In fiscal year 2022, Oklahoma experienced a significant financial increase from tribal gaming, collecting over $191.5 million in exclusivity fees. This 18% increase over the prior year reflects the growing success of Class III electronic games and nonhouse-banked card games.
The growth in exclusivity payments, consistent since 2005 with few exceptions, highlights the thriving state-tribal gaming compact relationship in Oklahoma.
The breakdown of the $191.5 million in exclusivity fees revealed a significant preference for Class III electronic games (slot machines), which contributed $166.5 million, over table games, which accounted for $25 million. This difference underscores a bigger allure of slot games than table games, a pattern mirrored in the online casino sphere, where slots account for 9 out of every 10 rounds played.
Since the inception of voter-approved state-tribal compacts in 2005, Oklahoma’s tribal gaming exclusivity fees have consistently grown, marking an 18% increase in FY 2022 over the previous year.
The fees, derived from $3.19 billion in gaming revenue, fund critical state services. This financial growth underscores the robust partnership between the state and its tribal entities, fostering economic development and supporting community services.
The allocation of the $191.5 million collected in FY 2022 underscores a strategic investment in Oklahoma’s future. The Education Reform Revolving Fund (1017 Fund) received the lion’s share with $168.3 million, while the General Revenue Fund and the Department of Mental Health and Substance Abuse Services received $23 million and $250,000, respectively. This distribution reflects Oklahoma’s commitment to education and mental health services, funded by the casino gaming.
The oversight of tribal gaming in Oklahoma, as mandated by the state-tribal compacts, involves stringent regulatory requirements to ensure integrity and fairness. The Gaming Compliance Unit of the Office of Management and Enterprise Services plays a pivotal role in this oversight, enforcing standards on games, accounting, auditing, licensing of employees, and more. This framework ensures the responsible growth of tribal gaming while safeguarding the interests of all stakeholders.
The continuous rise in exclusivity fees from tribal gaming has significant implications for Oklahoma’s economy and public services. With an 18% increase in FY 2022, the revenue from tribal gaming has become a cornerstone of funding for education, general revenue, and mental health services. This financial trajectory not only highlights the success of the gaming industry but also its role in bolstering state funding for crucial services.
