Tribal Games in Oklahoma Paid State Record $ 167 Million in Prior Fiscal Year | New
OKLAHOMA CITY – The Oklahoma gaming industry broke its previous record, paying the state of Oklahoma $ 167 million in exclusivity fees in the last fiscal year (July 1, 2020 – June 30, 2021), a clear indicator that the industry has rebounded back from the previous fiscal year. In fiscal year 2019-2020, the COVID-19 pandemic began and all casinos in Oklahoma had temporarily closed on March 23, 2020. Revenue hit an all-time low in April 2020 and has since rebounded. Before that, the record stood at $ 148 million.
“We are delighted that the tribal gaming industry in Oklahoma is recovering well from the economic challenges posed by the pandemic. Our leaders came together to take care of employees and partners during our downtime, keeping them intact while simultaneously creating a safe way forward. Quickly, as the scope and scale of the COVID-19 pandemic became clear, the tribes mobilized and immediately began implementing safety precautions for staff and customers, allowing them to reopen as well. quickly that it was possible to do so safely, ”said the Oklahoma Indian Gaming Association. President Matthew L. Morgan. “Today, guests can safely enjoy a wide range of entertainment options including games, concerts, dining, spa services and more at the tribal gaming facilities of the Oklahoma.”
Under the terms of state-tribal gaming contracts that renew every 15 years, compacted tribes pay an exclusive monthly royalty to the state of Oklahoma for the exclusive right to operate compacted games. The fees received to date, shown in the table below, are calculated as follows:
Electronic games covered:
• 4% of the 1st $ 10,000,000 in annual adjusted gross income (ADR).
• 5% of the next $ 10,000,000 of AGR.
• • 6% of AGR over $ 20,000,000.
• 10% of the monthly net gain.
The State of Oklahoma distributes this exclusive fee to the Education Reform Revolving Fund (1017 Fund), the General Revenue Fund, and the Department of Mental Health and Addiction Services. Under the terms of the State-Tribal Gaming Compacts, the compacted tribes pay an exclusive monthly royalty to the state of Oklahoma for the exclusive right to operate compacted games. Oklahoma tribal governments have paid the state of Oklahoma a total of more than $ 1.7 billion in exclusivity fees since 2006.
The Gaming Compliance Unit of the Office of Management and Business Services receives a fixed annual fee of $ 250,000.
Tribal government gaming revenues are to be used in five specific areas as stipulated by India’s Gaming Regulation Act (25 USC 2710 [Sec. 11]. Net income from any tribal game must not be used for any purpose other than:
• Fund the operations or program of the tribal government.
• To ensure the general welfare of the Indian tribe and its members.
• Promote tribal economic development.
• Donate to charitable organizations.
• Help finance the operations of local government agencies.