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

George Floyd versus Union Cops: Is that the Real Story?

No one with a brain can look at the video of the Minneapolis cops putting their weight on George Floyd’s entire body, including a knee to his neck, and see his resulting death as anything but murder. The first autopsy cited pre-existing health conditions as a contributing factor in Floyd’s death. The second autopsy found Floyd’s death to be murder due to his carotid artery being crushed, cutting off blood flow to his brain. The official coroner seems to have come around to the murder conclusion, but regardless, those cops killed a man for passing a counterfeit 20-dollar bill; and because he’s dead, we can’t even find out if Floyd knowingly did so. Were the cops indifferent to Floyd’s pain because of racism? I don’t know, and no one else does, either. The cop with his knee on Floyd’s neck is obviously responsible for Floyd’s death. The other cops, who did nothing to alleviate Floyd’s suffering when he complained that he couldn’t breathe, are at least culpable in the murder. Three of the...
Read more

The Legislators in Black Robes Strike Again

Once again, the Oklahoma Supreme Court has usurped the Legislature’s constitutional authority. This time, it has legislated new election rules, behind closed doors, on a compressed timetable, and without public input. All with an election looming in which the new rules will apply. On Monday, the Court eliminated the requirement that citizens voting by absentee ballot have their identity verified by a notary. If left unaddressed by the Legislature, absentee voters will be permitted to vote with little more than a pinky-swear promise that they are who they say they are, while in-person voters will still be required to show ID at the polling place. The Court’s decision not only harms the integrity of our election process, but was arrived at through a highly unusual process. The legal challenge to the notarization requirement was launched by a coalition of progressive organizations calling themselves “Let the People Vote.” Their stated reasoning for allowing unverified voting is...
Read more

A Teacher Walkout Leader’s Distorted View of School Choice

The Tulsa World recently published a piece by a leader of the teacher walkout a few years ago predictably opposing Governor Stitt’s proposal to expand the Equal Opportunity Education Scholarship program. There is much to take issue with in the piece, which is full of disinformation, but perhaps the most preposterous claim is the following: You’ve probably also heard of “school choice.” The term is extremely misleading because it implies that parents don’t have a choice, when the reality is every parent already has school choice for their child. Parents can choose to send their child to a public school, private school, religious school or even home school. School choice isn’t about giving parents more options. It’s about using taxpayer dollars to give wealthy families a discount on their choice of school. (emphasis added) Try telling that to the truancy officer. The model of public education in America is that we assign every student to a government school base...
Read more

A Simple Way to Improve Oklahoma’s Selection of Judges: Open Up the Process

The synod has finished its secret meetings and taken its vote behind closed doors. The public waits with bated breath (well, some of us) to get a glimpse at the new high priest who will don his formal vestments and take his seat at the commanding heights of doctrinal authority. Who will it be? Who will it be?! Then, as if delivered from the heavens, the names appear in a short announcement tucked in an obscure corner of the internet . WE HAVE CHOSEN. I am not describing the last papal conclave . I am describing Oklahoma’s unnecessarily mysterious process for selecting Supreme Court justices. All we are missing is the plume of white smoke. The nuances of the judicial selection methods employed by the 50 states are as varied as the cuisine. Some utilize elections, some gubernatorial appointments, some even have legislative appointments. We have commented on the relative strengths and weaknesses of these various methods, and will continue to do so, but some things are so f...
Read more