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It is New Year's Eve. Governor Stitt believes the gaming compacts with the Tribes expires.

Where do the sides stand at this hour?

Two tribes in Oklahoma have signed an eight-month extension with Oklahoma Governor Stitt, and three tribes have filed a federal lawsuit to end a compact renewal dispute over tribal gaming operations, according to a news release. 

According to the release, the Kialegee Tribal Town and the United Keetoowah Band of Cherokee Indians have entered into the proposed 8-month extension with Governor Stitt Tuesday. 

From the Governor's website:

“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.

Also, on the Governor's website is his response to the tribes that have filed a federal lawsuit:

“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 the 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.

Meanwhile, the tribes have responded as reported by https://anadisgoi.com:

The Cherokee, Chickasaw and Choctaw Nations filed a Federal lawsuit today to bring an end to the uncertainty Oklahoma Governor J. Kevin Stitt has attempted to cast over Tribal gaming operations. The suit names Governor Stitt in his official capacity and seeks a judicial declaration that the gaming compacts renew in accord with their express terms, effective January 1, 2020. The Nations provided a copy of the Federal complaint to Governor Stitt, along with a letter explaining their reasons for filing it. Counsel for the Nations, former United States Circuit Judge Robert Henry, provided a companion letter and copy of the complaint to Oklahoma Attorney General Mike Hunter.

While revenue-share rates have generated significant public interest, the Nations’ lawsuit does not address those matters. It instead calls for the court to declare the legal effect of the compact’s Part 15.B., which states—

This Compact shall have a term which will expire on January 1, 2020, and at that time, if organization licensees or others are authorized to conduct electronic gaming in any form other than pari-mutuel wagering on live horse racing pursuant to any governmental action of the state or court order following the effective date of this Compact, the Compact shall automatically renew for successive additional fifteen-year terms.

(Emphasis added.) As the Nations emphasized in their letter to Governor Stitt, “the dispute—like the lawsuit—is about renewal, not rates.”

The Nations have publicly offered statements and analyses that support their position on renewal, including a legal opinion from former Solicitor General of the United States Seth Waxman that concluded:

The renewal provision in the Tribes’ gaming compacts with Oklahoma is not ambiguous. Under that provision’s plain language, the compacts will renew automatically when they expire on January 1, because the provision’s sole condition precedent for automatic renewal is unquestionably satisfied. Each of the contrary arguments I have seen to date simply cannot be squared with fundamental principles of contract interpretation.

Cherokee Nation Chief Chuck Hoskin, Jr. made the following statement:

"The Cherokee Nation is committed to being a good partner in our community and with the State of Oklahoma as we have done across two centuries and will continue to do as a peaceful, sovereign nation. Governor Stitt has made comments about “uncertainty that exists” regarding Class III gaming after January 1, threats to our casino vendors and their livelihoods and demands for redundant audits. We have little choice but to ask a Federal judge to confirm the compact’s automatic renewal on Jan. 1.”

Matthew L. Morgan, chairman of the Oklahoma Indian Gaming Association, made the following statement:

“The Tribes remain firmly united on the automatic renewal of the compacts. We have communicated our position to Governor Stitt on numerous occasions in hopes of finding a practical path forward benefitting both the State and Tribes. That said, as leaders of sovereign nations, the Tribal leaders must honor the compacts and will continue to do so on January 1, 2020, as they’ve done the past 15 years. Tribal leaders have the right as well as the responsibility to protect their citizens. Tribal leaders applaud the action taken today by the Cherokee, Choctaw and Chickasaw Nations to seek certainty on the matter of automatic renew through the Federal court.”