The Cherokees own Hard Rock Tulsa , one of the most popular casinos in the state
Commercial Expansion of Oklahoma Tribes
Historically , tribes with extra resources generated by casino revenues often have focused on diversification outside of gaming . According to a piece by Michael Soll and Jeff Hartmann published in last year ’ s edition of Tribal Government Gaming , “ many had ownership positions in a variety of businesses , but investment capital was limited and risk was quite measured .” This has led tribes to look in a different direction , a direction they are much more familiar with — the gaming industry .
In recent years , tribes have recognized the value they bring to the industry after being such a vital part of it for so long . Most tribes have compacts that limit the number of casinos they are allowed to have or the number of machines they are able to operate . Further , in many cases , opening a neighboring casino would simply cannibalize existing revenue streams instead of creating new ones . The obvious next move ? Redirect much of the investment money previously used for outside investment back into the gaming industry , and more specifically , into the commercial gaming market .
As mentioned in the same article by Soll and Hartmann , “ the road to commercial gaming investment by tribes dates back more than 15 years , having gained momentum following the Mohegan Tribe ’ s entry to the Poconos market in 2005 , followed closely by the Seminole Tribe of Florida ’ s acquisition of Hard Rock International in 2006 .” The Mohegan and Seminole Tribes paved the way for what has become a much more common outlet for tribes across the country , and Oklahoma is no exception .
In the early 2000s , the Cherokee and Chickasaw Nations entered the commercial market with the renovation of the Will Rogers Downs racetrack and casino in Claremore , Oklahoma , and the Remington Park racetrack and casino in Oklahoma City . Since then , the commercialization of Oklahoma
tribes had cooled off until recently .
In today ’ s U . S . gaming environment , new markets are relatively rare . Areas of the country that accept gaming already have legalized casinos , while the ones against it have made their stance clear , even going so far as to enact legislation to prevent it in some cases . Accordingly , tribes looking to enter the commercial gaming environment must either : 1 ) purchase an existing commercial operation ; or 2 ) wait for existing markets to expand .
Acquisition has been a major driver over the past several years , most notably with the Poarch Brand of Creek Indians ’ purchase of Sands Bethlehem and the Seminole Tribe of Florida ’ s purchase of the Mirage in Las Vegas . Earlier this year , the Cherokee Nation became Oklahoma ’ s first tribe to enter the fray , finalizing their purchase of the Gold Strike Casino Resort in Tunica , Mississippi from MGM Resorts International . Chuck Garrett , president and CEO of Cherokee Nation Entertainment , told Business Wire , “ This acquisition is a natural evolution for our company . Building our business outside of Oklahoma is a huge step that strengthens our ability to boost the Cherokee Nation economy while also building on our reputation of being a strong community partner and industry leader .”
Though less prevalent , expansion opportunities do occasionally emerge . After a long history of slot operations , Arkansas passed an amendment in 2018 to allow four full-scale casinos in the state . Its Pine Bluff license was awarded to Oklahoma ’ s Quapaw nation in 2019 , marking the tribe ’ s first venture into commercial gaming .
“ The Nation spent over five years working to bring a casino to the Jefferson County area , and to get the support of local government to make this happen made it all the better ,” said Quapaw Nation Chairman Joseph Byrd . “ The ability for tribes to leverage our level of expertise and grow into new markets is great for tribes as a whole .”
Aside from being awarded the license , Byrd also was extremely satisfied by the nation ’ s ability to open and operate a casino of this category during the middle of a pandemic : “ When so many other businesses were failing , I am proud of our ability to move forward and open this casino .” The Arkansas facility generates nearly $ 150 million in GGR to support members of the nation . While the Cherokee and Quapaw Nations are the only two Oklahoma tribes currently operating commercial gaming facilities outside of the state , they may not be the last . The Cherokee and Choctaw Nations both are vying for the final license in Arkansas , and the Osage Nation is exploring an opportunity to build a casino at Lake of the Ozarks in Missouri . The Chickasaw Nation also has partnered with several other entities proposing a $ 3 billion casino resort in Coney Island , New York . These nations join other large tribes across the United States seeking diversification in the gaming sector versus outside of it , a trend we believe will continue into the foreseeable future .
Conclusion
The Oklahoma gaming market is as unique as any that exists in the country . It creates tens of thousands of jobs , millions of dollars of revenue to the state , and billions in economic impact to direct and indirect entities associated with the industry . It is also a market approaching severe saturation .
To move forward , the state and its tribes must adapt and find new ways to grow to create long-term sustainability for the industry . As we ’ ve examined , both show a willingness to do so , but how these moves evolve the industry locally and the tribes in the context of a national , and possibly international , gaming industry will be interesting to watch .
Chris Irwin , Senior Vice President , Native American Services , The Innovation Group
28 TRIBAL GOVERNMENT GAMING 2023