Tribal Gaming Compacts

In 2004, Oklahoma voters approved SQ 712, which set up a model compact between the state and Native American tribes to regulate tribal gaming operations. Under the compact, tribes were authorized to operate specified games in return for making exclusivity payments to the state. The compacts were signed for a 15-year period. Compacts expire January 1, 2020 and will automatically renew for successive additional fifteen-year terms, provided that, within 180 days of the compact’s expiration  either the tribe or the state may request to renegotiate specified portions of the compact’s terms.

The measure provides for the state to receive a share of gaming revenues generated by the compacting tribes from Class III games. The state’s share of adjusted gross revenues from electronic games begins at 4 percent and rises to 6 percent once a tribe’s revenue exceeds $20 million. For table games, and for ball and dice games that were authorized as of 2018, the fee is 10 percent.

After an initial $250,000 is allocated to the Department of Mental Health and Substance Abuse Services for gambling education and treatment, 88 percent of gaming revenues go to the 1017 Education Reform Fund, which can be appropriated only to the Department of Common Education, and 12 percent to the General Revenue Fund.

In FY 2018, a total of 31 tribes were operating 131 facilities offering Class III games. Tribal revenue from Class III games and table games was $2.3 billion, of which tribes paid $138.6 million, or 6 percent, to the state.