then proposed arbitration to resolve the legal dispute regarding the compacts’ expiration date. This offer was categorically rejected. On Dec. 18, Stitt offered to extend the compacts for eight months to permit the parties time to negotiate in good faith. This offer was also turned down.

Stitt hired Perkins Coie law firm in December to advise in its efforts to negotiate a revised gaming compact with Oklahoma gaming tribes.

“With Perkins Coie, the State of Oklahoma is well positioned to work towards a compact that protects core public services and advances the future of our great state, its four million residents, and gaming tribes. Perkins Coie will also respond to and address the Chickasaw, Cherokee, and Choctaw Nations’ federal lawsuit filed on New Year’s Eve. The legal experts at Perkins Coie have successfully represented other states in Indian law controversies, to include the State of New Mexico’s compact dispute in 2015,” said Stitt.

Perkins Coie will assist in defending against that suit, in addition to providing counsel regarding compact negotiations.

 The firm has extensive litigation experience, including successfully challenging federal regulations invoked by a gaming tribe to circumvent IGRA’s compact requirement on behalf of the State of New Mexico in 2015. While that litigation was pending, Perkins Coie assisted the State in negotiating a new gaming compact with five other tribes whose compacts were also set to expire that year. Since that time, a dozen other New Mexico tribes opted into the new gaming compact.

Also, Stitt has agreed to a one-year extension with Seminole Nation on a Tobacco Tax Compact.

“The Tobacco Tax Compact is an agreement between the State and the Seminole Nation that the two sovereigns will split evenly the tax revenue generated from the sale of cigarettes and tobacco products at the Nation’s business locations,” said Stitt.

The Tobacco Tax Compact between the State of Oklahoma and the Seminole Nation was constituted in November 2013 under the Fallin administration. The compact establishes a Compact Tax rate of 100 percent of the State tax rate on cigarettes and other tobacco products. The state will collect the Compact Tax directly from the wholesalers, and then the State will remit back to the Seminole Nation 50 percent of all Compact Taxes collected. The one-year extension maintains current compact terms and adjusts the expiration date to Dec. 31, 2020.

Over the past year, the Governor signed a total of five extensions for the State on various tribal compacts, with the other four as follows:

• The State of Oklahoma and Cherokee Nation signed a 1-year extension on a hunting and fishing compact.
• The State of Oklahoma and Choctaw Nation signed a 1-year extension on a hunting and fishing compact.
• The State of Oklahoma and the Kialegee Tribal Town signed an 8-month extension on the Model Gaming Compact.
• The State of Oklahoma and the United Keetoowah Band of Cherokee Indians signed an 8-month extension on the Model Gaming Compact.