Stitt, UKB and Kialegee tribal leaders agree on tribal gaming compacts, ask committee for approval

GOVERNOR STITT, CHIEF BUNCH AND MEKKO YAHOLA SEND LETTERS TO JOINT COMMITTEE ON STATE-TRIBAL RELATIONS, REQUEST APPROVAL OF TRIBAL GAMING COMPACTS

OKLAHOMA CITY (September 14, 2023) - Governor Kevin Stitt, in separate letters with United Keetoowah Band of Cherokee Indians (UKB) Chief Joe Bunch and Kialegee Tribal Town (KTT) Mekko Stephanie Yahola, called on the Joint Committee on State-Tribal Relations, Senate President Pro Tempore Greg Treat, and House Speaker Charles McCall to convene to approve their agreed upon gaming compact.  

Dep't of Interior approves Oklahoma gaming compacts with Kialegee and UKB

KTT AND UKB TRIBAL GAMING COMPACTS DEEMED APPROVED BY DEPARTMENT OF INTERIOR

OKLAHOMA CITY (August 20, 2020) – Governor Kevin Stitt has announced the U.S. Department of Interior (DOI) deemed approved the State’s two most recent gaming compacts with the Kialegee Tribal Town (KTT) and the United Keetoowah Band of Cherokee Indians (UKB). These new gaming compacts double the current fee rate on Class III games, from 6% in the 2004 Model Gaming Compact to as high as 13%, and strengthens gaming compact transparency, setting the stage for additional revenue for public education in the near future and strengthening State-Tribal relationships through individual negotiations.

“The U.S. Department of Interior recognizes the State’s good faith effort to negotiate with Oklahoma tribes in the approval of two new gaming compacts that will generate new revenue for public schools in the future and expand economic opportunity for our tribal partners,” said Gov. Kevin Stitt. “I appreciate and respect the thoughtful leadership of Mekko Brian Givens and Chief Joe Bunch who worked hard to secure fair terms for their citizens, and whose contributions throughout the negotiations ensured a competitive gaming market in Oklahoma. With these new gaming compacts, Oklahoma is ushering in a new era of prosperity, opportunity, and partnership for the State and the Tribes.”

Stitt signs new gaming compacts with Kialegee Tribal Town, United Keetoowah Band of Cherokee Indians

STATE OF OKLAHOMA, KIALEGEE SIGN NEW GAMING COMPACTS

OKLAHOMA CITY  (July 2, 2020) – Governor Kevin Stitt and Kialegee Tribal Town (KTT) Mekko Brian Givens signed on Thursday a new gaming compact that delivers clarity and certainty for each sovereign party; strengthens compact transparency with clear auditing guidance and with new dispute resolution provisions; and provides for meaningful consideration for the State’s fee structure for class III games and table games beginning at 12% for a new gaming location in eastern Oklahoma County.

“By negotiating with each individual Oklahoma tribe, the State is seeking to level the playing field for all tribes and working to ensure that no one is held back by its size or resources from competing and pursuing economic growth for its citizens,” said Gov. Kevin Stitt. “The Kialegee Tribal Town is pursuing a sound business plan for its first gaming location in Oklahoma with their compact commitment to partner with another Tribe on this venture. They have been good faith partners in this process, and the State looks forward to supporting their efforts to strengthen opportunities for KTT citizens, to expand economic development in the region, and to generate new revenue for Oklahoma’s public education system.”

KTT submitted the gaming compact to the U.S. Department of Interior on Wednesday, which can be read by clicking here.

STATE OF OKLAHOMA, UNITED KEETOOWAH BAND OF CHEROKEE INDIANS SIGN NEW GAMING COMPACTS

OKLAHOMA CITY (July 2, 2020) – The State of Oklahoma and the United Keetoowah Band of Cherokee Indians (UKB) signed on Wednesday a new gaming compact that delivers clarity and certainty for each sovereign party; strengthens compact transparency with clear auditing guidance and with new dispute resolution provisions; and provides for meaningful consideration for the State’s fee structure for class III games and table games beginning at 12% for a new gaming location in Logan County.

“One year after beginning gaming compact negotiations, the State has entered into its fourth compact that makes way for Oklahoma tribes to innovate and compete in a new, dynamic gaming market and strengthens State-Tribal relationships,” said Gov. Kevin Stitt. “The compact includes a commitment from the State to support the UKB’s pursuit of land for its first gaming location. This will enhance the UKB’s ability to deliver core government services to its 14,300 citizens while expanding economic development opportunities for all Oklahomans in the region.”

“It is both an honor and privilege to be announcing the signing of this economic venture between the great State of Oklahoma and the United Keetoowah Band of Cherokee Indians,” said UKB Chief Joe Bunch. “We thank Governor Kevin Stitt and his administration for this monumental day and for their leadership efforts in this compact. It is a grand day for Keetoowahs and Native American tribes all over the country. It is a day when one of their own partnered with Oklahoma in building a stronger economy through the avenues of retail, food and beverage, hotel, hospitality and casino operations, all by a signing a Class III gaming compact with the state. This compact also presents an opportunity for the UKB to move forward and begin increasing health, education and job opportunities for our tribal members and elders, as well as our surrounding communities. After all, we know if our communities are doing well, the state is also doing well. Thank you and God bless the UKB and the State of Oklahoma.”

“This is a monumental day for Keetoowahs. I wanted to thank Governor Stitt and his council that’s worked to put this compact together with our Attorney General Klint Cowan and our council,” said UKB Assistant Chief Jammie Thompson. “We’re trying to create a win-win situation for all Oklahomans and certainly for our tribal members. We’re looking forward to a long relationship with the state that benefits not only our tribe, but our citizens of the great state of Oklahoma.”

The Logan County location will require an additional Section 20 application to the Bureau of Indian Affairs (BIA).

UKB submitted the gaming compact to the U.S. Department of Interior on Wednesday, which can be read by clicking here.

Governor announces two tribes sign 8-month gaming extension, responds to federal lawsuit by Chickasaw, Cherokee and Choctaw

GOVERNOR ANNOUNCES TWO TRIBES SIGN 8-MONTH GAMING EXTENSION, RESPONDS TO FEDERAL LAWSUIT BY CHICKASAW, CHEROKEE, CHOCTAW

Oklahoma City, Okla. (Dec. 31, 2019) – Governor Kevin Stitt today announced two tribes, the Kialegee Tribal Town (“Tribe”) and United Keetoowah Band of Cherokee Indians, have entered into an eight-month extension with the State of Oklahoma on the Model Gaming Compact. Governor Stitt today also responded to the federal lawsuit filed by the Chickasaw, Choctaw, and Cherokee Nations in regard to the Model Gaming Compact expiring on Jan. 1, 2020.

“I appreciate the honesty and boldness of the Kialegee Tribal Town and the United Keetoowah Band of Cherokee Indians who recognize the Jan. 1, 2020 expiration in the Model Gaming Compact and have signed on to the eight-month extension generously offered by the State. These extensions will enable the parties to negotiate a compact that better accounts for the differing needs of tribes throughout the state and the State’s interests in preserving the substantial exclusivity without a cloud of legal uncertainty. The State of Oklahoma offered an extension, with no strings attached, to all tribes that operate casinos in the state, and my door continues to be open for more tribes to join who are worried about impending uncertainty,” said Gov. Stitt.

A copy of the Kialegee Tribal Town extension is available here, and a copy of the United Keetoowah Band of Cherokee extension is available here.

Gov. Stitt continued, “I am disappointed that a number of Oklahoma tribes, led by the Chickasaw, Cherokee, and Choctaw Nations, did not accept the State’s offer on Oct. 28 for a three-person arbitration panel to resolve our dispute outside of court. This was a capstone action to their numerous refusals to meet with State and begin negotiations on the Model Gaming Compact to ensure a win-win for all parties by the end of this year. I was elected to represent all 4 million Oklahomans, and I will continue to be laser focused on an outcome that achieves a fair deal and is in the best interest of the state and its citizens.”

The gaming compacts were entered into by the State of Oklahoma and 35 tribes beginning in 2005. Between July 3 – July 8, 2019, Governor Stitt requested that tribal leaders work with the State to renegotiate terms in the gaming compacts—"within 180 days of the expiration of this Compact or any renewal thereof,” as set forth in Part 15.B of the compacts.

The State of Oklahoma made four official requests for tribal leaders to come together to discuss and negotiate the terms of the gaming compacts. All requests were turned down by the tribes. The State then proposed arbitration to resolve the legal dispute regarding the compacts’ expiration date. This offer was categorically rejected. On Dec. 18, 2019, Governor Stitt offered to extend the compacts for eight months to permit the parties time to negotiate in good faith. This offer was also turned down. The tribes have now filed a lawsuit after repeatedly being offered all avenues available to resolve the matter without litigation. The timeline of events is available by clicking here.

Oklahoma tribes pursue casinos in states with higher rates

Oklahoma tribes pursue casinos in states with higher rates

by Ray Carter 

Director, Center for Independent Journalism

(December 16, 2019) -- In arguing against Gov. Kevin Stitt’s call for the State of Oklahoma to receive higher exclusivity payments for monopoly casino rights, Oklahoma’s tribal casino operators often argue that the benefits of the state’s low rates accrue to Oklahoma anyway because they have nowhere else to go with their earnings.

The “United for Oklahoma” website, funded by tribal casino operators, includes several quotes making that point.

“Tribes have been relocated here officially since 1832, they were here long before that, and we’re not leaving the State of Oklahoma for better investments,” said former state Rep. Lisa Billy in one quote posted on the “United for Oklahoma” website.

“I don’t want to try and help the state of Texas or Arkansas or Missouri—they’re doing well on their own, they don’t need our help,” said Gary Ridley, former secretary of the Oklahoma Department of Transportation, in another quote highlighted on the website. “What we need to do is help Oklahoma.”

Yet Oklahoma’s tribal casino operators are increasingly looking to use more of their Oklahoma earnings on casino investments in other states—including Arkansas and Missouri—and are often doing so despite the fact they will pay significantly higher tax rates or fees to those other states’ governments.

The most notable recent example occurred on Oct. 22 when the Choctaw Nation’s plan to develop and manage a 2,000-gaming-positions casino in Matteson, Illinois, gained unanimous approval from the Matteson Village Board of Trustees.

That plan, done in partnership with an investor, includes a $300 million casino, 200-room hotel, restaurants, and a convention center. The Choctaw Nation also plans to partner with two entities to build an indoor golf facility and a family entertainment facility next to the casino.

The new Illinois casino was authorized by legislation signed into law this year. Illinois currently has no tribal casinos operated on land placed in federal trust, and there is no indication from public reports that the Choctaw’s Illinois facility would be exempt from the typical tax rates imposed on commercial casinos.

That indicates the tribe is prepared to enter a market with tax rates five-times greater than the highest fee rate imposed in Oklahoma.

In Oklahoma, tribal governments pay a state “exclusivity fee” of 4 percent to 6 percent on slot machines, and 10 percent on table games. Those fees are paid in return for the state barring competitors from the market and granting tribes monopoly rights within their territories.

But Oklahoma’s rates are a fraction of those charged in Illinois.

According to the Illinois Gaming Board, that state’s wagering tax, which is levied on annual adjusted gross receipts, starts at 15 percent and ramps up to 50 percent on revenue over $200 million. That tax is imposed on all gambling games other than table games. The tax on table games in Illinois starts at 15 percent and then rises to 20 percent on revenue in excess of $25 million on those games.

The Choctaw’s casino proposal must still gain approval from Illinois regulators, and the Choctaw Nation is just one of five out-of-state tribal casino operators reportedly seeking to enter Illinois’ gaming market. The other four are the Ho-Chunk Nation of Wisconsin, the Forest County Potawatomi of Wisconsin, the Poarch Creek Indians of Alabama, and the Seminole Tribe of Florida.

The Choctaw Nation and other Oklahoma tribes have sought to enter other state markets aside from Illinois, and many of those efforts long precede the current dispute over Oklahoma’s exclusivity fees.

In 2017, the Osage Nation sought to launch a casino in Missouri, and hired the former Speaker of the Missouri House of Representatives to lobby on their behalf. The potential casino site was roughly 80 miles from St. Louis.

News accounts indicate the Osage hoped to place land into federal trust and enter a compact with the state to provide casino gaming. (Like Illinois, Missouri currently has no tribal casinos.) The Osage also provided more than $50,000 to underwrite the Missouri governor’s inaugural activities. The governor’s support would have been required to enter into a gaming compact.

Had the Osage succeeded in their effort, they would have operated the only land-based casino in the state of Missouri—the other 13 sites are riverboat facilities—which suggests the tribe could have been required to pay exclusivity fees to Missouri despite the existence of other forms of non-tribal casino gambling.

While no details were made public on what level of payment the Osage would have offered for the rights to the state’s only land-based casino, the American Gaming Association shows that Missouri’s casino tax is 21 percent tax on gross gaming revenues.

The difference in the rates imposed by Missouri and Oklahoma result in substantial differences when it comes to state funding.

In November, the Missouri Gaming Commission reported that the 13 casinos in that state had generated $150 million in state taxes from July to November. That means 13 casinos generated more revenue for Missouri in a five-month period than 131 tribal casinos did for Oklahoma in an entire year. According to the state Office of Management and Enterprise Services’ Oklahoma Gaming Unit Compliance annual report for 2018, the most recent available, the state of Oklahoma collected just $139 million in tribal gaming exclusivity fees for all 12 months of fiscal year 2018.

Other Oklahoma tribal casino operators have already invested millions of dollars in other states, or have sought to do so.

Tribal Government Gaming magazine reported that the Quapaw Tribe and Cherokee Nation spent more than $6 million on a successful initiative campaign that legalized four casino sites in Arkansas. The Quapaw have since received one of the available licenses, and the Cherokee Nation and Choctaw Nation are competing for another.

The tax rate on Arkansas casinos is 13 percent of the first $150 million of net casino gaming receipts and 20 percent on receipts above $150 million. All casinos in the state are subject to that tax rate, with no exemption or special lower fee for tribal casino entities.

In 2014, the developers of a proposed casino in Albany, New York, agreed to make the Chickasaw Nation in Oklahoma the facility’s operators. (The plan for an Albany casino was ultimately scrapped). And the Seneca-Cayuga Tribe of Oklahoma has made repeated efforts over several years to build a casino in the state of New York. In 2008, the federal Bureau of Indian Affairs rejected the Seneca-Cayuga Tribe of Oklahoma’s effort due in part to the 1,500-mile distance between the tribe’s Oklahoma headquarters and the proposed New York casino site.

Gaming compacts in New York require tribal casino operators to pay state exclusivity fees that run as high as 25 percent of the “net drop” on a game, which is defined as “money dropped into machines, after payout but before expense.”

In New York, the American Gaming Association reports that the tax rate on commercial casinos runs between 39 percent of gross gaming revenue from slot machines to 45 percent, with a 10-percent rate applied to other games.

In 2017, the United Keetoowah Band of Cherokee Indians in Oklahoma explored opening a casino on ancestral lands in Georgia, a state that currently has no casinos. Discussions to legalize casino gambling in Georgia in 2015 included proposed tax rates of 12 percent to 20 percent. Had the United Keetoowah Band obtained exclusive gaming rights through a compact, the tribe could have been required to pay the state an exclusivity fee.

The Eastern Shawnee Tribe of Oklahoma has made repeated efforts to obtain ancestral land in Ohio and open a casino in that state, including in 2008 when the tribe proposed building a 123-acre casino complex that would cost between $300 million and $350 million.

According to the American Gaming Association, Ohio currently has no tribal casinos, and imposes a 33-percent tax on all gross casino revenue.

The pace of such out-of-state excursions by Oklahoma’s tribal casino operators could accelerate based on national trends. This year “Tribal Government Gaming” magazine, a casino industry publication, reported that tribes “are parlaying skills and experience gained through 30 years of operating tribal government casinos on Indian lands with a growing list of commercial casino ventures in the United States and overseas.”

“Rather than operating casinos under the Indian Gaming Regulatory Act (IGRA) of 1988, which exempts tribes from state taxes and allows them primacy in regulating their gambling operations,” “Tribal Government Gaming” reported, “tribes are wading into the commercial gaming sector.”

UKB writes Congress in opposition to Cherokee Nation congressional appointment

In an interesting turn of events, the United Keetoowah Band of Cherokee Indians notified Congress in a letter dated September 16th of their opposition to the Cherokee Nation's appointment of Kimberly Teehee as the Cherokee Delegate to the U.S. House of Representatives.

RE: Cherokee Congressional Delegate; United Keetoowah Band of Cherokee Indians

To whom it may concern:

I write in my capacity as the Attorney General of the United Keetoowah Band of Cherokee Indians in Oklahoma, a federally recognized Cherokee tribal government—recognized by Congress in 1946. Act of August 10, 1946, 60 Stat. 976 (Aug. 10, 1946). Recently, the Cherokee Nation of Oklahoma, another Cherokee tribal government—which was not organized until 1976—claimed to appoint Kimberly Teehee as a Cherokee delegate to the U.S. House of Representatives.

The United Keetoowah Band opposes this appointment. The United Keetoowah Band further opposes any Cherokee delegate being seated in the House until such time as the United Keetoowah Band approves the delegate.

The Cherokees’ right to seat a Congressional delegate stems from Article XII of the Treaty with the Cherokee, 1785, which provides “[t]hat the Indians may have full confidence in the justice of the United States, respecting their interests, they shall have the right to send a deputy of their choice, whenever they think fit, to Congress.” Similarly, Article 7 of the Treaty with the Cherokee, 1835 (7 Stat. 438, 443) provides “they shall be entitled to a delegate in the House of Representatives of the United States whenever Congress shall make provision for the same.”

The United Keetoowah Band is the successor to the Cherokee Treaties of 1785 and 1835. If the House seats any Cherokee delegate, it should be only after consultation with and approval of the United Keetoowah Band. If you have any questions or would like to discuss, please contact myself, Chief Joe Bunch, or Assistant Chief Jamie Thompson.

Sincerely,

Klint A. Cowan
[UKB Attorney General]

(click to view larger)

With about 14,000-15,000 enrolled members, the UKB is one of three federally-recognized Cherokee tribes. The other two are the Eastern Band of Cherokee Indians (10,000-13,000 enrolled) in North Carolina, and the Cherokee Nation of Oklahoma (about 300,000 enrolled members, although this figure varies by the source, with some as low as 280,000 and others as high as 320,000).

Of the Oklahoma branches of the Cherokee, the UKB gained federal recognition first, in 1946. The Cherokee Nation of Oklahoma followed in 1976, and there has been tension off and on ever since.