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Oklahoma tribes take over casinos

Late on Friday afternoon, August 17, 2007, the Supreme Court of the Cheyenne and Arapaho Tribes of Oklahoma reversed a May 18, 2007 lower court decision that Amendment No. 11 to the gaming management contract between Southwest and the Cheyenne and Arapaho was valid under the Tribes' Constitution. Southwest manages the Lucky Star Casinos for the Cheyenne and Arapaho in accordance with Amendment No. 11 to its gaming management contract which would have expired on May 19, 2009 or when new gaming management agreements between Southwest and the Tribes were approved by the NIGC. In its opinion, the tribal Supreme Court stated that in view of the importance of tribal gaming revenue stability to the economic security, health and welfare of the Tribes, and the importance of governmental and economic stability to the Tribes as a general matter, it had stayed the effectiveness of its decision until October 16, 2007.

At approximately 8:00 p.m. on August 17, 2007, the National Indian Gaming Commission issued an Order based on the tribal Supreme Court opinion reversing its prior approval of Amendment No. 11. Under federal law, the NIGC must approve all gaming management contracts. The NIGC decision and order makes no mention of the stay of the tribal Supreme Court's decision until October 16, 2007. Darrell Flyingman, Governor, ignored the stay in the tribal Supreme Court's decision and relied on the NIGC's order in purporting to take over casino management on Sunday night. Southwest intends to appeal the NIGC's decision and seek immediate clarification as to its effective date.

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