Gov. Kevin Stitt wants to renegotiate the gambling compacts between the state and the tribal governments.
The compacts expire January 1, 2020. Some tribal leaders don’t want any changes and claim that if they don’t like Stitt’s changes, the pact will automatically continue for another 15 years under the same terms.
Attorneys for the state disagree and say that unless the state or a court authorizes Class II gambling after January 1, the compact will not be renewed.
That could mean that the 140-plus tribal casinos on Oklahoma would have to cease Class III gambling operations. Class III gambling includes craps, roulette and slot machines. Class II includes electronic bingo.
Stitt thinks the original pact, engineered by former Gov. Brad Henry, called for an exclusivity fee that ranged from 4-10 percent.
Henry’s deal was roundly criticized for giving too much to the tribes. And the legalization of casino gambling was blasted by some conservative lawmakers, religious leaders and others.
That’s the lowest rate in the nation, according to Stitt.
Those rates have been in effect for 15 years. The state regulates the games that can be offered, hours of operation and places caps on games. Because of the agreement, no other gambling can operate within Oklahoma.
The tribes will argue that they have made multi-million-dollar investments in their casinos. Some want the compact expanded to permit sports betting.
State officials are seeking proposals for a contract from companies to renegotiate the compact.
The negotiations will include tribal casinos, sports betting, horse racing, Internet gambling, lotteries and other gambling activities.
Oklahoma has 35 tribes with gambling operations in the state. The casino siphon about $5,000,000,000.00 a year from state players.