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US – Oklahoma tribes angered over proposals in letter from Governor Stitt’s attorney

By - 29 March 2020

The Oklahoma Indian Gaming Association has rejected Oklahoma Governor’s Kevin Stitt’s latest gaming deal, slamming the governor for trying to take advantage of the tribes during the coronavirus pandemic.

The proposed new compact would see tribes pay a five per cent tax on gambling revenue with both the tribe and the state allowed to offer sports gambling with the state being paid a two per cent tax on the amount bet on sports gambling. A letter, signed by Steven K. Mullins of Lytle, Soule & Felty, was sent out to remind tribes that due to the coronavirus pandemic ‘now more than ever is the time for us to stand together.’

Mr. Mullins said in the letter: “With this letter, including the enclosed new compact, the state hopes to set aside our differences by sending a message to all Oklahomans, native and non-native, that we are committed to a strong and prosperous future. By committing to resolve our differences with this new compact, you provide certainty to your tribal gaming enterprise, allowing for a swifter recovery when the commercial interruption caused by the pandemic is over.”

Matthew Morgan, the chairman of the Oklahoma Indian Gaming Association, said the proposal would make it difficult for tribes to compete with illegal sports gambling.

“We are disappointed in the action taken by Gov. Stitt through one of his attorneys to take advantage of tribes as they focus on protecting their tribal citizens and non-tribal citizens during this pandemic,” Mr. Morgan said. “This letter is yet another unsuccessful attempt to divide the tribes. The letter confirms the real intent of Gov. Stitt is to destroy the tribal interest outlined in the existing compacts. The tribal leaders who received the letter reject the proposal as disrespectful and disingenuous. Perhaps more than anything, we are dismayed Govenor Stitt would exploit the current pandemic for these purposes. Consistent with the advice of public health professionals, the tribal governments have suspended gaming operations to help blunt the spread of COVID-19. Nothing is more important to the tribes than working together to fight this deadly virus. Public health is our main focus at this time.”

Baylee Lakey, spokeswoman for Governor Stitt said: “The state has been aggressively communicating with every tribe in Oklahoma to advance a common-sense solution on model gaming compacts. We cannot comment on the details of compact negotiations while engaged in court-ordered mediation, which is still ongoing.”

The state and the tribes have been at loggerheads for months over whether the existing compact expired on January 1 with the tribes claiming it renewed for a further 15-year term.

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