The Choctaw Nation of Oklahoma is a thriving nation of people nearly 200,000 strong. We celebrate a vibrant heritage of resilience and spirit, and today, we have no greater purpose than empowering each and every Choctaw to live a life filled with possibility. Oct 01, 2019 Discover the thrill of winning and a world of luxury at WinStar World Casino and Resort – the ultimate casino resort destination for entertainment! Aug 08, 2017 Oklahoma is home to more Indian gaming facilities than any other state and the industry shows no signs of slowing down. According to the Oklahoma Indian Gaming Association, tribal gaming left a $7.2 billion impact on the state's economy in fiscal year 2016.The organization's leader told KWGS that the figure is likely to reach $10 billion for the current year.

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byRandy Ellis

Where Does Your Money Go

Published: Mon, October 17, 2016 12:00 AMUpdated: Tue, October 18, 2016 1:00 PM

Thirty Oklahoma Indian tribes conducted casino-style gaming in the state last fiscal year, but nearly two-thirds of the record-breaking $132 million in exclusivity fees paid to the state came from just three tribes.

Leading the way were the Chickasaw Nation, which paid the state nearly $46.9 million in fees, the Choctaw Nation, which paid about $22.4 million, and the Cherokee Nation, which paid nearly $15.3 million.

“The record amount is not only good news for Oklahoma education funding, but also continues an upward trend since the first decline two years ago,” the Oklahoma Office of Management and Enterprise Services stated in an annual report prepared by its gaming compliance unit.

The $132 million in fees was nearly 3 percent more than the $128.4 million that tribes paid the prior fiscal year.

Indian gaming revenues received by the state go to support education, mental health services and state agencies.

The Oklahoma Department of Mental Health and Substance Abuse Services receives $250,000 each year from the exclusivity fees. The Education Reform Revolving Fund (1017 Fund) receives 88 percent of the remainder, and the state's General Revenue Fund receives 12 percent. This past fiscal year, the education fund received nearly $116 million, while about $16 million went into the General Revenue Fund, where it can be appropriated by the Oklahoma Legislature.

The exclusivity fees paid to the state were derived from nearly $2.2 billion in revenue that Oklahoma tribes generated last fiscal year through the operation of Class III, casino-style games.

Classes of games

Based on the terms of negotiated compacts, Oklahoma tribes are required to pay fees to the state based on the amount of revenue they derive from Class III games like slot machines, blackjack, craps and roulette.

Where Does Our Money Go

Many tribes also operate Class II and Class I games but do not have to share any revenues derived from those games with the state.

Class II games are bingo and bingo-style games, and include electronic versions of bingo that resemble slot machines. Class I games include traditional Indian games that may be a part of tribal ceremonies and celebrations and social gaming for minimal prizes.

The mix between Class III and Class II machines can vary from tribe to tribe, so the relative profitability of the gaming operations of various tribes cannot be accurately determined just by looking at how much they pay the state in fees.

The number of Class III gaming machines operating in the state has risen slightly in recent years, but the number of Class II games has been growing even faster, the state report indicated.

The number of Class III gaming machines in Oklahoma's Indian casinos increased from a monthly average of 40,667 in fiscal year 2015 to 41,099 in fiscal year 20l6, the report said.

In recent years, about 58 percent of the electronic gaming machines in Oklahoma's Indian casinos have been Class III machines, the report indicated, citing data from Casino City's Indian Gaming Industry reports.

Under compacts with the state, tribes are required to pay the state 4 percent of the first $10 million in revenue they receive from Class III electronic games. They pay 5 percent on the next $10 million and 6 percent on any revenue above that. They pay 10 percent of the monthly net win from table games.

Tribes paying most fees

Here is a list of the 10 tribes that paid the most money in exclusivity fees to the state last fiscal year and the amounts they paid:

•Chickasaw Nation, $46,861,383

Where does the oklahoma casino money go back

•Choctaw Nation, $22,444,606

•Cherokee Nation, $15,290,046

•Muscogee (Creek) Nation, $8,531,353

•Quapaw Tribe, $5,923,005

•Osage Nation, $5,775,990

•Citizen Potawatomi Nation, $4,079,849

•Comanche Nation, $3,992,720

•Cheyenne & Arapaho Tribes, $2,898,332

•Eastern Shawnee Tribe, $2,593,546

Randy Ellis

For the past 30 years, staff writer Randy Ellis has exposed public corruption and government mismanagement in news articles. Ellis has investigated problems in Oklahoma's higher education institutions and wrote stories that ultimately led to two... Read more ›

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August 15, 2010
The success of the state's Indian Casinos has helped raise $118.2 million in state revenues. This is a record high. In total, the state's 30 tribes have increased state gaming revenues by 5,000 percent.
Three tribes have paid almost 60% of the revenue. The Cherokee Nation paid $12.2 million. $22.7 million was paid by the Choctaw Nation. $33.3 million was paid by the Chickasaw Nation. 27 other tribal own casinos paid the state $50 million.
Currently the state has had a decline on revenues from other industries. The money earned from Indian Gaming will be used to help state run programs. 88% of the money will go to education. The remaining 12% will go to the state's general fund. $250,000 will go to pay for treatment and education programs to treat gaming addiction.
One of the reasons for the success has been the operation of Class 3 gaming machines. This provides visitors with Las Vegas style electronic gaming machines. These types of gaming machines are networked with other casinos resulting in progressive jackpots and large payouts. They are very popular with gamers. 4% - 6% is collected by the state on these types of games.
Other states have had a decline in their gaming revenues. However Oklahoma has been able to increase their revenues. With increased competition from nearby states it is questionable if Oklahoma will be able to continue this trend. Currently it is expected for the states tribal casinos to continue their revenue increase for a few years. However it is also expected to level out in time with a possible decline.

Return to Oklahoma Casinos home page.

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