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OETA Story on Indian Casino Gaming in Oklahoma aired on 08/11/09


Tribes post record casino revenue; industry report lists Oklahoma figures for 2016 at $4.4B List indian casinos oklahoma


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list indian casinos oklahoma In about a year — July 2019 — a 180-day window will open that allows the state and the tribes to renegotiate the amount of money the state gets from tribal gaming operations.
Illustration by Dylan Goforth In one fluid, motion, Steph Nel produces a small white ball and sends it spinning around the revolving roulette wheel.
Tribal casinos in Oklahoma are already gearing up to list indian casinos oklahoma these new click to see more thanks to a law passed during the last legislative session amending the gaming compacts between the state and American Https://krimket.com/casino/casino-townsville-weddings.html tribes, pending federal approval.
At the time the law was passed, Oklahoma was in the middle of its historic teacher walkout, and legislators were desperately looking for a way to send more money to teachers.
In about a year — July 2019 — a 180-day window will open that allows the state and the tribes to renegotiate the amount of money the state gets from tribal gaming operations.
Bureau of Indian Affairs, which must sign off on any gaming agreements between tribes and states.
The situation is a complex one, and hundreds of millions of dollars hang in the balance.
And whatever deal, if any, is struck next year will likely be in place for another 15 years before rates can be negotiated again.
visit web page one hand, the state has experienced revenue failures and budget list indian casinos oklahoma to state government and education for the past few years, causing even Republican lawmakers to try and find additional sources of revenue.
The state is also home to by far the highest number of tribal casinos of any state in the nation, and fewest restrictions on tribal gaming operations.
Some lawmakers and newspaper have called for using sports betting as a chip to play in negotiating higher rates on electronic games, which generates the bulk of gaming revenue collected by the state.
But, according to gaming experts, many tribes are lukewarm about adding sports books to their list of gaming options thanks to the technical complexities of running one, monthly volatility and generally low profit margins.
Two of the three remaining gubernatorial candidates have expressed interest in opening negotiations for higher exclusivity rates.
However, the state has list indian casinos oklahoma seen a high turnover rate for legislators in the last few years, meaning that many will be going into the next session with little to no experience or knowledge of what the compacts entail.
So it was a bit surprising when in 2003 Oklahoma Senate leaders asked Meacham, who was then state treasurer, to sit down list indian casinos oklahoma help negotiate a deal that would eventually bring casino-style gaming to Oklahoma.
At the time, the horse racing industry in Oklahoma was in trouble.
Remington Park in Oklahoma City had found itself in deep financial trouble, as was the now-shuttered Blue Ribbon Downs in Sallisaw.
Federally recognized American Indian tribes are permitted to operate Class II games if bingo or similar games are legal in the state they are located in, though they cannot be regulated or taxed by the state.
But for a tribe to operate Class III games — which are Las Vegas-style slot machines — it must first have an agreement, or compact, with the state.
Former State Treasurer Scott Meacham.
New facilities were popping up all over the durant ok district />As if the negotiations were not already complicated enough, there was a fourth party to consider — Oklahoma voters.
Getting a deal that would be passed by the voters meant no roulette or craps games at casinos, Meacham said — a sticking point that caused at least two of the tribes in the negotiations to oppose the final product.
That was really more of a political decision than anything else.
Even if the state, tribes and horsemen came to an agreement, and that agreement was passed by voters, the U.
Bureau of Indian Affairs would have to sign off on the compact.
To come up with the exclusivity fee rates that would be accepted by the tribes, the BIA and the state, Meacham said negotiators looked at the rates in place at the time around the country.
Some compacts that had been given BIA approval in other states had exclusivity rates as high as 25 percent, meaning the state gets a quarter of the winnings.
For card games, the rate would be 10 percent of the monthly net win.
You want to be just below that so the activity goes on because that maximizes your total revenues.
David Stewart, former CEO of Cherokee Nation Businesses, was also at the negotiating table during 2003 and 2004.
At the time, he said, the full size and scope of the gaming market in Oklahoma was uncharted territory.
Because of list indian casinos oklahoma, and the sizable investments that would be required for tribes to build up a gaming infrastructure in the state, tribal leaders wanted a compact that would have a relatively low exclusivity list indian casinos oklahoma rate and a longer term to help provide stability and certainty.
Finally, in 2004, the parties were able to finalize an agreement.
It was decided that the compacts would last for 15 years, expiring on Jan.
The finished product would also provide a window to renegotiate the exclusivity fee rates — 180 days prior to the expiration of the compact, either party could request to open negotiations.
The tribes would get Class III electronic games, non-house banked card games such as poker and blackjack and a limited agreement of exclusive rights to gaming operations.
The state would get exclusivity fees from the tribes of 4 to 6 percent of the net win from the Class III machines and 10 percent from the card games.
Electronic gaming machines on display at the 2018 Oklahoma Indian Gaming Association trade show in Oklahoma City.
The covered card games, while subject to a much higher exclusivity fee rate, make up only a sliver of the revenues.
The Cherokees purchased Will Rogers Downs in Claremore a few months before the compact was approved by voters.
Blue Ribbon Downs in Sallisaw was soon purchased by the Choctaw Nation, though the track sat within the historical boundaries of the Cherokee Nation and was subsequently put out of business after the Cherokees opened a casino down the road from the track.
Remington Park in Oklahoma City was purchased by the business arm of the Chickasaw Nation.
Today, the only horse racing track in the state not owned by an American Indian tribe is Fair Meadows in Tulsa, which is owned by the Tulsa County Fair Board.
It list indian casinos oklahoma also the only track, under the passed by voters, to not have electronic click machines.
The financial boost to the tribes as a result of the compacts allowed tribal governments to diversify and spread their economic reach into areas besides gaming, Stewart said, something that would have never happened without gaming.
But it was not one with rain, lighting or hail.
Instead, it was a political storm.
Thousands of educators were beginning to coalesce around the idea of a statewide teacher walkout to protest years of cuts to education and per-pupil spending.
But after the plan failed to get the needed votes in the Legislature, the ball and dice proposal came to the floor of the House as a standalone bill, House Bill 3375.
The measure was introduced by Rep.
Kevin Wallace, R-Wellston, who the previous year had introduced a similar bill that would have allowed tribes to offer craps and roulette if they agreed to forgo state rebates from the state for tribal license plates.
Kevin Wallace, R-Wellston Initially, House Bill 3375 also would have allowed tribes to offer sports betting at their facilities, but that was contingent upon a U.
Supreme Court case that had yet to be decided by the time the bill came to the House floor on March 8, and the sports betting provision of the bill was dropped.
It would be May before the high court the federal law that prohibited states, with the exception of Nevada, from allowing sports betting.
Some representatives were concerned that by passing the bill, the state would be giving up one of its tools to bargain for higher exclusivity fees on electronic games when window opened to negotiate the tribal gaming compacts in July 2019.
And we did take it out of the bill.
It passed the Senate by a vote of 29-16 and was signed into law by Gov.
Mary Fallin a few days later.
It really did put pressure on leadership in both chambers to have that vote happen.
It was great to have tribes and education leaders partner on that to understand the contributions we make to education as tribes here in Oklahoma.
Luthey advised tribes considering adding roulette or craps games to first do a thorough cost-benefit analysis, since the cost of running those types of games is much higher than the electronic games.
You need people there to run the games.
In addition, the revenue from sports betting is volatile from month to month, he said.
The percentage of sports betting in terms of revenues in Nevada are very small compared to electronic gaming.
Though many legislators were term-limited, some chose not to run again in the face of the political backlash incurred, while others lost their primary elections.
So when the Legislature convenes for its next regular session in February 2019, there will be a lot of new faces.
Gaming is usually the first topic lawmakers bring up when a person representing a tribe walks into their office, said Smallwood-Cocke.
Asked whether the compact automatically renews if neither party wants to negotiate changes to the deal, Wallace said he did not know.
Meacham said it would not, and would require active steps by both parties for the compacts to renew.
The Frontier asked the three remaining gubernatorial candidates from the two major parties whether they planned to negotiate exclusivity fees with the tribes once the window for negotiations opened in July 2019.
Two — Republican candidate Kevin Stitt and Democrat candidate Drew Edmondson — said they would open negotiations.
The third, Republican candidate Mick Cornett, declined to respond.
But talks do not guarantee action.
The market conditions are much better known now than they were in 2004, and the low rates helped to build the gaming infrastructure put in place after the compacts were first negotiated, he said.
But the tribes have been used the money from gaming to expand their operations beyond gaming and create jobs and services.
They have increased their financial stability, economic power as well as their political power, he said.
Luthey said it is important to remember when the discussions begin in earnest next year to remind the state of the risks taken by the tribes that ended up generating more than a billion dollars in revenue directly to the state.
They were built with borrowed money.
Usually, at rates substantially more than you could get from the Federal Reserve Bank in Kansas City.
The tribes took that risk.
The tribe put its credit on the line.
Tribal elected officials put their offices on the line.
Could you imagine if this had not succeeded?
For somebody to say we now need to pay more in exclusivity fees — really?
Clifton Adcock Senior Staff Writer A veteran investigative reporter who has covered eastern Oklahoma for more than 15 years, Clifton joined The Frontier in April 2017.
A native of southeastern Oklahoma, he has covered numerous issues from criminal justice to politics for publications including the Tulsa World, the Oklahoma List indian casinos oklahoma, and Oklahoma Watch.
Clifton can be reached at clifton readfrontier.
Follow him on Twitter cliftonhowze If you have a story, feedback or want to know more about The Frontier, we would love to hear from you.
Your donations to The Frontier have never been more effective than they will be between now and December.
Want to help fund independent nonprofit click to see more in Oklahoma now and in the future?


OETA Story on Indian Casino Gaming in Oklahoma aired on 08/11/09


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