State may lose big in game goof
State may lose big in game goof
By Tony Thornton
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6
Published: December 5, 2007
If an Oklahoma County judge is correct, the state of Oklahoma may have been shortchanged millions of dollars since state/tribal gaming compacts took effect in 2005.
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A subtle difference
The National Indian Gaming Commission has tried for several years to pass rules that would clarify the distinction between Class II games, or those based on bingo, and Class III games, which are more akin to Las Vegas-style slot machines.
Vendors and tribes in Oklahoma and elsewhere have spent millions of dollars lobbying against the regulators' planned changes.
Roughly half of the 45,000 machines in Oklahoma casinos are considered Class II. The state receives no money from tribal casinos for those games.
The other half are Class III games. The state generally receives 6 percent of the amount left in each Class III machine after winnings are paid.
Industry experts say gambling machines, on average, make about $175 per day.
Multimedia historically has been the dominant Class II vendor in Oklahoma, although its market share has dropped considerably since the compacts took effect in early 2005.
It could not be determined Tuesday how many games involved in the lawsuit are in Oklahoma. Those details are part of a protective order issued in the lawsuit, attorneys said.
What's state's reaction?
The protective order prevents an estimate of how much money the state may have been shortchanged under the gaming compacts.
Those compacts are monitored by the Office of State Finance, whose director said Tuesday the ruling appears to have no bearing on the state.
"The district court ruling does not provide OSF with any authority to take compliance action,” state Finance Director Tony Hutchison said. "We would need additional information and perhaps a ruling from the federal government to take any compliance action regarding this issue.”
Jim Breslo, president of Diamond Games, was surprised by Hutchison's response.
"I would be surprised if the state ... would not at least look into the issue if this ruling is affirmed on appeal. Certainly millions of dollars are at stake,” Breslo said.
Multimedia's largest customer is the Chickasaw Nation. The head of that tribe's casino operations, Brian Campbell, said he learned of Gurich's ruling Monday and has asked his attorneys for an interpretation.
Related Topics:
Culture and Lifestyle, Special Interest Groups, Hobbies and Pastimes, Gambling, Games, Native American Issues
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Please remember the Tribes are conducting their gaming enterprises as recognized by IGRA, and the enterprises are highly regulated, audited and reviewed; what the State is up to I dont know except the monies paid by the Tribes is significant by anyones standard, maybe except a few in this article.
I voted my conscience last Nov. and voted against that moron Meacham, and I don't understand why the rest of the state didn't follow suit. I love Oklahoma; I was born & raised here, but sometimes I fear for my home state when I see what stupid choices its people make at the ballot boxes.