Oklahoma Politics: December 2019 Archives

Governor Kevin Stitt wants to renegotiate Oklahoma's exclusivity agreement with the state's tribal governments and to increase the state's percentage of gambling revenue from tribal casinos. The original compacts, established starting in 2004, expire at the end of this year. The exclusivity fee starts at 4% for lower levels of income but maxes out at 6%. Originally covering only card games and electronic slot machines (aka one-armed bandits), the compacts were amended to permit ball and dice games, such as roulette and craps.

Here are some links to source material on the topic. I'll be on KFAQ at 8:00 Thursday morning to discuss the issue with Pat Campbell.

• Indian Gaming Regulatory Act (IGRA): This is the Federal law that enables tribal casinos if a state permits the same class of gambling, provided that a compact is agreed between the tribe and the state. Here's the text of the IGRA, Public Law 100-497.
• National Indian Gaming Commission: Federal agency that administers the IGRA.
• State-Tribal Gaming Act (STGA): Oklahoma Statutes, Title 3A, Sections 261 through 282, which was passed in the 2004 Legislative Session as SB 1252 and ratified by referendum in November 2004 as SQ 712. Sections were amended in 2005, 2007, 2008, 2017, and 2018.
• Title 3A, Section 280: This section of the State-Tribal Gaming Act offers the Model Tribal Gaming Compact to all federally recognized Indian tribes and earmarks the state revenues to the general fund (12%), the Educational Reform Revolving Fund (88%), and the Department of Mental Health and Substance Abuse Services for treatment of compulsive gambling ($250,000 per year).
• Title 3A, Section 280.1: Contains the supplement to the Model Tribal Gaming Compact allowing for "non-house-banked table games" that involve a wheel, ball, or dice. This was approved in 2018 as HB 3375.
• Title 3A, Section 281: This section contains the Model Tribal Gaming Compact.
• Gaming Compliance Unit (GCU): Department of the state Office of Management & Enterprise Services (OMES) responsible for enforcing the terms of the STGA
• GCU Oklahoma Indian Gaming FAQ: Useful Q&A summary of the law
• GCU list of compacted tribes: 34 federally recognized tribes currently have compacts with the state
• Oklahoma Gaming Compliance Unit FY 2018 Annual Report: Revenues with breakdowns by tribe and type of game for the year ending June 30, 2018
• data.ok.gov: Tribal Gaming Exclusivity Fees: In the first three months of FY2020, Oklahoma has collected $39,366,737 from the tribes.

The language at issue is in Part 15, Subsection B of the model compact:

B. This Compact shall have a term which will expire on January 1, 2020, and at that time, if organization licensees or others are authorized to conduct electronic gaming in any form other than pari-mutuel wagering on live horse racing pursuant to any governmental action of the state or court order following the effective date of this Compact, the Compact shall automatically renew for successive additional fifteen-year terms; provided that, within one hundred eighty (180) days of the expiration of this Compact or any renewal thereof, either the tribe or the state, acting through its Governor, may request to renegotiate the terms of subsections A and E of Part 11 of this Compact.

Subsection A of Part 11 deals with exclusivity fees to be paid to the state; Subsection E of Part 11 deals with penalties that would apply to the state if the state were to allow operation of gaming machines in excess of those permitted by the STGA.

Organization licensee appears to be defined in Section 262, which refers back to Title 3A, Section 205.2, part of the Oklahoma Horse Racing Act. Here are the current Rules for Racetrack Gaming from the Oklahoma Horse Racing Commission.

MORE:

Pat Campbell discusses the issue with State Sen. Nathan Dahm (starting about 4:15 before the end of the segment).
Pat Campbell discusses tribal casinos with former State Rep. Wayne Pettigrew, who was one of a handful of Republican legislators to break with their party colleagues to put gambling on the ballot in 2004.
I opposed all three gambling measures on the 2004 ballot. Click to find out why.