Compact Dispute Leads to Iowa Nation Casino Delays

By Jerry Smith Staff Writer Updated: 12/04/2023

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Iowa Nation Casino Delayed

It has recently been reported that the Iowa Tribe of Oklahoma’s plan to expand its gaming operations has been hindered by a compact dispute with the state government. This is said to have led to significant delays in the construction of a new casino. Tribal leaders blame this issue on disagreements with the state over a gaming compact, which has stalled their ambitious project.

The Tribe is looking to build a larger casino resort across from its existing Ioway Casino on Route 66 and to construct a direct exit ramp from Interstate 44. This ramp would facilitate easier access to the casino, eliminating the current five-mile detour for freeway travelers.

The tribe intends to fund and build both the casino and the exit ramp on its sovereign land. However, this plan, initially proposed in 2019, has been met with red tape and hurdles.

Renegotiation of Compacts with Tribe Causes Complications

Complications have arisen as a result of Oklahoma Governor Kevin Stitt’s efforts to renegotiate the state’s gaming compacts.

In 2019, Stitt sought to revise the agreements, aiming to increase the revenue-share payments from tribal casinos from 6 percent to 13 percent. The governor’s move was based on his claims that the existing compacts, established in 2004, were due to expire at the end of 2019.

The tribes, including the Iowa Nation, contested Stitt’s claims, insisting that the 2004 compact was designed to automatically renew and renegotiations were therefore not necessary. This disagreement resulted in a ruling by the Oklahoma Supreme Court, which sided with the tribes. According to reports, only two of Oklahoma’s 38 federally recognized tribes have agreed to Stitt’s new terms.

The Senate Joint Tribal Relations Committee recently rejected these new compacts, voicing concerns over the potential unrestricted expansion of gaming in Oklahoma County. This area is the state’s most populous and includes Oklahoma City.

Plans In Jeopardy for the Tribe

The stalemate has put the Iowa Tribe’s plans in jeopardy, according to reports. Iowa Nation Chairman Jacob Keyes expressed frustration with the situation in a recent interview and spoke about the tribe’s reluctance to accept Stitt’s compact terms.

Keyes talked about the Tribe’s disinterest in Stitt’s proposals, labeling them as being unfavorable. He also highlighted the strained relationship between the Tribe and the governor’s office. Keyes told local news station KFOR:

We were basically told that we couldn’t do that project for the exit without signing a new compact.

He added that any chances of signing the compact were off the table, and the governor’s compacts were no good for either their tribe or any other tribe.

Despite these challenges, Keyes remains optimistic about the situation. He acknowledges the tribe’s allies in the legislature and is hopeful that a resolution will be reached sooner rather than later. The tribe aims to commence construction of the new casino by April next year and has a target of opening in mid-2026.

Some officials believe that this situation is an indication of the ongoing complexities of tribal-state relations in the United States, particularly concerning gaming operations.