Oklahoma tribes contribute over $200 million in gaming fees to the state in fiscal year 2023

Oklahoma's federally recognized tribes paid the state more than $200 million in gaming exclusivity fees during fiscal year 2023, according to the latest report from the Oklahoma Gaming Compliance Unit. This represents a 5.6% increase from the previous year.

Under the state’s gaming compacts, Oklahoma’s tribes are required to pay monthly exclusivity fees based on the revenue from their Class III games and non-house-banked table games. The report revealed that the tribes earned a total of $3,339,650,516 from these gaming activities in the last fiscal year.

Out of the 38 federally recognized tribes in Oklahoma, 33 contributed to the exclusivity fees, which amounted to a total of $202 million over the 12-month period during last fiscal year.

The fee structure is tiered, with tribes paying 4% on the first $10 million in Class III gaming revenue, 5% on the next $10 million, and 6% on any revenue exceeding $20 million. Additionally, a 10% fee is applied to the monthly net win from table games.

The Chickasaw Nation, which operates 23 casinos across Oklahoma, was the largest contributor, paying $74,909,690 in exclusivity fees. Other significant contributions came from the Cherokee Nation with $18,565,056.90 from its 12 casinos, the Choctaw Nation with $45,140,683.46 from 22 casinos, and the Muscogee Nation with $13,628,451 from its 9 casinos. The Osage Nation, operating 7 casinos, paid $8,303,407.92, while the Seminole Nation, with 3 casinos, contributed $453,337.18.

The state's tribal gaming revenue is divided into two regions: the Tulsa region and the Oklahoma City region. The Tulsa region, encompassing the eastern half of Oklahoma and parts of Kansas, saw a 2% increase in revenue, totaling $3,560,275,433. The Oklahoma City region, covering the western half of Oklahoma and parts of Texas, experienced a 2.1% increase, reaching $3,216,288,977.

Comparatively, the FY23 National Indian Gaming Commission (NIGC) report indicated that the Sacramento, California region led the nation in gaming revenue, generating $11,965,357,091 with a 1.8% year-over-year increase. In contrast, the Tulsa and Oklahoma City regions reported lower revenues than most other U.S. regions, except for the Rapid City region, which earned $425,875,203.

Oklahoma legislation mandates that the revenue from exclusivity fees is allocated to several state funds. The Department of Mental Health and Substance Abuse Services receives $250,000 annually to support mental health and addiction recovery services for Oklahoma residents.

The remainder of the funds is distributed between the Education Reform Revolving Fund, which received $177,787,921.91 in 2023, and the General Revenue Fund, which was allocated $24,243,807.53. The Education Reform Revolving Fund supports the state's Department of Education, while the General Revenue Fund finances the state’s executive office, higher education initiatives, and other government activities.