Senator Smith Says New Tribal Gaming Agreements Could Help Passage of Tax Cuts

Passing meaningful tax relief hinges on identifying new revenue sources for state services. That's according to Senator Jerry Smith, R-Tulsa, who has called on Governor Frank Keating to take a close look at how new tribal gaming agreements could generate a significant portion of the dollars needed to eliminate the state income tax and the sales tax on groceries.

"There have been ongoing negotiations for years, but we have yet to come up with a significant tribal/state gaming compact that generates substantial income for the state. And it is likely that the federal courts will uphold the tribes' right to play more provocative games at their gaming centers. We need to get out front on this, and realize it represents an excellent opportunity for both the tribes and the state," explained Senator Smith.

In a letter to Governor Keating, Smith said his primary concern is that Oklahoma could miss an opportunity to gain significant new revenues from tribal gaming because of the rigid positions taken in the past.

"It seems Oklahoma may have taken some stands in the past that really haven't dealt with the realities of the gaming industry and with the kinds of decisions likely to come our way via the federal courts. We've hampered the financial welfare of tribal gaming industry, but that isn't going to stop the eventual arrival of Casino-type centers. Let's start planning for it now, and develop agreements that will benefit all of Oklahoma," said Senator Smith.

The exact amount of money that could be generated would depend on the type of agreement finally adopted, but it would certainly generate millions for the state.

"The experts agree that the tribes are entitled to more than just off track betting, and that the tribes are going to prevail, either through litigation or by negotiations with the Secretary of the Interior. Whether some Oklahomans are opposed to certain types of gambling is not going to be the issue. We need to be realistic, and start serious negotiations on agreements that will include both adequate regulation and fair compensation for the state of Oklahoma," said Smith.