OKLAHOMA CITY (AP) – A federal ruling issued Tuesday ruled that Oklahoma’s tribal gaming pacts were automatically renewed on January 1, giving a victory to the tribes that sued Gov. Kevin Stitt for renewal.
U.S. District Court Judge Timothy DeGiusti rejected Stitt’s argument that the pacts, which describe how much of their gambling revenue source the tribes will have to pay and what games are allowed, had expired.
Stitt expressed sadness at the decision.
“This confirms my fears, and the fears of many Oklahoman compatriots, that the state has reached a poorly negotiated agreement and that we will now have to take charge of this error,” Stitt said in a statement. “The federal court has made the decision that the 2004 Gaming Compact was automatically renewed for 15 years due to a move taken by an agency’s unelected board to reissue licenses for games on racetracks.”
Matthew Morgan, president of the Oklahoma Indian Gaming Association, and executive leader of the Cherokee nation, Chuck Hoskin Jr., said in separate statements that the court had demonstrated what the tribes knew.
“We appreciate the court acting temporarily to verify Array … the transparent language of our intergovernmental agreements means what they mean, and here those words mean our renewed gambling pacts on January 1, 2020,” Morgan said.
“Everything in our pact now remains the same, and we look forward to moving forward and building a respectful relationship with Governor Stitt in the future,” Hoskin said.
The tribes argued in the December 31 lawsuit through the Cherokee, Choctaw, and Chickaw nations and then united through six tribes, that a provision of pacts approved by the Oklahoma electorate in 2004 allowed for the automatic renewal of pacts.
This provision stipulates that the pact is automatically renewed if other organizations were authorized to offer electronic games, other than mutual ones on live horse racing tracks.
The state argued that the legislature may simply authorize electronic gambling and that the Oklahoma Horse Racing Commission, which approved electronic play on tracks, issued licenses.
“The Court is convinced through this argument and rejects the narrow view of the state of ‘government action’, which is inconsistent with a non-unusual interpretation of the term,” DeGiusti wrote. “The Court considers that these technical definitions are required through the covenants. And its use would be inconsistent with the principles of federal contracts.”
Last week, the Oklahoma State Supreme Court ruled that Stitt had exceeded his authority by signing a casino gambling agreement with two Native American tribes involved in the federal lawsuit.
According to the pacts, tribes pay the state “exclusivity fees” of between 4% and 10% on gaming revenue in exchange for the exclusive right to operate casinos. Tribes paid the state about $150 million in exclusive fees last year, most commonly for public schools.