Oklahoma House of Representatives
February 23, 2004

FOR IMMEDIATE RELEASE
Contact: State Rep. Larry Ferguson
Capitol: (405) 557-7344
Cleveland: (918) 358-2365

OKLAHOMA CITY -- One of the "hot topics" in the Oklahoma Legislature this year is the gaming bill, which is known officially as Senate Bill 553.

This bill would allow three of Oklahoma's four horse-racing tracks to offer a limited number of electronic gaming devices similar to those in Indian casinos. In addition, it contains a gaming compact for Oklahoma's Indian tribes.

"Unfortunately," said Rep. Larry Ferguson, R-Cleveland, "that is about all many people know about SB 553."

Very few legislators participated in writing the controversial measure, "and according to some leaders of the smaller Oklahoma Indian tribes, they were apparently not included in the negotiations, either," the former House GOP Leader added.

Ferguson said there are "three basic reasons" for the bill: "it would provide much-needed revenue for our struggling race tracks and horse industry; some of the revenue from the Indian casinos would go to the state; and it would provide the necessary legal compact to allow the tribes' casinos to offer some games which the National Indian Gaming Commission has determined to be Class III," which is presently not allowed in Oklahoma.

"The bill does these things, but the 'small print' in SB 553 is what is not being read or understood," Ferguson warned. "It is similar to reading a headline and assuming you know all the facts in the story," the weekly newspaper publisher emphasized.

Because attendance and wagering at race tracks have been declining for several years, the purses awarded to the winning horses have been dropping, too. The result is that horsemen take their horses to tracks in states with higher purses.

It is estimated, according to figures Ferguson has received, that gaming revenue could add as much as $9 million to the Oklahoma tracks' purses for quarter horses. "This sounds great until you compare it to New Mexico and Louisiana, which also use gaming machines to supplement their racing purses," Ferguson said.

It is estimated that Oklahoma quarter horse purses with the gaming revenue will total $14 million to $15 million. The estimates for New Mexico are $23 million, and in the $20-$24 million range for Louisiana.

"The basic reason for this difference is that New Mexico has 3,000 gaming machines at its four tracks, and Louisiana has more than 3,000 at three tracks," Ferguson said. "Compare this to the total of 1,150 machines allowed at our tracks by this bill," he related.

"It is unfortunate that our track operators and many horsemen feel that the Oklahoma horse industry is in such danger that they seem willing to settle for anything."

On the tribal side of the compact "there appear to be some definite problems," according to a recent article by Truman Carter, the treasurer of the Sac and Fox Nation. He accused Governor Henry of having tribe-by-tribe closed-door negotiations "designed to pit one tribe's interests against the others." He also said Governor Henry has invited
fewer than half a dozen tribes to participate in gaming compact negotiations.

This version of the "State-Tribal Gaming Regulation Act" has other problems, according to Ferguson and other state Representatives.

One of the biggest stumbling blocks is the 15-year duration of the compact, Ferguson said.

"We are being asked to put into law various rules and regulations about gaming and the proceeds generated at the casinos and tracks. So far as I know, none of the legislators or Governor's negotiators have any experience with the operation of gaming facilities, yet the compact states we can make no changes until after Jan. 1, 2020. Fifteen years is a long time to agree to something you know little about."

Although some proponents of this gaming measure "choose to stick their heads in the sand and avoid the obvious," a large percentage of the money spent at gaming facilities is money that's already in the Oklahoma economy, Ferguson said. In other words, money spent at the casinos is money that would have been spent on things that generate sales tax for the state, cities and counties.

"The state may gain millions in 'new' gaming revenue, but how many millions will be lost in sales tax revenue, and how are the cities and counties going to replace the sales tax they lose?"

The State of Oklahoma could move the revenue from one pocket (sales tax) to another pocket (gaming fees), "but our cities and counties have only one pocket," Ferguson noted.

"If we are truly interested in helping the ailing horse-racing tracks and the associated horsemen, in allowing the tribes to offer some class III gaming machines, and in gaining some revenue for the state budget, the legislative leadership needs to slow down the push for the current version of Senate Bill 553 and return it to the shop for a few
much-needed repairs," Ferguson asserted.

"This is not a partisan issue, this is a critical public policy issue. We must do it right the first time, because the proposed compact plainly states that the government cannot make changes in it for 15 years."

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