In a significant move, the Department of the Interior has announced the finalization of federal rules affirming the legality of Florida-style “hub-and-spoke” tribal gaming compacts. These compacts, governed by the Indian Gaming and Regulatory Act, play a pivotal role in the economic development of Tribal nations and have been a focal point for negotiations between Tribes and states.

Updated Legislation Aims to Avoid Contentious Issues

The modifications to 25 C.F.R. Part 293, which governs the review and approval of Tribal-state gaming compacts, clarify the Department’s criteria when approving these compacts. This newest update aims to provide clear guidance on allowable negotiation topics between Tribes and states, eliminating ambiguity and streamlining the negotiation process.

Important terms related to gaming compacts have received better definitions, reducing potential areas of contention. The new regulations also explicitly outline when the Department must review a gaming compact, ensuring a more transparent and predictable review process. Assistant secretary for Indian affairs Bryan Newland remarked that the update upheld the government’s treaty and trust responsibilities to Tribal Nations.

A key part of that is our obligation to support Tribal Nations as they work to revitalize communities by opening businesses and creating jobs that strengthen their economic self-sufficiency.

Bryan Newland, assistant secretary for Indian affairs

These updated rules received extensive input from Tribal nations, with two listening sessions and seven formal consultation sessions held to gather insights and recommendations. Written comments from Tribes and the public further helped refine the new regulations, reflecting the Department’s commitment to collaboration and responsiveness to Tribal input.

Florida’s Troubles Proved the Need for Better Laws

The Department of the Interior’s drive to clarify tribal gambling regulations likely aims to avoid situations like Florida’s gaming compact between the Seminole Tribe and Gov. Ron DeSantis in Florida, which faced a prolonged legal battle. While the Seminole Tribe relaunched its Hard Rock Bets platform in 2023, the disruptions significantly hindered sports betting’s introduction to the Sunshine State.

West Flagler Associates, the party responsible for the lawsuit, openly questioned the Department of Interior, implying that the Seminole’s compact violated the law. The company’s latest legal maneuver was a writ of certiorari to the US Supreme Court, hoping to overturn the current verdict. If successful, the legal battle may extend into 2025, threatening the Seminole Tribe’s substantial investments.

With the new rules set to be effective 30 days after publication in the Federal Register, Tribal nations engaging in gaming compacts will benefit from increased clarity and certainty. The move aligns with broader initiatives under the Biden-Harris administration’s Investing in America agenda, which aims to deploy significant investments to help develop Tribal communities.

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Oklahoma Attorney General Gentner Drummond announced Tuesday it plans to represent the interests of the state in a years-long legal battle over unlawful gaming compacts that resulted in losses of state resources. Back in 2020, Gov. Kevin Stitt’s office reached revised gaming compacts with four Native tribes, the Otoe-Missouria, the Kialegee Tribal Town, the United Keetoowah Band of Cherokee Indians, as well as the Comanche Nation. This prompted four other tribal nations, the Cherokee, Chickasaw, Choctaw and Citizen Potawatomi, to file federal lawsuits, challenging the Governor’s authority for the signed gambling compacts.

The prime issue with the compacts orchestrated by Gov. Stitt was that he didn’t have the legislative authority to enact them. The legal battle continued with the Oklahoma Supreme Court ruling twice that the aforementioned gambling compacts are invalid, despite the Governor submitting them to the federal government for approval.

State’s Relationship with Tribal Organizations Suffered Damage

Now, the state’s Attorney General, confirmed he joins the lawsuit to defend the interests of the state and informed the Governor of his decision via a personal phone call and an official letter. In his letter, Drummond said that Gov. Stitt can freely deal with the tribes but cannot violate the established laws currently in effect in Oklahoma. “I am taking this action in order to uphold the law and defend our constitution,” wrote the Attorney General.

Additionally, Drummond criticized the Governor for damaging the relations between the state and tribal organizations while at the same time not following the law. He claimed that the Governor didn’t enact gambling compacts that would bring benefits to Oklahomans but chose to engage in “costly legal battles.” Drummond pointed out: “Millions of dollars of state resources have been squandered on these futile efforts.”

“Oklahoma’s relationship with our tribal partners has suffered greatly as a result of your divisive rhetoric and refusal to follow the law,“

wrote Attorney General Gentner Drummond

According to the recent statement released by the Attorney General, there are nearly $600,000 in accumulated expenses for private law firms that are currently defending the unlawfully signed gambling compacts. He claimed that other legal battles have resulted in millions of losses under the tenure of Gov. Stitt. The Attorney General pointed out that he represents a “broad coalition of state leaders” that have an ultimate goal to repair the damage that has been done due to the unlawful gambling compacts with the tribal operators.

In light of the situation, earlier this week, Senate President Pro Tempore Greg Treat hinted that lawmakers may consider taking the authority related to the negotiation of tribal gambling compacts from the Governor. It is yet to be confirmed how can such change be enacted.

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