According to the latest annual report released by the Oklahoma Gaming Compliance Unit, the Quapaw Tribe paid approximately $5.8 million in fees to the state for its two casinos back in 2014, down 4.4% year-on-year. By comparison, the total amount of $6.1 million was contributed to Oklahoma in 2013.
Statewide, all 32 tribes that manage casinos on the territory of Oklahoma paid $5.5 million less than they did in 2013. The state gambling regulator attributed the drop to the increasing number of bingo machines at tribal gaming facilities. Such machines are known to be Class II ones and no fees are paid for them.
According to the so-called Indian Gaming Industry Report published not long ago, Oklahoma casinos generated revenue of about $3.8 billion back in 2013. Only California generated more of all 28 states that have tribal gambling venues on their territories.
Sean Harrison, a spokesman for one of the Oklahoma-based casinos the Quapaw Tribe operates, Downstream Casino Resort, said that he could not point to a reason for the drop in fees. He explained that the venue features 2,000 machines and 450 of them are Class II ones. Mr. Harrison also said that the number of those machines did not change significantly in 2014.
Under the gambling agreements Oklahoma has signed with tribes that operate casinos in the state, those are to pay certain monthly fees on their Class III machines. Tribes contribute 4% of the first $10 million in gaming revenue, 5% of revenue between $10 million and $20 million, and 6% of revenue over $20 million.
Not long ago, the Quapaw Tribe announced its plans to expand Downstream Casino Resort into Kansas. This was not welcomed by Kansas officials and back in April, the state Attorney General Derek Schmidt filed an injunction to federal court against the tribe.
John Berrey, Chairman of the Quapaw Tribe, commented that the expansion of their operations in Kansas would have a positive effect on the state, as it would benefit from the fees that it would receive from the casino.
However, Mark Dodd, Executive Director of the Kansas Gaming Agency, pointed out that the state has not signed profit-sharing agreements with the four tribes that manage gambling venues there. Instead, they contribute between $1.7 million and $1.8 million to the agency’s coffers.
If Kansas decides to sign a profit-sharing compact like that of Oklahoma, it should be given the green light by legislators, the tribes, as well as the National Indian Gambling Commission.
