Gov. Stitt addresses gaming compact impasse during State of the State speech

BY D. SEAN ROWLEY

Senior Reporter

About the Author

D. SEAN ROWLEY

david-rowley@cherokee.org  918-453-5560 Sean Rowley was hired by the Cherokee Phoenix at the beginning of 2019. Sean was born a long time ago in Tulsa, where he grew up and attended Booker T. Washington High School as a freshman before moving to Pawnee County and graduating from Cleveland High School in 1987. He graduated sans honors from Northeastern State University in 1992 with a bachelor of arts in mass communication with emphases in advertising and public relati ...

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OKLAHOMA CITY – In his Feb. 3, 20-plus minute State of the State speech in the chamber of the Oklahoma House of Representatives, Gov. Kevin Stitt spoke briefly about the clogged status of his office’s efforts to bring tribes to the table to discuss the gaming compacts, which he said were “expired.”The argument now lies with the courts. Five tribes have asked it be determined whether the gaming compact really is expired, given the language of the agreement. Stitt and his office have asked a federal court to suspend Class III tribal gaming in the state. He has also asked that all 2020 gaming revenue, including the state’s share, be held in a trust that neither side can access.Stitt gave a summary of his insistence that the tribes must renegotiate the compact, first pointing to the tribe’s share of the bill on common education.“In 2019, one percent of the common education funding came from the state’s exclusivity fees on Class III games on tribal casinos,” Stitt said. “These dollars, which are first deposited to the Oklahoma Education Reform Revolving Fund, equal roughly $130 million, compared to public education’s total funding of $9.7 billion.”Under the compact, the tribes pay the state 4-10 percent of revenue to exclusively offer Class III gaming, which includes slot machines, craps and roulette. The tribes maintain that all claims of the compact expiring are false, and they have not acknowledged any deadlines or time limits claimed by Stitt. The tribes also say neither they nor the state can be coerced by the other into renegotiating the agreement – that both sides must agree to reopen it.In his speech, Stitt suggested the tribes have made noises in past years about possible changes to the agreement, but did not cite the specific examples.“The model gaming compacts have been a success, greater than anyone predicted,” he said. “Unfortunately, we have an expired model gaming compact; a contract in which notable tribes have previously called dated and unsuitable for current and future business.”Stitt also said it was state that was being flexible, and the tribes who were being obstinate.“After five offers from the state for all stakeholders to come together to modernize the model gaming compact, three tribes instead sued the state on New Year’s Eve,” he said.Since the Cherokee, Choctaw and Chickasaw nations filed suit on Dec. 31, 2019, the Citizen Potawatomi Nation has joined on Jan. 24, and the Muscogee (Creek) Nation added its name on Jan 28.“While we wait for the federal court’s decision, I’m calling for the legislature to join me in protecting public education,” Stitt said. “I’m asking for the legislation that will allow for the remaining cash balance from 2019, and funds from the Revenue Stabilization Fund, to be leveraged if needed to compensate for any temporary pause in Class III gaming fees.”Stitt concluded his comments on the gaming compact with a counterclaim of sovereignty; that the state must be able to regulate commerce within its borders.“As governor, I remain supportive of the sovereignty of the state of Oklahoma and our right and your duty as the legislature to oversee all industries operating in the state,” he said. “I also remain confident the state and Oklahoma’s tribes can hammer out a compromise that is a win-win for all four million Oklahomans – and we can accomplish this without putting public education in the crosshairs.”In response to Stitt’s annual speech, Cherokee Nation Principal Chief Chuck Hoskin Jr. expressed his desire for the governor to make an earnest effort to work with the tribes for the betterment of all Oklahomans.“The tribes continue to wait on Governor Stitt to drop this nonsense that the gaming compact terminated and to, for the first time, make a reasonable offer to discuss the future of gaming,” Hoskin said. “Today the governor dug in further by declaring that he was willing to divert funds from elsewhere in the state’s lean budget in order to make up for the $130 million in revenue tribes contribute to public education under the compact. Tribes continue to send dollars to the state to fund education. Governor Stitt’s refusal to accept those education funds, all to further his legal case against the tribes, is stunning. Oklahoma schools deserve better and the tribes deserve more respect.”