Skip to main content

Compact Dispute Solution: End the Casino Monopoly


With Governor Stitt and Oklahoma’s tribes at loggerheads over the gaming compact, it seems like a good time to reconsider the tribes’ gambling monopoly altogether. While there is only one Las Vegas, Oklahoma is a casino state. And regardless of the dispute between the governor and the tribes or its outcome, Oklahoma will remain a casino state. The question we should ask ourselves is, why should the tribes be exclusively able to operate casinos?

As I understand the history, casino gambling exclusively allowed of tribes in other states arose out of a legitimate need for impoverished reservations to generate some cash flow. Reservations, in my opinion, are basically great big quasi-autonomous concentration camps. In Arizona, where I lived for nearly a decade, I found reservations to be sad, undeveloped, generally poverty-stricken places with a few poorly-exploited natural attractions that tourists could have attended in greater numbers if anybody had the incentive to promote them. It’s easy to understand why tribes in those circumstances would jump at the chance to generate a relatively easy cash flow from gambling attractions, limited to the geographic confines of the reservations, and why sympathetic lawmakers would agree to let it happen.

But Oklahoma does not have reservations. Consequently, tribal members have largely fully integrated into the prevailing culture and have benefitted by apparently becoming just as prosperous as any other group of people. Congress still recognizes Oklahoma’s reservation-less tribes, and this grants the tribes some privileges others of us do not enjoy. Given history, this might well be justified, but it is not apparent that there is now, or ever really was, a strong justification for the grant of a monopoly over an industry other than that it happened elsewhere. Casinos in this state are not restricted to specific territories, although the laws and regulations on permissible locations can be restrictive, confusing, and arbitrary.

Thus, casinos in Oklahoma are fairly ubiquitous, and they tend to be located close to the interstates and are common on our borders. That’s just good business. The largest casino is practically on the border between Texas and Oklahoma on I-35. As any frequent traveler on I-44 and I-35 knows, when headed north out of Texas on either of these two highways, it can be quite the adventure dodging all the vehicles with Texas plates slowing for the exits to the casinos. After mile marker 5 or 6, though, traffic becomes relatively clear.

That’s the main reason casino gambling will not be shut down in Oklahoma, no matter what happens with compact negotiations and legal disputes. Casinos bring too much money into the state, even with tribes being the primary beneficiaries of surrounding states’ inhabitants’ gambling habits.

So, if casino gambling is not going away and it’s already pretty much all over the place even with the difficult-to-understand restrictions on their locations, why should the tribal monopoly continue? A more competitive casino gambling industry is likely to bring even more money into the state. Competitive industries are generally larger and richer than monopolized ones. Sure, to some extent Oklahoma’s casinos compete with those in Las Vegas, Louisiana, New Jersey and other states, but the head-to-head competition that made Las Vegas great is relatively muted in Oklahoma by its limitation to tribes.

This is not just a practical issue. It is also a moral one. As Howard Hughes (played by Leonardo DiCaprio) pointed out to a U.S. Senator in the movie, The Aviator, granting monopolies is downright un-American. For those who have a problem with making the expansion of the gambling industry a moral imperative, keep in mind that while casino gambling is exploiting a vice, so is selling liquor in a bar, and so is selling state-sponsored lottery tickets out of a neighborhood convenience store. If people want to keep casinos out of their communities, there are legal means to do so, some of which are far more likely to prevail over, say, a Steve Wynn wanting to open a casino than over tribes wanting to do the same.

So the bottom line is this. Let’s end the tribal monopoly over casino gambling in Oklahoma and open the industry to anyone willing to compete.

Byron Schlomach is Director of the 1889 Institute and can be reached at bschlomach@1889institute.org.

The opinions expressed in this blog are those of the author, and do not necessarily reflect the official position of 1889 Institute.


Popular posts from this blog

Welfare of Oklahoma’s Children Panned In Flawed “Study”

Are Oklahoma’s children underprivileged? According to a recently published list by Wallethub, which attempted to rank states with the most underprivileged children, Oklahoma is the 7th worst. However, if the goal was to help states improve their policies, or to show parents what states to avoid, the authors might have done better to provide sources for their data (outside the lists Wallethub had already compiled), and more importantly, choose better metrics. The authors don’t provide much context or support for why their chosen metrics matter, or how they could be changed. Of course, the goal might just be clicks.   The study is divided into three sections: Socio-economic welfare (50 points), health (25 points), and education (25 points). Each is evaluated based on Wallethub ’ s list of arbitrary metrics and then assigned a weighted score. These are then combined to get the final overall “ underprivileged” score. But are these scores worthwhile?   Socio-economic Welfare Share...
Read more

A Blunt Cry for Covid Dread’s End

Allowing an admittedly adverse ailment to be inaccurately advertised as an apocalyptic abomination able to annihilate all is aggravating, annoying, and abhorrent. An accurate assessment advises any and all to avoid alarmism and act appropriately. Anxieties are anticipated, but authentic appraisal admits an alternative: any of advanced age or anemic autoimmunity are advised to avert ailment by avoiding acquaintances and afflicted areas. Adults, adolescents, and any of an early age are able to get back to business. Bodies are besieged and beset by baseless bombast. Broadcasters blithely belch baloney. Boorish bullies berate and belittle. Bureaucrats ban beneficial business. Busybodies blinded by bad bulletins belittle benign behaviors. But bravery and boldness bolster benevolence. By bringing back businesses, cities can commence circulation of currency and cooperative commerce.  Concededly, Covid causes casualties. However, careful consideration confirms: car crashes cruelly cause c...
Read more

When It Comes to the Cox Center, “What if I Get to Meet a Movie Star?” Isn’t Good Enough

In a recent   post , 1889 Institute expounded on the fiduciary duty of elected officials “to act in the best interest of the people of the state as a whole,” a “high duty, executed as a public trust … wherein one puts the people’s interest above one’s own.” This fiduciary duty must not stop with elected officials. Once an elected body or an elected official – the legislature, a city council, the governor, or a mayor – has taken final action, the faithful implementation of each enacted law, policy, or program falls to an army of bureaucrats. Thus, a fiduciary duty to execute laws and policies with diligence and integrity, tantamount to that of elected officials, must extend to government employees. Recently, I had a few moments to sit down and watch a show with my children. Unsurprisingly, my son picked a series entitled “The Stinky and Dirty Show.” I was naturally skeptical that the show would yield any real value. However, as I watched, I found myself pleasantly surprised. Each ep...
Read more

Public Unions and Obscure Election Dates Create a Perfect Storm

Wouldn’t it be great to pick your boss? I don’t mean choose between two competing job offers based on which boss you prefer. I mean that you and your coworkers get together and pick a boss based on who is going to be the easiest to work for: someone who won’t interfere with your work, won’t call you out when you’re acting against the interest of your customers, someone who will sing your praises to the public, and let you work for another organization on company time. Public sector unions everywhere wield undue power over the elected officials charged with overseeing them. In many states unions dominate every aspect of politics. Right to work laws, and the state culture that created them, are meant to shield Oklahoma from this fate. But when public employees are able to band together and withhold essential services, especially those services they have fully monopolized by virtue of the fact that only government provides them, elected officials have little choice but to cave. This is th...
Read more