Editorial: Oklahoma governor right to demand more revenues from tribes

Under the status quo, presently too much money goes out of state that should stay in Oklahoma. To be clear, some $600-800 million is paid to out-of-state machine vendors and middle men distributors. That number would be $150-200 million if the same activities were taking place in Las Vegas.

In short, there is plenty of money churning here in Oklahoma to pay the state and little tribes more. But as things stand today and have for many years, the cash instead flows to nationally-connected vendors and their well-connected middle men. The money does not flow to Oklahomans.

Although state law prohibits slot machines, the state’s definition of a slot machine is not the same as Vegas. Therefore, what is considered a slot machine in Vegas … is not considered that here. The State could simply require the Vegas style standards for what is a gambling machine and deal with a large part of the problem. This can be done and not run afoul of the Oklahoma definition of slot machines (still considered the old-style wooden tumbler machines that ran here long ago).

In truth, sweetheart deals between the Big Tribe “players” – operating with virtual monopolistic powers after decades of dubious federal Trust decisions – and their middle men machine vendor pals benefit only … the Big Tribes and their well connected buddies – who have skimmed hundred of millions from the market through exclusive deals with Vegas machine manufacturers by attaching themselves to large tribes and thereby controlling the market.

To stop this, vendor contracts could require approval under the compact to make sure they are not usurious.

To be clear, three tribes (Chickasaw, Choctaw, Cherokee) control two-thirds of the $4.2 billion gaming market for Oklahoma. Adding in the other two Big Tribes, the numbers are: Five tribes controlling over eighty percent of the gaming market.

There are other pieces to this puzzle.