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Legal & Regulatory

Oklahoma tribes reject proposed compact extension 

Oklahoma Governor Kevin Stitt’s offer to extend the state’s current gambling compact for an additional eight months has been firmly rejected by Oklahoma-based Indian tribes.

Oklahoma

The tribes have rejected the new offer, believing the automatic renewal conditions of the compact to have been met, though this is something Stitt contests.

Should it be renewed, it would last for another 15 years, with Stitt asking to negotiate new terms that “better address the parties’ changing needs.”

The current compact requires tribes to pay between 4% and 10% of a casino’s net revenue in exclusivity fees.

This allows the tribes exclusive rights to run casinos in the state, which generated close to $139m for the state and around $2.3bn in revenue last year.

Oklahoma Indian Gaming Association Chairman Matthew Morgan said the tribes are united in their rejection of Stitt's offer; however, the issue is likely to end up in federal court.

Morgan said: "We stand united today against the proposed extension by Gov. Stitt as utterly unnecessary, given the automatic renewal."

Stitt, in a statement, expressed disappointment the tribes do not wish to discuss new compact terms, in light of different needs from both parties.

Stitt said: "I am disappointed the tribes turned our offer down and refused our requests to negotiate new compact terms that better address the parties' changing needs.

"I will continue to work to protect the state's interests and I hope those running the casino industry will negotiate with the state in good faith as these compacts demand."

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