Oklahoma Governor Kevin Stitt has struck back at the stateâs Native American tribes, requesting that a federal court in Oklahoma City halt all Class III gaming at tribal casinos.
Disagreement on compact expiration
Accepted legal gaming classifications are available to state gaming boards to restrict which class of slot machines can be used in a casino or other gaming area, specifically Class I thru III. All 3 classifications are in limited use by states for non-tribal casino operators but are fully in use at all Indian gambling establishments. At least one state, Idaho, changed its gaming laws when faced with the prospect of negotiating class III gaming compacts pursuant to the federal Indian Gaming Regulatory Act (IGRA). The state adopted criminal and constitutional prohibitions against all forms of class III gaming, except pari-mutuel betting and a state lottery. The Class II slot machines are designed to replicate Class III slot machines while remaining within the confines of the regulatory guidelines. The Class system is clearly stated and defined in the Indian Gaming Regulatory Act by the Federal Government. Class III games (sometimes called Nevada-style games) include all other types of gambling. These include slot machines, electronic games of chance, and many banked card games like blackjack. (According to the California Department of Justice, certain craps, roulette, and dice games are prohibited under the State Constitution and laws.).
Class III gaming, as defined by the Indian Gaming Regulatory Act (IGRA), includes most of what falls under âcasino gamingâ, such as slot machines, blackjack, and roulette.
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The move is a response to a lawsuit filed by the Chickasaw, Choctaw, and Cherokee tribes on December 31, 2019. The three tribes argue that their gaming compact with the state automatically renewed on January 1, 2020, and have asked for a court to rule on the matter. Panda run game. Gov. Stitt believes the agreement expired.
The difference in opinion originates from the wording in part 15.B of the 2004 compact. The document states it expired on January 1, but the tribes believe the text later in the paragraph dictates that the compact auto-renews for 15 more years.
State wants higher gaming fees
The state of Oklahoma prefers an expiration because it wants to negotiate new terms. In the 41-page response filed in court, it said: âContinuing to conduct class III electronic gaming in the absence of valid Gaming Compacts with Oklahoma has resulted, is resulting, and will continue to result, in unjust enrichment to the Tribes.â
The main issue at hand is the gaming revenue share rates the tribes pay to the state. The rates vary, but they generally range from 4% to 10%. Gov. Stitt wants to see those numbers bumped up significantly.
âThey want to continue getting the best deal in the country and pay 4% to 6% when market is closer to 25%, so thatâs what this is all about,â the governor told Tulsaâs KTUL ABC 8. He added:
This is about them not wanting to pay more, right? Letâs just call a spade a spade.â
Dispute continues on renegotiation![]()
Matt Morgan, Chairman of the Oklahoma Indian Gaming Association, stated his organization has not received a proposal regarding desired rates from the governorâs office. He added that while there are some tribes up in the 20% to 25% range, most are in the single digits.
In a press statement, Gov. Stitt said of the tribes, âThey promised to renegotiate fees and exclusivity, regardless of whether the compacts renewed or expired. Unfortunately, most tribes have refused to renegotiate any part of the compact, unless the State first conceded that the compacts automatically renew indefinitely.â
Oklahoma received $139 million in gaming exclusivity fees from tribal casinos in the 2018 fiscal year.
Tribes rejected arbitration in November
In October 2019, 200 leaders from 31 Oklahoma tribes met with members of Gov. Stittâs staff and Attorney General Mike Hunter at the Grand Casino in Shawnee to discuss the compact. They were unable to resolve their differences.
In November, AG Hunter offered to go to arbitration with the tribes, but they refused. In arbitration, an independent third-party listens to both sides and makes a decision in favor of one or the other.
arbitration is not presently justifiedâ
The tribes responded to Hunter in a letter, saying, âThe stateâs argument against renewal is not supported by any facts or law and arbitration is not presently justified.â
They added they were willing to listen to a higher rate proposal, provided they are extended âa meaningful state concession of proportionate value.â
Introduction to Legal Gaming Classifications
Accepted legal gaming classifications are available to state gaming boards to restrict which class of slot machines can be used in a casino or other gaming area, specifically Class I thru III.
All 3 classifications are in limited use by states for non-tribal casino operators but are fully in use at all Indian gambling establishments.
At this time, only Hawaii and Utah continue to prohibit all three classifications of gaming.
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Indian Gaming Regulatory Act (IGRA)
The first federal gaming structure for Indian gaming was established in 1988 with the Indian Gaming Regulatory Act, enacted as a U.S. federal law. The stated purposes of the Act include:
The Act establishes three classes of games with a different regulatory scheme for each:
Class I Gaming
Class I gaming is defined as
Regulatory authority over this class of gaming falls to Tribal governments and is not otherwise subject to IGRAâs requirements.
Class II Gaming
Class II gaming is defined as the game of chance known as bingo, aided or not aided by any electronics, and other games similar to bingo if played at the same location.
It also applies to games played exclusively against another player rather than against the house or a player acting as a bank.
Tribal governments are the primary legal entity responsible for regulating Class II games on its lands, as long as
Tribal governments are responsible for regulating class II gaming with Commission oversight. The Act specifically excludes slot machines or electronic facsimiles of any game of chance from the definition of class II games.
Class III Gaming
Class III gaming is generally referred to as casino-style gaming. How to play pokies. It has a broad definition and includes all forms of gaming not specifically called out as Class I or II.
Games commonly played at casinos clearly fall into the Class III category, including
Class Iii Gaming License Oregon
As restricted by the IGRA, before a Tribe can lawfully conduct Class III gaming, these conditions must be met:
Class 2 Gaming License
The regulatory scheme for Class III gaming is complex, with key functions for approval authority resting with several organizations at the federal, state, Commission, and Tribal levels.
Summary of Legal Gaming Classifications
Accepted legal gaming classifications are available to state gaming boards to restrict which class of slot machines can be used in a casino or other gaming area, specifically Class I (tribal ceremonies), Class II (bingo), and Class III (everything else). Hereâs a list of specifically-named games with their associated Class.
All three classifications are in limited use by states for non-tribal casino operators but are fully in use at all Indian gambling establishments. At this time, only Hawaii and Utah continue to prohibit all three classifications of gaming.
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